Silicon Laboratories Inc at JPMorgan Global Technology, Media and Communications Conference Transcript

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

Question: Peter Peng - J.P. Morgan - Analyst : You guys just reported a good set of numbers yesterday. So gentlemen, if you can just start off us with the recap of your earnings and an overview of your company.

Question: Peter Peng - J.P. Morgan - Analyst : And maybe just on some of the near-term dynamics. So kind of following up on the strength, right? You talked about bookings kind of improving linearly throughout the quarter. And indicating more of a cyclical recovery and design win ramps rather than any pull forward in demand. I guess there's a lot of interest around this. And so maybe if you can just provide us some insight on how you're customers are perceiving this inventory situation? And how have those discussions changed or evolved since Liberation Day in early April?

Question: Peter Peng - J.P. Morgan - Analyst : That's good. So as you mentioned, fundamental is quite strong, positive booking trends, lean customer and general inventories and you have significant design win ramps ahead. So when we think about the second half of the year, how should we kind of think about your revenue opportunity. I think previously, you talked about sequential growth through the calendar year. So just how are you kind of positioning in the second half of the year?

Question: Peter Peng - J.P. Morgan - Analyst : Your channel and customer distribution inventories are now at 48 days, right? It's a new low. It's below your target level of 70, 75 days. So what signs or metrics are you monitoring before you decide to kind of replenish the channel. And if we were to get back to some normalized distribution target days, what would that mean for revenue tailwind?

Question: Peter Peng - J.P. Morgan - Analyst : Maybe switching now to some of the longer-term dynamics. You recently just talked about the $10 billion in design win pipeline, pretty impressive, right? And set to unfold over the next four to five years. So maybe if you can provide us some insights into the diversity of applications and product technologies within this design win pipeline?

Question: Peter Peng - J.P. Morgan - Analyst : Great. Can you just talk about the significant traction you're getting with your Series 3 and then now you're ramping your Series 2 -- and now you're ramping your Series 3, right, with the transition to 22 nanometer process, and it has enhanced compute and AI functionality. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 14, 2025 / 5:40PM, SLAB.OQ - Silicon Laboratories Inc at JPMorgan Global Technology, Media and Communications Conference And you guys always talked about this as being additive to your SAM. And so maybe just help us understand what is this -- these incremental applications that you're targeting? And how does that not cannibalize your Series 2?

Question: Peter Peng - J.P. Morgan - Analyst : Got it. And then sticking with the product and technology front, you guys have been particularly successful in the Bluetooth segment of the market, right? Over the last several years. I think last several years, it was just kind of 10% to 15% of your total revenue mix. And I think most recently at your Analyst Day, it looks like it's got to almost 20%, 25% of your revenue mix. And the strong adoption has been driven by some of these successful design wins like your continuous Bluetooth monitoring, our electronic shelf labels. And so maybe just talk about the sustainability of this growth. And then how do you anticipate this segment? How big can the segment be over the next couple of years?

Question: Peter Peng - J.P. Morgan - Analyst : Maybe just on that Wi-Fi point. It's still a pretty small percentage of revenue, but you talked about it being inflecting higher, 40% year-on-year growth. So when concerning the Wi-Fi, what are some of the major application drivers? And how should we compare the Wi-Fi trajectory ramp compared to the Bluetooth?

Question: Peter Peng - J.P. Morgan - Analyst : Another pretty notable data point from your Analyst Day is that, you mentioned that 95% of your top 100 customers over the last five -- you maintain 95% of your top 100 customers over the past five years. And then 60% of your top 500 customers have been with the company for 10 years. So maybe just kind of elaborate on why your platform has so much customer stickiness.

Question: Peter Peng - J.P. Morgan - Analyst : Okay. Let me just take a pause here to see if there's any questions. Unidentified Participant Thanks, Matt. So what's your view of the 4G to 5G transition that's going on in wireless, you've got AT&T shutting down NB-IoT. Also, you're starting to see a pretty interesting kind of mesh wireless footprint being deployed by Amazon, which is you know, Sidewalk uses LoRa. Any opportunity there for you guys in either of those areas? And what do you view these -- the changes. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 14, 2025 / 5:40PM, SLAB.OQ - Silicon Laboratories Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Peter Peng - J.P. Morgan - Analyst : We're out of time.