SILICON LABORATORIES INC - 10-Q Quarterly Report

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 April 2, 2005

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: 000-29823

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 19, 2005, 52,825,307 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 2, 2005 and January 1, 2005	3

			Condensed Consolidated Statements of Income for the three months ended April 2, 2005 and April 3, 2004	4

			Condensed Consolidated Statements of Cash Flows for the three months ended April 2, 2005 and April 3, 2004	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	13

	ITEM 3		Quantitative and Qualitative Disclosures About Market Risk	37

	ITEM 4		Controls and Procedures	37

PART II.			OTHER INFORMATION

		ITEM 1	Legal Proceedings	38

		ITEM 2	Unregistered Sales of Equity Securities and Use of Proceeds	39

		ITEM 3	Defaults Upon Senior Securities	40

		ITEM 4	Submission of Matters to a Vote of Securities Holders	40

		ITEM 5	Other Information	40

		ITEM 6	Exhibits	40

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 INC. 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.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SILICON LABORATORIES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

	April 2, 2005			January 1, 2005
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	242,107		$	48,636
Short-term investments	61,566			228,470
Accounts receivable, net of allowance for doubtful accounts of $1,464 at April 2, 2005 and $1,088 at January 1, 2005	52,267			46,272
Inventories	29,986			38,405
Deferred income taxes	10,132			9,878
Prepaid expenses and other	6,072			5,244
Total current assets	402,130			376,905
Property, equipment and software, net	31,781			34,559
Goodwill	47,002			46,766
Other intangible assets, net	14,767			15,384
Other assets, net	12,477			10,788
Total assets	$	508,157		$	484,402

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	33,589		$	37,001
Accrued expenses	11,674			11,913
Deferred income on shipments to distributors	28,459			25,227
Income taxes payable	11,101			8,207
Total current liabilities	84,823			82,348
Long-term obligations and other liabilities	2,200			2,570
Total liabilities	87,023			84,918
Commitments and contingencies

Stockholders’ equity:
Preferred stock—$.0001 par value; 10,000 shares authorized; no shares issued and outstanding	—			—
Common stock—$.0001 par value; 250,000 shares authorized; 52,805 and 52,508 shares issued and outstanding at April 2, 2005 and January 1, 2005, respectively	5			5
Additional paid-in capital	291,301			287,908
Deferred stock compensation	(3,904		)	(4,787		)
Retained earnings	133,732			116,358
Total stockholders’ equity	421,134			399,484
Total liabilities and stockholders’ equity	$	508,157		$	484,402

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

	Three Months Ended
	April 2, 2005	April 3, 2004
Revenues	$