Silicon Laboratories Inc. (NASDAQ:SLAB) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 25, 2018 • 08:30 am ET

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Silicon Laboratories Inc. (NASDAQ:SLAB) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good morning. My name is Marcella and I will be your conference operator today. At this time, I'd like to welcome everyone to the Silicon Labs First Quarter Fiscal 2018 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.

I will now turn the call over to Jalene Hoover, Director of Investor Relations and International Finance. Jalene please go ahead Good morning. My name is Marcella and I will be your conference operator today. At this time, I'd like to welcome everyone to the Silicon Labs First Quarter Fiscal 2018 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 will now turn the call over to Jalene Hoover, Director of Investor Relations and International Finance. Jalene please go ahead

Executive
Jalene A. Hoover

Thank you Marcella and good morning everyone. Tyson Tuttle, Chief Executive Officer and John Hollister, Chief Financial Officer are on today's call. We will discuss our financial performance and review of our business activities for the first quarter. After our prepared comments we will take questions. Our earnings press release and the accompanying financial tables are available in 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.

Our comments today will include forward-looking statements subject to risks and uncertainties. We base these forward-looking statements and information available to us as of the date of this conference call and assume no obligation to update these statements in the future. We encourage you to review our SEC filings which identify important risk factors that could cause actual results to differ materially from those contained in any forward-looking statements. Additionally, during our call today we will make reference to certain non-GAAP financial information. A reconciliation of our GAAP to non-GAAP results is included in the company's earnings press release and also in the Investor Relations section of Silicon Labs website.

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

Executive
John Carter Hollister

Thanks Jalene. I'm pleased to report strong financial performance in Q1. We entered the year on a strong note with revenue topping the high-end of guidance and ending at $205 million, up 15% year-over-year. Combined with favorable gross margin, we also delivered non-GAAP EPS in excess of our guide at $0.87, up 38% year-on-year.

Our Infrastructure products led the way with an outstanding quarter delivering revenue of $49 million, up over $10 million sequentially, and representing 37% year-on-year growth. This is well above our 10% strategic growth target, and while we anticipated a strong quarter for Infrastructure actual results were meaningfully better than we expected.

Our timing products reached an all-time record with the expansion of clock, oscillator and buffer products in target markets. Our isolation products posted another record revenue quarter with continued strong adoption of digital