Silicon Labs Posts Non-GAAP Profit Amid Acquisition by Texas Instruments
On August 11, Silicon Labs reported second-quarter results with revenue of $228 million, up 18% year-over-year. The company swung to a non-GAAP profit of $0.71 per share, marking a 545% increase from the same period last year. Revenue growth was broad-based across all segments, including Industrial & Commercial ($135M), Home & Life ($93M), and Medical (up 78%). Gross margins improved to over 61%, driven by strong demand for its chips. Despite non-GAAP profitability, Silicon Labs still reported a GAAP operating loss of $11 million due to rising expenses, including merger-related costs tied to the pending acquisition by Texas Instruments. The company has suspended forward guidance because of this deal and relies heavily on add-backs such as stock compensation ($25.2M) in its non-GAAP reporting. Wall Street remains divided: 18 hedge funds now hold SLAB, up slightly from last quarter, while short interest stands at 13.68%. The forward P/E ratio is high at 50.76, reflecting optimism about future earnings but also highlighting the gap between non-GAAP profits and GAAP losses.
Topics: non-GAAP earnings revenue growth Silicon Labs Texas Instruments acquisition