This excerpt taken from the SLAB 8-K filed Sep 15, 2009.
AUSTIN, Texas Sept. 15, 2009 Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance, analog-intensive, mixed-signal integrated circuits (ICs), today announced it now expects third quarter revenue to be up 18 to 21 percent sequentially to a record $123 to $126 million, an increase from the $114 to $119 million range previously forecasted, and well above quarterly peak revenue levels in 2008.
The revenue upside is due to better than expected demand for both broadcast audio and MCU products. The strength in the broadcast audio business is resulting from better than seasonal demand in handsets at the companys largest customer, which is expected to moderate in the fourth quarter, as well as a faster than expected ramp at a new consumer audio customer.
The company also anticipates further improvement in gross margin in the third quarter, and therefore, is now projecting it will exceed model operating performance. The resulting earnings per share estimates for the quarter have increased by about ten cents versus prior guidance. GAAP diluted earnings per share for the third quarter are now expected to increase to $0.40 to $0.42 compared to previous guidance of $0.27 to $0.32, and non-GAAP diluted earnings per share are now expected to increase to $0.60 to $0.62 compared to previous guidance of $0.48 to $0.53. Non-GAAP earnings per share exclude anticipated non-cash charges for stock compensation expenses.
We expect to achieve record performance in the third quarter, a tribute to the quality of the business model were pursuing, said Necip Sayiner, president and CEO of Silicon Laboratories. We are very pleased with the continued strength of the new product cycles and the market share
momentum that has allowed us to outperform despite the economic headwinds this year.
The company plans to report complete financial results and provide fourth quarter guidance on October 28th.