Business Outlook

Three Months Ending

April 1, 2017

High

Low

Estimated GAAP diluted earnings per share

$0.27

$0.21

Estimated non-GAAP charges

0.36

0.36

Estimated non-GAAP diluted earnings per share

$0.63

$0.57

Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)

December 31,
2016

January 2,
2016

Assets

Current assets:

   Cash and cash equivalents

$   141,106

$   114,085

   Short-term investments

153,961

128,901

   Accounts receivable, net

74,401

73,601

   Inventories

59,578

53,895

   Prepaid expenses and other current assets

61,805

52,658

Total current assets

490,851

423,140

Long-term investments

5,196

7,126

Property and equipment, net

129,559

131,132

Goodwill

276,130

272,722

Other intangible assets, net

103,565

121,354

Other assets, net

76,543

55,989

Total assets

$1,081,844

$1,011,463

Liabilities and Stockholders' Equity

Current liabilities:

   Accounts payable

$     39,577

$     42,127

   Current portion of long-term debt

--

10,000

   Accrued expenses

50,100

52,131

   Deferred income on shipments to distributors

45,568

35,448

   Income taxes

4,450

2,615

Total current liabilities

139,695

142,321

Long-term debt

72,500

67,500

Other non-current liabilities

42,691

40,528

Total liabilities

254,886

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; 

      41,889 and 41,727 shares issued and outstanding at

      December 31, 2016 and January 2, 2016, respectively

4

4

   Additional paid-in capital

24,463

13,868

   Retained earnings

801,999

747,749

   Accumulated other comprehensive income (loss)

492

(507)

Total stockholders' equity

826,958

761,114

Total liabilities and stockholders' equity

$1,081,844

$1,011,463

Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

Year Ended

December 31,
2016

January 2,
2016

Operating Activities

Net income

$  61,494

$  29,586

Adjustments to reconcile net income to cash provided by operating activities:

   Depreciation of property and equipment

13,216

12,517

   Amortization of other intangible assets and other assets

27,715

29,131

   Stock-based compensation expense

39,628

42,791

   Income tax benefit (shortfall) from stock-based awards

(1,099)

469

   Excess income tax benefit from stock-based awards

(572)

(2,497)

   Deferred income taxes

(4,087)

(2,136)

   Changes in operating assets and liabilities:

      Accounts receivable

46

1,702

      Inventories

(6,093)

2,093

      Prepaid expenses and other assets

(3,568)

(870)

      Accounts payable

263

6,662

      Accrued expenses

5,919

1,682

      Deferred income on shipments to distributors

9,713

(5,298)

      Income taxes

(3,040)

776

      Other non-current liabilities

(10,625)

(11,161)

Net cash provided by operating activities

128,910

105,447

Investing Activities

Purchases of available-for-sale investments

(185,231)

(107,366)

Sales and maturities of available-for-sale investments

161,921

171,831

Purchases of property and equipment

(10,927)

(11,268)

Purchases of other assets

(8,801)

(6,399)

Acquisitions of businesses, net of cash acquired

(6,546)

(96,112)

Net cash used in investing activities

(49,584)

(49,314)

Financing Activities

Proceeds from issuance of long-term debt, net

--

81,238

Payments on debt

(5,000)

(94,706)

Repurchases of common stock

(40,543)

(71,448)

Payment of taxes withheld for vested stock awards

(11,133)

(13,869)

Proceeds from the issuance of common stock

13,299

16,998

Excess income tax benefit from stock-based awards

572

2,497

Payment of acquisition-related contingent consideration

(9,500)

(4,464)

Net cash used in financing activities

(52,305)

(83,754)

Increase (decrease) in cash and cash equivalents

27,021

(27,621)

Cash and cash equivalents at beginning of period

114,085

141,706

Cash and cash equivalents at end of period

$141,106

$114,085