It’s starting to feel a lot like “Groundhog Day” at Silicon Labs.
The company reported -- again -- record sales of $199 million in its third quarter, beating Wall Street expectations. The company’s sales grew 12 percent from the same quarter a year ago and were higher than the previous quarter.
Austin-based Silicon Labs continues to notch higher sales growth, thanks in part to its efforts to pivot toward high-growth areas such as “Internet of Things” products, electric vehicles and renewable energy.
The Internet of Things is a chip industry term for a non-computing device that is connected to the Internet, such as Nest thermostat.
The company has reported record sales for every quarter except one during the past nine quarters.
That’s one reason that despite the strong earnings report, investors largely shrugged Wednesday morning.
The company’s share price nudged up 2 percent after the market opened on Wednesday, hovering around $90 a share. The company’s share price has increased by 38 percent since the start of the year.
Silicon Labs makes a variety of chips, sensors and software that can be used in wide range of devices, from televisions to smart energy meters and data centers. Its major customers include Cisco, Fitbit, LG Electronics and Samsung.
Chief financial officer John Hollister said during an interview with the American-Statesman that the company plans on spending more money on personnel next year.
“As we look forward, we think about increasing the level of hiring because we see a very large opportunity ahead of us in the Internet of Things and the growing opportunity to serve that opportunity,” Hollister said. “And that does involve higher headcount levels for us.”
He said that because their Austin headquarters has the highest headcount, there will probably be more people hired locally. The type of jobs the company will be hiring for include software engineering, customer support and sales.
Founded in 1996, Silicon Labs employs about 1,300 people and is headquartered in downtown Austin.
The company’s Internet of Things division continues to drive sales growth for the chipmaker. That division reported revenue of $100 million, a 23 percent increase from the same quarter a year ago. Revenue from its IoT division now makes up 50 percent of their sales.
CEO Tyson Tuttle said on a conference call with analysts that Silicon Labs’ Internet of Things division was the fastest-growing part of the company.
“We are seeing tremendous demand for IoT products,” Tuttle said.
Silicon Labs’ also reported sales growth in another key focus area, its infrastructure division, which includes products used in data centers, electric cars and in renewable energy products.
That division grew by 1 percent year over year to $39 million in sales.
Silicon Labs reported profit of $19.9 million in its third quarter, or 46 cents a share, which is essentially flat year-over-year. When adjusted for one-time gains and costs, the company reported profit of $43.3 million, or 90 cents a share, which is higher than analysts expected.
This article was updated at 1:50 p.m. with comments from CFO John Hollister