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

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

Three Months Ended
Nine Months Ended
September 28, September 29, September 28, September 29,
2019
2018
2019
2018
$223,294$230,243$618,116$652,733
89,204
94,616
241,103
261,577
134,090
135,627377,013
391,156
62,55247,718110,270
23,82061,09149,406
110,497
25,130187,974
145,571
333,545
43,468

175,414
148,896324,310
66,846

3,172(5,126)
21,866
1,685

2,109(4,932)
22,307(5,454)

9,691(15,128)
38,031
28,481

6,920(14,703)
59,063(9,383)

Net income$ 20,181$ 27,761$

9,550$ 68,446

Earnings per share:
Basic
Diluted

$
$

$
$

$
$

0.22
0.22

$
$

Weighted-average common shares outstanding:
Basic
Diluted

0.47
0.45

43,35844,6340.64
0.63

43,25644,19443,31144,120

1.59
1.55

43,177
44,135

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
Property and equipment, net
Goodwill
Other intangible assets, net
Other assets, net
Total assets
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
Deferred revenue and returns liability
Other current liabilities
Total current liabilitiesConvertible debt
Other non-current liabilities
Total liabilities
Commitments and contingencies
Stockholders' equity:
Preferred stock – $0.0001 par value; 10,000 shares authorized; noshares issued
Common stock – $0.0001 par value; 250,000 shares authorized;
43,373 and 43,088 shares issued and outstanding at
September 28, 2019 and December 29, 2018, respectively
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income (loss)
Total stockholders' equity
Total liabilities and stockholders' equity

September 28,2019

December 29,2018$ 237,056
457,879
76,16971,45352,609895,166
136,601
397,344
140,941
67,126$1,637,178$ 197,043
416,779
73,19474,97264,650826,638
139,049
397,344
170,832
90,491$1,624,354$$

38,724
21,827
71,485132,036
364,80256,586553,424

41,171
22,494
81,180144,845354,771
57,448557,064----4
112,251
970,893606
1,083,754$1,637,178

4
107,517
961,343(1,574)
1,067,290$1,624,354

Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited)Nine Months Ended
September 28, September 29,
2019
2018
Operating Activities
Net income
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment
Amortization of other intangible assets and other assets
Amortization of debt discount and debt issuance costs
Stock-based compensation expense
Deferred income taxes
Changes in operating assets and liabilities:
Accounts receivable
Inventories
Prepaid expenses and other assets
Accounts payable
Other current liabilities and income taxes
Deferred income, deferred revenue and returns liability
Other non-current liabilities
Net cash provided by operating activities

9,550$ 68,446

12,67529,891
10,03140,042
24,531

11,78133,322
9,578
36,893(2,994)(2,975)3,512
23,401
6,419(15,602)(667)(5,957)
134,851

2,518
5,066
6,349
8,675
(23,814)(2,816)(7,878)145,126

Investing 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(306,645)
268,140(12,773)(7,132)-(58,410)(253,973)
371,885(18,267)(9,088)(239,729)(149,172)

Financing Activities
Payment of debt issuance costs
Repurchases of common stock
Payment of taxes withheld for vested stock awards
Proceeds from the issuance of common stock
Payment of acquisition-related contingent consideration
Net cash used in financing activities(1,127)(26,716)(15,693)7,108-(36,428)-(24,272)(18,927)
6,585(3,380)(39,994)

40,013
197,043$237,056(44,040)
269,366$225,326

Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period$Non-GAAP Financial Measurements
In addition to the GAAP results provided throughout this document, Silicon Labs 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 thetables below, which reconcile the GAAP results to non-GAAP financial measurements.
The non-GAAP financial measurements do not replace the presentation of Silicon Labs’ GAAP financial results. Thesemeasurements provide supplemental information to assist management and investors in analyzing Silicon Labs’ financial position
and results of operations. Silicon Labs has chosen to provide this information to investors to enable them to perform meaningfulcomparisons 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
GAAP
Percent ofRevenue

Three Months Ended
September 28, 2019
StockIntangible
Compensation
Asset
ExpenseAmortization

Non-GAAP
MeasureNon-GAAP
Percent ofRevenue--$134,434

60.2%

Revenues

GAAP
Measure$223,294

Gross profit

134,090

60.1%

Research anddevelopment

62,552

28.0%

6,474

6,946

49,13222.0%

Selling, general andadministrative

47,718

21.4%

6,970

2,469

38,27917.1%

Operating expenses

110,270

49.4%

13,444

9,415

87,411

39.1%

Operating income

23,82010.7%

13,7889,415

47,023

21.1%

$344

$

Non-GAAP
Earnings Per Share andIncome Tax Rate

Income before income taxes

Three Months Ended
September 28, 2019
GAAP
Tax
GAAP Percentage
MeasureRate$21,866

Provision for income taxes

1,685

7.7%

Stock
Compensation
Expense$13,788

Intangible
Non-cash
Asset
Interest
Amortization Expense$9,415$2,930

IncomeTax
Adjustments$--

NonGAAP
Measure$47,999

3,627

5,312

Net income$20,181$42,687

Diluted shares
outstanding

44,634

44,634

Diluted earnings
per share

$0.45

$

0.96

Non-GAAP
Tax
Percentage
Rate

11.1%

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

Gross marginThree Months Ending
December 28, 2019
GAAP
Non-GAAP
Non-GAAP
MeasureAdjustments
Measure
60.3%
0.2%
60.5%

Operating expenses$113$23$90Effective tax rate

8.0%

3.5%

11.5%

Diluted earnings per share - low

$0.33

$0.51

$0.84

Diluted earnings per share - high

$0.43

$0.51

$0.94

** 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 Silicon Labs’ distributors, manufacturers andsubcontractors; inventory-related risks; difficulties managing international activities; risks associated with internationalactivities (including trade barriers); risks that Silicon Labs may not be able to manage strains associated with its growth; credit
risks associated with its accounts receivable; dependence on key personnel; stock price volatility; geographic concentration ofmanufacturers, assemblers, test service providers and customers in Asia that subjects Silicon Labs’ business and results ofoperations to risks of natural disasters, epidemics, war and political unrest; debt-related risks; capital-raising risks; thecompetitive and cyclical nature of the semiconductor industry; average selling prices of products may decrease significantly
and rapidly; information technology risks; cyber-attacks against Silicon Labs’ products and its networks; conflict mineralrisks and other factors that are detailed in the SEC filings of Silicon Laboratories Inc. Silicon Labs disclaims any intention orobligation to update or revise any forward-looking statements, whether as a result of new information, future events orotherwise. References in these financial schedules to Silicon Labs shall mean Silicon Laboratories Inc.