8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): October 24, 2007

SILICON LABORATORIES INC.

(Exact Name of Registrant as Specified in Charter)

Delaware	000-29823	74-2793174
(State or Other Jurisdiction	(Commission File Number)	(IRS Employer
of Incorporation)	Identification No.)

400 West Cesar Chavez, Austin, TX          78701

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (512) 416-8500

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

On October 24, 2007, Silicon Laboratories Inc. (“Silicon Laboratories”) issued a press release describing its results of operations for its fiscal quarter ended September 29, 2007.  A copy of the press release is attached as Exhibit 99 to this report.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.

99  Press Release of Silicon Laboratories Inc. dated October 24, 2007.

Use of Non-GAAP Financial Information

From time to time, Silicon Laboratories provides certain non-GAAP financial measures as additional information relating to its operating results.  The non-GAAP financial measurements provided in the press release furnished herewith do not replace the presentation of Silicon Laboratories’ GAAP financial results. These additional measurements merely provide supplemental information to assist investors in analyzing Silicon Laboratories’ financial position and results of operations; however, these measures are not in accordance with, or an alternative to, GAAP and may be different from non-GAAP measures used by other companies. Silicon Laboratories has chosen to provide this information to investors because it believes that such supplemental information enables them to perform meaningful comparisons of past, present and future operating results, and as a means to highlight the results of core ongoing operations.

Pursuant to the requirements of Regulation G, we have provided in the press release furnished with this report a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section.  The information contained therein and in the accompanying exhibit shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by Silicon Laboratories, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SILICON LABORATORIES INC.
October 24, 2007	/s/ Paul V. Walsh, Jr.
Date	Paul V. Walsh, Jr. Vice President of Finance (Principal Accounting Officer)

EXHIBIT INDEX

Exhibit No.	Description
99	Press release dated October 24, 2007 of the Registrant

EX-99

Exhibit 99

___________________________________________________________________________________________

SILICON LABORATORIES ANNOUNCES RECORD REVENUE

--Company Earnings Exceed Expectations--

AUSTIN, Texas — Oct. 24, 2007 — Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance, analog-intensive, mixed-signal integrated circuits (ICs), today reported record revenue from continuing operations of $87.9 million, a 21 percent increase over the same period last year. Earnings per share exceeded expectations, increasing significantly over prior quarters. The company’s improved profitability increased non-GAAP operating income percent to double that of first quarter levels, primarily due to accelerating revenues and continued cost controls.

Third Quarter Financial Results

Revenue grew by 16 percent sequentially driven by growth across the company’s major product lines. GAAP gross margin was 60.2 percent.  GAAP operating income was $10.4 million and GAAP diluted earnings per share from continuing operations increased to $0.31, inclusive of a seven cent favorable impact from a tax benefit credited in the quarter.

Excluding $8.5 million in stock compensation expense, non-GAAP gross margin increased slightly to 60.7 percent. Operating expenses declined to less than 40 percent of revenue resulting in non-GAAP operating income of $19.0 million, or 21.6 percent of revenue, representing significant progress towards the company’s target model. Non-GAAP diluted earnings per share from continuing operations was $0.43, which also includes the seven cent tax benefit credited in the quarter. The reconciling charges are set forth in the financial measures table included below.

The company ended the quarter with approximately $638 million in cash, cash equivalents and short-term investments.

Business Summary

Third quarter revenue was fueled broadly by a number of growing product lines. The voice and embedded modem businesses benefited from growth at key customers during the quarter. The broad-based businesses, which include timing and microcontrollers, achieved double-digit sequential growth. Design wins accelerated for these products throughout the quarter. New product introductions, including the first programmable XOs and VCXOs and a new family of small form factor MCUs, are expected to contribute to design win momentum and sustained high growth for the broad-based products.

The broadcast business grew significantly again during the quarter driven by strength across both the handset and portable markets. The demand for the company’s new FM transmitter in portable navigation devices and MP3 accessories was very healthy, and unit volume for FM tuners in handsets continued to expand. The company also anticipates first revenue from the AM/FM receiver in the fourth quarter, further diversifying the broadcast revenue base and market reach.

“We are realizing the leverage of our mixed-signal business model as strong demand combined with lower operating expenses drove better than anticipated results,” said Necip Sayiner, president and chief executive officer of Silicon Laboratories. “With this foundation in place, we are prepared to further invest in our R&D efforts to continue to accelerate our growth in order to optimize the business for the future.”

For the fourth quarter of 2007, the company is guiding revenue in the range of $93 to $97 million.

Webcast and Conference Call

A conference call discussing the third quarter results will follow this press release today at 7:30 a.m. Central Time.  An audio webcast will be available simultaneously on Silicon Laboratories’ website under Investor Relations (www.silabs.com).  A replay will be available after the call at the same website listed above or by calling 866-347-5805 or +1 203-369-0021 (international). Replays will be available through November 7, 2007.

About Silicon Laboratories Inc.

Silicon Laboratories Inc. is a leading designer of high-performance, analog-intensive, mixed-signal integrated circuits (ICs) for a broad range of applications. Silicon Laboratories’ diverse portfolio of highly integrated, patented solutions is developed by a world-class engineering team with expertise in cutting-edge mixed-signal design. The company has design, engineering, marketing, sales and applications offices throughout North America, Europe and Asia. For more information about Silicon Laboratories, please visit www.silabs.com.

