Silicon Labs Sees Chip Market Turnaround, Broadcast and IoT Sales Growth; Stock Up
Silicon Labs shares closed up 18 percent at $110.04 Wednesday amid signs the semiconductor industry slump is coming to an end. Executives noted growth in key segments. Q1 bookings were “robust,” signaling a Q2 rebound “despite macro turbulence,” said CEO…
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Tyson Tuttle. Revenue was $188 million, at the midpoint of guidance, compared with $205 million in Q1 2018, the company reported. Sequentially, revenue was down 13 percent due to the “broad slowdown in the semiconductor industry,” said Chief Financial Officer John Hollister. This “should represent the bottom of the downturn,” said Tuttle. “We have not seen material improvements in key macroeconomic conditions, including geopolitical and trade factors” since the January earnings call. Silicon Labs expects Q2 revenue of $202 million-$212 million on sequential growth in its IoT, broadcast and access businesses, with infrastructure “flat.” The company’s Wireless Gecko Series 2 launch was announced Monday. The platform enables “payment-grade” security down to the device level, the chief said. Products on deck are geared to the Bluetooth, Z-Wave and “higher levels of functionality,” he said.