SLAB: More New Products Needed

By Douglas A. McIntyre Published Mar 5, 3:05PM EST

By William Trent, CFA of Stock Market Beat

When Silicon Laboratories SLAB announced it was selling its handset chip business, we said it left the company with few options. The main one is to make a whole lot more of the chips that don’t go into cel phones. In keeping with that strategy, the company annouced a new product:

Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance, analog-intensive, mixed-signal ICs, today announced at International IC-China Conference and Exhibition/Embedded Systems Conference-China 2007 the most highly integrated 8-bit MCU combining a 25 MIPS CPU, 10-bit 500 ksps ADC and an internal /-2 % oscillator in a 3×3 mm package. The C8051T60x product family adds to Silicon Laboratories’ portfolio of over 60 high-performance Small Form Factor MCUs. The C8051T60x is ideal for consumer and industrial applications including toys, camera modules, cell phone accessories, portable devices, home appliances and motor controllers.”The C8051T60x is the first mixed-signal 8-bit MCU with unprecedented functionality designed for cost- and space-sensitive applications,” said Derrell Coker, vice president of Silicon Laboratories. “With the highest performance and integration in a small form factor, the C8051T60x enables manufacturers to easily and cost-effectively design high-performance products.”

They’ll have to design a bunch of them for the product to move the needle. Pricing begins at $0.45 in quantities of 10K. Given the company’s non-wireless revenue run rate of $300 million, that indicates it would take about six million of these chips per year to boost revenue by 1%.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.