Silicon Laboratories Inc. (NASDAQ:SLAB) Q3 2023 Earnings Call Transcript November 1, 2023 8:30 AM ET

Company Participants

Giovanni Pacelli - SD, Finance

Matt Johnson - President, CEO

John Hollister - CFO

Conference Call Participants

Matt Ramsay - TD Cowen

Tore Svanberg - Stifel

Gary Mobley - Wells Fargo

Quinn Bolton - Needham

Cody Acree - the Benchmark Company

Srini Pajjuri - Raymond James

Blayne Curtis - Barclays

Joseph Moore - Morgan Stanley

Operator

Hello. My name is Lisa, and I will be your conference operator today. Welcome to Silicon Labs' Third Quarter Fiscal 2023 Earnings Call.

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

Giovanni Pacelli

Thank you, Lisa, and good morning, everyone. We are recording this meeting, and a replay will be available for four weeks on the Investor Relations section of our website at investor.silabs.com.

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 third quarter financial performance and review recent business activities.

We'll take questions after our prepared comments, and our remarks today will include forward-looking statements that are 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. In the third quarter, the Silicon Labs team executed well in a challenging environment, driving revenue and EPS to both exceeded the midpoint of our guidance. Current market environment continues to be characterized by a difficult combination of weak demand and high inventory. Specifically, end customers carry to -- continue to carry inventory levels that are too high. At the same time, our end customers' demand environment continues to be weaker than previously forecast.