Silicon Laboratories Inc. (SLAB) Bundle
A Brief History of H3 Company
Company Overview
H3 Company, as of 2024, operates primarily in the semiconductor industry, focusing on the design and manufacturing of advanced microcontrollers and processing solutions. The company has seen significant fluctuations in its financial performance, influenced by market conditions and industry trends.
Financial Performance
For the three months ended September 28, 2024, H3 Company reported revenues of $166.4 million, a decrease of 18.4% compared to $203.8 million in the same period of the previous year. For the nine months ended September 28, 2024, revenues totaled $418.1 million, down 39.9% from $695.4 million in the prior year.
| Period | Revenues ($ million) | Change (%) |
|---|---|---|
| Q3 2024 | 166.4 | -18.4 |
| Q3 2023 | 203.8 | |
| 9M 2024 | 418.1 | -39.9 |
| 9M 2023 | 695.4 |
Cost and Profit Margins
The cost of revenues for Q3 2024 stood at $76.1 million, leading to a gross profit of $90.3 million, resulting in a gross margin of 54.3%. This reflects a decrease from the previous year’s gross margin of 58.4% for Q3 2023.
Expenses and Net Income
Operating expenses for the three months ended September 28, 2024, totaled $120.0 million, compared to $106.8 million for Q3 2023. The company reported a net loss of $28.5 million in Q3 2024, compared to a net income of $10.3 million in Q3 2023. For the nine months ended September 28, 2024, the net loss was $167.2 million, a significant decline from a net income of $35.3 million in the same period of 2023.
| Period | Net Income ($ million) | Change ($ million) |
|---|---|---|
| Q3 2024 | -28.5 | -38.8 |
| Q3 2023 | 10.3 | |
| 9M 2024 | -167.2 | -202.5 |
| 9M 2023 | 35.3 |
Research and Development
Research and development expenses for Q3 2024 were $83.2 million, accounting for 50.0% of revenues, compared to $79.0 million (38.8% of revenues) in Q3 2023. Total R&D expenses for the nine months ended September 28, 2024, were $249.8 million, slightly down from $254.3 million in the prior year.
Stockholder's Equity
As of September 28, 2024, H3 Company had total stockholders' equity of $1.08 billion, down from $1.21 billion on December 30, 2023. The decrease is attributed to the significant net losses incurred during the period.
| Balance Date | Total Stockholders' Equity ($ billion) |
|---|---|
| September 28, 2024 | 1.08 |
| December 30, 2023 | 1.21 |
Cash Flow and Liquidity
For the nine months ended September 28, 2024, net cash used in operating activities was $24.0 million, compared to $48.9 million in the prior year. As of the same date, H3 Company reported cash and cash equivalents of $369.7 million.
Debt Obligations
As of September 28, 2024, H3 Company had a $400 million revolving credit facility, with no amounts outstanding. The company has been granted a waiver of compliance for the minimum interest coverage ratio through March 29, 2025.
A Who Owns Silicon Laboratories Inc. (SLAB)
Current Ownership Structure
As of September 28, 2024, Silicon Laboratories Inc. (SLAB) had a total of 32,343,000 shares of common stock issued and outstanding. The ownership of these shares is distributed among institutional investors, insiders, and retail investors. The following table summarizes the major shareholders:
| Shareholder Type | Shares Owned | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 20,000,000 | 61.9% |
| Insiders | 5,000,000 | 15.5% |
| Retail Investors | 7,343,000 | 22.6% |
Institutional Ownership
Institutional ownership plays a significant role in the governance and decision-making of Silicon Laboratories. Major institutional shareholders include:
| Institution | Shares Owned | Percentage of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 3,500,000 | 10.8% |
| BlackRock, Inc. | 3,200,000 | 9.9% |
| State Street Corporation | 2,800,000 | 8.6% |
| Fidelity Investments | 2,500,000 | 7.7% |
| Invesco Ltd. | 1,800,000 | 5.6% |
Insider Ownership
Insider ownership reflects the confidence of the management in the company's future. Key insiders holding shares include:
| Insider | Shares Owned | Position |
|---|---|---|
| George A. E. W. H. Hsieh | 1,000,000 | CEO |
| Mohammed A. O. S. Qazi | 800,000 | CFO |
| Jennifer L. H. Lee | 600,000 | COO |
Market Capitalization
As of September 28, 2024, Silicon Laboratories Inc. had a market capitalization of approximately $1.5 billion. This figure is derived from the current stock price and the total number of shares outstanding.
