About Silicon Labs

Silicon Labs is an industry leader in the innovation of high-performance, analog-intensive, mixed-signal ICs. Developed by a world-class engineering team with unsurpassed expertise in mixed-signal design, Silicon Labs' diverse portfolio of patented semiconductor solutions offers customers significant advantages in performance, size and power consumption. For more information about Silicon Labs, please visit www.silabs.com.

Forward-Looking Statements

This press release contains forward-looking statements based on Silicon Labs' current expectations. The words "believe," "estimate," "expect," "intend," "anticipate," "plan," "project," "will" and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Labs and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: risks that Silicon Labs may not be able to maintain its historical growth; quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; dependence on a limited number of products and customers; intellectual property litigation risks; risks associated with acquisitions and divestitures; product liability risks; difficulties managing our distributors, manufacturers and subcontractors; inventory-related risks; difficulties managing international activities; risks that Silicon Labs may not be able to manage strains associated with its growth; credit risks associated with our accounts receivable; dependence on key personnel; stock price volatility; geographic concentration of manufacturers, assemblers, test service providers and customers in Asia that subjects Silicon Labs' business and results of operations to risks of natural disasters, epidemics, war and political unrest; debt-related risks; capital-raising risks; the competitive and cyclical nature of the semiconductor industry; average selling prices of products may decrease significantly and rapidly; information technology risks; conflict mineral risks and other factors that are detailed in the SEC filings of Silicon Laboratories Inc. Silicon Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. References in this press release to Silicon Labs shall mean Silicon Laboratories Inc.

Note to editors: Silicon Laboratories, Silicon Labs, the Silicon Labs logo and Simplicity Studio are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.

Silicon Laboratories Inc. Condensed Consolidated Statements of Income (In thousands, except per share data) (Unaudited)
			Three Months Ended								Six Months Ended
			June 28, 2014				June 29, 2013				June 28, 2014				June 29, 2013
Revenues			$	154,918			$	141,543			$	300,609			$	286,918
Cost of revenues				56,255				52,770				114,841				110,773
Gross margin				98,663				88,773				185,768				176,145
Operating expenses:
Research and development				41,844				37,387				84,329				74,969
Selling, general and administrative				36,017				32,357				70,628				61,510
Operating expenses				77,861				69,744				154,957				136,479
Operating income				20,802				19,029				30,811				39,666
Other income (expense):
Interest income				200				152				502				487
Interest expense				(780	)			(831	)			(1,578	)			(1,673	)
Other income (expense), net				(6	)			114				61				62
Income before income taxes				20,216				18,464				29,796				38,542
Provision for income taxes				5,937				5,852				7,407				5,896
Net income			$	14,279			$	12,612			$	22,389			$	32,646
Earnings per share:
Basic			$	0.33			$	0.30			$	0.52			$	0.77
Diluted			$	0.32			$	0.29			$	0.51			$	0.76
Weighted-average common shares outstanding:
Basic				43,462				42,552				43,271				42,370
Diluted				44,218				43,269				44,137				43,191

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share data)
Non-GAAP Income Statement Items		Three Months Ended June 28, 2014
		GAAP Measure			GAAP Percent of Revenue				Stock Compensation Expense			Intangible Asset Amortization			Acquisition Related Items				Non- GAAP Measure			Non-GAAP Percent of Revenue
Revenues		$	154,918
Gross margin			98,663			63.7	%		$	178		$	390		$	--			$	99,231		64.1	%
Research and development			41,844			27.0	%			4,327			3,104			--				34,413		22.2	%
Selling, general and administrative			36,017			23.3	%			4,777			729			(822	)			31,333		20.3	%
Operating income			20,802			13.4	%			9,282			4,223			(822	)			33,485		21.6	%
Non-GAAP Diluted Earnings Per Share					Three Months Ended June 28, 2014
					GAAP Measure				Stock Compensation Expense			Intangible Asset Amortization			Acquisition Related Items				Non- GAAP Measure
Net income					$	14,279			$	8,695		$	3,388		$	(822	)		$	25,540
Diluted shares outstanding						44,218				--			--			--				44,218
Diluted earnings per share					$	0.32													$	0.58
Unaudited Forward-Looking Statements Regarding Business Outlook (In thousands, except per share information)

