FORM 10-Q

 

(Mark One)

 

 

SILICON LABORATORIES INC.

(Exact name of registrant as specified in its charter)

 

Delaware		74-2793174
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
4635 Boston Lane, Austin, Texas		78735
(Address of principal executive offices)		(Zip Code)
(512) 416-8500
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)

 

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  o  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.

o  Yes  o  No

 

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 April 20, 2004, 51,592,221 shares of common stock of Silicon Laboratories Inc. were outstanding.

 

 

			PAGE NUMBER
PART I.	FINANCIAL INFORMATION
ITEM 1	Financial Statements:
	Condensed Consolidated Balance Sheets at April 3, 2004 and January 3, 2004		3
	Condensed Consolidated Statements of Operations for the three months ended April 3, 2004 and March 29, 2003		4
	Condensed Consolidated Statements of Cash Flows for the three months ended April 3, 2004 and March 29, 2003		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		32
ITEM 4	Controls and Procedures		32
PART II.	OTHER INFORMATION
ITEM 1	Legal Proceedings		33
ITEM 2	Changes in Securities and Use of Proceeds		34
ITEM 3	Defaults Upon Senior Securities		34
ITEM 4	Submission of Matters to a Vote of Securities Holders		34
ITEM 5	Other Information		35
ITEM 6	Exhibits and Reports on Form 8-K		35

 

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 OUR 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)

 

		APRIL 3, 2004			JANUARY 3, 2004
		(UNAUDITED)
ASSETS
Current assets:
Cash and cash equivalents		$	156,642		$	151,359
Short-term investments		47,382			38,954
Accounts receivable, net of allowance for doubtful accounts of $1,288 at April 3, 2004 and $1,079 at January 3, 2004		55,836			47,879
Inventories		28,606			34,064
Deferred income taxes		5,784			5,784
Prepaid expenses and other		8,411			5,600
Total current assets		302,661			283,640
Property, equipment and software, net		33,913			34,376
Goodwill		38,721			38,613
Other intangible assets, net		14,227			14,744
Other assets, net		9,524			6,722
Total assets		$	399,046		$	378,095
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	36,072		$	45,488
Accrued expenses		11,140			11,251
Deferred income on shipments to distributors		11,716			11,526
Income taxes payable		14,049			12,663
Total current liabilities		72,977			80,928
Long-term obligations		9,251			9,962
Total liabilities		82,228			90,890
Commitments and contingencies
Stockholders’ equity:
Common stock—$.0001 par value; 250,000 shares authorized; 51,575 and 51,237 shares issued and outstanding at April 3, 2004 and January 3, 2004, respectively		5			5
Additional paid-in capital		265,147			256,792
Deferred stock compensation		(7,914		)	(9,257		)
Retained earnings		59,580			39,665
Total stockholders’ equity		316,818			287,205
Total liabilities and stockholders’ equity		$	399,046		$	378,095

 

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

 

3

 

SILICON LABORATORIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(IN THOUSANDS, EXCEPT PER SHARE DATA)

 

		THREE MONTHS ENDED
		APRIL 3, 2004			MARCH 29, 2003
Revenues		$	113,623		$	63,753
Cost of revenues		51,866			43,578
Gross profit		61,757			20,175
Operating expenses:
Research and development		18,142			9,530
Selling, general and administrative		15,204			9,998
Amortization of deferred stock compensation		1,237			1,266
Operating expenses		34,583			20,794
Operating income (loss)		27,174			(619		)
Other income (expense):
Interest income		479			344
Interest expense