Silicon Labs reports record revenues, but stock slips [Austin American-Statesman :: ]
(Austin American-Statesman (TX) Via Acquire Media NewsEdge) July 25--Austin-based chipmaker Silicon Laboratories Inc. reported record second-quarter revenues on Friday.
Revenue for the quarter was $154.9 million, up from $141.5 million in the same quarter of 2013.
That was an all-time high, said CEO Tyson Tuttle, that included record revenue in its broad-based product category, which targets internet infrastructure like data centers and the "Internet of Things," where the company's microcontroller, wireless and sensor products have gained traction.
"We are benefiting from our multi-year investment strategy for the (Internet of Things) and Internet Infrastructure and realizing meaningful revenue growth," Tuttle said.
The Internet of Things is a chip industry term for the trend of connecting non-computing devices -- including home automation systems, automobiles and industrial equipment -- to the Internet for remote monitoring and control.
Silicon Labs' products are involved in products like energy meters and home security systems, which are part of home services rollouts from companies like Comcast and Time Warner.
The company's products are also included in wearable, Internet-connected devices.
Also, Google Inc.'s acquisition of high-tech home monitoring device company Nest Labs this year benefited Silicon Labs because Nest is a customer.
Silicon Labs employs about 1,100 people worldwide, with just over half of them in Austin.
Despite the results, the company's closed down more than 14 percent Friday at $40.04 a share -- which could be a part of a larger tech stock selloff.
Analysts have been positive on the company, with some rating it a "buy" given its growing foray into the Internet of Things category.
"At 20 percent of sales expected this year, we like Silicon Labs' leading semiconductor exposure to Internet of Things (the next demand driver after smartphones)," wrote Ian Ing for Barron's website. "We believe Silicon Labs remains attractive either as an organically growing Internet of Things (IoT) company or a potential asset of interest to larger companies looking to increase IoT exposure."
The company expects revenue in the third quarter to be in the range of $153 million to $157 million and expects to establish another record in its broad-based products, officials said.
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