8-K
SILICON LABORATORIES INC. (SLAB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OFTHE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): April 28, 2021
SILICON LABORATORIES INC.
(Exact Name of Registrant as Specified in Charter)
| Delaware | 000-29823 | 74-2793174 |
|---|---|---|
| (State or Other Jurisdiction | (Commission File Number) | (IRS Employer |
| of Incorporation) | Identification No.) | |
| 400 West Cesar Chavez, Austin, TX | 78701 | |
| --- | --- | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code:
(512) 416-8500
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.0001 par value | SLAB | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Exchange Act of 1934. ¨
Item 2.02. Results of Operations and Financial Condition
On April 28, 2021, Silicon Laboratories Inc. (“Silicon Laboratories”) issued a press release describing its results of operations for its fiscal quarter ended April 3, 2021. A copy of the press release is attached as Exhibit 99 to this report.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
| 99 | Press Release of Silicon Laboratories Inc. dated April 28, 2021 |
|---|---|
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Use of Non-GAAP Financial Information
From time to time, Silicon Laboratories provides certain non-GAAP financial measures as additional information relating to its operating results. The non-GAAP financial measurements provided in the press release furnished herewith do not replace the presentation of Silicon Laboratories’ GAAP financial results. These additional measurements merely provide supplemental information to assist investors in analyzing Silicon Laboratories’ financial position and results of operations; however, these measures are not in accordance with, or an alternative to, GAAP and may be different from non-GAAP measures used by other companies.
Non-GAAP financial measures used by Silicon Laboratories include non-GAAP gross margin, non-GAAP research and development expense, non-GAAP selling, general and administrative expense, non-GAAP operating income, non-GAAP interest expense, non-GAAP tax expense, non-GAAP net income and non-GAAP diluted earnings per share. Silicon Laboratories has chosen to provide this information to investors because it believes that such supplemental information enables them to perform meaningful comparisons of past, present and future operating results, and as a means to highlight the results of core ongoing operations.
Non-GAAP financial measures are adjusted by the following items:
| · | Stock compensation expense – represents charges for employee<br>stock awards issued under Silicon Laboratories’ stock-based compensation plans.<br>Stock compensation expense is excluded from non-GAAP financial measures because it is a non-cash expense, and excluding such expense<br>provides meaningful supplemental information regarding core ongoing operations. |
|---|---|
| · | Intangible asset amortization – primarily represents charges for the amortization of intangibles assets, such as core<br>and developed technology, customer relationships and trademarks, acquired in connection with business combinations. Intangible asset amortization<br>is excluded from non-GAAP financial measures because it is a non-cash expense, and excluding such expense provides meaningful supplemental<br>information regarding core ongoing operations. |
| --- | --- |
| · | Acquisition related items – primarily including the following: charges for the fair value write-up associated with inventory<br>acquired; adjustments to the fair value of acquisition-related contingent consideration; and acquisition-related costs of a business combination,<br>such as costs for attorneys, investment bankers, accountants and other third party service providers. Acquisition related items are excluded<br>from non-GAAP financial measures because excluding such amounts provides meaningful supplemental information regarding core ongoing operations. |
| --- | --- |
| · | Restructuring Charges – primarily include costs associated with certain employee terminations, asset impairments and<br>fair value adjustments resulting from observable price changes. Termination costs and fair value adjustments are excluded from non-GAAP<br>financial measures because excluding such amounts provides meaningful supplemental information regarding core ongoing operations. |
| --- | --- |
| · | Fair value adjustments to investments – primarily include gains and/or losses associated with certain fair value adjustments<br>for equity investments accounted for by the equity method of accounting or cost minus impairment, if any, plus or minus changes resulting<br>from qualifying observable price changes. Fair value adjustments are excluded from non-GAAP financial measures because these generally<br>are non-cash, non-operating activity during the period of adjustment, relate to activity in entities outside those of Silicon Labs, and<br>excluding such expense/gain provides meaningful supplemental information regarding core operations. |
| --- | --- |
