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Silicon Labs 'Still In Early Stages Of Recovery,' CEO Says Citing Sharp Revenue Drop

Published 24/04/2024, 16:52
© Reuters.  Silicon Labs 'Still In Early Stages Of Recovery,' CEO Says Citing Sharp Revenue Drop

Benzinga - by Anusuya Lahiri, Benzinga Editor.

Silicon Laboratories Inc (NASDAQ:SLAB) reported fiscal first-quarter 2024 sales of $106.4 million, down 56.9% Y/Y, beating the consensus of $105.1 million.

The fabless global technology company's adjusted EPS loss of $(0.92) beat the consensus loss of $(0.98).

Margins: Adjusted gross margin of 52.2% and adjusted operating margin loss of (36.5)% fell from 62.5% and 19.2% a year ago, respectively.

Industrial & Commercial revenue for the quarter was $65 million, down from $151 million a year ago. Home & Life revenue for the quarter was $41 million, down from $96 million a year earlier.

CFO Transition: Dean Butler will join the company as CFO on May 15, 2024. Butler will succeed Mark Mauldin, who is currently serving as interim CFO.

Silicon Labs CEO Matt Johnson said, “While we are still in the early stages of the recovery, we expect revenue growth to accelerate in the second quarter as excess inventory is further reduced, bookings improve, and design wins continue to ramp.”

Outlook: Silicon Lab expects a second-quarter revenue of $135 million – $145 million versus the consensus of $141.41 million.

The company projects an adjusted EPS loss of $(0.58) – $(0.70), against the consensus loss of $(0.45).

Silicon Laboratories stock lost 24% in the last 12 months. Investors can gain exposure to the stock via SPDR S&P Kensho Intelligent Structures ETF (NYSE:SIMS) and SPDR S&P Semiconductor ETF (NYSE:XSD).

Price Action: SLAB shares traded lower by 1.21% at $123.89 premarket at the last check Wednesday.

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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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