Silicon Labs Has 10% Q2 Revenue Rise but Says Timing Business Hit by Huawei Ban
Silicon Labs second quarter revenue rose 10 percent to $206.7 million despite “macro headwinds” affecting the semiconductor industry, while IoT grew to 60 percent of the revenue mix, management said on a Wednesday earnings call. Infrastructure revenue was $44 million,…
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21 percent of Q2 revenue, Chief Financial Officer John Hollister said, down 4 percent sequentially, with China trade issues “negatively impacting” timing product sales. Responding to a question on Silicon Labs’ relationship with Huawei and whether it will be able to restart shipments to the Chinese electronics manufacturer, Hollister called it a “complex issue” with different products having different types of export control designations. Silicon Labs has been working with the Semiconductor Industry Association and external counsel “to understand the landscape,” and it resumed some shipments, “where possible, with Huawei,” CEO Tyson Tuttle said. Hollister viewed the Q3 guidance it gave Wednesday -- $213 million-$223 million with a decline in infrastructure -- as reflecting “more of a normalized level of business with Huawei.” The China ecosystem remains important to the company, Hollister said, and it continues to “gain traction out of the market with Xiaomi and others.” IoT ecosystems are gaining strong traction with Alarm.com, Amazon, Comcast, Google Home, Signify, Samsung SmartThings, Tuya, Xiaomi and others, he said.