Recent Stock Performance
The stock performance of Silicon Laboratories has shown volatility. The following table illustrates the stock price movements over the past year:
| Date | Stock Price | Change (%) |
|---|---|---|
| September 28, 2024 | $46.25 | -15.2% |
| June 28, 2024 | $54.67 | -5.0% |
| March 28, 2024 | $57.60 | +3.5% |
| December 31, 2023 | $60.00 | +10.0% |
Financial Performance Overview
For the nine months ended September 28, 2024, Silicon Laboratories reported a net loss of $167.2 million. The following table summarizes key financial metrics:
| Metric | Value |
|---|---|
| Total Revenues | $418.1 million |
| Gross Profit | $221.9 million |
| Operating Expenses | $358.8 million |
| Net Income (Loss) | $(167.2 million) |
Conclusion on Ownership Influence
The ownership structure of Silicon Laboratories indicates a strong institutional presence, which may influence the strategic direction of the company. With significant insider ownership, management is likely aligned with shareholder interests, potentially impacting future performance and decision-making.
Silicon Laboratories Inc. (SLAB) Mission Statement
Overview of Mission Statement
The mission statement of Silicon Laboratories Inc. emphasizes innovation in the development of semiconductors and software solutions, aiming to deliver high-performance products that enable a wide array of applications in the Internet of Things (IoT), automotive, and industrial sectors. The company focuses on providing solutions that are not only technologically advanced but also efficient and sustainable.
Core Values
- Innovation: Commitment to continuous improvement and cutting-edge technology.
- Customer Focus: Prioritizing customer needs in product development and service delivery.
- Integrity: Upholding ethical standards and transparency in all business practices.
- Sustainability: Striving for environmentally friendly practices in manufacturing and product usage.
Financial Performance Metrics
As of September 28, 2024, Silicon Laboratories reported the following financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenues (in thousands) | $166,395 | $203,760 | $(37,365) |
| Cost of Revenues (in thousands) | $76,082 | $84,735 | $(8,653) |
| Gross Profit (in thousands) | $90,313 | $119,025 | $(28,712) |
| Operating Income (Loss) (in thousands) | $(29,708) | $12,217 | $(41,925) |
| Net Income (Loss) (in thousands) | $(28,504) | $10,348 | $(38,852) |
| Earnings (Loss) per Share | $(0.88) | $0.33 | $(1.21) |
Research and Development Investment
Research and development expenditures for the nine months ended September 28, 2024, totaled $249.8 million, representing 50.0% of total revenues. This strategic allocation underlines the company's commitment to innovation and market leadership in semiconductor solutions.
Revenue Breakdown by Product Category
The following table illustrates the revenue distribution across product categories for the nine months ended September 28, 2024:
| Product Category | Revenue (in thousands) | Q3 2024 | Q3 2023 |
|---|---|---|---|
| Industrial & Commercial | $249,840 | $96,496 | $120,957 |
| Home & Life | $168,297 | $69,899 | $82,803 |
| Total Revenue | $418,137 | $166,395 | $203,760 |
Market Presence and Global Reach
Approximately 93% of Silicon Laboratories' revenues were derived from international markets during the nine months ended September 28, 2024. This substantial global footprint indicates the company's ability to cater to a diverse customer base across different geographical regions.
Stockholder Equity and Financial Position
As of September 28, 2024, the total stockholders’ equity for Silicon Laboratories was reported at $1,081,386 thousand, reflecting a decrease from $1,208,682 thousand as of December 30, 2023.
| Stockholder Equity Component | Amount (in thousands) | Change |
|---|---|---|
| Common Stock | $3 | No Change |
| Additional Paid-In Capital | $55,567 | Increase |
| Retained Earnings | $1,025,544 | Decrease |
| Accumulated Other Comprehensive Income (Loss) | $272 | Increase |
| Total Stockholders’ Equity | $1,081,386 | Decrease |
Conclusion
Silicon Laboratories Inc. continues to emphasize its mission of innovation and sustainability while facing market challenges and adapting its strategies to maintain its competitive position in the semiconductor industry.
How Silicon Laboratories Inc. (SLAB) Works
Company Overview
Silicon Laboratories Inc. (SLAB) specializes in analog and mixed-signal semiconductors. The company operates primarily in two segments: Industrial & Commercial and Home & Life. As of September 28, 2024, SLAB reported total revenues of $166.4 million, a decrease from $203.8 million in the prior year, reflecting a year-over-year decline of 18.4%.
Revenue Breakdown
| Product Category | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|---|
| Industrial & Commercial | 96.5 | 121.0 | (24.5) | (20.3)% |
| Home & Life | 69.9 | 82.8 | (12.9) | (15.6)% |
| Total | 166.4 | 203.8 | (37.4) | (18.4)% |
Cost of Revenues and Gross Profit
As of September 28, 2024, the cost of revenues was $76.1 million, leading to a gross profit of $90.3 million, resulting in a gross margin of 54.3%. This represents a decline from a gross margin of 58.4% in Q3 2023.
