What changed in this filing

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Item 1. Financial Statements

2025-05-13 compared with 2024-11-04 · 120 added, 162 removed, 294 unchanged (49% of the section changed)

3 unchanged sentences

(In thousands, except per share data)

September 28,

2025 December 28,

14 unchanged sentences

Accounts payable $ 53,819 $ 42,448

Revolving line of credit — 45,000

Deferred revenue and returns liability 6,478 3,073

10 unchanged sentences

250,000 shares authorized;

32,343 and 31,897 shares issued and outstanding at September 28, 2024 and December 30, 2023, respectively

32,473 and 32,458 shares issued and outstanding at April 5, 2025 and December 28, 2024, respectively

Additional paid-in capital 96,838 78,227

Retained earnings 971,251 1,001,721

Accumulated other comprehensive income (loss) 272 ( 1,025 )

Accumulated other comprehensive income 327 70

Total stockholders’ equity 1,068,419 1,080,021

4 unchanged sentences

(In thousands, except per share data)

Three Months Ended Nine Months Ended

September 28,

2024 September 30,

2023 September 28,

2024 September 30,

Three Months Ended

2025 March 30,

Revenues $ 177,714 $ 106,375

5 unchanged sentences

Operating expenses 129,857 114,203

Operating income (loss) ( 29,708 ) 12,217 ( 136,863 ) 48,957

Operating loss ( 32,080 ) ( 59,134 )

Other income (expense):

1 unchanged sentence

Interest expense ( 284 ) ( 509 )

Income (loss) before income taxes ( 26,499 ) 13,796 ( 128,904 ) 59,900

Provision for income taxes 2,005 3,388 38,283 23,479

Equity-method loss — ( 60 ) — ( 1,150 )

Net income (loss) $ ( 28,504 ) $ 10,348 $ ( 167,187 ) $ 35,271

Earnings (loss) per share:

Loss before income taxes ( 28,571 ) ( 56,911 )

Provision (benefit) for income taxes 1,899 ( 385 )

Net loss $ ( 30,470 ) $ ( 56,526 )

Loss per share:

Basic $ ( 0.94 ) $ ( 1.77 )

5 unchanged sentences

Silicon Laboratories Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

Condensed Consolidated Statements of Comprehensive Loss

(In thousands)

Three Months Ended Nine Months Ended

September 28,

2024 September 30,

2023 September 28,

2024 September 30,

Net income (loss) $ ( 28,504 ) $ 10,348 $ ( 167,187 ) $ 35,271

Three Months Ended

2025 March 30,

Net loss $ ( 30,470 ) $ ( 56,526 )

Other comprehensive income, before tax:

1 unchanged sentence

Unrealized gains arising during the period 345 624

Reclassification for losses included in net income (loss) 11 68 52 4,542

Reclassification for losses (gains) included in net loss ( 20 ) 15

Net changes to cash flow hedges:

Unrealized gains (losses) arising during the period ( 5 ) 409 270 ( 135 )

Reclassification for losses (gains) included in net income (loss) — ( 195 ) ( 234 ) ( 38 )

Unrealized gains arising during the period — 275

Reclassification for gains included in net loss — ( 234 )

Other comprehensive income, before tax 325 679

Provision for income taxes 135 344 317 2,216

Provision for income taxes related to items of other comprehensive income 68 131

Other comprehensive income 257 548

Comprehensive income (loss) $ ( 27,978 ) $ 11,839 $ ( 165,890 ) $ 43,360

Comprehensive loss $ ( 30,213 ) $ ( 55,978 )

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

2 unchanged sentences

(In thousands)

Three Months Ended September 28, 2024 Shares Common

Stock Additional

Capital Retained

Earnings Accumulated Other

Comprehensive

Income (Loss) Total

Stockholders’

Balance as of June 29, 2024 32,289 $ 3 $ 39,232 $ 1,054,048 $ ( 254 ) $ 1,093,029

