Benzinga | Jul 28, 2021 02:22PM EDT

Silicon Labs Stock Gains On Q2 Earnings; Matt Johnson To Succeed Tyson Tuttle As CEO In 2022

* Silicon Laboratories Inc (NASDAQ:SLAB) reported second-quarter FY21 IoT revenue from continuing operations growth of 48% Y/Y to $169 million. Infrastructure and Automotive (I&A) revenue from discontinued operations rose 16% Y/Y to $108 million.

* Earlier in the week, Silicon Labs completed the sale of its I&A businesses to Skyworks Solutions, Inc (NASDAQ:SWKS) for $2.75 billion in cash.

* It continues to capitalize on the increased adoption, growth, and diversity of the global IoT market, CEO Tyson Tuttle stated.

* The GAAP gross margin contracted 140 basis points to 56.8%, and the GAAP operating margin was (6.8)%.

* The non-GAAP gross margin was 56.9%, and the non-GAAP operating margin was 6.6%.

* It reported non-GAAP EPS of $1.05 and GAAP EPS of $0.44.

* It held $617.3 million in cash and equivalents.

* The company generated $5.7 million in operating cash flow during the six months ended July 3, 2021.

* Outlook: It sees Q3 revenue from continuing operations of $170 million- $180 million and non-GAAP EPS of $0.10 - $0.20.

* CEO Appointment: The company announced that its President Matt Johnson will succeed Tyson Tuttle as Chief Executive Officer in 2022.

* Tuttle will continue to serve the company as a member of the Technical Advisory Board after he steps down as CEO.

* Price Action: SLAB shares traded higher by 2.83% at $141.94 on the last check Wednesday.