“Strong top line performance combined with favorable opex drove a solid beat in third quarter EPS,” said Tyson Tuttle, CEO of Silicon Labs. “We delivered another record revenue quarter in Infrastructure, with continued strength in IoT and Broadcast automotive, and a less than expected decline in Broadcast consumer.

“Despite the challenging macro environment, we are confident in our strategy and proud of our accomplishments. We have a rich product pipeline and see strong demand for our silicon and software. We are engaging with top industry leaders who are rapidly adopting our IoT solutions and propelling our design win activity to record levels. We are executing on our vision and strategy and excited about what lies ahead.”

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 39717394. The replay will be available through November 26, 2015.

About Silicon Labs

Silicon Labs (NASDAQ: SLAB) is a leading provider of silicon, software and system solutions for the Internet of Things, 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; 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, the Silicon Labs logo and Simplicity Studio 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									Nine Months Ended
			October 3, 2015				September 27, 2014					October 3, 2015				September 27, 2014
Revenues			$	156,194			$	158,144				$	484,755			$	458,753
Cost of revenues				62,759				62,033					197,523				176,874
Gross margin				93,435				96,111					287,232				281,879
Operating expenses:
Research and development				46,483				42,517					140,805				126,846
Selling, general and administrative				35,729				43,990					118,989				114,618
Operating expenses				82,212				86,507					259,794				241,464
Operating income				11,223				9,604					27,438				40,415
Other income (expense):
Interest income				186				231					544				733
Interest expense				(687	)			(768	)				(2,160	)			(2,346	)
Other income (expense), net				(280	)			42					218				103
Income before income taxes				10,442				9,109					26,040				38,905
Provision for income taxes				467				3,501					2,112				10,908
Net income			$	9,975			$	5,608				$	23,928			$	27,997
Earnings per share:
Basic			$	0.24			$	0.13				$	0.56			$	0.65
Diluted			$	0.23			$	0.13				$	0.55			$	0.64
Weighted-average common shares outstanding:
Basic				42,331				43,112					42,522				43,218
Diluted				42,795				43,815					43,135				44,030

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
Non-GAAP Income Statement Items		Three Months Ended October 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		$	156,194
Gross margin			93,435				59.8	%			$	249			$	390				$	--				$	--				$	94,074			60.2	%
Research and development			46,483				29.8	%				4,623				5,250					--					--					36,610			23.4	%
Selling, general and administrative			35,729				22.8	%				4,350				1,219					(1,351	)				118					31,393			20.1	%
Operating income			11,223				7.2	%				9,222				6,859					(1,351	)				118					26,071			16.7	%
Non-GAAP Earnings Per Share		Three Months Ended October 3, 2015
		GAAP Measure				Stock Compensation Expense*					Intangible Asset Amortization*				Acquisition Related Items*					Termination Costs*					Tax Impact of Adjustments					Non-GAAP Measure
Net income		$	9,975			$	9,222				$	6,859			$	(1,351	)			$	118				$	(2,996	)			$	21,827
Diluted shares outstanding			42,795																												42,795
Diluted earnings per share		$	0.23																											$	0.51
* Represents pre-tax amounts

Unaudited Forward-Looking Statements Regarding Business Outlook
Business Outlook			Three Months Ending January 2, 2016
			High				Low
Estimated GAAP diluted earnings per share			$	0.11			$	0.05
Estimated non-GAAP charges				0.40				0.40
Estimated non-GAAP diluted earnings per share			$	0.51			$	0.45

Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
			October 3, 2015					January 3, 2015
Assets
Current assets:
Cash and cash equivalents			$	135,640				$	141,706
Short-term investments				112,670					193,489
Accounts receivable, net of allowances for doubtful accounts of $695 at October 3, 2015 and $786 at January 3, 2015				61,030					70,367
Inventories				51,957					52,631
Deferred income taxes				19,155					21,173
Prepaid expenses and other current assets				48,903					49,171
Total current assets				429,355					528,537
Long-term investments				7,240					7,419
Property and equipment, net				130,283					132,820
Goodwill				263,925					228,781
Other intangible assets, net				121,208					115,021
Other assets, net				26,040					29,983
Total assets			$	978,051				$	1,042,561
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable			$	30,306				$	38,922
Current portion of long-term debt				10,000					10,000
Accrued expenses				50,080					73,646
Deferred income on shipments to distributors				37,881					38,662
Income taxes				1,074					2,084
Total current liabilities				129,341					163,314
Long-term debt				70,000					77,500
Other non-current liabilities				37,234					43,691
Total liabilities				236,575					284,505
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; 41,570 and 42,225 shares issued and outstanding at October 3, 2015 and January 3, 2015, respectively				4					4
Additional paid-in capital				--					29,501
Retained earnings				742,091					728,633
Accumulated other comprehensive loss				(619	)				(82	)
Total stockholders' equity				741,476					758,056
Total liabilities and stockholders' equity			$	978,051				$	1,042,561

Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
			Nine Months Ended
			October 3, 2015					September 27, 2014
Operating Activities
Net income			$	23,928				$	27,997
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment				9,293					9,512
Amortization of other intangible assets and other assets				21,686					13,090
Stock-based compensation expense				30,798					28,173
Income tax benefit from stock-based awards				1,727					413
Excess income tax benefit from stock-based awards				(2,118	)				(654	)
Deferred income taxes				1,571					3,894
Changes in operating assets and liabilities:
Accounts receivable				12,097					769
Inventories				2,259					(1,591	)
Prepaid expenses and other assets				8,409					12,627
Accounts payable				(5,686	)				5,074
Accrued expenses				(280	)				28,756
Deferred income on shipments to distributors				(2,825	)				6,215
Income taxes				(3,413	)				(4,898	)
Other non-current liabilities				(10,031	)				(21,790	)
Net cash provided by operating activities				87,415					107,587
Investing Activities
Purchases of available-for-sale investments				(55,433	)				(137,373	)
Proceeds from sales and maturities of available-for-sale investments				136,262					100,009
Purchases of property and equipment				(7,281	)				(5,500	)
Purchases of other assets				(5,291	)				(3,339	)
Acquisition of business, net of cash acquired				(76,899	)				--
Net cash used in investing activities				(8,642	)				(46,203	)
Financing Activities
Proceeds from issuance of common stock, net of cash paid for withheld taxes				(77	)				8,559
Excess income tax benefit from stock-based awards				2,118					654
Repurchases of common stock				(71,448	)				(50,942	)
Payment of acquisition-related contingent consideration				(4,464	)				--
Proceeds from issuance of long-term debt, net				81,238					--
Payments on debt				(92,206	)				(3,750	)
Net cash used in financing activities				(84,839	)				(45,479	)
Increase (decrease) in cash and cash equivalents				(6,066	)				15,905
Cash and cash equivalents at beginning of period				141,706					95,800
Cash and cash equivalents at end of period			$	135,640				$	111,705