SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-Q
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[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended May 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number 0-7422
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STANDARD MICROSYSTEMS CORPORATION
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(Exact name of registrant as specified in its charter)
DELAWARE 11-2234952
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
80 ARKAY DRIVE, HAUPPAUGE, NEW YORK 11788
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 631-435-6000
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 ________
As of July 14, 2000 there were 15,862,793 shares of the registrant's common
stock outstanding.
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
STANDARD MICROSYSTEMS CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
<TABLE>
<CAPTION>
May 31, February 29,
2000 2000
------- -------
(Unaudited)
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents ............................. $ 90,445 $ 73,405
Short-term investments ................................ 1,003 2,000
Accounts receivable, net of allowance for doubtful
accounts of $400 and $480, respectively ............. 16,799 16,559
Inventories ........................................... 16,294 20,051
Deferred income taxes ................................. 10,607 12,779
Other current assets .................................. 6,110 9,277
--------- --------
Total current assets ............................. 141,258 134,071
--------- --------
Property, plant and equipment, net ...................... 35,591 34,137
Investment in Chartered Semiconductor ................... 63,428 73,104
Other assets ............................................ 16,269 19,196
--------- --------
$ 256,546 $ 260,508
========= ========
Liabilities and shareholders' equity
Current liabilities:
Accounts payable ...................................... $ 8,025 $ 9,575
Deferred income on shipments to distributors .......... 5,291 5,958
Accrued expenses and other liabilities ................ 11,226 9,522
--------- --------
Total current liabilities ....................... 24,542 25,055
--------- --------
Deferred income taxes ................................... 12,364 15,387
Other liabilities ....................................... 6,629 6,764
Commitments and contingencies
Minority interest in subsidiary ......................... 11,518 11,510
Shareholders' equity:
Preferred stock, $.10 par value
authorized 1,000,000 shares, none outstanding ....... -- --
Common stock, $.10 par value
authorized 30,000,000 shares,
issued 16,710,000 and 16,431,000
shares, respectively ................................ 1,671 1,643
Additional paid-in capital ............................ 112,801 112,297
Retained earnings ..................................... 59,307 52,123
Treasury stock, 878,000 and 671,000 shares,
respectively, at cost ............................... (6,396) (4,379)
Accumulated other comprehensive income ................ 34,110 40,108
--------- --------
Total shareholders' equity ...................... 201,493 201,792
--------- --------
$ 256,546 $ 260,508
========= ========
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
<PAGE>
STANDARD MICROSYSTEMS CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended May 31,
2000 1999 *
-------- --------
<S> <C> <C>
Revenues ............................................... $ 38,219 $ 38,146
Cost of goods sold ..................................... 22,480 24,215
-------- --------
Gross profit ......................................... 15,739 13,931
Operating expenses:
Research and development ............................... 7,210 5,690
Selling, general and administrative .................... 8,404 8,304
-------- --------
Income (loss) from operations ........................ 125 (63)
Interest income ........................................ 1,170 646
Other income (expense), net ............................ 2,556 (81)
-------- ---------
Income before provision for income taxes
and minority interest .............................. 3,851 502
Provision for income taxes ............................. 1,424 172
Minority interest in net income of subsidiary .......... 8 1
-------- --------
Income from continuing operations .................... 2,419 329
Gain on sale of discontinued operation,
(net of income taxes of $2,799) ...................... 4,765 --
-------- ---------
Income before cumulative effect of change in
accounting principle ............................... 7,184 329
Cumulative effect of change in accounting principle
(net of income tax benefits of $1,716) ............... -- (2,924)
--------- --------
Net income (loss) .................................... $ 7,184 $ (2,595)
======== =========
Basic net income (loss) per share:
Income from continuing operations $ 0.15 $ 0.02
Gain on sale of discontinued operation 0.30 --
Cumulative effect of change in accounting principle -- (0.19)
-------- --------
Basic net income (loss) per share $ 0.45 $ (0.17)
======== =========
Diluted net income (loss) per share:
Income from continuing operations $ 0.14 $ 0.02
Gain on sale of discontinued operation 0.29 --
Cumulative effect of change in accounting principle -- (0.19)
-------- --------
Diluted net income (loss) per share $ 0.43 $ (0.17)
======== =========
Weighted average common shares outstanding
Basic 15,799 15,575
Diluted 16,668 15,601
* Restated to reflect change in accounting principle.
