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Silicon Laboratories Inc. Condensed Consolidated Statements of Income (In thousands, except per share data) (Unaudited) |
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| Three Months Ended | Nine Months Ended | |||||||||||||||
|
September 28,
2013 |
September 29,
2012 |
September 28,
2013 |
September 29,
2012 |
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| Revenues | $ | 146,933 | $ | 149,461 | $ | 433,851 | $ | 410,833 | ||||||||
| Cost of revenues | 58,772 | 62,968 | 169,545 | 166,442 | ||||||||||||
| Gross margin | 88,161 | 86,493 | 264,306 | 244,391 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 40,662 | 34,768 | 115,631 | 101,943 | ||||||||||||
| Selling, general and administrative | 37,009 | 24,495 | 98,519 | 82,075 | ||||||||||||
| Operating expenses | 77,671 | 59,263 | 214,150 | 184,018 | ||||||||||||
| Operating income | 10,490 | 27,230 | 50,156 | 60,373 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 129 | 243 | 616 | 1,103 | ||||||||||||
| Interest expense | (813 | ) | (234 | ) | (2,486 | ) | (299 | ) | ||||||||
| Other income (expense), net | (23 | ) | (161 | ) | 39 | 807 | ||||||||||
| Income before income taxes | 9,783 | 27,078 | 48,325 | 61,984 | ||||||||||||
| Provision for income taxes | 3,252 | 17,054 | 9,148 | 17,131 | ||||||||||||
|
Net income |
$ | 6,531 | $ | 10,024 | $ | 39,177 | $ | 44,853 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.15 | $ | 0.24 | $ | 0.92 | $ | 1.06 | ||||||||
| Diluted | $ | 0.15 | $ | 0.24 | $ | 0.90 | $ | 1.04 | ||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic | 42,684 | 41,735 | 42,477 | 42,279 | ||||||||||||
| Diluted | 43,922 | 42,520 | 43,437 | 43,261 | ||||||||||||
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Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share data) |
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Non-GAAP Income
|
Three Months Ended
September 28, 2013 |
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|
GAAP
|
GAAP
|
Stock
|
Intangible
|
Termination
|
Acquisition
|
Non-GAAP
|
Non-GAAP
|
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| Revenues | $ | 146,933 | |||||||||||||||||||||||
| Gross margin | 88,161 | 60.0 | % | $ | 269 | $ | 390 | $ | -- | $ | 955 | $ | 89,775 | 61.1 | % | ||||||||||
|
Research and
development |
40,662 | 27.7 | % | 3,729 | 3,217 | -- | -- |
33,716 |
22.9 | % | |||||||||||||||
|
Selling, general and administrative |
37,009 |
25.2 |
% |
4,622 | 729 | 291 |
1,604 |
29,763 |
20.3 | % | |||||||||||||||
| Operating income | 10,490 | 7.1 | % | 8,620 | 4,336 | 291 | 2,559 | 26,296 | 17.9 | % | |||||||||||||||
| Non-GAAP Diluted Earnings Per Share |
Three Months Ended
September 28, 2013 |
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|
GAAP
|
Stock
|
Intangible
|
Termination
|
Acquisition
|
Non-GAAP
|
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| Net income | $ | 6,531 | $ | 7,716 | $ | 2,986 | $ | 291 | $ | 2,292 | $ | 19,816 | |||||||||||||
| Diluted shares outstanding |
|
43,922 | -- | -- | -- | -- | 43,922 | ||||||||||||||||||
| Diluted earnings per share | $ | 0.15 | $ | 0.45 | |||||||||||||||||||||
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Silicon Laboratories Inc. Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) |
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|
September 28,
2013 |
December 29,
2012 |
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| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 116,539 | $ | 105,426 | ||||
| Short-term investments | 153,857 | 176,565 | ||||||
|
Accounts receivable, net of allowances for doubtful accounts of
$717 at September 28, 2013 and $670 at December 29, 2012 |
68,499 | 78,023 | ||||||
| Inventories | 44,817 | 49,579 | ||||||
| Deferred income taxes | 17,356 | 16,652 | ||||||
| Prepaid expenses and other current assets | 51,097 | 41,437 | ||||||
| Total current assets | 452,165 | 467,682 | ||||||