Net loss — — — ( 28,504 ) — ( 28,504 )

Other comprehensive income — — — — 526 526

Stock issuances, net of shares withheld for taxes 54 — 422 — — 422

Stock-based compensation — — 15,913 — — 15,913

Balance as of September 28, 2024 32,343 $ 3 $ 55,567 $ 1,025,544 $ 272 $ 1,081,386

Three Months Ended September 30, 2023 Shares Common

Stock Additional

Capital Retained

Earnings Accumulated Other

Comprehensive

Income (Loss) Total

Stockholders’

Balance as of July 1, 2023 31,861 $ 3 $ — $ 1,262,984 $ ( 4,090 ) $ 1,258,897

Net income — — — 10,348 — 10,348

Other comprehensive income — — — — 1,491 1,491

Stock issuances, net of shares withheld for taxes 27 — ( 588 ) — — ( 588 )

Repurchases of common stock ( 109 ) — ( 5,354 ) ( 10,814 ) — ( 16,168 )

Stock-based compensation — — 5,942 — — 5,942

Balance as of September 30, 2023 31,779 $ 3 $ — $ 1,262,518 $ ( 2,599 ) $ 1,259,922

Nine Months Ended September 28, 2024 Shares Common

Three Months Ended April 5, 2025 Shares Common

Stock Additional

9 unchanged sentences

Stock-based compensation — — 19,569 — — 19,569

Balance as of September 28, 2024 32,343 $ 3 $ 55,567 $ 1,025,544 $ 272 $ 1,081,386

Nine Months Ended September 30, 2023 Shares Common

Balance as of April 5, 2025 32,473 $ 3 $ 96,838 $ 971,251 $ 327 $ 1,068,419

Three Months Ended March 30, 2024 Shares Common

Stock Additional

5 unchanged sentences

Balance as of December 30, 2023 31,897 $ 3 $ 16,973 $ 1,192,731 $ ( 1,025 ) $ 1,208,682

Net income — — — 35,271 — 35,271

Net loss — — — ( 56,526 ) — ( 56,526 )

Other comprehensive income — — — — 548 548

Stock issuances, net of shares withheld for taxes 27 — ( 707 ) — — ( 707 )

Repurchases of common stock ( 1,522 ) — ( 24,684 ) ( 188,446 ) — ( 213,130 )

Stock-based compensation — — 13,564 — — 13,564

Convertible debt activity 920 — ( 3,564 ) — — ( 3,564 )

Balance as of September 30, 2023 31,779 $ 3 $ — $ 1,262,518 $ ( 2,599 ) $ 1,259,922

Balance as of March 30, 2024 31,924 $ 3 $ 29,830 $ 1,136,205 $ ( 477 ) $ 1,165,561

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

2 unchanged sentences

(In thousands)

Nine Months Ended

September 28,

2024 September 30,

Three Months Ended

2025 March 30,

Operating Activities

Net income (loss) $ ( 167,187 ) $ 35,271

Adjustments to reconcile net income to net cash used in operating activities:

Net loss $ ( 30,470 ) $ ( 56,526 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation of property and equipment 6,248 6,634

Amortization of other intangible assets 5,437 6,079

Amortization of debt issuance costs — 960

Stock-based compensation expense 19,714 13,612

Equity-method loss — 1,150

Deferred income taxes ( 1,514 ) ( 5,270 )

7 unchanged sentences

Other non-current liabilities ( 3,279 ) ( 3,113 )

Net cash used in operating activities ( 24,039 ) ( 48,885 )

Net cash provided by (used in) operating activities 48,128 ( 71,800 )

Investing Activities

4 unchanged sentences

Proceeds from sale of equity investment — 12,382

Purchases of other assets — ( 395 )

Net cash provided by investing activities 151,299 426,418

Net cash provided by (used in) investing activities ( 3,900 ) 81,492

Financing Activities

Proceeds from revolving line of credit — 80,000

Payments on debt — ( 45,000 )

Repurchases of common stock — ( 217,137 )

Payment of taxes withheld for vested stock awards ( 958 ) ( 1,048 )

12 unchanged sentences

GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X.

