Silicon Laboratories Inc To Host Analyst Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tore Svanberg - Stifel - Analyst : Tore Svanberg from Stifel. Thank you so much for this informative Analyst Day. Let me start with a sort of bigger picture question, especially as it relates to your Series 1 going to Series 2 and Series 3. There's obviously a lot of new features that you're offering your customers. But you talked about that transition as being additive, not necessarily cannibalizing the previous generation. So could you just elaborate a little bit more on that? Because obviously, your customers are going to want more value. Will you able to actually increase your price? Or is this basically just more units because you're adding so many more features? So if you could share on that.

Question: Tore Svanberg - Stifel - Analyst : Yeah. And as my follow-up question, on the $10 billion design win, I mean, that's a pretty impressive number in the last few years. You're at $600 million now. I mean, why not be even more bullish with your growth forecast? Are you being conservative? I mean you said you don't need a recovery for -- to grow quite a bit this year. But yeah, I mean, to me, it seems like $10 billion. And you said it's lifetime revenue. I get that, right? But like lifetime is not going to be next 10 years. So why not be a little bit more excited about the growth above 20%? Daniel Cooley - Silicon Laboratories Inc - Senior Vice President, Technology & Product Development and Chief Technology Officer Yeah. One, Tore, I would say I hope you take away that we are excited about the growth. $10 billion is an incredible number of design wins. And it's a lifetime number. As you mentioned, it's four to five years is kind of the average lifetime. So that puts you in, call it, a mathematically average of $2 billion to $2.5 billion sort of run rate on an annual basis. The way that -- at least I philosophically think of these things are giving yourself a headroom, right? Hey, look, you can't always predict that everybody's forecast is going to come out, right, that, hey, their lifetime instead of being five years, maybe that customer is four years and the guy that's six years, maybe he's seven years, like things change. And so we want to give ourselves some headroom on how we model and make our commitments to the outside world. If it all comes true, we'll probably beat. However, I think the prudent thing to do is to give yourself a little bit of headroom on derating and hence, our 20% growth rate, which would land you a little bit south of that $2 billion to $2.5 billion number.

Question: Tore Svanberg - Stifel - Analyst : I had a question on Thread Matter. As you mentioned, right, I mean, the Infrastructure is there. We know Matter is already in smartphones. We know it's in modems in your home. What are some of the things that you're looking for as far as seeing an accelerated adoption of the actual edge devices that are going to be connecting to those? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 1:00PM, SLAB.OQ - Silicon Laboratories Inc To Host Analyst Day

Question: Tore Svanberg - Stifel - Analyst : My last question is for you, Daniel. You hinted a little bit there with Series 4. I don't know how much you want to disclose there. I know this company historically got away from the smartphone like a long, long time ago, and you've been pretty clear that you're going to get back in there. But given the AI at the edge trend, you have tons of IP now, right? So I mean, can you just give us a preview for Series 4? And is there a possibility that maybe will go back into the phone at some point? Daniel Cooley - Silicon Laboratories Inc - Senior Vice President, Technology & Product Development and Chief Technology Officer I can give you a preview -- the phone. Yes, that's a better way to handle this. Yes, we see multigenerations in front of us, too. We're ramping Series 3 today. We've been investing in for a number of years. We can already see the contours of where Series 3 breaks and you need to move to FinFET, where our customers are breaking from this integrated SoC into a multichip kind of -- it's not chiplet territory. Our customers can't absorb that cost, but multichip. So we can see the contours of what that's going to look like. And frankly, it just doesn't make economic sense to build M-Class or Cortex M-class processors in FinFET. You go to A-Class, you go to Linux. There's a rich software ecosystem out there that's developed we can plug into. So we can see the contours. It's not for a number of years. We're not ready to talk about it at the Analyst Day. And I'll let Matt answer the application question.