| · | Interest expense adjustments – represents charges for<br>the amortization of the debt discount on Silicon Laboratories’ convertible<br>senior notes, losses on the extinguishment of convertible debt and losses on the termination of interest rate swap agreements. Such amounts<br>are excluded from non-GAAP financial measures because they are non-cash expenses and/or excluding such amounts provides meaningful supplemental<br>information regarding core ongoing operations. |
| --- | --- |
| · | Income tax adjustments – primarily include the following: the effect of the Tax Cuts & Jobs Act of 2017; the current<br>and deferred income tax effects of the above non-GAAP adjustments; other indirect impacts of excluding stock-based compensation; and the<br>income tax impact of certain intercompany license arrangements for technology acquired in business combinations. Income tax adjustments<br>are excluded from non-GAAP financial measures because excluding such amounts provides meaningful supplemental information regarding core<br>ongoing operations. |
| --- | --- |
Pursuant to the requirements of Regulation G, we have provided in the press release furnished with this report a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. The information contained therein and in the accompanying exhibit shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by Silicon Laboratories, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
EXHIBIT INDEX
| Exhibit No. | Description |
|---|---|
| 99 | Press Release of Silicon Laboratories Inc. dated April 28, 2021 |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SILICON LABORATORIES INC. | |
|---|---|
| April 28, 2021 | /s/ John C. Hollister |
| Date | John<br>C. Hollister <br> Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
Exhibit99
SiliconLabs Announces Record Quarterly Revenue
--Record IoT Revenue Affirms Pure-Play Focus on Massive IoT Opportunity --
AUSTIN,Texas – April 28, 2021 – Silicon Labs (NASDAQ: SLAB), a leading provider of silicon, software and solutions for a smarter, more connected world, today reported financial results for its first quarter ended April 3, 2021. Revenue exceeded the top end of our initial guidance at $255.5 million, up from $242.9 million in the fourth quarter. First quarter GAAP and non-GAAP diluted earnings per share (EPS) were $0.29 and $0.91, respectively.
“Despite significant supply constraints, strong bookings and durable demand momentum drove first quarter revenue to a new record of $255.5 million led by record revenue in IoT which grew 7% sequentially and 34% year-on-year,” said Tyson Tuttle, CEO of Silicon Labs. “We continue to lead the market in wireless connectivity for a vast array of intelligent solutions. Last week’s announcement to become a pure-play leader of intelligent, wireless connectivity for the IoT coupled with the global economic recovery from the pandemic fuels our excitement to capitalize on the massive growth opportunity in front of us.”
FirstQuarter Financial Highlights
| • | IoT<br> revenue increased to $158.2 million, up 7% sequentially and 34% year-on-year. |
|---|---|
| • | Infrastructure<br> and Automotive revenue increased to $97.3 million, up 2% sequentially and flat<br> year-on-year. |
| --- | --- |
On a GAAP basis:
| • | GAAP<br> gross margin was 58.9%. |
|---|---|
| • | GAAP<br> R&D expenses were $76 million. |
| --- | --- |
| • | GAAP<br> SG&A expenses were $52 million. |
| --- | --- |
| • | GAAP<br> operating income as a percentage of revenue was 8.7%. |
| --- | --- |
| • | GAAP<br> diluted earnings per share was $0.29. |
| --- | --- |
On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, restructuring charges, non-cash interest expense and other costs associated with convertible notes, and certain other items as set forth in the reconciliation tables below:
| • | Non-GAAP<br> gross margin was 59.1%. |
|---|---|
| • | Non-GAAP<br> R&D expenses were $61 million. |
| --- | --- |
| • | Non-GAAP<br> SG&A expenses were $42 million. |
| --- | --- |
| • | Non-GAAP<br>operating income as a percentage of revenue was 18.7%. |
| --- | --- |
| • | Non-GAAP<br>diluted earnings per share were $0.91. |
ProductHighlights
| • | Announced<br> the extension of its award-winning xG22 platform with the launch of the EFM32PG22<br> (PG22), a new low-cost high performance 32-bit microcontrollers (MCUs). The PG22 has<br> an industry-leading combination of energy efficiency, performance and security ideally suited<br> for rapid development of consumer and industrial applications with demanding size constraints<br> and low power operational requirements. The PG22 is targeted at high volume, low-powered<br> applications at a price point competitive with 8-bit offerings and which is form factor &<br> code compatible with its wireless counterparts. |
|---|---|
| • | Introduced<br> new SmartClock^TM^features to its family of AEC-Q100 qualified Si5332-AM clock<br> generators expanding the capabilities<br> of the industry’s broadest portfolio of silicon-based automotive timing solutions.<br> The new SmartClock^TM^technology actively monitors reference clocks to detect<br> potential faults and provides built-in clock redundancy. |
| --- | --- |
