November 11, 2011 -- Each year, the Global Semiconductor Alliance (GSA) recognizes the semiconductor industry’s most respected emerging public semiconductor companies at its Annual Awards Dinner Celebration in Santa Clara, CA.
In September, industry peers, suppliers, customers and pundits were asked to cast a vote for the emerging public semiconductor company they most respect in terms of vision, strategy, execution and future opportunity. GSA has defined an emerging semiconductor company as a public IDM or fabless company that generates between $100 and $499 million in annual sales.
Here, GSA presents analysis of the financial status of the top 15 voted emerging companies, including the top three nominees Cavium, NetLogic Microsystems, and Silicon Laboratories.
Cavium Inc. (NASDAQ:CAVM), a provider of highly integrated semiconductor products that enable intelligent processing for networking, communications and the digital home, saw Q3 2011 revenues consistent with reduced financial outlooks released in September. Though results were weaker than desired, Syed Ali, president and CEO of Cavium, stated, “We continued to experience high levels of design win activity across multiple product families and we are confident that we are well positioned for the future.” While revenue decreased 5.4% quarter-over-quarter (QoQ), Cavium experienced 22.7% year-over-year (YoY) revenue growth in Q3 and expects revenue to increase between 18% and 20% in Q4 over the prior quarter.
NetLogic Microsystems Inc. (NASDAQ: NETL), a provider of high-performance semiconductor solutions for next-generation Internet networks, reported Q3 2011 revenue of $106.8 million, an increase of 3.0% QoQ and 6.8% YoY. Netlogic’s growth is expected to continue as Stifel Nicolaus & Company estimates the company’s Q4 2011 revenue to reach $110.0 million.
Silicon Laboratories Inc. (NASDAQ: SLAB), a supplier of high-performance, mixed-signal ICs, recorded Q3’11 revenue of $119.1 million, a decrease of 5.6% QoQ and 0.9% YoY. Although revenues were affected by weakening demands across end markets, Necip Sayiner, president and CEO of Silicon Laboratories, stated, "I'm optimistic about the traction we’re getting with new products and believe that with the improved complexion of our business and continued focus on market share gains, we'll benefit disproportionately when the market environment improves." Silicon Labs is estimating Q4 2011 revenue to reach $120.0 million.
The top 15 voted emerging companies’ Q3 2011 revenue totaled $1.4 billion, an increase of 2.7% over Q2 2011. In the last few weeks, industry pundits have reported actual and estimated Q3 revenue growth in the range of mid 3% to high 4% over Q2. Of the top 15 voted emerging companies, seven exceeded this percentage range and three posted double digit QoQ growth (Dialog Semiconductor [FWB:DLG], Spreadtrum Communications [NASDAQ:SPRD] and Silicon Image [NASDAQ:SIMG]).
Germany-based Dialog Semiconductor led all emerging semiconductor companies with 21.1% and 76.9% QoQ and YoY growths, respectively, in Q3 2011. According to their press release, Dialog’s record revenues were driven by the continued ramp of the smartphone and tablet PC markets, as well as continued design wins for companion power management ICs (PMICs) with Dialog’s application processor partners. Dialog forecasts that positive revenue momentum will continue in Q4 2011 and expects revenue to be in the range of $150.0 to $157.0 million.
Chinese fabless semiconductor provider Spreadtrum Communications recorded the second highest emerging company quarterly revenue growth when it posted a 15.4% increase QoQ. It also posted the largest YoY revenue growth among the top 15 voted emerging semiconductor companies at 92.0%. Spreadtrum’s Q3 revenue totaled $184.8 million, exceeding the previously guided range of $172.0 to $178.0 million. The company expects Q4 2011 revenue to reach $188.0 million.
California-based Silicon Image recorded the third highest emerging company quarterly revenue growth when it posted an 11.5% increase QoQ. Silicon Image attributes their revenue growth to the fact that their mobile and intellectual property (IP) business continues to grow as the High-Definition Multimedia Interface (HDMI) and Mobile High-Definition Link (MHL) standards continue to expand. Silicon Image’s Q4 2011 revenues are expected to be between $65.0 and $72.0 million.
Other top emerging semiconductor companies expecting to report Q3 2011 financial results within the next few weeks include Richtek Technology Corporation and Sigma Designs Inc.
GSA will continue to track the third quarter financials of these and other semiconductor companies and will publish all actual results in its Q3 2011 Global Semiconductor Financial Tracker. Learn more at http://www.gsaglobal.org/.
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