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
<PAGE>
STANDARD MICROSYSTEMS CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Three Months Ended
May 31,
2000 1999 *
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Cash received from customers ..................................... $ 35,793 $ 36,956
Cash paid to suppliers and employees ............................. (31,141) (31,158)
Interest received ................................................ 1,084 529
Interest paid .................................................... (60) (77)
Income taxes received (paid) ..................................... (582) (1,114)
--------- ---------
Net cash provided by operating activities ...................... 5,094 5,136
--------- ---------
Cash flows from investing activities:
Capital expenditures ............................................. (3,276) (2,110)
Sales of machinery and equipment ................................. 197 207
Purchases of short-term investments .............................. (1,003) --
Sales of short-term investments .................................. 2,000 --
Sales of Investment in Chartered Semiconductor ................... 3,509 --
Other ............................................................ (33) (26)
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Net cash provided by (used for) investing activities ........... 1,394 (1,929)
--------- ---------
Cash flows from financing activities:
Proceeds from issuance of common stock ........................... 291 216
Purchases of treasury stock ...................................... (2,017) --
Repayments of obligations under capital leases ................... (224) (206)
--------- ---------
Net cash provided by (used for) financing activities ........... (1,950) 10
--------- ---------
Effect of foreign exchange rate changes on cash and cash equivalents 103 (189)
Net cash provided by (used for) discontinued operation ............. 12,399 (2,745)
--------- ---------
Net increase in cash and cash equivalents .......................... 17,040 283
Cash and cash equivalents at beginning of period ................... 73,405 68,071
-------- ---------
Cash and cash equivalents at end of period ......................... $ 90,445 $ 68,354
========= =========
Reconciliation of income from continuing operations
to net cash provided by operating activities:
Income from continuing operations .................................. $ 2,419 $ 329
Adjustments to reconcile income from continuing operations
to net cash provided by operating activities:
Depreciation and amortization .................................... 2,817 2,410
Other adjustments, net ........................................... (2,518) 221
Changes in operating assets and liabilities:
Accounts receivable ............................................ (103) 1,430
Inventories .................................................... 3,793 (3,441)
Accounts payable and accrued expenses and other liabilities .... (1,689) 4,437
Other changes, net ............................................. 375 (250)
--------- ---------
Net cash provided by operating activities .......................... $ 5,094 $ 5,136
========= =========
* Restated to reflect change in accounting principle.
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
<PAGE>
STANDARD MICROSYSTEMS CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The unaudited interim consolidated financial statements reflect all
adjustments (consisting of only normal and recurring adjustments) which
are, in the opinion of management, necessary to present a fair statement
of the Company's financial position as of, and results of operations for
the three month period ended, May 31, 2000. The financial statements
should be read in conjunction with the summary of significant accounting
policies and notes to consolidated financial statements included in the
Company's annual report on Form 10-K filed with the Securities and
Exchange Commission for the fiscal year ended February 29, 2000.
Certain fiscal 2000 items have been reclassified to conform with the
fiscal 2001 presentation.
2. Accounting Change - Recognition of Revenue on Shipments to Distributors
In the fourth quarter of fiscal 2000, the Company changed its accounting
method for the recognition of revenue on shipments to distributors.
Recognition of revenue and related gross profit on shipments to
distributors is now deferred until the distributor resells the product.
This change was made with an effective date of March 1, 1999 (the
beginning of fiscal 2000). The results of operations and cash flows for
the three months ended May 31, 1999 have been restated to reflect this
accounting change.
Management of the Company believes that this accounting change is to a
preferable method because it better aligns reported results with, focuses
the Company on, and allows investors to better understand, end-user
demand for the products SMSC sells through distribution.
