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 under Investor Relations ( www.silabs.com). 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 39717391. The replay will be available through March 4, 2015.

About Silicon Labs

Silicon Labs (NASDAQ: SLAB) is a leading provider of silicon, software and system solutions for the Internet of Things, Internet 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; risks related to the successful completion of the development and implementation of Bluegiga’s technology; risks associated with the development of modules and the Company’s limited operating history with modules; risks that the acquisition may not yield the expected benefits due to the failure to properly integrate the acquired business and employees; risks that our competitors that supply products incorporated in Bluegiga’s modules may disrupt such supply; risks that the acquired business’ products and processes under development may fail to achieve market acceptance; risks of disputes regarding the acquired business and intellectual property; 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; 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 Laboratories logo and the Silicon Labs logo 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										Year Ended
				January 3, 2015					December 28, 2013					January 3, 2015					December 28, 2013
Revenues				$	161,951				$	146,236				$	620,704				$	580,087
Cost of revenues					65,279					57,638					242,153					227,183
Gross margin					96,672					88,598					378,551					352,904
Operating expenses:
Research and development					46,139					42,168					172,985					157,799
Selling, general and administrative					39,527					32,276					154,145					130,795
Operating expenses					85,666					74,444					327,130					288,594
Operating income					11,006					14,154					51,421					64,310
Other income (expense):
Interest income					274					237					1,007					853
Interest expense					(808	)				(807	)				(3,154	)				(3,293	)
Other income (expense), net					(337	)				118					(234	)				157
Income before income taxes					10,135					13,702					49,040					62,027
Provision for income taxes					111					3,060					11,019					12,208
Net income				$	10,024				$	10,642				$	38,021				$	49,819
Earnings per share:
Basic				$	0.24				$	0.25				$	0.88				$	1.17
Diluted				$	0.23				$	0.24				$	0.87				$	1.14
Weighted-average common shares outstanding:
Basic					42,279					42,972					42,970					42,715
Diluted					43,137					43,847					43,793					43,537

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
Non-GAAP Income Statement Items				Three Months Ended January 3, 2015
				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				$	161,951
Gross margin					96,672				59.7	%			$	200			$	390			$	--			$	37			$	97,299			60.1	%
Research and development					46,139				28.5	%				5,240				3,589				--				85				37,225			23.0	%
Selling, general and administrative					39,527				24.4	%				5,454				729				1,047				3				32,294			19.9	%
Operating income					11,006				6.8	%				10,894				4,708				1,047				125				27,780			17.2	%
Non-GAAP Diluted Earnings Per Share								Three Months Ended January 3, 2015
								GAAP Measure					Stock Compensation Expense				Intangible Asset Amortization				Acquisition Related Items				Termination Costs				Non- GAAP Measure
Net income								$	10,024				$	9,927			$	3,335			$	1,047			$	125			$	24,458
Diluted shares outstanding									43,137					--				--				--				--				43,137
Diluted earnings per share								$	0.23																				$	0.57

Unaudited Forward-Looking Statements Regarding Business Outlook
Business Outlook				Three Months Ending April 4, 2015
				High				Low
Estimated GAAP diluted earnings per share				$	0.14			$	0.08
Estimated non-GAAP charges					0.34				0.34
Estimated non-GAAP diluted earnings per share				$	0.48			$	0.42

Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
				January 3, 2015					December 28, 2013
Assets
Current assets:
Cash and cash equivalents				$	141,706				$	95,800
Short-term investments					193,489					179,593
Accounts receivable, net of allowances for doubtful accounts of $786 at January 3, 2015 and $797 at December 28, 2013					70,367					72,124
Inventories					52,631					45,271
Deferred income taxes					21,173					18,878
Prepaid expenses and other current assets					49,171					47,651
Total current assets					528,537					459,317
Long-term investments					7,419					10,632
Property and equipment, net					132,820					132,445
Goodwill					228,781					228,781
Other intangible assets, net					115,021					131,593
Other assets, net					29,983					28,382
Total assets				$	1,042,561				$	991,150
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable				$	38,922				$	22,126
Current portion of long-term debt					10,000					7,500
Accrued expenses					73,646					45,975
Deferred income on shipments to distributors					38,662					30,853
Income taxes					2,084					2,693
Total current liabilities					163,314					109,147
Long-term debt					77,500					87,500
Other non-current liabilities					43,691					55,941
Total liabilities					284,505					252,588
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; 42,225 and 42,779 shares issued and outstanding at January 3, 2015 and December 28, 2013, respectively					4					4
Additional paid-in capital					29,501					48,630
Retained earnings					728,633					690,612
Accumulated other comprehensive loss					(82	)				(684	)
Total stockholders' equity					758,056					738,562
Total liabilities and stockholders' equity				$	1,042,561				$	991,150

Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
				Year Ended
				January 3, 2015			December 28, 2013
Operating Activities
Net income				$ 38,021			$ 49,819
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment				12,561			13,491
Amortization of other intangible assets and other assets				17,923			15,911
Stock-based compensation expense				39,067			30,800
Income tax benefit (shortfall) from stock-based awards				489			(606)
Excess income tax benefit from stock-based awards				(632)			(290)
Deferred income taxes				3,054			3,319
Changes in operating assets and liabilities:
Accounts receivable				1,757			8,972
Inventories				(7,170)			5,588
Prepaid expenses and other assets				9,332			(2,514)
Accounts payable				11,475			(3,979)
Accrued expenses				27,671			463
Deferred income on shipments to distributors				7,809			(2,381)
Income taxes				(3,371)			5,189
Other non-current liabilities				(20,543)			(3,632)
Net cash provided by operating activities				137,443			120,150
Investing Activities
Purchases of available-for-sale investments				(166,094)			(213,883)
Proceeds from sales and maturities of available-for-sale investments				156,520			210,824
Purchases of property and equipment				(11,225)			(10,472)
Purchases of other assets				(5,514)			(5,939)
Acquisitions of businesses, net of cash acquired				--			(86,441)
Net cash used in investing activities				(26,313)			(105,911)
Financing Activities
Proceeds from issuance of common stock, net of shares withheld for taxes				13,320			15,301
Excess income tax benefit from stock-based awards				632			290
Repurchases of common stock				(71,676)			(26,022)
Payments on debt				(7,500)			(13,434)
Net cash used in financing activities				(65,224)			(23,865)
Increase (decrease) in cash and cash equivalents				45,906			(9,626)
Cash and cash equivalents at beginning of period				95,800			105,426
Cash and cash equivalents at end of period				$141,706			$ 95,800