| Long-term investments | 10,671 | 11,369 | ||||||
| Property and equipment, net | 134,398 | 135,271 | ||||||
| Goodwill | 227,289 | 130,265 | ||||||
| Other intangible assets, net | 136,054 | 90,750 | ||||||
| Other assets, net | 39,150 | 36,629 | ||||||
| Total assets | $ | 999,727 | $ | 871,966 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 24,885 | $ | 29,622 | ||||
| Current portion of long-term debt | 5,000 | 5,000 | ||||||
| Accrued expenses | 42,639 | 40,410 | ||||||
| Deferred income on shipments to distributors | 29,876 | 30,259 | ||||||
| Income taxes | 1,457 | 1,087 | ||||||
| Total current liabilities | 103,857 | 106,378 | ||||||
| Long-term debt | 91,250 | 95,000 | ||||||
| Other non-current liabilities | 70,342 | 20,615 | ||||||
| Total liabilities | 265,449 | 221,993 | ||||||
| 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;
43,093 and 41,879 shares issued and outstanding at September 28, 2013 and December 29, 2012, respectively |
4 | 4 | ||||||
| Additional paid-in capital | 55,085 | 10,122 | ||||||
| Retained earnings | 679,970 | 640,793 | ||||||
| Accumulated other comprehensive loss | (781 | ) | (946 | ) | ||||
| Total stockholders' equity | 734,278 | 649,973 | ||||||
| Total liabilities and stockholders' equity | $ | 999,727 | $ | 871,966 | ||||
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Silicon Laboratories Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
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| Nine Months Ended | ||||||||
|
September 28,
2013 |
September 29,
2012 |
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| Operating Activities | ||||||||
| Net income | $ | 39,177 | $ | 44,853 | ||||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
| Depreciation of property and equipment | 10,050 | 10,247 | ||||||
| Net gain on the purchase of property and equipment | -- | (8,457 | ) | |||||
| Amortization of other intangible assets and other assets | 11,051 | 11,001 | ||||||
| Stock-based compensation expense | 22,304 | 23,796 | ||||||
| Income tax benefit (detriment) from employee stock-based awards | (621 | ) | 2,301 | |||||
| Excess income tax benefit from employee stock-based awards | (284 | ) | (2,470 | ) | ||||
| Deferred income taxes | 6,790 | 5,024 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 12,599 | (18,470 | ) | |||||
| Inventories | 6,213 | (5,994 | ) | |||||
| Prepaid expenses and other assets | (1,606 | ) | 13,283 | |||||
| Accounts payable | (3,017 | ) | 9,113 | |||||
| Accrued expenses | (2,864 | ) | (797 | ) | ||||
| Deferred income on shipments to distributors | (3,169 | ) | 5,267 | |||||
| Income taxes | (1,429 | ) | (4,378 | ) | ||||
| Net cash provided by operating activities | 95,194 | 84,319 | ||||||
| Investing Activities | ||||||||
| Purchases of available-for-sale investments | (164,317 | ) | (138,822 | ) | ||||
| Proceeds from sales and maturities of available-for-sale investments | 186,936 | 209,972 | ||||||
| Purchases of property and equipment | (8,984 | ) | (99,720 | ) | ||||
| Purchases of other assets | (3,499 | ) | (6,146 | ) | ||||
| Acquisition of businesses, net of cash acquired | (86,441 | ) | (71,852 | ) | ||||
| Net cash used in investing activities | (76,305 | ) | (106,568 | ) | ||||
| Financing Activities | ||||||||
| Proceeds from issuance of common stock, net of shares withheld for taxes | 11,900 | 3,035 | ||||||
| Excess income tax benefit from employee stock-based awards | 284 | 2,470 | ||||||
| Repurchases of common stock | (7,776 | ) | (51,040 | ) | ||||
| Proceeds from issuance of long-term debt, net | -- | 98,325 | ||||||
| Payments on debt | (12,184 | ) | -- | |||||
| Net cash provided by (used) in financing activities | (7,776 | ) | 52,790 | |||||
| Increase in cash and cash equivalents | 11,113 | 30,541 | ||||||
| Cash and cash equivalents at beginning of period | 105,426 | 94,964 | ||||||
| Cash and cash equivalents at end of period | $ | 116,539 | $ | 125,505 | ||||
