Silicon Laboratories Inc (NASDAQ:SLAB) reported fourth-quarter FY23 sales of $86.85 million, down 66.3% Y/Y, beating the consensus of $85.21 million. 

The fabless global technology company’s adjusted EPS loss of $(1.19) beat the consensus loss of $(1.43).

Margins: Adjusted gross margin of 50.9% and adjusted operating margin loss of (53.8)% fell from 61.3% and 18.9% a year ago, respectively. 

Industrial & Commercial revenue for the quarter was $60 million, down from $157 million a year ago. Home & Life revenue for the quarter was $27 million, down from $100 million a year earlier.

“Though the market environment remains volatile, with inventory corrections continuing across our end markets, we delivered top and bottom-line results ahead of expectations,” said Matt Johnson, President and Chief Executive Officer at Silicon Labs. 

“We expect to return to sequential revenue growth, beginning in the first quarter, as our customers destock their inventories, design wins continue ramping to production, and bookings trends improve.”

Outlook: Silicon Lab expects a first-quarter revenue of $100 million to $110 million versus the consensus of $98.77 million.

The company projects an adjusted EPS loss of $(0.92) – $(1.04), against the consensus loss of $(1.03).

The fabless global technology company lost 36% in market value last year.

Price Action: SLAB shares traded higher by 12.70% at $133.37 on the last check Wednesday.

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