In addition to disclosing financial results calculated in accordance with U. S. generally accepted accounting principles (GAAP), the operating results presented contain non-GAAP financial measures that exclude the income statement effects of stock-based compensation expense and the tax effect on the release of a valuation allowance on the company's deferred tax assets.
We believe that the non-GAAP measures, excluding stock-based compensation expense and the tax effect on the release of a valuation allowance on the company's deferred tax assets, when viewed in addition to and not in lieu of our reported GAAP results, assist investors in understanding our results of operations. We believe non-GAAP measures provide useful supplemental information for investors to evaluate our operating results in the same manner as the research analysts that follow Techwell all of whom present non-GAAP projections in their published reports. As such, non-GAAP measures provided by Techwell facilitates a more direct comparison of its performance with the financial projections published by the analysts. However, non-GAAP measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
TECHWELL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2007 2006
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(unaudited) (audited)
Assets
Current Assets:
Cash and cash equivalents $ 27,177 $ 13,201
Short-term investments 33,384 36,364
Accounts receivable 2,095 2,765
Inventory 4,753 4,584
Deferred income tax asset 2,016 -
Prepaid expenses and other assets 1,421 1,406
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Total Current Assets 70,846 58,320
Property and equipment - net 1,471 625
Long-term investments 7,839 4,963
Deferred income tax asset 3,419 -
Other assets 162 85
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Total Assets $ 83,737 $ 63,993
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Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 2,973 $ 3,503
Accrued expenses and other
liabilities 2,418 3,344
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Total Current Liabilities 5,391 6,847
Deferred rent 197 -
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Total Liabilities 5,588 6,847
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Stockholders' Equity:
Common stock 21 21
Additional paid-in capital 73,484 67,734
Deferred stock compensation (160) (546)
Accumulated comprehensive
gain/(loss) 44 (39)
Retained earnings/(deficit) 4,760 (10,024)
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Total Stockholders' Equity 78,149 57,146
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Total Liabilities and Stockholders'
Equity $ 83,737 $ 63,993
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