Silicon Laboratories (Nasdaq: SLAB), a maker of mixed-signal integrated circuits, reported on Wednesday its fourth quarter profit fell almost 68% on lower revenues and higher expenses.
As a result, the company's shares closed lower on Wednesday by roughly 7.2% at $44.20.
For the fourth quarter, the Texas-based company earned $12.9 million, or 28 cents per diluted share, compared to $40.2 million, or 84 cents per diluted share, for the year-ago period.
Revenues were $111.9 million, down from $127 million. Operating expenses rose 5% year-over-year to $60 million.
Analysts expected the company to earn a profit of 37 cents per share on revenues of almost $108 million.
For the entire fiscal year, the company's profit and earnings per diluted share was relatively unchanged from a year ago at $73.2 million, or $1.57 per share. However, revenues increased to $493 million from $441 million.
The revenue growth, the company said, was driven by 50% sales growth in its broad-based products, which made up 35% of revenues in fiscal 2010.
Necip Sayiner, CEO of Silicon Laboratories, said:
We believe the investments we've been making in our business over the last couple of years will begin delivering a strong return in 2011.
Organic new product developments complemented by strategic acquisitions like the SpectraLinear deal we announced today, have given us a platform for continually expanding our share of the market.
In a separate statement Wednesday, Silicon Laboratories said it has acquired SpectraLinear, a maker of programmable clock integrated circuits, for about $40 million.