Wednesday, Silicon Laboratories Inc. (SLAB), a provider of analog-intensive, mixed-signal integrated circuits, recorded a significant rise in fourth quarter profit, helped by higher revenue and improved margins. Looking ahead, the company also provided revenue guidance for the first quarter 2010.
Austin, Texas-based Silicon's fourth quarter net profit surged to $40.25 million or $0.84 per share from $6.32 million or $0.14 per share in the prior year quarter.
Results for the quarter reflect a $0.40 impact from an Advance Pricing Agreement the company entered into with the IRS that covers historical tax years from 2005 through 2009, allowing the immediate reversal of tax reserves established for each of the periods, also providing more certainty regarding the company's future effective tax rate.
Excluding the impact of stock compensation expense and other one-time charges, net income was $50.48 million or $0.66 per share in the recent quarter.
On average, 16 analysts polled by Thomson Reuters expected the company to earn $0.62 per share for the quarter. Analysts' estimate typically exclude one-time items.
Quarterly revenue was $127.19 million, up from $99.34 million in the comparable quarter last year. Twelve analysts expected revenue of $127.38 million for the quarter.
Gross margin for the quarter improved to $83.26 million from $60.09 million and operating income grew 7% to $26.07 million from $7.08 million in the year-ago period.
In the current quarter, operating expenses increased to $57.18 million from $53 million in the same quarter last year, resulting from an increase in research and development expenses to $26.55 million from $27.36 million and selling, general and administrative expenses to $30.62 million from $25.63 million in the year-ago quarter.
For the full year, the company reported net income of $73.09 million or $1.57 per share compared to $32.93 million or $0.67 per share last year. Revenue was $441.02 million, up from $415.63 million in the prior year.
Analysts expected earnings of $1.94 per share on revenues of $441.12 million for the full year.
Looking forward, Silicon Laboratories projects first quarter revenue in the range of $120 million to $125 million.
Analysts estimate revenue of $118.69 million for the first quarter.
SLAB is currently trading at $43.98, down $0.37 or 0.83% on a volume of 1.07 million shares on the Nasdaq.
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