3. Inventories
Inventories are valued at the lower of first-in, first-out cost or market
and consist of the following (in thousands):
May 31, 2000 Feb. 29, 2000
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Raw Material ............................ $ 398 $ 361
Work in Process .......................... 8,447 11,146
Finished Goods ........................... 7,449 8,544
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$16,294 $ 20,051
=========== =============
4. Net Income (Loss) Per Share
Basic net income (loss) per share is based upon the weighted-average
number of common shares outstanding during the period. Diluted net income
(loss) per share is computed using the weighted-average common shares
outstanding during the period plus the dilutive effect of shares issuable
through stock options and warrants.
<PAGE>
The shares used in calculating basic and diluted net income (loss) per
share are reconciled as follows (in thousands):
Three Months Ended
May 31,
2000 1999
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Average shares outstanding for
basic net income (loss) per share 15,799 15,575
Dilutive effect of stock options 869 26
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Average shares outstanding for
diluted net income (loss) per share 16,668 15,601
=====================================================================
5. Comprehensive Income
The Company's other comprehensive income consists of foreign currency
translation adjustments from those subsidiaries not using the U.S. dollar
as their functional currency, and unrealized gains and losses on
long-term equity investments. The components of the Company's
comprehensive income (loss) for the three month periods ended May 31,
2000 and 1999 were as follows (in thousands):
Three months ended May 31, 2000 1999
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Net income (loss) $ 7,184 $ (2,595)
Other comprehensive income (loss):
Currency translation adjustment 174 (325)
Unrealized gain (loss) on investment (6,172) 81
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Total comprehensive income (loss) $ 1,186 $ (2,839)
==========================================================================
6. Investments
The Company has an equity interest in Singapore-based Chartered
Semiconductor Manufacturing Ltd. (Chartered), acquired in fiscal 1996 at
a cost of $19.9 million. In October 1999, shares of Chartered began
trading publicly on the Singapore stock exchange, and also began trading
on the NASDAQ stock market as American Depository Shares, or ADSs. As of
May 31, 2000, the Company held approximately 790,000 Chartered ADSs,
which are reported on the Consolidated Balance Sheet at $63.4 million,
based upon their closing price on the NASDAQ stock market on that date.
The Company sold a small portion of this investment during the quarter
ended May 31, 2000, realizing a pre-tax gain of $2.3 million, which is
included within Other income on the quarter's Consolidated Statement of
Income.
During the first quarter, the Company also sold call options covering a
portion of its investment in Chartered for proceeds of $0.3 million. All
of these options expired unexercised prior to May 31, 2000, and these
proceeds are included within Other income for the first quarter.
7. Investment by Intel Corporation
In March 1997, the Company and Intel Corporation (Intel) entered into a
Common Stock and Warrant Purchase Agreement (the Agreement) whereby Intel
purchased approximately 1,543,000 of newly issued shares of the Company's
common stock for $9.50 per share, or approximately $14.7 million. Intel
also received a three-year warrant to purchase an additional 1,543,000
shares at varying prices through March 18, 2000.
In March 2000, as provided for in the warrant, Intel executed a "net
exercise", whereby Intel received approximately 200,000 shares of the
Company's common stock, which was equal in fair value to the excess of
the warrant's market value over its exercise value, as defined in the
Agreement. The Company immediately repurchased these 200,000 shares from
Intel for approximately $1.9 million under its common stock repurchase
program. This warrant is now fully exercised.
8. Common Stock Repurchase Program
In October 1998, the Company's Board of Directors authorized the Company
to repurchase up to one million shares of its common stock on the open
market or in private transactions. During the first quarter, the Company
repurchased 207,000 shares of its common stock, including 200,000 shares
repurchased from Intel Corporation as described in Note 6, at a cost of
$2.0 million. The Company currently holds repurchased shares as treasury
stock, reported at cost. As of May 31, 2000, the Company has repurchased
878,000 shares of its common stock, at a cost of $6.4 million, under this
program.
