Silicon Laboratories Inc. (NASDAQ:SLAB) Q2 2023 Results Conference Call July 26, 2023 8:30 AM ET

Company Participants

Giovanni Pacelli - SD, Finance

Matt Johnson - President, CEO

John Hollister - CFO

Conference Call Participants

Blayne Curtis - Barclays

Gary Mobley - Wells Fargo

Jeremy Kwan - Stifel

Matt Ramsay - TD Cowen

Srinivas Pajjuri - Raymond James

Nick Doyle - Needham

Operator

Hello. My name is Sarah, and I will be your conference operator today. Welcome to Silicon Labs Second Quarter Fiscal 2023 Earnings Call. [Operator Instructions].

I will now turn the call over to Giovanni Pacelli, Silicon Labs Senior Director of Finance. Giovanni, please go ahead.

Giovanni Pacelli

Thank you, Sarah, and good morning, everyone. We are recording this meeting, and a replay will be available for 4 weeks on the Investor Relations section of our website at silabs.com/investors. Our earnings press release and the accompanying financial tables are also available on our website.

Joining me today are Silicon Labs President and Chief Executive Officer, Matt Johnson; and Chief Financial Officer, John Hollister. They will discuss our second quarter financial performance and even recent business activities.

We'll take questions after our prepared comments and our remarks today will include forward-looking statements subject to risks and uncertainties. We base these forward-looking statements on information available to us as of the date of this conference call and assume no obligation to update these statements in the future. We encourage you to review our SEC filings, which identify important risk factors that could cause actual results to differ materially from those contained in any forward-looking statements.

Additionally, during our call today, we will refer to certain non-GAAP financial information. A reconciliation of our GAAP to non-GAAP results is included in the company's earnings press release and on the Investor Relations section of the Silicon Labs website.

I'll now turn the call over to Silicon Labs Chief Executive Officer, Matt Johnson. Matt?

Matt Johnson

Thanks, Giovanni, and good morning, everyone. Despite a challenging market environment, Silicon Labs' team delivered solid second quarter revenue and non-GAAP earnings per share in line with our guidance. However, during the quarter, we saw further market erosion, Broad demand weakness and elevated customer inventory continue impacting both of our business units, although our industrial and commercial business showed resilience, achieving record revenue in the quarter. This demonstrates the strength of our position and the favorable impact of our strong design win momentum. So far, in the first half of 2023, our design win pipeline is up 23% year-over-year.