Silicon Laboratories Inc. (SLAB), a provider of analog-intensive, mixed-signal integrated circuits, Wednesday reported a significant rise in profit for the third quarter, benefiting from higher customer demand and lower operating expenses.
Net income for the third quarter rose to $22.44 million or $0.47 per share from $1.15 million or $0.02 per share in the previous year. Results for the quarter include stock compensation expense of $9.48 million.
On an adjusted basis, the company reported a net income of $31.92 million or $0.67 per share for the third quarter.
On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.60 per share for the third quarter. Analysts' estimates typically exclude special items.
The Austin, Texas-based company's total revenues for the quarter increased 11% to $125.91 million from $113.48 million a year ago. Analysts estimated a total revenue of $123.82 million for the quarter.
The company noted that five of its eight product lines achieved record revenue in the third quarter due to new product cycles and strength at large customers. The company's RF business grew in aggregate about 40% compared to the same quarter a year ago. The broad-based business was up 15%, compared to the same period last year, led by a strong rebound in the MCU business.
Cost of revenues were $44.88 million, compared to $44.17 million in the previous year. Gross margin increased to $81.03 million from $69.31 million in the previous year.
Operating expenses declined to $54.50 million from $61.97 million last year. Operating expenses for the quarter include research and development expenses of $25.90 million and selling, general and administrative expenses of $28.59 million. For the third quarter of the previous year, the company recorded an in-process research and development expenses of $10.25 million.
For the nine-month period, net income increased to $32.84 million or $0.71 per share from $26.61 million or $0.53 per share in the same period of the previous year. Total revenues for the period declined to $313.83 million from $316.28 million last year.
Looking forward, the company expects fourth quarter revenue in the range of $124 million to $129 million, a 25% to 30% increase year over year. Analysts expect earnings and revenue of $126.33 million for the next quarter.
SLAB is currently trading at $41.61, up 0.55 or 1.33%, on a volume of 702K shares on the Nasdaq.
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