Silicon Laboratories Inc. Q1 FY2025 earnings call

Key Points

• Matt Johnson stated Silicon Labs drove strong first quarter results with growth in both business units. Home & Life mid-single-digit sequential growth, nearly doubling year-over-year with share gains and connected healthcare ramps. Industrial & Commercial continued recovery, high single-digit sequential growth and double digits year-over-year.
• New product ramps discussed: BG29 family of Bluetooth Low Energy SoCs for connected healthcare, BG22L and BG24L SoCs optimized for common Bluetooth applications, MG26 Series 2 multi-protocol SoC generally available, and Series 3 device ramping to production.
• Dean Butler reviewed financial results: revenue $178 million, up 7% sequentially. GAAP gross margin 55%, non-GAAP 55.4%. Balance sheet: $425 million in cash, etc. Supply chain review found no direct impact from tariffs currently.

In the March quarter, Industrial & Commercial business had revenue of $96 million, up 8% sequentially and 47% year-over-year. Home & Life business had revenue of $82 million, up 5% sequentially and 99% year-over-year. Industrial & Commercial grew high single digits sequentially and double digits year-over-year, while Home & Life grew mid-single-digit sequentially and nearly doubled year-over-year.

Forward-Looking

• Anticipate June quarter revenue $185 million to $200 million, midpoint 32% Y/Y growth.
• GAAP and non-GAAP gross margins expected 55%-57% in June.
• GAAP operating expenses expected $129M-$131M in June, non-GAAP $106M-$108M.
• GAAP loss per share expected $0.55-$0.95, non-GAAP $0.19 to loss $0.01.

Risks

• Geopolitical and tariff uncertainties, including indirect impacts on demand and changing tariff rules.

Q: Christopher Rolland asked about September quarter outlook and segment performance differences.

A: Matt Johnson said current linear performance and design ramps driving growth, not broad market strength. Dean Butler mentioned year-over-year growth differences and I&C metering business ramping faster.

Q: Christopher Rolland asked about segment strength flip.

A: Dean Butler noted timing change and I&C metering business exceeding expectations.

Q: Thomas O’Malley asked about channel inventory in June.

A: Dean Butler said channel inventory expected above 50 days but below 60 days, multi-quarter progression to target.

Q: Tore Svanberg asked about Series 2 and Series 3.

A: Matt Johnson said Series 2 driving incremental revenue, Series 3 with higher ASP due to increased features.

Q: Cody Acree asked about tariff exposure in end markets.

A: Matt Johnson said end markets not uniquely susceptible to tariffs so far.

Q: Quinn Bolton asked about pricing and Series 2/3.

A: Matt Johnson said no meaningful pricing change, differentiation driving gross margin.

Q: Joe Moore asked about M&A in current environment.

A: Matt Johnson said no change in strategic desire, uncertainty around trade impacting deals.