Wed, Jul 24, 1:27 PM (45 days ago)
Silicon Laboratories Inc. reported a significant decline in financial performance for the quarter ending June 29, 2024. Revenues dropped 40.6% year-over-year to $145.4 million, primarily due to decreased sales in both Industrial & Commercial and Home & Life product segments. Gross profit fell by 53.3% to $76.6 million, with the gross margin decreasing to 52.7% from 58.7% in the prior year, driven by variations in customer and product mix. Operating expenses were slightly reduced by $2.0 million, but the company still posted an operating loss of $48.0 million compared to an operating income of $17.2 million in the same quarter last year. The net loss for the quarter was $82.2 million, significantly impacted by a $43.9 million non-cash tax expense due to a valuation allowance against certain deferred tax assets. Cash and cash equivalents increased to $240.8 million, supported by $121.1 million in net cash provided by investing activities, despite a net cash outflow from operations of $55.7 million. The company ended the quarter with $339.2 million in cash, cash equivalents, and short-term investments, and no outstanding amounts on its $400 million revolving credit facility. The company cited macroeconomic conditions, including inflation, high interest rates, and geopolitical tensions, as factors contributing to the decline in demand and operational challenges. Management expects continued volatility and weakness in customer demand due to high inventory levels and economic uncertainties.