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AUSTIN, Texas - Silicon Labs (NASDAQ: SLAB), in partnership with Kudelski IoT, part of the Kudelski Group (SIX: KUD.S), today unveiled a new service to expedite the market readiness of Internet of Things (IoT) devices adhering to the Matter certification. The service integrates Kudelski IoT's Matter Device Attestation Certificates (DAC) into Silicon Labs' Custom Part Manufacturing Service (CPMS), aiming to simplify the security implementation from production to delivery, thus reducing time and costs for manufacturers.
The Matter protocol, which emphasizes a Zero Trust security model with its "never trust, always verify" mantra, requires unique device authentication certificates for enhanced security. However, this requirement has introduced complexities for manufacturers, particularly in the secure transfer of certificates from Certificate Authorities to production lines. By merging Silicon Labs' manufacturing services with Kudelski's certified Public Key Infrastructure (PKI) service, IoT manufacturers can now have Matter DACs securely injected during the production process, easing the transition to Matter volume manufacturing.
Rohit Ravichandran, product manager for security and services at Silicon Labs, stated, "Our first-of-its-kind secure provisioning service, along with Kudelski IoT's expertise and PKI services, will enable manufacturers to focus on innovation without compromising on security." The collaboration offers several advantages, including secure DAC injection at Silicon Labs-designated factories, simplified key management, reduced manufacturing complexity, and protection against counterfeiting and overproduction.
Chrystophe Clément, principal architect at Kudelski IoT, expressed enthusiasm for the partnership, which aims to scale Matter adoption and alleviate manufacturing burdens. Silicon Labs' Matter DAC injection is currently available for its MG24 wireless SoCs and modules with Secure Vault technology. Manufacturers can order through the Silicon Labs CPMS web portal after obtaining Matter certification, with sample parts shipped within 4-6 weeks for testing and validation before placing volume orders.
This announcement is based on a press release statement and provides a factual summary of the new service offered by Silicon Labs and Kudelski IoT to support the secure and efficient production of Matter-certified IoT devices.
In other recent news, Silicon Labs reported strong Q2 financial results, meeting the high end of revenue forecasts and surpassing earnings expectations. The company's focus on the Industrial & Commercial and Home business units has yielded a significant pipeline of design wins, particularly in the growing Internet of Things (IoT) market. This is evident in its traction in the insulin management, electronic shelf label, and smart metering markets.
Silicon Labs is strategically positioned to capitalize on IoT trends with its Series 2 and Series 3 product portfolios. The company has provided a Q3 revenue outlook of $160 million to $170 million with expected sequential growth. Despite challenges in the Chinese market, Silicon Labs is not heavily reliant on this region for growth.
The company remains cautiously optimistic, focusing on design wins and growth opportunities in other regions. The integration of AI and ML technologies into its product portfolios suggests a continued upward trajectory in the IoT space. These are among the recent developments for Silicon Labs.
InvestingPro Insights
Silicon Labs' partnership with Kudelski IoT to streamline Matter certification for IoT devices comes at a crucial time for the company. According to InvestingPro data, Silicon Labs has faced significant challenges recently, with revenue declining by 46.77% over the last twelve months as of Q2 2024. This new service could potentially help the company regain momentum in the IoT market.
Despite the revenue setback, Silicon Labs maintains a strong financial position. An InvestingPro Tip reveals that the company holds more cash than debt on its balance sheet, which provides financial flexibility to invest in innovative solutions like the Matter DAC injection service. Additionally, liquid assets exceed short-term obligations, indicating a solid short-term financial outlook.
However, investors should note that Silicon Labs is currently not profitable, with a negative P/E ratio of -19.36. This aligns with another InvestingPro Tip suggesting that analysts do not anticipate the company will be profitable this year. The collaboration with Kudelski IoT could be seen as a strategic move to improve the company's financial performance in the growing IoT sector.
For a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 5 more InvestingPro Tips available for Silicon Labs, which could provide valuable context for investors considering the company's future prospects in light of this new IoT security initiative.
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