| • | Introduced<br> the new Hi823Hx Gate Driver Board,<br> an all-in-one isolation solution perfectly suited for the recently launched Wolfspeed WolfPACK™<br> power module. Wolfspeed power modules are used across numerous power applications, including<br> EV chargers and motor drives in the industrial and automotive markets. Featuring the Si823Hx<br> isolated gate driver and Si88xx digital isolator with integrated dc-dc converter, the board<br> delivers excellent performance in a compact and cost-effective design, optimized for a wide<br> range of modules. |
| --- | --- |
BusinessHighlights
| • | Entered<br> into a definitive asset purchase agreement to<br> sell the Infrastructure & Automotive (I&A) business to Skyworks Solutions, Inc.<br> (NASDAQ: SWKS) for $2.75 billion in all-cash consideration. The transaction includes Silicon Labs’ power/isolation,<br> timing and broadcast products, intellectual property and associated employees. The company’s resulting focus on<br> IoT comes at a time when the overall market and Silicon Labs’ growth opportunities are accelerating, as industry projections<br> anticipate a multi-year ramp in connected devices. |
|---|---|
| • | Appointed<br> Matt Johnson to president. Johnson previously served as senior<br> vice president and general manager of Silicon Labs’ IoT business unit. |
| • | Appointed<br> Daniel Cooley to chief technology officer, reporting to Matt<br> Johnson. Cooley previously served as chief strategy officer and replaces Alessandro Piovaccari,<br> who stepped down as chief technology officer but will continue to serve Silicon Labs as a<br> technical advisor. |
| • | Appointed<br> Dr. Manish Kothari to the IoT leadership team. As vice president<br> of Silicon Labs India, Kothari will grow the wireless engineering talent, build scalable<br> infrastructure, and foster local partnerships in Hyderabad, the company’s newest and<br> fastest-growing wireless development center**.** |
| • | Officially<br> became the world's first silicon innovator to achieve PSA<br> Certified's highest level of IoT hardware and software security<br> protection. PSA Certified – a respected security body for IoT hardware, software and<br> devices co-founded by ARM – awarded PSA Certified Level 3 status to<br> Silicon Labs' EFR32MG21, a wireless SoC with Secure<br> Vault. |
| • | Announced<br> a collaboration with Edge Impulse to enable rapid development<br> and deployment of machine learning (ML) on Silicon Labs EFR32 wireless SoCs and EFM32 MCUs.<br> Implementation of the Edge Impulse tool enables complex motion detection, sound recognition<br> and image classification on low-power, memory-constrained, and remote edge devices. |
| • | Announced<br> a collaboration with Yeelight on a new smart LED light bulb<br> to support Seamless Setup in the Google Home app. The Yeelight Smart LED Bulb<br> M2 multi-color light bulb is designed with Silicon Labs' Bluetooth<br> BG21 SoC, enabling reliable wireless connectivity and allowing<br> users to connect and control smart home devices in the Google Home app without requiring<br> other applications. |
| --- | --- |
| • | Collaborated with<br> Allterco Robotics to introduce Shelly Motion, a next-generation motion sensor with unrivaled<br> battery life enabled by Silicon Labs’ Wi-Fi IoT solution. Shelly Motion is the first product<br> to combine Shelly’s innovative home automation sensors with the only industry-leading Wi-Fi solution designed to meet the<br> ultra-low power requirements of IoT sensors. Optimized with Silicon Labs’ Wi-Fi technology, Shelly Motion is the most<br> responsive, energy-efficient, and easy-to-use smart home Wi-Fi motion sensor on the market today. |
BusinessOutlook
The company expects second quarter revenue to be in the range of $262 to $272 million, with IoT roughly flat to the first quarter, limited by supply, and Infrastructure & Automotive up, and estimates the following:
On a GAAP basis:
| • | GAAP<br> gross margin between 57% and 58% |
|---|---|
| • | GAAP<br> operating expenses at approximately $130 million |
| --- | --- |
| • | GAAP<br> effective tax rate of 7%. |
| --- | --- |
| • | GAAP<br> diluted earnings per share between $0.28 and $0.38. |
| --- | --- |
On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, restructuring charges, non-cash interest expense and other costs associated with convertible notes, and certain other items as set forth in the reconciliation tables below:
| • | Non-GAAP<br> gross margin between 57% and 58%. |
|---|---|
| • | Non-GAAP<br> operating expenses at approximately $104 million. |
| --- | --- |
| • | Non-GAAP<br> effective tax rate at 11.5%. |
| --- | --- |
| • | Non-GAAP<br> diluted earnings per share between $0.88 and $0.98 |
| --- | --- |
Webcastand Conference Call
A conference call discussing the quarterly results will follow this press release at 7:30 a.m. Central time. An audio webcast will be available on Silicon Labs' website (www.silabs.com) under Investor Relations. A replay will be available after the call at the same website listed above or by calling 1 (877) 344-7529 (US) or (412) 317-0088 (International) and entering access code 10154019. The replay will be available through May 5, 2021.
