Silicon Laboratories Inc. (NASDAQ:SLAB) Q4 2015 Earnings Conference Call Transcript

Feb 03, 2016 • 08:30 am ET

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Silicon Laboratories Inc. (NASDAQ:SLAB) Q4 2015 Earnings Conference Call Transcript

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Presentation
Operator
operator

Good morning. My name is Shannon and I will be your conference operator today. At this time, I would like to welcome everyone to the Silicon Labs Fourth Quarter 2015 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)

I would now like to turn the call over to Ms. Jalene Hoover. Ms. Hoover, you may begin your conference.

Executive
Jalene Hoover

Thank you, Shannon. Good morning, everyone. Thank you for taking the time to dial in. Tyson Tuttle, Chief Executive Officer; Bill Bock, President; and John Hollister, Chief Financial Officer are on today's call.

We will discuss our financial performance and review our business activities for the fourth quarter and full year. After our prepared comments, we will take questions. Our earnings press release and the accompanying financial tables are available on the Investor Relations section of our website at www.silabs.com. This call is also being webcast and a replay will be available for four weeks.

(Forward-Looking Cautionary Statements) In addition, the non-GAAP financial measures discussed today are not intended to replace the presentation of Silicon Labs' GAAP financial results. We are providing this information, because it may enable investors to perform more meaningful comparisons of operating results and more fairly highlight the results of core ongoing operations.

I would now like to turn the call over to Silicon Labs' Chief Financial Officer, John Hollister.

Executive
John Hollister

Thank you, Jalene. We are pleased to announce positive financial performance for the fourth quarter with top-line revenue ending near the high end of our guidance range at $160 million. Our non-GAAP EPS exceeded the high end of our guidance at $0.63 per share.

Total fourth quarter revenue was up 2% sequentially, led by upside in IoT, as we ramped new programs in our 32-bit MCU platform and continue to gain momentum in wireless. Q4 IoT revenue grew 3% sequentially, ending at $67 million or 42% of revenue.

Infrastructure revenue was down 2% sequentially to $30 million or 19% of Q4 revenue. We saw a tail-off in demand for timing products towards the end of the quarter, reflecting macro weakness with top telco customers and across all geographies.

Isolation products, however, delivered another record revenue quarter. As anticipated, we also posted solid results in Broadcast, delivering a 9% sequential increase to $40 million or 25% of fourth quarter revenue. This was led by a rebound in Broadcast consumer combined with steady performance from our automotive radio products. Fourth quarter Access revenue was $23 million or 14% of revenue. This reflects a sequential decline of 3%, consistent with expectations.

Looking at full year 2015, we delivered 4% (technical difficulty) revenue growth, outperforming the semiconductor industry which was flat to slightly down in 2015 according to recent industry estimates.

IoT established a new record, with revenue increasing 26% to $262 million. Infrastructure grew 13% to a record $122 million, with solid performance from both timing and isolation. Broadcast product revenue ended the