The information included herein contains all normal recurring accruals and adjustments which, in the opinion of management, are necessary to present fairly Silicon Laboratories Inc.’s (the “Company”) financial position, results of its operations, comprehensive income, stockholders’ equity, and cash flows.

The Condensed Consolidated Balance Sheet as of December 28, 2024 was derived from the Company’s audited Consolidated Financial Statements.

All intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated results of operations for the three and nine months ended September 28, 2024 are not necessarily indicative of the results to be expected for the full year.

The condensed consolidated results of operations for the three months ended April 5, 2025 are not necessarily indicative of the results to be expected for the full year.

These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended December 28, 2024, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 4, 2025.

The Company prepares financial statements on a 52- or 53-week fiscal year that ends on the Saturday closest to December 31.

Fiscal 2024 will have 52 weeks and fiscal 2023 had 52 weeks.

Fiscal 2025 will have 53 weeks with the extra week occurring in the first quarter of the year.

Fiscal 2024 had 52 weeks.

In a 52-week year, each fiscal quarter consists of 13 weeks.

6 unchanged sentences

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures .

This ASU requires interim and annual disclosure of significant segment expenses that are regularly provided to the chief operating decision-maker (“CODM”) and included within the reported measure of a segment’s profit or loss, requires interim disclosures about a reportable segment’s profit or loss and assets that are currently required annually, requires disclosure of the position and title of the CODM, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, and contains other disclosure requirements.

This authoritative guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

As the requirements of this ASU are disclosure-related, the adoption will not have an impact on the Company’s consolidated financial position and results of operations.

The Company is currently evaluating the impact of this update on its segment disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740)—Improvements to Income Tax Disclosures .

1 unchanged sentence

The authoritative guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted.

The requirements of this ASU are disclosure-related and will not have an impact on the Company’s consolidated financial position and results of operations.

The Company is currently evaluating the effect of this new guidance on its income tax disclosures.

As the requirements of this ASU are disclosure-related, the adoption will not have an impact on the Company’s consolidated financial position and results of operations.

The Company is currently evaluating the impact of this update on its income tax disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) .

This ASU requires that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods.

The prescribed categories include purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion.

This authoritative guidance is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted.

The Company is currently evaluating the effect of this new guidance on its consolidated financial statements.

Silicon Laboratories Inc.

2 unchanged sentences

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

Three Months Ended Nine Months Ended

September 28,

2024 September 30,

2023 September 28,

2024 September 30,

Net income (loss) $ ( 28,504 ) $ 10,348 $ ( 167,187 ) $ 35,271

Three Months Ended

2025 March 30,

Net loss $ ( 30,470 ) $ ( 56,526 )

Shares used in computing basic earnings per share 32,465 31,910

Effect of dilutive securities:

Convertible debt and stock-based awards — 282 — 1,130

Stock-based awards — —

Shares used in computing diluted earnings per share 32,465 31,910

Earnings (loss) per share:

Loss per share:

Basic $ ( 0.94 ) $ ( 1.77 )

Diluted $ ( 0.94 ) $ ( 1.77 )

Diluted shares for the three and nine months ended September 28, 2024 excluded 0.1 million and 0.2 million shares, respectively, due to the Company’s net loss for the periods.

In June 2023, the Company paid $ 535.0 million in cash and issued 0.9 million shares of common stock in connection with the conversions and redemptions of the 2025 Notes.

For the three and nine months ended September 30, 2023, approximately 0.0 million and 0.7 million shares, respectively, were included in the denominator for the calculation of diluted earnings per share related to the not yet converted or redeemed 2025 Notes.

Securities that were anti-dilutive and were excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2023 were insignificant.