AboutSilicon Labs
Silicon Labs (NASDAQ: SLAB) is a leading provider of silicon, software and solutions for a smarter, more connected world. Our award-winning technologies are shaping the future of the Internet of Things, Internet infrastructure, industrial automation, consumer and automotive markets. Our world-class engineering team creates products focused on performance, energy savings, connectivity and simplicity. silabs.com
Forward-LookingStatements
This press release contains forward-looking statements based on Silicon Labs’ current expectations. The words "believe," "estimate," "expect," "intend," "anticipate," "plan," "project," "will" and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Labs and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: the occurrence of any event, change or other circumstance that could give rise to the termination of the Skyworks asset purchase agreement; the failure to satisfy any of the conditions to the completion of such transaction; the effect of such transaction on the ability of Silicon Labs to retain and hire key personnel and maintain relationships with its customers, suppliers, advertisers, partners and others with whom it does business, or on its operating results and businesses generally; risks associated with the disruption of management’s attention from ongoing business operations due to such transaction; the ability to meet expectations regarding the timing and completion of such transaction, including with respect to receipt of required regulatory approvals; the impact of COVID-19 on the U.S. and global economy, including the restrictions on travel and transportation and other actions taken by governmental authorities and disruptions to the business of our customers or our global supply chain that have occurred or may occur in the future, the ongoing impact of COVID-19 on our employees and our ability to provide services to our customers and respond to their needs; risks that Silicon Labs may not be able to maintain its historical growth; quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; risks associated with international activities (including trade barriers, particularly with respect to China); intellectual property litigation risks; risks associated with acquisitions and divestitures; product liability risks; difficulties managing Silicon Labs’ distributors, manufacturers and subcontractors; dependence on a limited number of products; absence of long-term commitments from customers; inventory-related risks; difficulties managing international activities; risks that Silicon Labs may not be able to manage strains associated with its growth; credit risks associated with its accounts receivable; dependence on key personnel; stock price volatility; geographic concentration of manufacturers, assemblers, test service providers and customers in Asia that subjects Silicon Labs’ business and results of operations to risks of natural disasters, epidemics or pandemics, war and political unrest; debt-related risks; capital-raising risks; the competitive and cyclical nature of the semiconductor industry; average selling prices of products may decrease significantly and rapidly; information technology risks; cyber-attacks against Silicon Labs’ products and its networks and other factors that are detailed in the SEC filings of Silicon Laboratories Inc. Silicon Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. References in this press release to Silicon Labs shall mean Silicon Laboratories Inc.
Noteto editors: Silicon Laboratories, Silicon Labs, the “S” symbol, and the Silicon Labs logo are trademarks of Silicon LaboratoriesInc. All other product names noted herein may be trademarks of their respective holders.
CONTACT: Austin Dean, +1 (512) 532-9432, Austin.Dean@silabs.com
SiliconLaboratories Inc.
