Shares of Silicon Labs (NASDAQ:SLAB) have jumped today, up by 9% as of 1:20 p.m. EDT, after the company reported first-quarter earnings results this morning. The chipmaker also said yesterday that it had closed its acquisition of Redpine Signals' connectivity business.
Revenue in the first quarter came in at $214.9 million, crushing the consensus estimate of $202.2 million. Internet of Things (IoT) revenue was $118 million, while infrastructure and automotive sales totaled $97 million. That led to adjusted earnings of $0.69 per share. Analysts were looking for just $0.51 per share in adjusted profit.
"We believe we are well-positioned to navigate the pandemic and are thankful to have the collaboration tools and remote-working infrastructure in place to facilitate a relatively smooth transition as our global teams advance toward well-established goals," CEO Tyson Tuttle said in a statement.
Silicon Labs has now completed its acquisition of Redpine Signals' connectivity assets -- which include a development center in Hyderabad, India, and a patent portfolio -- for $308 million in cash. The company previously estimated that the deal will add $20 million in incremental annualized revenue for 2020. Silicon Labs said it borrowed $310 million from an amended credit agreement to bolster its financial position during the novel coronavirus outbreak.
In terms of guidance, revenue in the second quarter is expected to be in the range of $190 million to $210 million, which should result in adjusted earnings per share of $0.45 to $0.68.