Silicon Laboratories Reports 67% Revenue Growth to $177.7 Million, Net Loss Narrows

Silicon Laboratories Inc. reported significant financial improvements in its latest quarterly results, with revenues reaching $177.7 million for the three months ended April 5, 2025, a 67% increase from $106.4 million in the same period last year. The company's gross profit also saw a substantial rise, climbing to $97.8 million, up from $55.1 million, resulting in a gross margin of 55.0%, compared to 51.8% in the prior year. Despite these gains, Silicon Labs recorded a net loss of $30.5 million, an improvement from a loss of $56.5 million in the previous year, translating to a loss per share of $0.94, down from $1.77.

The company attributed its revenue growth to increased sales in both its Industrial & Commercial and Home & Life product categories, which saw respective increases of 47% and 98.8%. The rise in revenues was driven by higher unit volumes and average selling prices. Operating expenses increased by $15.7 million, primarily due to higher personnel-related costs, but the operating loss narrowed significantly to $32.1 million from $59.1 million year-over-year. Silicon Labs ended the quarter with $424.8 million in cash, cash equivalents, and short-term investments, reflecting a strong liquidity position.

In terms of operational metrics, Silicon Labs reported a decrease in accounts receivable to $52.1 million, representing 26 days sales outstanding (DSO), and a reduction in inventory to $83.4 million, equating to 94 days of inventory (DOI). The company noted that 91% of its revenues were derived from international markets, with significant contributions from China and Taiwan. Notably, two distributors, Arrow Electronics and Edom Technology, accounted for over 10% of total revenues during the quarter.

Looking ahead, Silicon Laboratories remains cautious about macroeconomic conditions, including inflationary pressures and geopolitical tensions, which could impact customer purchasing behavior. The company is focused on maintaining its competitive edge through continued investment in research and development, which accounted for 49.6% of revenues in the latest quarter. Silicon Labs is also exploring potential acquisitions to enhance its product offerings and market reach, although it acknowledges the risks associated with integrating new businesses. The company aims to leverage its strong cash position to navigate the evolving semiconductor landscape and capitalize on growth opportunities in the Internet of Things (IoT) market.