|
Silicon Laboratories Inc. Condensed Consolidated Statements of Income (In thousands, except per share data) (Unaudited) |
||||||||||
| Three Months Ended | ||||||||||
| April 4, 2015 |
March 29,
2014 |
|||||||||
| Revenues | $ | 163,705 | $ | 145,691 | ||||||
| Cost of revenues | 67,336 | 58,586 | ||||||||
| Gross margin | 96,369 | 87,105 | ||||||||
| Operating expenses: | ||||||||||
| Research and development | 46,857 | 42,485 | ||||||||
| Selling, general and administrative | 42,300 | 34,611 | ||||||||
| Operating expenses | 89,157 | 77,096 | ||||||||
| Operating income | 7,212 | 10,009 | ||||||||
| Other income (expense): | ||||||||||
| Interest income | 192 | 302 | ||||||||
| Interest expense | (745 | ) | (798 | ) | ||||||
| Other income (expense), net | 408 | 67 | ||||||||
| Income before income taxes | 7,067 | 9,580 | ||||||||
| Provision for income taxes | 689 | 1,470 | ||||||||
|
Net income |
$ | 6,378 | $ | 8,110 | ||||||
| Earnings per share: | ||||||||||
| Basic | $ | 0.15 | $ | 0.19 | ||||||
| Diluted | $ | 0.15 | $ | 0.18 | ||||||
| Weighted-average common shares outstanding: | ||||||||||
| Basic | 42,412 | 43,081 | ||||||||
| Diluted | 43,149 | 44,056 | ||||||||
|
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share data) |
||||||||||||||||||||||||||||||||||
| Non-GAAP Income Statement Items |
Three Months Ended
April 4, 2015 |
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|
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 | $ | 163,705 | ||||||||||||||||||||||||||||||||
| Gross margin | 96,369 | 58.9 | % | $ | 230 | $ | 390 | $ | 1,133 | $ | 24 | $ | 98,146 | 60.0 | % | |||||||||||||||||||
| Research and
development |
46,857 | 28.6 | % | 4,795 | 3,870 | -- | 458 |
37,734 |
23.1 | % | ||||||||||||||||||||||||
| Selling, general and
administrative |
42,300 |
25.9 |
% |
5,494 | 1,056 | 2,836 |
-- |
32,914 |
20.1 | % | ||||||||||||||||||||||||
| Operating income | 7,212 | 4.4 | % | 10,519 | 5,316 | 3,969 | 482 | 27,498 | 16.8 | % | ||||||||||||||||||||||||
|
Non-GAAP
Earnings Per Share |
Three Months Ended
April 4, 2015 |
|||||||||||||||||||||||||||||||||
|
GAAP
Measure |
Stock
Compensation Expense* |
Intangible Asset Amortization* |
Acquisition Related Items* |
Termination Costs* |
Tax
Impact of Adjustments |
Non-GAAP
Measure |
||||||||||||||||||||||||||||
| Net income | $ | 6,378 | $ | 10,519 | $ | 5,316 | $ | 3,969 | $ | 482 | $ | (3,285 | ) | $ | 23,379 | |||||||||||||||||||
| Diluted shares
outstanding |
43,149 |
43,149 |
||||||||||||||||||||||||||||||||
| Diluted earnings
per share |
$ | 0.15 | $ | 0.54 | ||||||||||||||||||||||||||||||
|
* Represents pre-tax amounts |
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|
Unaudited Forward-Looking Statements Regarding Business Outlook |
||||
| Business Outlook |
Three Months Ending
July 4, 2015 |
|||
| High | Low | |||
| Estimated GAAP diluted earnings per share | $0.17 | $0.11 | ||
| Estimated non-GAAP charges | 0.39 | 0.39 | ||
| Estimated non-GAAP diluted earnings per share | $0.56 | $0.50 | ||
|
Silicon Laboratories Inc. Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) |
||||||||||
| April 4, 2015 | January 3, 2015 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 112,710 | $ | 141,706 | ||||||
| Short-term investments | 148,795 | 193,489 | ||||||||
|
Accounts receivable, net of allowances for doubtful accounts of $785 at April 4, 2015 and $786 at January 3, 2015 |
66,563 | 70,367 | ||||||||
| Inventories | 61,078 | 52,631 | ||||||||
| Deferred income taxes | 17,364 | 21,173 | ||||||||
| Prepaid expenses and other current assets | 51,301 | 49,171 | ||||||||
| Total current assets | 457,811 | 528,537 | ||||||||
| Long-term investments | 7,401 | 7,419 | ||||||||
| Property and equipment, net | 131,313 | 132,820 | ||||||||