9. Discontinued Operation
In June 1999, the Company sold the assets of its Foundry Business Unit
(FBU) to privately held Inertia Optical Technology Applications, Inc.
(IOTA) of Newark, NJ. The combined businesses now operate as Standard
MEMS, Inc. (SMI). The transaction was effected through IOTA's purchase of
the FBU's assets from the Company, in exchange for 38% of IOTA's
outstanding common stock.
During the first quarter, the Company sold the majority of its ownership
interest in SMI and realized an after-tax gain of $4.8 million, which
appears as a Gain on sale of discontinued operation on the Consolidated
Statement of Income for the period ended May 31, 2000. This sale of SMI
stock reduced the Company's ownership interest in SMI below 5%,
satisfying its prior commitment to reduce its SMI ownership below 20%.
10. Recent Accounting Pronouncements
In June 2000, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 138, Accounting for Certain
Derivative Instruments and Certain Hedging Activities (SFAS 138), which
is required to be adopted in years beginning after June 15, 2000. This
statement amends Statement of Financial Accounting Standards No. 133,
Accounting for Derivative Instruments and Hedging Activities, and defers
its effective date by one year. The Company is currently evaluating the
impact that the adoption of SFAS 138 will have on its results of
operations and financial position.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the Company's
unaudited consolidated financial statements and footnotes thereto contained in
Item 1 of this report.
OVERVIEW
Standard Microsystems Corporation (the Company or SMSC) is a worldwide designer
and supplier of metal-oxide-semiconductor/very-large-scale-integrated
(MOS/VLSI) circuits for the personal computer (PC) and related industries.
Currently, the Company is prominent as the world's leading supplier of
input/output (I/O) integrated circuits. I/O circuits perform many of the basic
input/output functions required in a personal computer or an embedded
application, including keyboard control and BIOS, floppy disk control and
serial and parallel port control. The Company also supplies integrated circuits
for embedded control systems, local area networking applications and
connectivity applications. The Company's products are manufactured by
world-class semiconductor foundries and assemblers.
In recent years, the majority of the Company's revenues have been derived from
supplying I/O circuits to the PC marketplace. Strategically, the Company is
introducing a line of System Controller Hubs based upon its I/O technology and
is pursuing broader product offerings, particularly for USB connectivity. It is
also now in the process of developing a line of chipsets.
Chipsets are advanced integrated circuits used within a personal computer or
similar application to control the flow of information between the
microprocessor, memory modules, graphics controllers and other peripheral
devices. A chipset is typically comprised of two primary devices - a memory
controller (sometimes referred to as the north bridge) and an I/O controller
(sometimes referred to as the south bridge).
RESULTS OF OPERATIONS
The Company's operating results for the quarter ended May 31, 1999 have been
restated to reflect the Company's change in accounting policy for the
recognition of revenue on shipments of products to distributors. This change
was made in the fourth quarter of fiscal 2000, with an effective date of March
1, 1999.
REVENUES
Revenues for the first quarter of fiscal 2001 were $38.2 million compared to
revenues of $38.1 for the corresponding year-earlier quarter. Unit shipments
increased by 10%, offset by declining selling prices and the continued shift in
product mix to newer products which generally have lower average selling
prices, but higher gross margins, than previous product offerings.
GROSS PROFIT
Gross profit increased to $15.7 million, or 41.2% of sales, for the first
quarter of fiscal 2001, compared to $13.9 million, or 36.5% of sales, for the
corresponding year-earlier quarter. This improvement in gross profit was
attributable to improved manufacturing efficiencies and the better utilization
of overhead resulting from higher unit shipments, and a shift in product mix
towards products with higher gross margins.
OPERATING EXPENSES
Research and development spending was $7.2 million for the first quarter of
fiscal 2001, an increase of $1.5 million, or 26.3%, over $5.7 million for the
corresponding year-earlier quarter. This spending increase reflects continued
hiring of engineering staff and new product development costs. The Company has
focused much of its current research and development effort on its chipset
development programs.
