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Standard Microsystems Corp. (SMSC) filed Quarterly Report for the period ended 2011-08-31.
Standard Microsystems Corp. has a market cap of $453.1 million; its shares were traded at around $19.56 with a P/E ratio of 13.9 and P/S ratio of 1.2.
This is the annual revenues and earnings per share of SMSC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of SMSC.
Highlight of Business Operations:
The provisions for income taxes for the three and six month periods ended August 31, 2011 was $9.6 million (an effective income tax rate of 44.6%) and $11.3 million (an effective tax rate of 38.4%), respectively. The income tax provision for the six month period ended August 31, 2011 includes a net deferred tax benefit of $1.4 million related to a change in the effective state tax rate, $0.7 million of qualified research and development credits, and $0.2 million of accrued interest and penalties related to uncertain tax positions. The income tax provision excludes the impact of certain losses in various jurisdictions that could not be benefitted.Cash used for investing activities in the six-month period ended August 31, 2011 consisted primarily of the $41.0 million used for the acquisition of BridgeCo (including extinguishment of debt, net of cash acquired), as well as $5.7 million used for capital expenditures, mainly for design tools. Cash provided by investing activities in the same prior year period included the sale of $30.5 million in commercial paper classified as short-term investments and $10.5 million in net auction rate securities redemptions, partially offset by $22.0 million used for the acquisition of STS and $6.5 million in capital expenditures, mainly for design tools.
The provisions for income taxes for the three and six month periods ended August 31, 2010 was $9.4 million (an effective income tax rate of 42.1%) and $10.5 million (an effective tax rate of 43.7% ) , respectively. The tax provision for the six month period ended August 31, 2010 includes the impact of $0.1 million of accrued interest and penalties related to uncertain tax positions. The provision excludes the impact of certain losses in various jurisdictions that could not be benefitted. In addition, the 2010 research and development tax credit expired on December 31, 2009 therefore no tax credit was included in the income tax provisions for the three or six month periods ended August 31, 2010.
The Company s total cash and cash equivalents decreased primarily due to the $41.0 million (including extinguishment of debt, net of cash acquired) paid for the acquisition of BridgeCo, $10.5 million used for share repurchases and $5.7 million used for capital expenditures, partially offset by $28.8 million in cash generated from operations. Deferred income taxes, net and accrued liabilities decreased $12.3 million due to the decrease in the SARs liability as a result of the decrease in the Company s common stock market price during six-month periods ended August 31, 2011.
As a result, as of August 31, 2011, the Company recorded an estimated cumulative unrealized loss of $1.9 million (net of tax) related to the temporary impairment of the auction rate securities, which was included in accumulated other comprehensive income within shareholders equity. The Company deemed the loss to be temporary because the Company does not plan to sell any of the auction rate securities prior to maturity at an amount below the original purchase value and, at this time, does not deem it probable that it will receive less than 100% of the principal and accrued interest from the issuer. Further, the auction rate securities held by the Company are AAA rated. The Company continues to liquidate investments in auction rate securities as opportunities arise. In the three and six-month periods ended August 31, 2011, $1.1 million and $1.3 million, respectively, in auction rate securities were liquidated at par in connection with issuer calls.
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