Silicon Laboratories Inc.

Condensed Consolidated Statements of Income

 (In thousands, except per share data)

(Unaudited)

Three Months Ended

March 30,
2019

March 31,
2018

$188,113

$205,384

Cost of revenues

72,239

81,147

Gross profit

115,874

124,237

Operating expenses:

   Research and development

61,566

54,828

   Selling, general and administrative

49,216

45,694

Operating expenses

110,782

100,522

Operating income

5,092

23,715

Other income (expense):

   Interest income and other, net

2,823

3,202

   Interest expense

(4,883)

Income before income taxes

2,918

22,034

Provision (benefit) for income taxes

(2,480)

(4,371)

Net income

$    5,398

$  26,405

Earnings per share:

   Basic

$      0.12

$      0.61

   Diluted

$      0.12

$      0.60

Weighted-average common shares outstanding:

   Basic

43,189

42,963

   Diluted

43,716

43,918

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)

Non-GAAP Income
Statement Items

Three Months Ended

March 30, 2019

GAAP

Measure

GAAP

Percent of
Revenue

Stock

Compensation
Expense

Intangible Asset
Amortization

Non-GAAP

Measure

Non-GAAP

Percent of
Revenue

Revenues

$188,113

Gross profit

115,874

61.6%

$    318

$        --

$116,192

61.8%

Research and
   development

61,566

32.7%

6,097

7,711

47,758

25.4%

Selling, general and
   administrative

49,216

26.2%

6,169

2,608

40,439

21.5%

Operating income

5,092

2.7%

12,584

10,319

27,995

14.9%

Non-GAAP
Earnings Per Share

Three Months Ended

March 30, 2019

GAAP

Measure

Stock

Compensation
Expense*

Intangible
Asset
Amortization*

Non-cash
Interest
Expense*

Income Tax
Adjustments

Non-GAAP

Measure

Net income

$  5,398

$12,584

$10,319

$2,886

$25,847

Diluted shares
    outstanding

43,716

43,716

Diluted earnings
    per share

$    0.12

$    0.59

* Represents pre-tax amounts