Forward Looking Statements

This press release contains forward-looking statements based on Silicon Laboratories’ current expectations. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “plan,” “project,” “will” and similar phrases as they relate to Silicon Laboratories are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Laboratories 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 Laboratories may not be able to maintain its historical growth; quarterly fluctuations in revenues and operating results; volatile stock price; average selling prices of products may decrease significantly and rapidly, dependence on a limited number of products and customers; difficulties developing new products that achieve market acceptance; risks that Silicon Laboratories may not be able to manage strains associated with its growth (including risks associated with the implementation of its enterprise resource planning system); dependence on key personnel; difficulties managing our manufacturers and subcontractors; difficulties managing international activities; credit risks associated with our accounts receivable; geographic concentration of manufacturers, assemblers, test service providers and customers in the Pacific Rim that subjects Silicon Laboratories’ business and results of operations to risks of natural disasters, epidemics, war and political unrest; product development risks; inventory-related risks; intellectual property litigation risks; risks associated with acquisitions and divestitures; the competitive and cyclical nature of the semiconductor industry and other factors that are detailed in Silicon Laboratories’ filings with the SEC. Silicon Laboratories disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Note to editors: Silicon Laboratories, Silicon Labs 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: Silicon Laboratories Inc., Shannon Pleasant, (512) 464 9254, shannon.pleasant@silabs.com

Silicon Laboratories Inc.

Condensed Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

	Three Months Ended				Nine Months Ended
	September 29, 2007		September 30, 2006		September 29, 2007		September 30, 2006
Revenues	$	87,938	$	72,956	$	237,349	$	213,544
Cost of revenues	34,986		25,880		93,658		71,449
Gross profit	52,952		47,076		143,691		142,095
Operating expenses:
Research and development	20,844		23,007		67,796		66,695
Selling, general and administrative	21,693		24,210		67,267		67,763
In-process research and development	—		—		—		2,600
Operating expenses	42,537		47,217		135,063		137,058
Operating income (loss)	10,415		(141)		8,628		5,037
Other income (expense):
Interest income	7,136		3,525		18,003		10,352
Interest expense	(129)		(236)		(527)		(636)
Other income (expense), net	(214)		53		(384)		344
Income from continuing operations     before income taxes	17,208		3,201		25,720		15,097
Provision (benefit) for income taxes	(416)		412		1,950		4,105
Income from continuing operations	17,624		2,789		23,770		10,992
Income from discontinued operations, net of     income taxes	2,810		1,945		159,750		14,943
Net income	$	20,434	$	4,734	$	183,520	$	25,935
Basic earnings per share:
Income from continuing operations	$	0.32	$	0.05	$	0.43	$	0.20
Net income	$	0.37	$	0.08	$	3.34	$	0.47
Diluted earnings per share:
Income from continuing operations	$	0.31	$	0.05	$	0.42	$	0.19
Net income	$	0.36	$	0.08	$	3.25	$	0.45
Weighted-average common shares     outstanding:
Basic	55,215		55,725		54,996		55,557
Diluted	56,767		57,151		56,481		57,566

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)

Non-GAAP Income Statement Items	Three Months Ended September 29 , 2007
	GAAP Measure		Stock Compensation Expense		Non-GAAP Measure		Non-GAAP Percent of Revenue
Revenues	$	87,938
Gross profit	52,952		$	414	$	53,366	60.7	%
Operating expenses	42,537		8,537		34,413		38.7	%
Operating income	10,415		8,537		18,952		21.6	%

Non-GAAP Operating Income	Three Months Ended March 31, 2007
	GAAP Measure			Stock Compensation Expense	Non-GAAP Measure	Non-GAAP Percent of Revenue
Revenues	$	73,814
Operating income (loss)	(3,724		)	11,770	8,046	10.9	%

Non-GAAP Diluted Earnings Per Share	Three Months Ended September 29, 2007
GAAP income from continuing operations	$	17,624
Stock compensation adjustments:
Cost of revenues	414
Research and development	3,472
Selling, general and administrative	4,651
Provision for income taxes	(1,524)
Non-GAAP income from continuing operations	$	24,637
GAAP diluted shares outstanding	56,767
Non-GAAP diluted earnings per share	$	0.43

Silicon Laboratories Inc.

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)

	September 29, 2007		December 30, 2006
Assets
Current assets:
Cash and cash equivalents	$	151,554	$	68,188
Short-term investments	486,023		318,104
Accounts receivable, net of allowance for doubtful accounts of $573 at September 29, 2007 and $421 at December 30, 2006	56,693		36,657
Inventories	24,182		22,016
Deferred income taxes	6,642		12,118
Prepaid expenses and other current assets	27,149		12,944
Current assets of discontinued operations	—		33,680
Total current assets	752,243		503,707
Property, equipment and software, net	28,700		34,070
Goodwill	65,519		65,680
Other intangible assets, net	17,089		20,271
Other assets, net	28,420		24,528
Non-current assets of discontinued operations	—		38,739
Total assets	$	891,971	$	686,995
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	35,227	$	26,438
Accrued expenses	15,836		23,051
Deferred income on shipments to distributors	24,288		20,568
Income taxes	957		15,063
Current liabilities of discontinued operations	2,479		16,502
Total current liabilities	78,787		101,622
Long-term obligations and other liabilities	44,676		15,641
Non-current liabilities of discontinued operations	—		1,050
Total liabilities	123,463		118,313
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; 55,129 and 54,802 shares issued and outstanding at September 29, 2007 and December 30, 2006, respectively	6		5
Additional paid-in capital	389,960		373,655
Retained earnings	378,542		195,022
Total stockholders’ equity	768,508		568,682
Total liabilities and stockholders’ equity	$	891,971	$	686,995

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