Yahoo Finance Silicon Laboratories Inc (SLAB) Q1 2024 Earnings Call Transcript Highlights: Robust Revenue ...
Q1 Revenue: $106 million, up 23% sequentially.
Industrial & Commercial Revenue: $65 million, up 9% sequentially.
Home & Life Revenue: $41 million, up 51% sequentially.
Non-GAAP Gross Margin: 52%, in line with guidance.
GAAP Gross Margin: 52%.
Non-GAAP Operating Loss: $39 million.
GAAP Operating Loss: $59 million.
Non-GAAP Loss Per Share: $0.92.
GAAP Loss Per Share: $1.77.
Cash and Investments: $333 million.
Q2 Revenue Guidance: $135 million to $145 million.
Q2 Non-GAAP Gross Margin Guidance: Approximately 53%.
Q2 Non-GAAP Operating Expenses Guidance: Approximately $102 million.
Q2 Non-GAAP Loss Per Share Guidance: $0.58 to $0.70.
Q2 GAAP Gross Margin Guidance: 53%.
Q2 GAAP Operating Expenses Guidance: Approximately $125 million.
Q2 GAAP Loss Per Share Guidance: $1.45 to $1.61.
Release Date: April 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Matt, can you provide insights into the visibility you've gained on customer-level inventories that are supported by the channel? A: Robert Matthew Johnson - CEO, President & Director: Yes, we've extensively sampled our top customers and observed a consistent reduction in excess inventory from December to January and onwards. Both end customer and distribution inventory are moving in the right direction. Distribution inventory is fully corrected, but end customer inventory still needs some work.
Q: Do you feel that the relationships built during this inventory and supply chain crisis will lead to more visibility and stronger partnerships in the future? A: Robert Matthew Johnson - CEO, President & Director: Absolutely, the relationships have indeed gotten stronger, which has also improved our visibility into end customer inventory. This experience has enhanced our ability to navigate and understand inventory levels better.
Q: Given the guidance for Q2 and the ongoing inventory adjustments, how much are you under-shipping relative to the end customer demand? A: Robert Matthew Johnson - CEO, President & Director: Our Q2 revenue guidance of $140 million does not fully reflect end customer consumption, which we estimate to be at least $160 million. The revenue is increasing, and inventory levels are decreasing, indicating a positive trend, but there's still a gap to close.
Q: Can you discuss the impact of the mix shift towards direct sales on gross margins? A: Robert Matthew Johnson - CEO, President & Director: The shift towards direct sales from distribution, where margins are typically higher, is a temporary situation. As distribution partners reduce their inventory, this mix is expected to normalize, and we anticipate gross margins to improve as revenue increases.
Q: How are the bookings trends, and are there any geographical differences in recovery? A: Robert Matthew Johnson - CEO, President & Director: Bookings are improving consistently across technologies, geographies, and applications, which is a positive sign. However, in China, while there are encouraging signs in design win activities, it hasn't yet translated into significant revenue improvements.
Q: With the introduction of Series 3 and ongoing advancements in Series 2, how do you see ASPs and content growth impacting future revenues? A: Robert Matthew Johnson - CEO, President & Director: Series 2 is contributing positively to our ASPs and gross margins due to its advanced features and capabilities. Series 3, while still in the early stages, is expected to further enhance our product offerings and support revenue growth over the long term. However, significant ASP impacts from Series 3 are not anticipated in the next couple of years.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
