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What: Silicon Laboratories (Nasdaq: SLAB ) dropped 14% in intraday trading today after it beat earnings expectations but issued disappointing guidance.
So what: Non-GAAP EPS of $0.48 beat the $0.46 consensus estimate but fell 33% year over year. Revenue of $126 million missed the consensus forecast of $127 million and declined 6% year over year.
Now what: The CEO said, "The business is ready to sprint ahead on the legs of very strong products and share gains" but is "facing weakening end-user demand in several of our markets." How did Silicon Labs reconcile the strong and weak comments? Management guided third-quarter revenue to a decline of 5% to 10% sequentially, which is flat to down 6% year over year.
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