Silicon Laboratories Inc. (NASDAQ:SLAB) Q4 2023 Results Conference Call February 7, 2024 8:30 AM ET

Company Participants

Giovanni Pacelli - Senior Director of Finance

Matt Johnson - President & CEO

Mark Mauldin - Interim CFO

Conference Call Participants

Cody Acree - Benchmark Company

Gary Mobley - Wells Fargo

Matt Ramsay - TD Cowen

Quinn Bolton - Needham & Company

Thomas O'Malley - Barclays

Tore Svanberg - Stifel

Operator

Thank you for standing by. My name is Jonathan, and I will be your conference operator today. Welcome to Silicon Labs Fourth Quarter Fiscal 2023 Earnings Call. [Operator Instructions]. As a reminder, today's program is recorded.

And now I'd like to introduce your host for today's program, Giovanni Pacelli, Silicon Labs Senior Director of Finance. Giovanni, please go ahead.

Giovanni Pacelli

Thank you, Jonathan, 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 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 Interim Chief Financial Officer, Mark Mauldin. They will discuss our fourth quarter financial performance and reviewing recent business activities. We will 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 Lab's, Chief Executive Officer, Matt Johnson. Matt?

Matt Johnson

Thanks, Giovanni, and good morning, everyone. The Silicon Labs team delivered fourth quarter results above the midpoint of our guidance. During the quarter, we saw reductions in both channel and end customer inventory. We expect end customer inventory destocking to continue in Q1. On a unit basis, Disty inventory is now at lower levels than during the supply prices. We believe Q4 of 2023 represents our low point of revenue. We expect to return to sequential growth starting in Q1 as our customers' inventory start to normalize, and we begin to see the further benefits of design wins ramping production.