| Goodwill | 264,687 | 228,781 | ||||||||
| Other intangible assets, net | 135,049 | 115,021 | ||||||||
| Other assets, net | 24,965 | 29,983 | ||||||||
| Total assets | $ | 1,021,226 | $ | 1,042,561 | ||||||
| Liabilities and Stockholders’ Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 39,295 | $ | 38,922 | ||||||
| Current portion of long-term debt | 10,000 | 10,000 | ||||||||
| Accrued expenses | 45,391 | 73,646 | ||||||||
| Deferred income on shipments to distributors | 38,796 | 38,662 | ||||||||
| Income taxes | 1,340 | 2,084 | ||||||||
| Total current liabilities | 134,822 | 163,314 | ||||||||
| Long-term debt | 77,150 | 77,500 | ||||||||
| Other non-current liabilities | 45,817 | 43,691 | ||||||||
| Total liabilities | 257,789 | 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; 42,689 and 42,225 shares issued and outstanding at April 4, 2015 and January 3, 2015, respectively |
4 | 4 | ||||||||
| Additional paid-in capital | 28,833 | 29,501 | ||||||||
| Retained earnings | 735,011 | 728,633 | ||||||||
| Accumulated other comprehensive loss | (411 | ) | (82 | ) | ||||||
| Total stockholders' equity | 763,437 | 758,056 | ||||||||
| Total liabilities and stockholders' equity | $ | 1,021,226 | $ | 1,042,561 | ||||||
|
Silicon Laboratories Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||||||||
| Three Months Ended | ||||||||||
| April 4, 2015 |
March 29,
2014 |
|||||||||
| Operating Activities | ||||||||||
| Net income | $ | 6,378 | $ | 8,110 | ||||||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||
| Depreciation of property and equipment | 2,987 | 3,290 | ||||||||
| Amortization of other intangible assets and other assets | 6,521 | 4,491 | ||||||||
| Stock-based compensation expense | 10,519 | 9,277 | ||||||||
| Income tax benefit (shortfall) from stock-based awards | 1,773 | 45 | ||||||||
| Excess income tax benefit from stock-based awards | (1,785 | ) | (235 | ) | ||||||
| Deferred income taxes | 6,844 | 6,784 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||
| Accounts receivable | 6,564 | 7,452 | ||||||||
| Inventories | (6,424 | ) | 1,083 | |||||||
| Prepaid expenses and other assets | 8,584 | 14,266 | ||||||||
| Accounts payable | 447 | 1,195 | ||||||||
| Accrued expenses | (5,046 | ) | 21,367 | |||||||
| Deferred income on shipments to distributors | (1,049 | ) | 1,736 | |||||||
| Income taxes | (8,409 | ) | (8,324 | ) | ||||||
| Other non-current liabilities | (3,816 | ) | (23,585 | ) | ||||||
| Net cash provided by operating activities | 24,088 | 46,952 | ||||||||
| Investing Activities | ||||||||||
| Purchases of available-for-sale investments | (13,037 | ) | (43,366 | ) | ||||||
| Proceeds from sales and maturities of available-for-sale investments | 57,739 | 28,242 | ||||||||
| Purchases of property and equipment | (1,991 | ) | (1,673 | ) | ||||||
| Purchases of other assets | (935 | ) | (2,113 | ) | ||||||
| Acquisition of business, net of cash acquired | (76,899 | ) | -- | |||||||
| Net cash used in investing activities | (35,123 | ) | (18,910 | ) | ||||||
| Financing Activities | ||||||||||
| Proceeds from issuance of common stock, net of cash paid for withheld taxes | (2,561 | ) | 5,496 | |||||||
| Excess income tax benefit from stock-based awards | 1,785 | 235 | ||||||||
| Repurchases of common stock | (10,138 | ) | -- | |||||||
| Payment of acquisition-related contingent consideration | (4,464 | ) | -- | |||||||
| Payments on debt | (2,583 | ) | (1,250 | ) | ||||||
| Net cash provided by (used in) financing activities | (17,961 | ) | 4,481 | |||||||
| Increase (decrease) in cash and cash equivalents | (28,996 | ) | 32,523 | |||||||
| Cash and cash equivalents at beginning of period | 141,706 | 95,800 | ||||||||
| Cash and cash equivalents at end of period | $ | 112,710 | $ | 128,323 | ||||||
