Silicon Labs Announces Fourth Quarter 2018 Results

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 Silicon Labs' distributors, manufacturers and subcontractors; inventory-related risks; difficulties managing international activities; risks associated with international activities (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 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; cyber-attacks against Silicon Labs' products and its networks; 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, and the Silicon Labs logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.

CONTACT: Jalene Hoover, +1 (512) 428-1610, Jalene.Hoover@silabs.com

Silicon Laboratories Inc.

Condensed Consolidated Statements of Income

 (In thousands, except per share data)

(Unaudited)



Three Months Ended


Year Ended


December 29,
2018


December 30,
2017


December 29,
2018


December 30,
2017

Revenues

$215,534


$201,018


$868,267


$768,867

Cost of revenues

85,291


81,754


346,868


314,676

Gross margin

130,243


119,264


521,399


454,191

Operating expenses:








   Research and development

62,933


52,735


238,347


209,491

   Selling, general and administrative

48,948


40,139


197,844


159,726

Operating expenses

111,881


92,874


436,191


369,217

Operating income

18,362


26,390


85,208


84,974

Other income (expense):








   Interest income and other, net

(273)


1,963


6,647


6,057

   Interest expense

(4,991)


(4,863)


(19,694)


(14,128)

Income before income taxes

13,098


23,490


72,161


76,903

Provision (benefit) for income taxes

(2,047)


28,342


(11,430)


29,811

Net income (loss)

$  15,145


$   (4,852)


$  83,591


$  47,092









Earnings (loss) per share:








   Basic

$      0.35


$     (0.11)


$      1.94


$      1.11

   Diluted

$      0.35


$     (0.11)


$      1.90


$      1.09









Weighted-average common shares outstanding:








   Basic

43,109


42,656


43,159


42,446

   Diluted

43,774


42,656


44,044


43,332


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