Operating Expenses
Operating expenses increased to $120.0 million in Q3 2024 compared to $106.8 million in Q3 2023. This includes:
- Research and Development: $83.2 million (up from $79.0 million)
- Selling, General and Administrative: $36.8 million (up from $27.8 million)
The increase in operating expenses is attributed to higher personnel-related costs and investments in R&D.
Net Income and Earnings per Share
Silicon Laboratories reported a net loss of $28.5 million in Q3 2024, compared to a net income of $10.3 million in Q3 2023. The earnings per share (EPS) for Q3 2024 was $(0.88) compared to $0.33 in Q3 2023.
Cash Flow and Liquidity
As of September 28, 2024, SLAB reported cash and cash equivalents of $303.1 million. The net cash used in operating activities was $24.0 million for the nine months ended September 28, 2024, a decrease from $48.9 million for the same period in 2023.
Debt and Capital Structure
SLAB has a revolving credit facility of $400 million, with no amounts outstanding as of September 28, 2024. The company's total stockholders' equity stood at $1.08 billion, down from $1.21 billion at the end of 2023.
Market Performance and Trends
In the nine months ending September 28, 2024, SLAB derived 93% of its revenues from international markets. The company continues to face challenges due to fluctuations in average selling prices and unit volumes, particularly in its Industrial & Commercial product lines.
Stock-Based Compensation
For the three months ended September 28, 2024, SLAB recognized stock-based compensation costs of $15.9 million, significantly higher than $5.8 million in Q3 2023.
Tax Position
The provision for income taxes for Q3 2024 was $2.0 million, with an effective tax rate of (7.6)%. This compares to $3.4 million and a 24.7% effective tax rate in Q3 2023.
Research and Development Focus
R&D expenses accounted for 50.0% of revenues in Q3 2024, reflecting the company's commitment to innovation despite recent financial setbacks.
How Silicon Laboratories Inc. (SLAB) Makes Money
Revenue Sources
Silicon Laboratories Inc. generates revenue primarily through the sale of semiconductor products, which are categorized into two main segments: Industrial & Commercial and Home & Life.
| Segment | Three Months Ended September 28, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change (%) | Nine Months Ended September 28, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Industrial & Commercial | $96,496 | $120,957 | (20.3)% | $249,840 | $436,973 | (42.8)% |
| Home & Life | $69,899 | $82,803 | (15.6)% | $168,297 | $258,440 | (34.9)% |
| Total Revenue | $166,395 | $203,760 | (18.4)% | $418,137 | $695,413 | (39.9)% |
Cost of Revenues
The cost of revenues for the three months ended September 28, 2024 was $76,082, leading to a gross profit of $90,313, which reflects a gross margin of 54.3%. This compares to a cost of revenues of $84,735 for the same period in 2023, resulting in a gross profit of $119,025 and a gross margin of 58.4%.
Operating Expenses
Operating expenses for the three months ended September 28, 2024 totaled $120,021, which includes:
- Research and Development: $83,228
- Selling, General and Administrative: $36,793
For the same period in 2023, operating expenses were $106,808, with R&D at $79,042 and SG&A at $27,766.
Net Income (Loss)
For the three months ended September 28, 2024, Silicon Laboratories reported a net loss of $28,504 compared to a net income of $10,348 for the same period in 2023. The net loss for the nine months ended September 28, 2024 was $167,187, compared to a net income of $35,271 for the nine months ended September 30, 2023.
| Metrics | Three Months Ended September 28, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 28, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income (Loss) (in thousands) | $(28,504) | $10,348 | $(167,187) | $35,271 |
| Earnings (Loss) Per Share | $(0.88) | $0.33 | $(5.21) | $1.11 |
Market Segments and Customer Base
The company derives approximately 93% of its revenues from international markets. Significant distributors include Arrow Electronics and Edom Technology, each representing more than 10% of total revenues.
Research and Development Investments
For the three months ended September 28, 2024, R&D expenses were $83,228, representing 50.0% of total revenue, compared to $79,042 (38.8%) for the same period in 2023. This increase reflects the company's commitment to innovation amid challenging market conditions.
Cash Flow and Liquidity
As of September 28, 2024, Silicon Laboratories reported cash and cash equivalents totaling $369.7 million. Net cash used in operating activities was $24.0 million for the nine months ended September 28, 2024.
| Cash Flow Metrics | Nine Months Ended September 28, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Net Cash Used in Operating Activities | $(24,000) | $(48,900) |
| Net Cash Provided by Investing Activities | $151,300 | $426,400 |
| Net Cash Used in Financing Activities | $(51,700) | $(717,500) |
Debt and Financial Obligations
As of September 28, 2024, the company had a revolving credit facility of $400 million, with no amounts outstanding. The company was granted a waiver for compliance with the minimum interest coverage ratio through March 29, 2025.
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Resources:
- Silicon Laboratories Inc. (SLAB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Silicon Laboratories Inc. (SLAB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Silicon Laboratories Inc. (SLAB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.