CondensedConsolidated Statements of Income
(Inthousands, except per share data)
(Unaudited)
| Three<br> Months Ended | ||||||
|---|---|---|---|---|---|---|
| April<br> 3, <br><br> 2021 | April<br> 4, <br><br> 2020 | |||||
| Revenues | $ | 255,505 | $ | 214,877 | ||
| Cost<br> of revenues | 104,922 | 85,711 | ||||
| Gross<br> profit | 150,583 | 129,166 | ||||
| Operating<br> expenses: | ||||||
| Research<br> and development | 76,474 | 71,223 | ||||
| Selling,<br> general and administrative | 51,950 | 53,996 | ||||
| Operating<br> expenses | 128,424 | 125,219 | ||||
| Operating<br> income | 22,159 | 3,947 | ||||
| Other<br> income (expense): | ||||||
| Interest<br> income and other, net | 2,875 | 3,251 | ||||
| Interest<br> expense | (11,324 | ) | (5,541 | ) | ||
| Income<br> before income taxes | 13,710 | 1,657 | ||||
| Provision<br> (benefit) for income taxes | 201 | (587 | ) | |||
| Net<br> income | $ | 13,509 | $ | 2,244 | ||
| Earnings<br> per share: | ||||||
| Basic | $ | 0.31 | $ | 0.05 | ||
| Diluted | $ | 0.29 | $ | 0.05 | ||
| Weighted-average<br> common shares outstanding: | ||||||
| Basic | 44,160 | 43,642 | ||||
| Diluted | 45,832 | 44,388 |
UnauditedReconciliation of GAAP to Non-GAAP Financial Measures
(Inthousands, except per share data)
| Three<br> Months Ended <br><br> April 3, 2021 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Income Statement Items | GAAP Measure | GAAP Percent of Revenue | **** | Stock Compensation Expense | Intangible Asset Amortization | Non-GAAP Measure | Non-GAAP Percent of Revenue | **** | ||||||
| Revenues | $ | 255,505 | ||||||||||||
| Gross<br> profit | 150,583 | 58.9 | % | $ | 337 | $ | -- | $ | 150,920 | 59.1 | % | |||
| Research<br> and development | 76,474 | 29.9 | % | 7,024 | 8,390 | 61,060 | 23.9 | % | ||||||
| Selling,<br> general and administrative | 51,950 | 20.3 | % | 6,466 | 3,315 | 42,169 | 16.5 | % | ||||||
| Operating<br> income | 22,159 | 8.7 | % | 13,827 | 11,705 | 47,691 | 18.7 | % |
| Three<br> Months Ended <br><br> April 3, 2021 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Earnings Per Share | GAAP Measure | Stock Compensation Expense* | Intangible Asset Amortization* | Investment Fair Value Adjustments* | **** | Interest Expense Adjustments* | Income Tax Adjustments | **** | Non- GAAP Measure | |||||||
| Net<br> income | $ | 13,509 | $ | 13,827 | $ | 11,705 | $ | (1,801 | ) | $ | 9,307 | $ | (4,856 | ) | $ | 41,691 |
| Diluted<br> shares<br><br> <br>outstanding | 45,832 | 45,832 | ||||||||||||||
| Diluted<br> earnings per<br><br> <br>share | $ | 0.29 | $ | 0.91 |
* Represents pre-tax amounts
UnauditedForward-Looking Statements Regarding Business Outlook
(Inmillions, except per share data)
| Three<br> Months Ending<br><br> July 3, 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Business Outlook | GAAP Measure | **** | Non-GAAP Adjustments* | **** | Non-GAAP Measure | **** | |||
| Gross<br> margin | 57-58 | % | 0 | % | 57-58 | % | |||
| Operating<br> expenses | $ | 130 | $ | 26 | $ | 104 | |||
| Effective<br> tax rate | 7 | % | 4.5 | % | 11.5 | % | |||
| Diluted<br> earnings per share - low | $ | 0.28 | $ | 0.60 | $ | 0.88 | |||
| Diluted<br> earnings per share - high | $ | 0.38 | $ | 0.60 | $ | 0.98 |
* Non-GAAP adjustments include the following estimates: stock compensation expense of $14 million, intangible asset amortization of $12 million, interest expense adjustments of $5 million, and the associated tax impact from the aforementioned items.
SiliconLaboratories Inc.
CondensedConsolidated Balance Sheets
(Inthousands, except per share data)
(Unaudited)
| January<br> 2, 2021 | |||
|---|---|---|---|
| Assets | |||
| Current<br> assets: | |||
| Cash<br> and cash equivalents | 205,224 | $ | 202,720 |
| Short-term<br> investments | 367,708 | 521,963 | |
| Accounts<br> receivable, net | 103,699 | 95,169 | |
| Inventories | 79,244 | 66,662 | |
| Prepaid<br> expenses and other current assets | 105,056 | 89,307 | |
| Total<br> current assets | 860,931 | 975,821 | |
| Property<br> and equipment, net | 141,000 | 139,439 | |
| Goodwill | 631,932 | 631,932 | |
| Other<br> intangible assets, net | 154,379 | 166,084 | |
| Other<br> assets, net | 82,381 | 80,211 | |
| Total<br> assets | 1,870,623 | $ | 1,993,487 |
| Liabilities<br> and Stockholders’ Equity | |||
| Current<br> liabilities: | |||
| Accounts<br> payable | 68,998 | $ | 54,949 |
| Current<br> portion of convertible debt, net | -- | 134,480 | |
| Deferred<br> revenue and returns liability | 13,450 | 12,986 | |
| Other<br> current liabilities | 68,351 | 82,083 | |
| Total<br> current liabilities | 150,799 | 284,498 | |
| Convertible<br> debt, net | 434,288 | 428,945 | |
| Other<br> non-current liabilities | 78,557 | 80,203 | |
| Total<br> liabilities | 663,644 | 793,646 | |
| Commitments<br> and contingencies | |||
| Stockholders’<br> equity: | |||
| Preferred<br> stock – 0.0001 par value; 10,000 shares authorized; no shares issued | -- | -- | |
| Common stock<br> – 0.0001 par value; 250,000 shares authorized; 44,749 and 43,925 shares issued and outstanding at April 3, 2021 and January<br> 2, 2021, respectively | 4 | 4 | |
| Additional<br> paid-in capital | 199,576 | 204,359 | |
| Retained<br> earnings | 1,007,173 | 993,664 | |
| Accumulated<br> other comprehensive income | 226 | 1,814 | |
| Total<br> stockholders' equity | 1,206,979 | 1,199,841 | |
| Total<br> liabilities and stockholders' equity | 1,870,623 | $ | 1,993,487 |
All values are in US Dollars.
SiliconLaboratories Inc.
CondensedConsolidated Statements of Cash Flows
(Inthousands)
(Unaudited)
| Three<br> Months Ended | ||||||
|---|---|---|---|---|---|---|
| April<br> 3, 2021 | April<br> 4, 2020 | |||||
| Operating<br> Activities | ||||||
| Net<br> income | $ | 13,509 | $ | 2,244 | ||
| Adjustments<br> to reconcile net income to net cash provided by operating activities: | ||||||
| Depreciation<br> of property and equipment | 4,529 | 4,183 | ||||
| Amortization<br> of other intangible assets and other assets | 11,705 | 9,827 | ||||
| Amortization<br> of debt discount and debt issuance costs | 6,456 | 3,736 | ||||
| Loss<br> on extinguishment of convertible debt | 3,370 | -- | ||||
| Stock-based<br> compensation expense | 13,826 | 15,313 | ||||
| Deferred<br> income taxes | (3,197 | ) | (2,364 | ) | ||
| Changes<br> in operating assets and liabilities: | ||||||
| Accounts<br> receivable | (8,530 | ) | 1,542 | |||
| Inventories | (12,626 | ) | 4,777 | |||
| Prepaid<br> expenses and other assets | (13,621 | ) | 23,576 | |||
| Accounts<br> payable | 14,116 | 2,748 | ||||
| Other<br> current liabilities and income taxes | (13,429 | ) | (9,134 | ) | ||
| Deferred<br> revenue and returns liability | 464 | 4,114 | ||||
| Other<br> non-current liabilities | (2,066 | ) | (862 | ) | ||
| Net<br> cash provided by operating activities | 14,506 | 59,700 | ||||
| Investing<br> Activities | ||||||
| Purchases<br> of available-for-sale investments | (8,251 | ) | (70,910 | ) | ||
| Sales<br> and maturities of available-for-sale investments | 161,392 | 126,920 | ||||
| Purchases<br> of property and equipment | (6,176 | ) | (4,135 | ) | ||
| Purchases<br> of other assets | (578 | ) | (370 | ) | ||
| Net<br> cash provided by investing activities | 146,387 | 51,505 | ||||
| Financing<br> Activities | ||||||
| Proceeds<br> from revolving line of credit | -- | 310,000 | ||||
| Payments<br> on debt | (140,572 | ) | -- | |||
| Repurchases<br> of common stock | -- | (16,287 | ) | |||
| Payment<br> of taxes withheld for vested stock awards | (17,817 | ) | (16,294 | ) | ||
| Net<br> cash provided by (used in) financing activities | (158,389 | ) | 277,419 | |||
| Increase<br> in cash and cash equivalents | 2,504 | 388,624 | ||||
| Cash<br> and cash equivalents at beginning of period | 202,720 | 227,146 | ||||
| Cash<br> and cash equivalents at end of period | $ | 205,224 | $ | 615,770 |