Silicon Laboratories (SLAB), a manufacturer of an analog-intensive and mixed-signal integrated circuits (ICs), has recorded a 13.22 percent increase in profit for the quarter ended Jun. 28, 2014.
The company earned $14.28 million or $0.32 a share in the second-quarter compared with $12.61 million or $0.29 a share a year ago. Adjusted earnings per share came in at $0.58, when analysts expected $0.46.
Revenue during the second-quarter rose 9.45 percent to $154.92 million from $141.54 million in the last year period.
Gross margin expanded by 97 basis points over the last year period to 63.69 percent. Total expenses as a percentage of revenues increased to 86.57 percent from 86.56 percent in the same period last year. That has resulted in contraction of 2 basis points in operating margins to 13.43 percent.
The company posted operating income of $20.80 million, compared with $19.03 million in the previous year period.
Cash Flow
Silicon Laboratories has generated cash of $63.42 million from operating activities during the first half, down 4.05 percent or $2.68 million when compared with the last year period. The company has generated 21.10 cents of operating cash flow in every sales dollar for the first half, down from 23.04 cents in the same period last year.
The company has spent $62 million cash to meet operating activities during the first half, as against cash inflow of $15.94 million in the last year period. It has made net capital expenditure of $6.06 million during the first half, which was lower by 32.13 percent or $2.87 million, from a year ago.
The company's free cash flow accounted for 90.44 percent of operating cash flow for the first half, compared with 86.48 percent in the last year period.
The company has spent $3.92 million from financing activities during the first half, as against cash inflow of $6 million in the last year period. It has made net repayment of $2.50 million debt during the first half. It has spent net of $2.01 million on repurchase of common stocks.
As on Jun. 28, 2014, the company's cash balance stood at $93.29 million, down 51.78 percent or $100.18 million from Jun. 29, 2013.
Working Capital
Silicon Laboratories has witnessed a decline in the working capital over the last one year. The company's working capital stood at $374.23 million as at Jun. 28, 2014, down $54.26 million or 12.66 percent from $428.49 million on Jun. 29, 2013. It registered a decrease in current ratio to 3.78 as at Jun. 28, 2014 from 5.35 on Jun. 29, 2013.
Debt Position
Silicon Laboratories has witnessed a decline in the total debt over the last one year. As on Jun. 28, 2014, total debt stood at $92.50 million, down 3.90 percent or $3.75 million, from Jun. 29, 2013.
The company's total debt was 9.03 percent of total assets as on Jun. 28, 2014, compared with 10.54 percent on Jun. 29, 2013.
Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has improved to 26.67 from 22.90 in the same period last year.
Shares of the company gained 85 cents or 2.12 percent to close at $40.89 on Monday.