Diluted shares for the three months ended April 5, 2025 and March 30, 2024 excluded 0.3 million and 0.4 million shares, respectively, as they were anti-dilutive due to the Company’s net loss for the periods.

Securities that were anti-dilutive due to the Company’s stock price and were excluded from the computation of diluted earnings per share for the three months ended April 5, 2025 and March 30, 2024 were insignificant.

Fair Value of Financial Instruments

10 unchanged sentences

Fair Value Measurements

at September 28, 2024 Using

at April 5, 2025 Using

Description Quoted Prices in

27 unchanged sentences

Valuation methodology

The Company’s cash equivalents and short-term investments that are classified as Level 2 are valued using non-binding market consensus prices that are corroborated with observable market data;

The Company’s short-term investments that are classified as Level 2 are valued using non-binding market consensus prices that are corroborated with observable market data;

quoted market prices for similar instruments in active markets;

1 unchanged sentence

or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data.

The Company’s foreign currency derivative instruments are valued using discounted cash flow models.

The Company’s foreign currency derivative instruments were valued using discounted cash flow models.

The assumptions used in preparing the valuation models include foreign exchange rates, forward and spot prices for currencies and market observable data of similar instruments.

2 unchanged sentences

Fair Value of Financial Instruments (Continued)

The following summarizes the components of available-for-sale investments:

As of September 28, 2024 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalent Marketable Securities

The following summarizes the components of available-for-sale investments (in thousands):

As of April 5, 2025 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalent Marketable Securities

Corporate debt securities $ 3,940 $ — $ ( 5 ) $ 3,935 $ — $ 3,935

8 unchanged sentences

Contractual maturities of investments

The Company’s available-for-sale investments are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive loss in the Condensed Consolidated Balance Sheet.

The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at September 28, 2024 (in thousands):

The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at April 5, 2025 (in thousands):

Cost Fair Value

5 unchanged sentences

Less Than 12 Months 12 Months or Greater Total

As of September 28, 2024 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses

As of April 5, 2025 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses

Corporate debt securities $ — $ — $ 935 $ ( 5 ) $ 935 $ ( 5 )

9 unchanged sentences

$ 26,318 $ ( 49 ) $ 4,187 $ ( 15 ) $ 30,505 $ ( 64 )

The gross unrealized losses as of September 28, 2024 and December 30, 2023 were due primarily to changes in market interest rates.

At September 28, 2024 and December 30, 2023, there were no material unrealized gains associated with the Company’s available-for-sale investments.

The gross unrealized losses as of April 5, 2025 and December 28, 2024 were due primarily to changes in market interest rates.

At April 5, 2025 and December 28, 2024, there were no material unrealized gains associated with the Company’s available-for-sale investments.

The Company records an allowance for credit loss when a decline in investment market value is due to credit-related factors.

When evaluating an investment for impairment, the Company reviews factors such as the severity of the impairment, changes in underlying credit ratings, forecasted recovery, the Company’s intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made.

As of September 28, 2024, there were no material declines in the market value of available-for-sale investments due to credit-related factors.

As of April 5, 2025, there were no material declines in the market value of available-for-sale investments due to credit-related factors.

Fair values of other financial instruments

1 unchanged sentence

Derivative Financial Instruments

The Company uses derivative financial instruments to manage certain exposures to the variability of foreign currency exchange rates.

The Company may use derivative financial instruments to manage certain exposures to the variability of foreign currency exchange rates.

The Company’s objective is to offset increases and decreases in expenses resulting from these exposures with gains and losses on the derivative contracts, thereby reducing volatility of earnings.

4 unchanged sentences

Foreign Currency Forward Contracts

The Company uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on operating expenses denominated in currencies other than the U.S.

Changes in the fair value of the contracts are recorded in accumulated other comprehensive income (loss) in the Condensed Consolidated Balance Sheet and subsequently reclassified into earnings in the period during which the hedged transaction is recognized.

