SILICONIX INC - 10-Q Quarterly Report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

	(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the quarterly period ended April 3, 2004

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 0-3698

SILICONIX INCORPORATED

(Exact name of registrant as specified in its charter)

Delaware		94-1527868

(State or Other Jurisdiction of Incorporation)		(I.R.S. Employer Identification Number)

2201 Laurelwood Road, Santa Clara, CA 95054		(408) 988-8000

(Address of Principal Executive Offices)		(Registrant’s Area Code and Telephone Number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 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. Yes x No o

Indicate by checkmark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).Yes x No o

As of May 6, 2004 registrant had 29,879,040 shares of its common stock outstanding.

SILICONIX INCORPORATED

FORM 10-Q

APRIL 3, 2004

CONTENTS

			Page Number


PART I.		FINANCIAL INFORMATION

	Item 1.	Financial Statements

		Consolidated Balance Sheets (Unaudited) – April 3, 2004 and December 31, 2003	3

		Consolidated Statements of Operations (Unaudited) – Fiscal Quarters Ended April 3, 2004 and March 29, 2003	4

		Consolidated Statements of Cash Flows (Unaudited) – Fiscal Quarters Ended April 3, 2004 and March 29, 2003	5

		Notes to Consolidated Financial Statements (Unaudited)	6

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	8

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	13

	Item 4.	Controls and Procedures	13

PART II.		OTHER INFORMATION

	Item 1.	Legal Proceedings	14

	Item 2.	Changes in Securities	14

	Item 3.	Defaults Upon Senior Securities	14

	Item 4.	Submission of Matters to a Vote of Security Holders	14

	Item 5.	Other information	14

	Item 6.	Exhibits and Reports on Form 8-K	14

		SIGNATURES	15

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Siliconix incorporated
Consolidated Balance Sheets
(In thousands)

						April 3, 2004				December 31, 2003

Assets
Current assets:
			Cash and cash equivalents				$	296,078			$	279,464
			Accounts receivable, net					53,897				49,807
			Accounts receivable from affiliates					29,259				27,800
			Inventories					62,566				63,229
			Other current assets					19,654				24,429
			Deferred income taxes					3,508				3,508

					Total current assets			464,962				448,237

Property and equipment, at cost:
			Land					1,715				1,715
			Buildings and improvements					58,009				57,761
			Machinery and equipment					369,472				369,350

								429,196				428,826
			Less accumulated depreciation					292,288				284,735

								136,908				144,091
Goodwill								7,445				7,445
Other assets								1,595				1,397

					Total assets		$	610,910			$	601,170

Liabilities and Stockholders’ Equity
Current liabilities:
			Accounts payable				$	28,308			$	31,196
			Accounts payable to affiliates					30,168				32,256
			Accrued payroll and related compensation					8,846				8,776
			Other accrued liabilities					31,176				30,843

					Total current liabilities			98,498				103,071


Accrued pension benefits								3,192				3,137
Deferred income taxes								15,498				15,498
Other non-current liabilities								52,371				52,161
Minority interest								3,203				3,143

					Total liabilities			172,762				177,010

Commitments and contingencies
Stockholders’ equity:
			Common stock					299				299
			Additional paid-in-capital					59,373				59,373
		Retained earnings						379,621				365,619
	Accumulated other comprehensive loss							(1,145	)			(1,131	)

				Total stockholders’ equity				438,148				424,160

				Total liabilities and stockholders’ equity			$	610,910			$	601,170

See accompanying notes.

Siliconix incorporated
Consolidated Statements of Operations
(In thousands, except per share and share information)

	Three Fiscal Months Ended
	April 3, 2004				March 29, 2003


Net sales		$	118,383			$	97,826
Cost of products sold			82,873				69,928


Gross profit			35,510				27,898

Operating expenses:
Research and development			5,294				4,687
Selling, marketing, and administrative expenses			13,096				10,980


Operating income			17,120				12,231

Interest income			608				585
Other income (expense) net			283				67


Income before taxes and minority interest			18,011				12,883
Income tax provision			(3,949	)			(2,821	)
Minority interest in income of consolidated subsidiary			(60	)			(60	)


Net income		$	14,002			$	10,002


Net income per share (basic and diluted)		$	0.47			$	0.33


Shares used to compute net income per share			29,879				29,879

See accompanying notes.

Siliconix incorporated
Consolidated Statements of Cash Flows
(In thousands)

		Three Fiscal Months Ended
		April 3, 2004			March 29, 2003


Cash flows from operating activities:
Net income			$	14,002		$	10,002
Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization			8,861			9,694
	Deferred income taxes			-			2	<