The company expects revenue in the fourth quarter to be in the range of $176 million to $181 million. Fourth quarter diluted earnings per share are expected to be between $0.30 and $0.36 on a GAAP basis, and between $0.62 and $0.68 on a non-GAAP basis.

“We are delighted to report record revenue, including five percent sequential and 14 percent year-on-year growth in product revenue," said Tyson Tuttle, CEO of Silicon Labs. “We are executing on our growth strategy targeting the IoT and Infrastructure markets, and are seeing our efforts translate into strong financial results.”

Webcast and Conference Call

A conference call discussing the quarterly results will follow this press release at 7:30 a.m. Central time. An audio webcast will be available on Silicon Labs' website ( www.silabs.com) under Investor Relations. A replay will be available after the call at the same website listed above or by calling 1 (855) 859-2056 or (404) 537-3406 (international) and entering conference ID 83473959. The replay will be available through November 26, 2016.

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, the Silicon Labs logo, Simplicity Studio, and USBXpress 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											Nine Months Ended
			October 1, 2016					October 3, 2015						October 1, 2016					October 3, 2015
Revenues			$	178,083				$	156,194					$	515,016				$	484,755
Cost of revenues				69,880					62,759						202,988					197,523
Gross margin				108,203					93,435						312,028					287,232
Operating expenses:
Research and development				48,437					46,483						149,118					140,805
Selling, general and administrative				38,034					35,729						116,716					118,989
Operating expenses				86,471					82,212						265,834					259,794
Operating income				21,732					11,223						46,194					27,438
Other income (expense):
Interest income				331					186						880					544
Interest expense				(643	)				(687	)					(1,939	)				(2,160	)
Other, net				(58	)				(280	)					(431	)				218
Income before income taxes				21,362					10,442						44,704					26,040
Provision for income taxes				1,344					467						3,319					2,112
Net income			$	20,018				$	9,975					$	41,385				$	23,928
Earnings per share:
Basic			$	0.48				$	0.24					$	0.99				$	0.56
Diluted			$	0.47				$	0.23					$	0.98				$	0.55
Weighted-average common shares outstanding:
Basic				41,614					42,331						41,673					42,522
Diluted				42,307					42,795						42,263					43,135

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
Non-GAAP Income Statement Items			Three Months Ended October 1, 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			$	178,083
Gross margin				108,203			60.8	%		$	272		$	130		$	--		$	--			$	108,605		61.0	%
Research and development				48,437			27.2	%			4,580			4,257			--			--				39,600		22.2	%
Selling, general and administrative				38,034			21.4	%			4,343			1,420			311			552				31,408		17.7	%
Operating income				21,732			12.2	%			9,195			5,807			311			552				37,597		21.1	%
Non-GAAP Earnings Per Share			Three Months Ended October 1, 2016
			GAAP Measure			Stock Compensation Expense*				Intangible Asset Amortization*			Acquisition Related Items*			Termination Costs*			Income Tax Adjustments				Non- GAAP Measure
Net income			$	20,018		$	9,195			$	5,807		$	311		$	552		$	(3,467	)		$	32,416
Diluted shares outstanding				42,307																				42,307
Diluted earnings per share			$	0.47																			$	0.77
* Represents pre-tax amounts

Unaudited Forward-Looking Statements Regarding Business Outlook
Business Outlook			Three Months Ending December 31, 2016
			High				Low
Estimated GAAP diluted earnings per share			$	0.36			$	0.30
Estimated non-GAAP charges				0.32				0.32
Estimated non-GAAP diluted earnings per share			$	0.68			$	0.62

Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
			October 1,					January 2,
			2016					2016
Assets
Current assets:
Cash and cash equivalents			$	148,195				$	114,085
Short-term investments				131,139					128,901
Accounts receivable, net				84,923					73,601
Inventories				55,051					53,895
Prepaid expenses and other current assets				49,087					52,658
Total current assets				468,395					423,140
Long-term investments				6,980					7,126
Property and equipment, net				130,318					131,132
Goodwill				272,722					272,722
Other intangible assets, net				100,320					121,354
Other assets, net				51,481					55,989
Total assets			$	1,030,216				$	1,011,463
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable			$	39,591				$	42,127
Current portion of long-term debt				--					10,000
Accrued expenses				51,561					52,131
Deferred income on shipments to distributors				47,057					35,448
Income taxes				5,638					2,615
Total current liabilities				143,847					142,321
Long-term debt				72,500					67,500
Other non-current liabilities				26,240					40,528
Total liabilities				242,587					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; 41,651 and 41,727 shares issued and outstanding at October 1, 2016 and January 2, 2016, respectively				4					4
Additional paid-in capital				6,344					13,868
Retained earnings				781,890					747,749
Accumulated other comprehensive loss				(609	)				(507	)
Total stockholders' equity				787,629					761,114
Total liabilities and stockholders' equity			$	1,030,216				$	1,011,463

Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
			Nine Months Ended
			October 1,					October 3,
			2016					2015
Operating Activities
Net income			$	41,385				$	23,928
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment				9,912					9,293
Amortization of other intangible assets and other assets				21,461					21,686
Stock-based compensation expense				30,057					30,798
Income tax benefit (shortfall) from stock-based awards				(1,238	)				1,727
Excess income tax benefit from stock-based awards				(373	)				(2,118	)
Deferred income taxes				(1,460	)				1,571
Changes in operating assets and liabilities:
Accounts receivable				(11,322	)				12,097
Inventories				(1,558	)				2,259
Prepaid expenses and other assets				7,404					8,409
Accounts payable				1,280					(5,686	)
Accrued expenses				8,930					(280	)
Deferred income on shipments to distributors				11,573					(2,825	)
Income taxes				1,459					(3,413	)
Other non-current liabilities				(10,891	)				(10,031	)
Net cash provided by operating activities				106,619					87,415
Investing Activities
Purchases of available-for-sale investments				(131,741	)				(55,433	)
Sales and maturities of available-for-sale investments				129,511					136,262
Purchases of property and equipment				(8,545	)				(7,281	)
Purchases of other assets				(4,994	)				(5,291	)
Acquisition of business, net of cash acquired				--					(76,899	)
Net cash used in investing activities				(15,769	)				(8,642	)
Financing Activities
Proceeds from issuance of long-term debt, net				--					81,238
Payments on debt				(5,000	)				(92,206	)
Repurchases of common stock				(40,543	)				(71,448	)
Payment of taxes withheld for vested stock awards				(10,521	)				(12,652	)
Proceeds from the issuance of common stock				8,451					12,575
Excess income tax benefit from stock-based awards				373					2,118
Payment of acquisition-related contingent consideration				(9,500	)				(4,464	)
Net cash used in financing activities				(56,740	)				(84,839	)
Decrease in cash and cash equivalents				34,110					(6,066	)
Cash and cash equivalents at beginning of period				114,085					141,706
Cash and cash equivalents at end of period			$	148,195				$	135,640