UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)
ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 27, 2003
or
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                             to
Commission file number:

 

SILICON LABORATORIES INC.

(Exact name of registrant as specified in its charter)

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                       ý Yes  o No

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2).  ý Yes  ¨ No

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of October 13, 2003, 49,756,443 shares of common stock of Silicon Laboratories Inc. were outstanding.

 

 

PART I.		FINANCIAL INFORMATION	Page Number
	ITEM 1	Financial Statements:
		Condensed Consolidated Balance Sheets at September 27, 2003 and December 28, 2002	3
		Condensed Consolidated Statements of Income for the three and nine months ended September 27, 2003 and September 28, 2002	4
		Condensed Consolidated Statements of Cash Flows for the nine months ended September 27, 2003 and September 28, 2002	5
		Notes to Condensed Consolidated Financial Statements	6
	ITEM 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Factors Affecting our Future Operating Results	9
	ITEM 3	Quantitative and Qualitative Disclosures About Market Risk	30
	ITEM 4	Controls and Procedures	30
PART II.		OTHER INFORMATION
	ITEM 1	Legal Proceedings	30
	ITEM 2	Changes in Securities and Use of Proceeds	31
	ITEM 3	Defaults Upon Senior Securities	31
	ITEM 4	Submission of Matters to a Vote of Securities Holders	31
	ITEM 5	Other Information	31
	ITEM 6	Exhibits and Reports on Form 8-K	32

 

CAUTIONARY STATEMENT

 

EXCEPT FOR THE HISTORICAL FINANCIAL INFORMATION CONTAINED HEREIN, THE MATTERS DISCUSSED IN THIS REPORT ON FORM 10-Q (AS WELL AS DOCUMENTS INCORPORATED HEREIN BY REFERENCE) MAY BE CONSIDERED “FORWARD-LOOKING” STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  SUCH FORWARD-LOOKING STATEMENTS INCLUDE DECLARATIONS REGARDING THE INTENT, BELIEF OR CURRENT EXPECTATIONS OF SILICON LABORATORIES AND ITS MANAGEMENT AND MAY BE SIGNIFIED BY THE WORDS “EXPECTS,” “ANTICIPATES,” “INTENDS,” “BELIEVES” OR SIMILAR LANGUAGE.  YOU ARE CAUTIONED THAT ANY SUCH FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND INVOLVE A NUMBER OF RISKS AND UNCERTAINTIES.  ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS.  FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE THOSE DISCUSSED UNDER “FACTORS AFFECTING FUTURE OPERATING RESULTS” AND ELSEWHERE IN THIS REPORT.  SILICON LABORATORIES DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

 

2

 

PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

 

SILICON LABORATORIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE DATA)

 

		SEPTEMBER 27, 2003			DECEMBER 28, 2002
		(UNAUDITED)
ASSETS
Current assets:
Cash and cash equivalents		$	110,383		$	73,950
Short-term investments		32,776			41,216
Accounts receivable, net of allowance for doubtful accounts of $923 at September 27, 2003 and $945 at December 28, 2002		49,100			27,501
Inventories		18,572			13,319
Deferred income taxes		4,921			4,921
Prepaid expenses and other		3,846			1,841
Total current assets		219,598			162,748
Property, equipment and software, net		35,568			29,781
Goodwill and other intangible assets, net		1,969			450
Other assets, net		8,085			4,086
Total assets		$	265,220		$	197,065
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	32,297		$	13,272
Accrued expenses		10,971			8,505
Deferred income on shipments to distributors		5,389			10,147
Income taxes payable		11,590			8,470
Total current liabilities		60,247			40,394
Other long-term obligations		5,589			949
Total liabilities		65,836			41,343
Commitments and contingencies
Stockholders’ equity:
Common stock—$.0001 par value; 250,000 shares authorized; 49,743 and 48,904 shares issued and outstanding at September 27, 2003 and December 28, 2002, respectively		5			5
Additional paid-in capital		189,576			174,088
Stockholder notes receivable		—			(228		)
Deferred stock compensation		(8,939		)	(13,092		)
Retained earnings (deficit)		18,742			(5,051		)
Total stockholders’ equity		199,384			155,722
Total liabilities and stockholders’ equity		$	265,220		$	197,065

 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

 

3

 

SILICON LABORATORIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)

 

		THREE MONTHS ENDED						NINE MONTHS ENDED
		SEPTEMBER 27, 2003			SEPTEMBER 28, 2002			SEPTEMBER 27, 2003			SEPTEMBER 28, 2002
Revenues		$	82,907		$	51,786		$	215,746		$	121,819
Cost of revenues		38,061			22,747			111,906			54,144
Gross profit		44,846			29,039			103,840			67,675
Operating expenses:
Research and development		12,267			7,379			33,433			23,637
Selling, general and administrative		10,688			8,653			30,223			23,627
Amortization of deferred stock compensation		1,196			1,293			3,686			3,906
Operating expenses		24,151			17,325			67,342