The reclassified amount is reported in the same financial statement line item as the hedged item.

If the foreign currency forward contracts are terminated or can no longer qualify as hedging instruments prior to maturity, the fair value of the contracts recorded in accumulated other comprehensive income (loss) may be recognized in the Condensed Consolidated Statement of Operations based on an assessment of the contracts at the time of termination.

As of September 28, 2024, the contracts had maturities of one to two months and an aggregate notional value of $ 7.2 million.

Gains and losses expected to be reclassified into earnings in the next twelve months were not material.

The fair value of the contracts, contract gains or losses recognized in other comprehensive income and amounts reclassified from accumulated other comprehensive income (loss) into earnings were not material for any of the periods presented.

The Company may use foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on operating expenses denominated in currencies other than the U.S.

Changes in the fair value of the contracts were recorded in accumulated other comprehensive income in the Condensed Consolidated Balance Sheet and subsequently reclassified into earnings in the period during which the hedged transaction was recognized.

The reclassified amount was reported in the same financial statement line item as the hedged item.

If the foreign currency forward contracts are terminated or can no longer qualify as hedging instruments prior to maturity, the fair value of the contracts recorded in accumulated other comprehensive income may be recognized in the Condensed Consolidated Statement of Operations based on an assessment of the contracts at the time of termination.

As of April 5, 2025, the Company held no such foreign currency forward contracts.

The fair value of the contracts, contract gains or losses recognized in other comprehensive income and amounts reclassified from accumulated other comprehensive income into earnings were not material for any of the periods presented.

Silicon Laboratories Inc.

2 unchanged sentences

The following table shows the details of selected Condensed Consolidated Balance Sheet items (in thousands):

September 28,

2025 December 28,

3 unchanged sentences

The Company leases a portion of its headquarter facilities to other tenants.

Lease income from operating leases was $ 2.2 million and $ 2.3 million during the nine months ended September 28, 2024 and September 30, 2023, respectively.

Lease income from operating leases was $ 0.5 million and $ 0.8 million during the three months ended April 5, 2025 and March 30, 2024, respectively.

Credit Facility

6 unchanged sentences

The credit facility contains various conditions, covenants and representations with which the Company must be in compliance in order to borrow funds and to avoid an event of default, including financial covenants that the Company must maintain a consolidated net leverage ratio (funded indebtedness less cash and cash equivalents up to $ 750 million and divided by EBITDA) of no more than 4.25 to 1, and a minimum interest coverage ratio (EBITDA/interest payments) of no less than 2.50 to 1.

The Company was granted a waiver of compliance for the minimum interest coverage ratio through March 29, 2025.

Based on the waiver, as of September 28, 2024, the Company was in compliance with all covenants of the credit facility.

The Company was granted a waiver of compliance for the minimum interest coverage ratio through October 4, 2025.

Based on the waiver, as of April 5, 2025, the Company was in compliance with all covenants of the credit facility.

The Company’s obligations under the credit facility are guaranteed by the Guarantors and are secured by a security interest in substantially all assets of the Company and the Guarantors.

As of September 28, 2024, no amounts were outstanding on the credit facility.

As of April 5, 2025, no amounts were outstanding on the credit facility.

Silicon Laboratories Inc.

5 unchanged sentences

The following represents revenue by product category (in thousands):

Three Months Ended Nine Months Ended

September 28,

2024 September 30,

2023 September 28,

2024 September 30,

Three Months Ended

2025 March 30,

Industrial & Commercial $ 95,976 $ 65,262

3 unchanged sentences

These factors impact the timing and uncertainty of revenues and cash flows.

During the three and nine months ended September 28, 2024 and September 30, 2023, the impact of revenue related to performance obligations that were satisfied in previous reporting periods was insignificant.

During the three months ended April 5, 2025 and March 30, 2024, the impact of revenue related to performance obligations that were satisfied in previous reporting periods was insignificant.

