| (in millions) | 4Q 2016 | 3Q 2016 | 4Q 2015 | |||
| Cash and cash equivalents, and short-term investments | $ | 277.8 | $ | 269.2 | $ | 185.2 |
| Bank loans | $ | 25.0 | $ | 35.0 | -- | |
| Capital expenditures | $ | 2.5 | $ | 2.8 | $ | 14.4 |
| Dividend payments | $ | 7.1 | $ | 5.3 | $ | 5.2 |
| Loan repayments | $ | 10.0 | -- | -- | ||
During the fourth quarter, we had $2.1 million of capital expenditures for the routine purchase of software and design tools. In this quarter, after loan repayments of $10.0 million, we had $25.0 million of bank loans outstanding.
Our fourth quarter cash flows were as follows:
| 3 months ended December 31, 2016 | |||
| (In $ millions) | |||
| Net income (GAAP) | 26.2 | ||
| Depreciation & amortization | 2.7 | ||
| Changes in operating assets and liabilities | (3.1 | ) | |
| Others | 9.0 | ||
| Net cash provided by operating activities | 34.8 | ||
| Acquisition of property and equipment | (2.5 | ) | |
| Changes in restricted assets | 0.1 | ||
| Net cash used in investing activities | (2.4 | ) | |
| Dividend | (7.1 | ) | |
| Loans | (10.0 | ) | |
| Net cash used in financing activities | (17.1 | ) | |
| Effects of changes in foreign currency exchange rates on cash | (1.3 | ) | |
| Net increase in cash and cash equivalents | 14.0 | ||
Returning Value to Shareholders
On October 24, 2016, the Board of Directors of the Company declared a $0.80 per ADS annual dividend to be paid in quarterly installments of $0.20 per ADS. On November 17, 2016, we paid $7.1 million to shareholders as the first installment of our annual dividend.
Business Outlook
“For full year 2017, we expect sales of our client SSD controllers to continue growing strongly, but NAND flash availability will affect our SSD Solutions,” said Wallace Kou, President and CEO of Silicon Motion. “NAND flash tightness will start affecting our SSD Solutions beginning in the first quarter. Additionally in the first quarter, our client SSD controllers will decline seasonally, with growth restarting in the following quarter.”
For the first quarter of 2017, management expects:
| GAAP | Non-GAAP Adjustment | Non-GAAP | |
| Revenue | $121m to $128m | -- | $121m to $128m |
| -16% to -11% Q/Q | -16% to -11% Q/Q | ||
| +7% to +14% Y/Y | +7% to +14% Y/Y | ||
| Gross margin | 48% to 50% | Approximately $0.1m* | 48% to 50% |
| Operating margin | 20% to 22% | Approximately $3.7m to 4.2m** | 23% to 25% |
