Silicon Laboratories Inc.
Condensed Consolidated Statements of Income(In thousands, except per share data)(Unaudited)

Revenues
Cost of revenues
Gross margin
Operating expenses:
Research and development
Selling, general and administrative
Operating expenses
Operating income
Other income (expense):
Interest income
Interest expense
Other, net
Income before income taxes
Provision (benefit) for income taxes

Three Months Ended
April 1,April 2,2017
2016$179,028$162,025
73,86766,494105,161
95,531
52,32440,15592,47912,682

49,046
39,637
88,683
6,848

696
198
(120)
13,456(1,970)271(655)
(391)
6,073
265

Net income$ 15,426$

5,808

Earnings per share:
Basic
Diluted

$$$
$

0.14
0.14

Weighted-average common shares outstanding:
Basic
Diluted

0.37
0.36

42,09643,03041,62942,199Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets(In thousands, except per share data)(Unaudited)

AssetsCurrent assets:
Cash and cash equivalents
Short-term investments
Accounts receivable, net
Inventories
Prepaid expenses and other current assets
Total current assets
Long-term investments
Property and equipment, net
Goodwill
Other intangible assets, net
Other assets, net
Total assets
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
Accrued expenses
Deferred income on shipments to distributors
Income taxes
Total current liabilities
Long-term debt
Convertible debt
Other non-current liabilities
Total liabilities
Commitments and contingencies
Stockholders' equity:
Preferred stock – $0.0001 par value; 10,000 shares authorized; noshares issued and outstanding
Common stock – $0.0001 par value; 250,000 shares authorized;
42,348 and 41,889 shares issued and outstanding at
April 1, 2017 and December 31, 2016, respectively
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income (loss)
Total stockholders' equity
Total liabilities and stockholders' equity

April 1,2017

December 31,2016$ 225,399
396,32775,852
61,30854,360813,246
5,257
130,635
288,629
103,638
58,021$1,399,426$ 141,106
153,961
74,401
59,57861,805490,851
5,196
129,559
276,130
103,565
76,543$1,081,844$$

43,78147,41649,7004,396
145,293-332,502
42,797
520,59239,577
50,10045,5684,450
139,695
72,500-42,691
254,886----

4
59,714
819,641(525)
878,834$1,399,426

4
24,463801,999492
826,958$1,081,844

Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited)Three Months Ended
April 1,April 2,2017
2016
Operating Activities
Net income$ 15,426
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment
3,596
Amortization of other intangible assets and other assets
6,752
Amortization of debt discount and debt issuance costs
869
Stock-based compensation expense
10,486
Income tax benefit (shortfall) from stock-based awards-Excess income tax benefit from stock-based awards-Deferred income taxes(4,059)Changes in operating assets and liabilities:
Accounts receivable(1,252)Inventories(1,636)
Prepaid expenses and other assets
6,708
Accounts payable
5,565
Accrued expenses(3,889)Deferred income on shipments to distributors
4,038
Income taxes
945
Other non-current liabilities(1,536)
Net cash provided by operating activities42,013

$

5,808
3,310
7,980
-10,344(1,025)
(6)
(38)
(990)
4,580
9,159
1,559
6,260
5,558
494
(10,584)
42,409Investing Activities
Purchases of available-for-sale investments
Sales and maturities of available-for-sale investments
Purchases of property and equipment
Purchases of other assets
Acquisition of business, net of cash acquired
Net cash used in investing activities(267,777)
25,595(4,543)(1,446)(13,658)(261,829)(44,547)
46,654(2,303)(1,107)-(1,303)

Financing Activities
Proceeds from issuance of long-term debt, net
Payments on debt
Repurchases of common stock
Payment of taxes withheld for vested stock awards
Proceeds from the issuance of common stock
Net cash provided by (used in) financing activities

390,000(72,500)-(13,553)
162
304,109-(2,500)(18,484)(7,517)-(28,501)

Increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

84,293
141,106$225,399

12,605
114,085$126,690

Non-GAAP Financial Measurements
In addition to the GAAP results provided throughout this document, Silicon Laboratories has provided non-GAAP financial
measurements on a basis excluding non-cash and other charges and benefits. Details of these excluded items are presented in
the tables below, which reconcile the GAAP results to non-GAAP financial measurements.
The non-GAAP financial measurements do not replace the presentation of Silicon Laboratories’ GAAP financial results.
These measurements provide supplemental information to assist management and investors in analyzing Silicon Laboratories’
financial position and results of operations. Silicon Laboratories has chosen to provide this information to investors to enable
them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the resultsof core on-going operations.

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures(In thousands, except per share data)
Non-GAAP Income
Statement Items
GAAP
Percent ofRevenue

Three Months Ended
April 1, 2017
Stock
Intangible
Acquisition
Compensation
Asset
Related
ExpenseAmortization
Items

Revenues

GAAP
Measure$179,028

Gross margin

105,161

58.7%

$ 258

Research anddevelopment

52,32429.2%

Selling, general andadministrative40,155

Operating expenses
Operating income

Non-GAAP
Percent ofRevenue--$124$105,543

59.0%

5,246

4,897

356

41,825

23.4%

22.4%

4,982

1,605

816

32,752

18.3%

92,47951.6%

10,228

6,502

1,172

74,57741.7%

12,682

7.1%

10,486

6,502

1,296

30,966

17.3%

IncomeTax
Adjustments

NonGAAP
MeasureNon-GAAP
Earnings Per Shareand Income Tax Rate$

Non-GAAP
MeasureThree Months Ended
April 1, 2017

GAAP
MeasureGAAPTaxPercentage
Rate

Stock
Compensation
ExpenseIntangible
Asset
Amortization

Acquisition
Related
Items

InterestExpense$10,486$6,502$1,296$(1,228)

Income before
income taxes$13,456

Provision (benefit) for
income taxes(1,970)Net income$15,426$27,270

Diluted shares
outstanding

43,03043,030

Diluted earnings
per share$ 0.36$ 0.63(14.6)%$--$30,512

5,212

3,242

Non-GAAP
Tax
Percentage
Rate

10.6%

Unaudited Forward-Looking Statements Regarding Business Outlook**(In millions, except per share data)
Business Outlook

Gross margin

Three Months Ending
July 1, 2017GAAPNon-GAAP Non-GAAP
Measure Adjustments
Measure
58.8%
0.2%
59.0%

Operating expenses$92$18$74 - $75

Effective tax rate

11.0%

0.5%

11.5%

Diluted earnings per share - low

$0.27

$0.41

$0.68

Diluted earnings per share - high

$0.33

$0.41

$0.74

** These financial schedules contain 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 SiliconLabs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views andassumptions 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 forwardlooking 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 withacquisitions 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 pricevolatility; 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-relatedrisks; capital-raising risks; the competitive and cyclical nature of the semiconductor industry; average selling prices ofproducts may decrease significantly and rapidly; cyber-attacks against our products and our networks; 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 these financial schedules to Silicon Labs shall mean Silicon
Laboratories Inc.