About Silicon Labs

Silicon Labs (NASDAQ: SLAB) is a leading provider of silicon, software and solutions for the Internet of Things, Infrastructure, industrial automation, consumer and automotive markets. We solve the electronics industry’s toughest problems, providing customers with significant advantages in performance, energy savings, connectivity and design simplicity. Backed by our world-class engineering teams with strong software and mixed-signal design expertise, Silicon Labs empowers developers with the tools and technologies they need to advance quickly and easily from initial idea to final product. 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; cyber-attacks against our products and our networks; 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 “S” symbol, and the Silicon Labs logo 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
				April 2, 2016					April 4, 2015
Revenues				$	162,025				$	163,705
Cost of revenues					66,494					67,336
Gross margin					95,531					96,369
Operating expenses:
Research and development					49,046					46,857
Selling, general and administrative					39,637					42,300
Operating expenses					88,683					89,157
Operating income					6,848					7,212
Other income (expense):
Interest income					271					192
Interest expense					(655	)				(745	)
Other income (expense), net					(391	)				408
Income before income taxes					6,073					7,067
Provision for income taxes					265					689
Net income				$	5,808				$	6,378
Earnings per share:
Basic				$	0.14				$	0.15
Diluted				$	0.14				$	0.15
Weighted-average common shares outstanding:
Basic					41,629					42,412
Diluted					42,199					43,149

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
Non-GAAP Income Statement Items				Three Months Ended April 2, 2016
				GAAP Measure				GAAP Percent of Revenue					Stock Compensation Expense				Intangible Asset Amortization				Acquisition Related Items					Termination Costs					Non- GAAP Measure				Non-GAAP Percent of Revenue
Revenues				$	162,025
Gross margin					95,531				59.0	%			$	266			$	390			$	426				$	--				$	96,613			59.6	%
Research and development					49,046				30.3	%				4,910				5,616				--					--					38,520			23.8	%
Selling, general and administrative					39,637				24.5	%				5,168				1,419				(24	)				104					32,970			20.3	%
Operating income					6,848				4.2	%				10,344				7,425				402					104					25,123			15.5	%
Non-GAAP Earnings Per Share				Three Months Ended April 2, 2016
				GAAP Measure				Stock Compensation Expense*					Intangible Asset Amortization*				Acquisition Related Items*				Termination Costs*					Income Tax Adjustments					Non- GAAP Measure
Net income				$	5,808			$	10,344				$	7,425			$	402			$	104				$	(2,618	)			$	21,465
Diluted shares outstanding					42,199																											42,199
Diluted earnings per share				$	0.14																										$	0.51
* Represents pre-tax amounts

Unaudited Forward-Looking Statements Regarding Business Outlook
Business Outlook				Three Months Ending July 2, 2016
				High				Low
Estimated GAAP diluted earnings per share				$	0.29			$	0.23
Estimated non-GAAP charges					0.38				0.38
Estimated non-GAAP diluted earnings per share				$	0.67			$	0.61

Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
				April 2, 2016					January 2, 2016
Assets
Current assets:
Cash and cash equivalents				$	126,690				$	114,085
Short-term investments					126,824					128,901
Accounts receivable, net of allowances for doubtful accounts of $657 at April 2, 2016 and $671 at January 2, 2016					74,591					73,601
Inventories					48,923					53,895
Prepaid expenses and other current assets					44,222					52,658
Total current assets					421,250					423,140
Long-term investments					6,845					7,126
Property and equipment, net					130,099					131,132
Goodwill					272,722					272,722
Other intangible assets, net					113,800					121,354
Other assets, net					53,566					55,989
Total assets				$	998,282				$	1,011,463
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable				$	42,579				$	42,127
Current portion of long-term debt					10,000					10,000
Accrued expenses					58,391					52,131
Deferred income on shipments to distributors					41,042					35,448
Income taxes					3,084					2,615
Total current liabilities					155,096					142,321
Long-term debt					65,000					67,500
Other non-current liabilities					28,739					40,528
Total liabilities					248,835					250,349
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; 41,743 and 41,727 shares issued and outstanding at April 2, 2016 and January 2, 2016, respectively					4					4
Additional paid-in capital					--					13,868
Retained earnings					750,256					747,749
Accumulated other comprehensive loss					(813	)				(507	)
Total stockholders' equity					749,447					761,114
Total liabilities and stockholders' equity				$	998,282				$	1,011,463

Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
				Three Months Ended
				April 2, 2016					April 4, 2015
Operating Activities
Net income				$	5,808				$	6,378
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment					3,310					2,987
Amortization of other intangible assets and other assets					7,980					6,521
Stock-based compensation expense					10,344					10,519
Income tax benefit (shortfall) from stock-based awards					(1,025	)				1,773
Excess income tax benefit from stock-based awards					(6	)				(1,785	)
Deferred income taxes					(38	)				6,844
Changes in operating assets and liabilities:
Accounts receivable					(990	)				6,564
Inventories					4,580					(6,424	)
Prepaid expenses and other assets					9,159					8,584
Accounts payable					1,559					447
Accrued expenses					6,260					(5,046	)
Deferred income on shipments to distributors					5,558					(1,049	)
Income taxes					494					(8,409	)
Other non-current liabilities					(10,584	)				(3,816	)
Net cash provided by operating activities					42,409					24,088
Investing Activities
Purchases of available-for-sale investments					(44,547	)				(13,037	)
Proceeds from sales and maturities of available-for-sale investments					46,654					57,739
Purchases of property and equipment					(2,303	)				(1,991	)
Purchases of other assets					(1,107	)				(935	)
Acquisition of business, net of cash acquired					--					(76,899	)
Net cash used in investing activities					(1,303	)				(35,123	)
Financing Activities
Payment of taxes withheld for vested stock awards, net of proceeds from the issuance of common stock					(7,523	)				(2,561	)
Excess income tax benefit from stock-based awards					6					1,785
Repurchases of common stock					(18,484	)				(10,138	)
Payment of acquisition-related contingent consideration					--					(4,464	)
Payments on debt					(2,500	)				(2,583	)
Net cash used in financing activities					(28,501	)				(17,961	)
Increase (decrease) in cash and cash equivalents					12,605					(28,996	)
Cash and cash equivalents at beginning of period					114,085					141,706
Cash and cash equivalents at end of period				$	126,690				$	112,710