Austin’s Silicon Labs tops Wall Street profit projections for 3rd quarter

Austin-based tech company Silicon Labs topped Wall Street profit projections in its third quarter, according to the company’s Wednesday earnings report.

Silicon Labs reported a profit of $20.2 million in the third-quarter. Under GAAP standards — industry shorthand for generally accepted accounting principles — the company said it earned 45 cents per share.

Adjusting for one-time gains and costs, the company reported earning of 96 cents per share. That topped the predictions of six analysts surveyed by Zacks Investment Research, as they had projected earnings of 84 cents per share.

The company reported revenue of $223.3 million for the third quarter, compared to $206.7 million in the previous quarter.

Founded in 1996, Silicon Labs is a designer and manufacturer of semiconductors and other silicon devices. About 700 of its 1,500 employees are based in Austin.

During a Wednesday conference call with analysts, Silicon Labs chief financial officer John Hollister said “a combination of revenue upside, in-line gross margins and favorable operating expenses“ contributed to the company’s financial performance.

"We had growth in all our product categories, including a surprise on the infrastructure side,” Hollister told the American-Statesman.

Hollister said the company’s revenue in the Internet of Things sector grew 4% compared to the same quarter last year. Internet of Things is a technology term referring to non-computing devices — such as kitchen appliances or televisions — that are connected to the Internet.

The company’s Internet of Things division “delivered another strong growth quarter, ending at 58% of total revenue, or $129 million, setting an all-time new record,” Hollister said.

“We saw a strength in the home security, home automation market, as well as the smart home lighting market,” he said.

Silicon Labs is projecting its fourth-quarter revenue to be in the range of $217 million to $227 million, according to a company news release.

Silicon Labs’ shares closed Wednesday at $110.21, up $3.30, or 3.1 percent.