The following disaggregates the Company’s revenue by sales channel (in thousands):

Three Months Ended Nine Months Ended

September 28,

2024 September 30,

2023 September 28,

2024 September 30,

Three Months Ended

2025 March 30,

Distributors $ 117,189 $ 70,360

3 unchanged sentences

Stock-based compensation costs are based on the fair values on the date of grant for stock awards and stock options and on the date of enrollment for the employee stock purchase plans.

The fair values of stock awards (such as restricted stock units (“RSUs”), performance stock units (“PSUs”) and restricted stock awards (“RSAs”)) are estimated based on their intrinsic values.

The fair values of stock awards (such as restricted stock units (“RSUs”) and performance stock units (“PSUs”)) are estimated based on their intrinsic values.

The fair values of market stock awards (“MSUs”) are estimated using a Monte Carlo simulation.

4 unchanged sentences

The following table presents details of stock-based compensation costs recognized in the Condensed Consolidated Statements of Operations (in thousands):

Three Months Ended Nine Months Ended

September 28,

2024 September 30,

2023 September 28,

2024 September 30,

Three Months Ended

2025 March 30,

Cost of revenues $ 613 $ 412

4 unchanged sentences

Total $ 17,213 $ 11,885

For the three months ended September 30, 2023, the Company recognized an expense reversal of $ 9.5 million to reflect a reduction in the estimated levels of achievement related to unvested performance stock units.

The Company had approximately $ 110.0 million of total unrecognized compensation cost related to equity grants as of September 28, 2024 that is expected to be recognized over a weighted-average period of approximately 2.2 years.

Provision for income taxes includes both domestic and foreign income taxes at the applicable tax rates adjusted for non-deductible expenses, research and development tax credits, global intangible low-taxed income, Subpart F income inclusions, and other permanent differences.

Income tax expense was $ 2.0 million and $ 3.4 million for the three months ended September 28, 2024 and September 30, 2023, resulting in effective tax rates of ( 7.6 )% and 24.7 %, respectively.

Income tax expense was $ 38.3 million and $ 23.5 million for the nine months ended September 28, 2024 and September 30, 2023, resulting in effective tax rates of ( 29.7 )% and 40.0 %, respectively.

The change in the provision for income taxes for the three and nine months ended September 28, 2024 is primarily due to the establishment of a valuation allowance against certain of the Company’s U.S.

and Singapore deferred tax assets during the three months ended June 29, 2024.

Because of the valuation allowance, the Company is unable to recognize the full tax benefit of the pre-tax losses incurred in those jurisdictions in the current year.

For the three and nine months ended September 28, 2024, the Company’s provision for income taxes includes $ 3.8 million and $ 48.1 million of non-cash tax expense related to the valuation allowance.

The Company establishes a valuation allowance when it is more likely than not that some portion or all of a deferred tax asset will not be realized.

During the three months ended June 29, 2024, the Company determined a need for the valuation allowance due to a forecasted three-year cumulative pre-tax loss for the current and two preceding years in conjunction with the downturn in the semiconductor industry.

The Company had approximately $ 106.5 million of total unrecognized compensation cost related to equity grants as of April 5, 2025 that is expected to be recognized over a weighted-average period of approximately 2.1 years.

Income tax expense (benefit) was $ 1.9 million and $( 0.4 ) million for the three months ended April 5, 2025 and March 30, 2024, resulting in effective tax rates of ( 6.6 )% and 0.7 %, respectively.

The change in the provision for income taxes for the three months ended April 5, 2025 is primarily due to tax expense associated with the increase in the valuation allowance in the three months ended April 5, 2025, whereas the valuation allowance had not yet been established in the three months ended March 30, 2024.

During the three months ended June 29, 2024, the Company recorded a valuation allowance in the U.S.

and Singapore due to a three-year cumulative pre-tax loss in conjunction with the downturn in the semiconductor industry.

