October 19, 2009 - Silicon Laboratories, Inc. (SLAB-NASDAQ) engages in the design and development of analog-intensive and mixed-signal integrated circuits (ICs). It offers radio frequency (RF) products, such as short-range wireless transceivers, video demodulators, satellite set-top box receivers, and satellite radio tuners; ISOmodem embedded modems; and voice over IP products, including ProSLIC subscriber line interface circuits and voice direct access arrangement (DAA); microcontrollers; timing products, such as clocks, precision clock and data recovery ICs, and oscillators; power products comprising isolators, current sensors, alternate current-direct current converters, and power over Ethernet devices; and mature products consisting of silicon DAA for PC modems, DSL analog front end ICs, optical physical layer transceivers, and RF synthesizers.

Silicon Laboratories markets directly, as well as through a network of independent sales representatives, and distributors in the United States, Taiwan, China, South Korea, and the rest of world. The company was founded in 1996 and is headquartered in Austin, Texas.

This stock is on the rebound. After hitting a low of $17.05 in December of last year, the stock has almost tripled this year, reaching a high of $49.10 recently before backing off 10%. Can it keep going up or has it already priced in all the good news?

On September 15, the company raised its estimate for third quarter results, saying that better than expected demand for broadcast audio and microcontroller products will boost the top and bottom lines. Sales estimates were increased to $123 million to $126 million, up from $114 million to $119 million. Earnings per share were also ratcheted higher, 60 cents to 62 cents, well above the 48 cents to 53 cents a share forecast earlier. 16 analysts have a consensus estimate of 61 cents a share compared to 49 cents reported last year in the third period. Earnings will be announced on October 28. For the full year, consensus is for $1.86 vs. $1.71 last year, then $2.30 next year.

The strongest selling products currently are...

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