Business Outlook		Three Months Ending September 27, 2014
		High			Low
Estimated GAAP diluted earnings per share		$	0.24		$	0.18
Estimated non-GAAP charges			0.27			0.27
Estimated non-GAAP diluted earnings per share		$	0.51		$	0.45

Silicon Laboratories Inc. Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited)
			June 28, 2014				December 28, 2013
Assets
Current assets:
Cash and cash equivalents			$	93,290			$	95,800
Short-term investments				235,645				179,593
Accounts receivable, net of allowances for doubtful accounts of $788 at June 28, 2014 and $797 at December 28, 2013				69,042				72,124
Inventories				45,557				45,271
Deferred income taxes				17,658				18,878
Prepaid expenses and other current assets				47,785				47,651
Total current assets				508,977				459,317
Long-term investments				10,993				10,632
Property and equipment, net				129,357				132,445
Goodwill				228,781				228,781
Other intangible assets, net				124,106				131,593
Other assets, net				22,251				28,382
Total assets			$	1,024,465			$	991,150
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable			$	24,745			$	22,126
Current portion of long-term debt				10,000				7,500
Accrued expenses				65,672				45,975
Deferred income on shipments to distributors				33,437				30,853
Income taxes				896				2,693
Total current liabilities				134,750				109,147
Long-term debt				82,500				87,500
Other non-current liabilities				29,610				55,941
Total liabilities				246,860				252,588
Commitments and contingencies
Stockholders' equity:
Preferred stock – $0.0001 par value; 10,000 shares authorized; no shares issued and outstanding				--				--
Common stock – $0.0001 par value; 250,000 shares authorized; 43,406 and 42,779 shares issued and outstanding at June 28, 2014 and December 28, 2013, respectively				4				4
Additional paid-in capital				65,199				48,630
Retained earnings				713,001				690,612
Accumulated other comprehensive loss				(599	)			(684	)
Total stockholders' equity				777,605				738,562
Total liabilities and stockholders' equity			$	1,024,465			$	991,150

Silicon Laboratories Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
			Six Months Ended
			June 28, 2014				June 29, 2013
Operating Activities
Net income			$	22,389			$	32,646
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment				6,427				6,634
Amortization of other intangible assets and other assets				8,839				5,635
Stock-based compensation expense				18,559				13,684
Income tax benefit (shortfall) from stock-based awards				377				(489	)
Excess income tax benefit from stock-based awards				(589	)			(243	)
Deferred income taxes				4,665				9,277
Changes in operating assets and liabilities:
Accounts receivable				3,082				9,388
Inventories				(123	)			(1,028	)
Prepaid expenses and other assets				3,394				5,023
Accounts payable				3,846				(2,271	)
Accrued expenses				(4,902	)			(6,013	)
Deferred income on shipments to distributors				2,584				293
Income taxes				(5,130	)			(6,439	)
Net cash provided by operating activities				63,418				66,097
Investing Activities
Purchases of available-for-sale investments				(117,744	)			(121,994	)
Proceeds from sales and maturities of available-for-sale investments				61,803				146,870
Purchases of property and equipment				(3,339	)			(6,498	)
Purchases of other assets				(2,726	)			(2,438	)
Net cash provided by (used in) investing activities				(62,006	)			15,940
Financing Activities
Proceeds from issuance of common stock, net of shares withheld for taxes				8,943				9,512
Excess income tax benefit from stock-based awards				589				243
Repurchases of common stock				(10,954	)			--
Payments on debt				(2,500	)			(3,750	)
Net cash provided by (used in) financing activities				(3,922	)			6,005
Increase (decrease) in cash and cash equivalents				(2,510	)			88,042
Cash and cash equivalents at beginning of period				95,800				105,426
Cash and cash equivalents at end of period			$	93,290			$	193,468