The Company intends to maintain the valuation allowance until its ability to forecast sufficient future sources of taxable income is reestablished.

Uncertain Tax Positions

As of September 28, 2024, the Company had gross unrecognized tax benefits, inclusive of interest, of $ 6.3 million, of which $ 5.3 million would affect the effective tax rate if recognized.

During the nine months ended September 28, 2024, the Company did not release any unrecognized tax benefits.

As of April 5, 2025, the Company had gross unrecognized tax benefits, inclusive of interest, of $ 5.2 million, of which $ 4.2 million would affect the effective tax rate if recognized.

During the three months ended April 5, 2025, the Company did not release any unrecognized tax benefits.

Tax years 2019 through 2025 remain open to examination by the major taxing jurisdictions in which the Company operates.

The Company’s 2022 tax year is currently under examination in the U.S.

The Company’s 2021 and 2022 tax years are currently under examination in India.

Although the outcome of tax audits is always uncertain, the Company believes that the results of the examination will not materially impact its financial position or results of operations.

Although the outcome of tax audits is always uncertain, the Company believes that the results of these examinations will not materially impact its financial position or results of operations.

The Company is not currently under audit in any other major taxing jurisdiction.

The Company’s gross unrecognized tax benefits will decrease by approximately $ 1.8 million, inclusive of interest, in the next 12 months due to the lapse of the statute of limitations.

Segment Information

The Company has one operating segment, mixed-signal analog intensive products, consisting of numerous product areas.

The Company’s chief operating decision maker (“CODM”) assesses performance for the operating segment and decides how to allocate resources based on net income (loss) that is also reported on the Condensed Consolidated Statement of Operations as Net loss.

The measure of segment assets is reported on the Condensed Consolidated Balance Sheets as Total assets.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

Income Taxes (Continued)

The Company's gross unrecognized tax benefits will decrease by approximately $ 1.8 million, inclusive of interest, in the next 12 months due to the lapse of the statute of limitations.

Restructuring Activities

During the fourth quarter of 2023, the Company implemented a workforce reduction of approximately 10 % of its employees to reduce costs and align its business in response to market conditions.

The following table summarizes the activity of the restructuring liability during the periods presented (in millions):

Nine Months Ended

September 28, 2024

Balance, beginning of period $ 4.4

Payments ( 5.3 )

Balance, end of period $ —

During the three months ended September 28, 2024, restructuring charges were not material, and during the nine months ended September 28, 2024, restructuring charges of $ 0.9 million were recognized in operating expenses in the Condensed Consolidated Statements of Operations.

The cash payments for this activity were completed in the third quarter of 2024.

Revenue is attributed to a geographic area based on the shipped-to location.

The following summarizes the Company’s revenue by geographic area (in thousands):

Three Months Ended

2025 March 30,

United States $ 16,684 $ 4,944

China 58,769 28,197

Taiwan 29,832 15,366

Rest of world 72,429 57,868

Total $ 177,714 $ 106,375

The significant expense categories regularly provided to the CODM, in addition to the expense categories included within net loss presented on the Company’s Condensed Consolidated Statement of Operations, are as follows (in thousands):

Three Months Ended

2025 March 30,

Research and development:

Employee base compensation $ 32,972 $ 29,370

Other research and development expenses (1)

55,247 51,280

Total research and development $ 88,219 $ 80,650

Selling, general and administrative:

Employee base compensation $ 14,107 $ 12,507

Other selling, general and administrative expenses (1)

27,531 21,046

Total selling, general and administrative $ 41,638 $ 33,553

(1) Other research and development and selling, general and administrative expenses include other personnel-related expenses, outside services, software expense, depreciation and amortization of intangible assets, and other expenses.

The following summarizes the Company’s property and equipment, net by geographic area (in thousands):

2025 December 28,

United States $ 106,468 $ 107,612

Rest of world 23,239 24,524

Total $ 129,707 $ 132,136

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements