SILICON LABORATORIES INC. Unaudited Pro Forma Condensed Consolidated Balance Sheet
As of April 3, 2021
(in thousands, except per share data)
| Historical | Disposition Adjustments | Pro Forma | |||||||||||
| Assets | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 205,224 | $ | 2,750,000 | (A) | $ | 2,955,224 | ||||||
| Short-term investments | 367,708 | -- | 367,708 | ||||||||||
| Accounts receivable, net | 103,699 | -- | 103,699 | ||||||||||
| Inventories | 79,244 | (26,519 | ) | (B) | 52,725 | ||||||||
| Prepaid expenses and other current assets | 105,056 | (1,827 | ) | (B) | 103,229 | ||||||||
| Total current assets | 860,931 | 2,721,654 | 3,582,585 | ||||||||||
| Property and equipment, net | 141,000 | (3,697 | ) | (B) | 137,303 | ||||||||
| Goodwill | 631,932 | (255,543 | ) | (B) | 376,389 | ||||||||
| Other intangible assets, net | 154,379 | (2,346 | ) | (B) | 152,033 | ||||||||
| Other assets, net | 82,381 | (3,072 | ) | (B) | 79,309 | ||||||||
| Total assets | $ | 1,870,623 | $ | 2,456,996 | $ | 4,327,619 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable | $ | 68,998 | $ | -- | $ | 68,998 | |||||||
| Deferred revenue and returns liability | 13,450 | -- | 13,450 | ||||||||||
| Other current liabilities | 68,351 | (436 | ) | (B) | |||||||||
| 35,067 | (C) | ||||||||||||
| 344,000 | (D) | 446,982 | |||||||||||
| Total current liabilities | 150,799 | 378,631 | 529,430 | ||||||||||
| Convertible debt, net | 434,288 | -- | 434,288 | ||||||||||
| Other non-current liabilities | 78,557 | (357 | ) | (B) | 78,200 | ||||||||
| Total liabilities | 663,644 | 378,274 | 1,041,918 | ||||||||||
| Commitments and contingencies | |||||||||||||
| Stockholders' equity: | |||||||||||||
| Preferred stock--$0.0001 par value | -- | -- | -- | ||||||||||
| Common stock--$0.0001 par value | 4 | -- | 4 | ||||||||||
| Additional paid-in capital | 199,576 | -- | 199,576 | ||||||||||
| Retained earnings | 1,007,173 | 2,078,722 | (E) | 3,085,895 | |||||||||
| Accumulated other comprehensive income | 226 | -- | 226 | ||||||||||
| Total stockholders' equity | 1,206,979 | 2,078,722 | 3,285,701 | ||||||||||
| Total liabilities and stockholders' equity | $ | 1,870,623 | $ | 2,456,996 | $ | 4,327,619 |
The accompanying notes are an integral part of these unaudited pro forma
condensed consolidated financial statements.
Silicon Laboratories Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the Three Months Ended April 3, 2021
(in thousands, except per share data)
| Historical | Disposition Adjustments (F) | Pro Forma | |||||||||||
| Revenues | $ | 255,505 | $ | (97,648 | ) | $ | 157,857 | ||||||
| Cost of revenues | 104,922 | (38,819 | ) | 66,103 | |||||||||
| Gross profit | 150,583 | (58,829 | ) | 91,754 | |||||||||
| Operating expenses: | |||||||||||||
| Research and development | 76,474 | (12,459 | ) | 64,015 | |||||||||
| Selling, general and administrative | 51,950 | (9,496 | ) | 42,454 | |||||||||
| Operating expenses | 128,424 | (21,955 | ) | 106,469 | |||||||||
| Operating income (loss) | 22,159 | (36,874 | ) | (14,715 | ) | ||||||||
| Other income (expense): | |||||||||||||
| Interest income and other, net | 2,875 | -- | 2,875 | ||||||||||
| Interest expense | (11,324 | ) | -- | (11,324 | ) | ||||||||
| Income (loss) before income taxes | 13,710 | (36,874 | ) | (23,164 | ) | ||||||||
| Provision (benefit) for income taxes | 201 | 1,791 | (G) | 1,992 | |||||||||
| Net income (loss) | $ | 13,509 | $ | (38,665 | ) | $ | (25,156 | ) | |||||
| Earnings (loss) per share: | |||||||||||||
| Basic | $ | 0.31 | $ | (0.57 | ) | ||||||||
| Diluted | $ | 0.29 | $ | (0.57 | ) | ||||||||
| Weighted-average common shares outstanding: | |||||||||||||
| Basic | 44,160 | -- | 44,160 | ||||||||||
| Diluted | 45,832 | (1,672 | ) | (H) | 44,160 |
The accompanying notes are an integral part of these unaudited pro forma
condensed consolidated financial statements.
Silicon Laboratories Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the Year Ended January 2, 2021
(in thousands, except per share data)
| Historical | Disposition Adjustments (F) | Pro Forma | |||||||||||
| Revenues | $ | 886,677 | $ | (375,749 | ) | $ | 510,928 | ||||||
| Cost of revenues | 359,151 | (143,068 | ) | 216,083 | |||||||||
| Gross profit | 527,526 | (232,681 | ) | 294,845 | |||||||||
| Operating expenses: | |||||||||||||
| Research and development | 287,887 | (52,702 | ) | 235,185 | |||||||||
| Selling, general and administrative | 201,339 | (34,591 | ) | 166,748 | |||||||||
| Operating expenses | 489,226 | (87,293 | ) | 401,933 | |||||||||
| Operating income (loss) | 38,300 | (145,388 | ) | (107,088 | ) | ||||||||
| Other income (expense): | |||||||||||||
| Interest income and other, net | 11,143 | -- | 11,143 | ||||||||||
| Interest expense | (34,142 | ) | -- | (34,142 | ) | ||||||||
| Income (loss) before income taxes | 15,301 | (145,388 | ) | (130,087 | ) | ||||||||
| Provision (benefit) for income taxes | 2,770 | (17,372 | ) | (G) | (14,602 | ) | |||||||
| Net income (loss) | $ | 12,531 | $ | (128,016 | ) | $ | (115,485 | ) | |||||
| Earnings (loss) per share: | |||||||||||||
| Basic | $ | 0.29 | $ | (2.64 | ) | ||||||||
| Diluted | $ | 0.28 | $ | (2.64 | ) | ||||||||
| Weighted-average common shares outstanding: | |||||||||||||
| Basic | 43,775 | -- | 43,775 | ||||||||||
| Diluted | 44,372 | (597 | ) | (H) | 43,775 |
The accompanying notes are an integral part of these unaudited pro forma
condensed consolidated financial statements.
Silicon Laboratories Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the Year Ended December 28, 2019
(in thousands, except per share data)
| Historical | Disposition Adjustments (F) | Pro Forma | |||||||||||
| Revenues | $ | 837,554 | $ | (363,769 | ) | $ | 473,785 | ||||||
| Cost of revenues | 327,270 | (133,699 | ) | 193,571 | |||||||||
| Gross profit | 510,284 | (230,070 | ) | 280,214 | |||||||||
| Operating expenses: | |||||||||||||
| Research and development | 257,150 | (51,460 | ) | 205,690 | |||||||||
| Selling, general and administrative | 196,437 | (33,270 | ) | 163,167 | |||||||||
| Operating expenses | 453,587 | (84,730 | ) | 368,857 | |||||||||
| Operating income (loss) | 56,697 | (145,340 | ) | (88,643 | ) | ||||||||
| Other income (expense): | |||||||||||||
| Interest income and other, net | 13,185 | -- | 13,185 | ||||||||||
| Interest expense | (20,233 | ) | -- | (20,233 | ) | ||||||||
| Income (loss) before income taxes | 49,649 | (145,340 | ) | (95,691 | ) | ||||||||
| Provision (benefit) for income taxes | 30,384 | (23,400 | ) | (G) | 6,984 | ||||||||
| Net income (loss) | $ | 19,265 | $ | (121,940 | ) | $ | (102,675 | ) | |||||
| Earnings (loss) per share: | |||||||||||||
| Basic | $ | 0.44 | $ | (2.37 | ) | ||||||||
| Diluted | $ | 0.43 | $ | (2.37 | ) | ||||||||
| Weighted-average common shares outstanding: | |||||||||||||
| Basic | 43,346 | -- | 43,346 | ||||||||||
| Diluted | 44,290 | (944 | ) | (H) | 43,346 |
The accompanying notes are an integral part of these unaudited pro forma
condensed consolidated financial statements.
Silicon Laboratories Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the Year Ended December 29, 2018
(in thousands, except per share data)
| Historical | Disposition Adjustments (F) | Pro Forma | |||||||||||
| Revenues | $ | 868,267 | $ | (412,201 | ) | $ | 456,066 | ||||||
| Cost of revenues | 346,868 | (145,334 | ) | 201,534 | |||||||||
| Gross profit | 521,399 | (266,867 | ) | 254,532 | |||||||||
| Operating expenses: | |||||||||||||
| Research and development | 238,347 | (48,269 | ) | 190,078 | |||||||||
| Selling, general and administrative | 197,844 | (34,305 | ) | 163,539 | |||||||||
| Operating expenses | 436,191 | (82,574 | ) | 353,617 | |||||||||
| Operating income (loss) | 85,208 | (184,293 | ) | (99,085 | ) | ||||||||
| Other income (expense): | |||||||||||||
| Interest income and other, net | 6,647 | -- | 6,647 | ||||||||||
| Interest expense | (19,694 | ) | -- | (19,694 | ) | ||||||||
| Income (loss) before income taxes | 72,161 | (184,293 | ) | (112,132 | ) | ||||||||
| Provision (benefit) for income taxes | (11,430 | ) | (8,207 | ) | (G) | (19,637 | ) | ||||||
| Net income (loss) | $ | 83,591 | $ | (176,086 | ) | $ | (92,495 | ) | |||||
| Earnings (loss) per share: | |||||||||||||
| Basic | $ | 1.94 | $ | (2.14 | ) | ||||||||
| Diluted | $ | 1.90 | $ | (2.14 | ) | ||||||||
| Weighted-average common shares outstanding: | |||||||||||||
| Basic | 43,159 | -- | 43,159 | ||||||||||
| Diluted | 44,044 | (885 | ) | (H) | 43,159 |
The accompanying notes are an integral part of these unaudited pro forma
condensed consolidated financial statements.
Silicon Laboratories Inc.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements
1. Basis of Presentation
As disclosed in Item 7.01 of this Form 8-K, Silicon Laboratories Inc. (the 'Company') completed the sale of its infrastructure and automotive business to Skyworks Solutions, Inc. for $2.75 billion in cash on July 26, 2021 (the 'Sale'). The unaudited pro forma condensed consolidated financial statements included herein have been prepared based on the Company's historical consolidated balance sheet as of April 3, 2021, condensed consolidated statement of operations for the three months ended April 3, 2021 and consolidated statements of operations for the fiscal years ended January 2, 2021, December 28, 2019 and December 29, 2018, after giving effect to the disposition of the net assets and operations related to the sold business. The accompanying pro forma adjustments give effect to the pro forma events that are 1) directly attributable to the Sale, 2) factually supportable, and 3) with respect to the pro forma condensed consolidated statements of operations, have a continuing impact on the consolidated results of operations. This disposition will be accounted for as discontinued operations in accordance with Financial Accounting Standards Board Accounting Standards Codification 205-20, Presentation of Financial Statements - Discontinued Operations.
The pro forma condensed consolidated balance sheet gives effect to the Sale as if it had occurred on April 3, 2021. The pro forma balance sheet also reflects the effects of nonrecurring items attributed directly to the Sale, including the gain on sale, net of taxes, and direct transaction costs as though the Sale occurred on April 3, 2021. The pro forma gain as of April 3, 2021 is expected to differ from the actual gain that ultimately will be recognized as of the closing date of July 26, 2021.
The pro forma condensed consolidated statements of operations give effect to the Sale as if it had occurred on December 31, 2017, the first day of our fiscal year ended December 29, 2018. The disposition adjustments reflect the elimination of revenues and direct expenses of the discontinued operations. The pro forma statements of operations do not include adjustments for nonrecurring items attributed directly to the Sale. Such items will be recorded in the consolidated financial statements for the three months ended October 2, 2021.
This pro forma financial information is presented for illustrative purposes only, and is not necessarily indicative of the operating results and financial position that might have been achieved had the Sale occurred on the dates indicated, nor are they necessarily indicative of the operating results and financial position that may occur in the future. The accompanying unaudited pro forma condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the three fiscal years in the period ended January 2, 2021, included in the Company's Form 10-K filed with the Securities and Exchange Commission (SEC) on February 3, 2021.
2. Pro Forma Adjustments
The unaudited pro forma condensed consolidated financial statements reflect the following adjustments:
| (A) | Consideration received on the Sale consisting of $2.75 billion in cash. |
| (B) | Removal of balances related to assets and liabilities that transferred in the Sale. |
| (C) | Accrual of estimated direct transaction costs. |
| (D) | Represents the estimated tax effect of the pro forma adjustments, including the estimated gain on sale. |
| (E) | Represents the retained earnings impact of the pro forma adjustments. |
| (F) | Represents revenues and direct expenses incurred by the discontinued component. |
| (G) | Represents the estimated tax effect of the pro forma adjustments. |
| (H) | Removal of dilutive shares due to pro forma net loss. |
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Silicon Laboratories Inc. published this content on 27 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2021 10:09:07 UTC.
