Silicon Laboratories Inc.
Condensed Consolidated Statements of Operations(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 income (expense), net
Income before income taxes
Provision for income taxes

Three Months Ended
April 2,
April 3,2011
2010
$119,636$126,719
47,47843,12972,15883,59035,35931,86067,2194,939

29,92228,00357,92525,665

571
(5)
209
5,714
7,674666(23)(297)
26,011
4,932

Net income (loss)$ (1,960)$ 21,079

Earnings (loss) per share:
Basic
Diluted$$$$Weighted-average common shares outstanding:
Basic
Diluted(0.04)(0.04)

44,26944,2690.46
0.4445,81647,926

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 of allowance for doubtful accounts of$724 at April 2, 2011 and $772 at January 1, 2011Inventories
Deferred income taxes
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 obligations and other 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;
44,513 and 43,933 shares issued and outstanding at
April 2, 2011 and January 1, 2011, respectively
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Total stockholders' equity
Total liabilities and stockholders' equity

April 2,2011

January 1,2011$118,496
203,785$138,567
227,295

58,49341,057
9,461
39,922471,214
16,96529,464
117,215
68,83629,816$733,510

45,03039,4509,140
34,447493,929
17,50029,945112,296
53,242
20,746$727,658$ 20,371
26,492
28,896
3,922
79,681
23,540103,221$ 24,433
25,604
26,127
3,692
79,856
22,372102,228----

4
56,534577,167(3,416)630,289$733,510

4
49,947579,127(3,648)625,430$727,658

Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows(in thousands)(Unaudited)Three Months Ended
April 2,April 3,2011
2010
Operating Activities
Net income (loss)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating
activities:
Depreciation of property and equipment
Amortization of other intangible assets and other assets
Stock-based compensation expense
Income tax benefit from employee stock-based awards
Excess income tax benefit from employee stock-based awards
Deferred income taxes
Changes in operating assets and liabilities:
Accounts receivable
Inventories
Prepaid expenses and other assets
Accounts payable
Accrued expenses
Deferred income on shipments to distributors
Income taxes
Net cash provided by (used in) operating activities
Investing Activities
Purchases of available-for-sale investments
Proceeds from sales and maturities of marketable securities
Purchases of property and equipment
Purchases of other assets
Acquisition of business, net of cash acquired
Net cash used in investing activities
Financing Activities
Proceeds from issuance of common stock, net of shares withheld for taxes
Excess income tax benefit from employee stock-based awards
Repurchases of common stock
Payments on debt
Net cash used in financing activities
Decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period$ (1,960)$ 21,079

3,253
3,057
9,473
1,184
(1,142)
1,366

2,879
1,849
10,256
1,286
(800)
616

(11,704)(759)(4,499)(4,787)(1,634)2,293
3,233(2,626)

(804)
3,832
(973)
1,046
(1,110)(50)(7,991)
31,115(31,492)
55,092(2,697)(584)(27,546)(7,227)(121,357)
67,697(1,747)(3,436)-(58,843)(3,580)1,142(606)(7,174)(10,218)7,483
800(24,092)-(15,809)(20,071)
138,567$118,496(43,537)
195,737$152,200

Non-GAAP Financial Measurements
In addition to the GAAP results provided throughout this document, Silicon Laboratories has provided nonGAAP financial measurements on a basis excluding non-cash and other one-time charges and benefits. Details ofthese 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 thisinformation to investors to enable them to perform meaningful comparisons of past, present and future operating
results and as a means to emphasize the results of core on-going operations.

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

Revenues

GAAP
Measure$119,636

GAAP
Percent of
RevenueThree Months Ended
April 2, 2011
Stock
Compensation
Acquisition
ExpenseRelated Costs

Non-GAAP
MeasureNon-GAAP
Percent ofRevenue

Gross margin

72,158

60.3%$ 338$1,149$73,645

61.6%

Research and development

35,359

29.6%

3,994

1,618

29,747

24.9%

Selling, general andadministrative

31,860

26.6%

5,141

3,526

23,193

19.4%

Operating income

4,939

4.1%

9,473

6,293

20,705

17.3%

Provision for income taxes

7,674

1,027

(5,425)

3,276

Net income (loss)(1,960)8,446

11,71818,204

Non-GAAP Diluted Earnings
Per Share(1.6)%Net income (loss)

GAAP
Measure$(1,960)

Three Months Ended
April 2, 2011
Stock
Compensation
Acquisition
ExpenseRelated Costs$8,446$11,718

Non-GAAPMeasure$18,204

Diluted shares outstanding

GAAP
Measure44,269Dilutive Securities Excluded
Due to Net Loss
1,776

Non-GAAP
Measure46,045

Diluted earnings (loss) per share$ (0.04)

$0.40

15.2%

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures(In thousands, except per share data)(Continued)
Non-GAAP
Income Tax Rate

Income before income taxes

GAAP
Measure$5,714

Provision for income taxes

7,674

Tax rate percentage

134.3%

Three Months EndedApril 2, 2011
Stock
CompensationAcquisition
ExpenseRelated Costs$9,473$6,293
1,027(5,425)

Non-GAAP
Measure$21,480
3,276
15.3%

Unaudited Forward-Looking Statements Regarding Business Outlook*(in thousands, except per share information)

Business Outlook

Three Months Ending
July 2, 2011

Estimated GAAP diluted earnings per share
Estimated non-cash charges
Estimated non-GAAP diluted earnings per share

High
$0.30
0.19
$0.49

Low
$0.24
0.19
$0.43

* These financial schedules contain forward-looking statements based on Silicon Laboratories’ current
expectations. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “plan,” “project,” “will” andsimilar phrases as they relate to Silicon Laboratories are intended to identify such forward-looking statements.
These forward-looking statements reflect the current views and assumptions of Silicon Laboratories 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 Laboratories may not be able to maintain its historical growth; quarterly
fluctuations in revenues and operating results; volatile stock price; average selling prices of products may
decrease significantly and rapidly, difficulties developing new products that achieve market acceptance;
dependence on a limited number of products and customers; intellectual property litigation risks; inventory-relatedrisks; risks associated with acquisitions; difficulties managing international activities; difficulties managing ourmanufacturers and subcontractors; risks that Silicon Laboratories may not be able to manage strains associatedwith its growth; credit risks associated with our accounts receivable; dependence on key personnel; risks
associated with divestitures; geographic concentration of manufacturers, assemblers, test service providers andcustomers in Asia that subjects Silicon Laboratories’ business and results of operations to risks of natural
disasters, epidemics, war and political unrest; the competitive and cyclical nature of the semiconductor industry
and other factors that are detailed in Silicon Laboratories’ filings with the SEC. Silicon Laboratories disclaims any
intention or obligation to update or revise any forward-looking statements, whether as a result of new information,
future events or otherwise.