The Company expects spending for research and development to continue to
increase. The Company's ongoing commitment to research and development is
essential to maintaining product leadership in existing product lines and to
providing innovative product offerings.
OTHER INCOME AND EXPENSE
Interest income increased to $1.2 million in the first quarter, compared to
$0.6 million in the year-earlier quarter. This increase reflects higher cash
and cash equivalent balances available for investment in the current year
quarter, compared to the corresponding year earlier period.
Other income totaled $2.6 million in the first quarter, compared to other
expenses of $0.1 million in the year-earlier quarter. This change reflects
gains of $2.3 million realized on sales of a small portion of the Company's
investment in Singapore-based Chartered Semiconductor Manufacturing Ltd.
(Chartered) during the period, as well as $0.3 million of proceeds from sales
of call options covering a portion of its Chartered stock holdings. All of the
call options expired unexercised prior to May 31, 2000.
INCOME TAXES
The Company's effective income tax rate for the first quarter of fiscal 2001
was 37%, consistent with the effective tax rate incurred for the year ended
February 29, 2000. Generally, the Company's income tax rate includes the
federal, state and foreign statutory tax rates, the impact of certain permanent
differences between the book and tax accounting treatment of certain expenses,
the impact of tax-exempt income and various tax credits.
DISCONTINUED OPERATIONS
The Company realized an after-tax gain of $4.8 million in the first quarter of
fiscal 2001 associated with the sale of most of its ownership interest in
Standard MEMS, Inc. (SMI). SMI was created through the June 1999 sale of the
assets of the Company's Foundry Business Unit to Inertia Optical Technology
Applications, Inc. in exchange for a 38% interest in the resulting combined
operation, which was renamed Standard MEMS, Inc. This transaction is reported
as a Gain on the sale of discontinued operation on the Consolidated Statement
of Operations for the first quarter of fiscal 2001.
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
The net loss for the quarter ended May 31, 1999 reflects an after-tax charge of
$2.9 million, or $0.19 per diluted share, for the cumulative effect on all
prior years of the Company's change in accounting principle for revenue
recognition on sales to distributors. This accounting change was implemented in
the fourth quarter of fiscal 2000, with an effective date of March 1, 1999 (the
beginning of fiscal 2000). The Company now defers revenue and gross profit on
sales to distributors until the distributor resells the product.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash and cash equivalents increased to $90.4 million as of May
31, 2000, from $73.4 million as of February 29, 2000, an increase of $17.0
million, or 23%.
For the three month period ended May 31, 2000, $5.1 million of cash was
provided from operating activities, $1.4 million was provided from investing
activities, and $1.9 million was consumed in financing activities. The Company
also received $12.4 million in cash from the sale of a majority of its
investment in SMI during the quarter, which is reported within Net cash
provided by discontinued operation in the quarter's Consolidated Statement of
Cash Flows.
During the first three months of fiscal 2001, the Company incurred $3.3 million
in capital expenditures, the majority of which was for test equipment and the
expansion of its production test operation. Over the next twelve months, the
Company plans to continue to expand its test operation and also expects to
invest in intellectual property used in the design of its products. Fiscal 2001
capital expenditures are expected to exceed the $10.5 million of such
expenditures incurred in fiscal 2000.
Accounts receivable increased by only $0.2 million at May 31, 2000, compared to
February 29, 2000, despite a $4.3 million increase in shipments in the first
quarter as compared to the previous quarter. The Company's accounts receivable
are substantially all current as of May 31, 2000.
During the first three months of fiscal 2001, the Company's inventories
declined by approximately $3.8 million. Slightly lower than expected shipments
in the fourth quarter of fiscal 2000 had contributed to a modest growth in
inventories as of February 29, 2000. The increase in shipments in the first
quarter of fiscal 2001, combined with a tightening of semiconductor wafer
manufacturing capacity, contributed to the first quarter's inventory decline.
The Company holds an equity interest in Chartered of approximately 790,000 ADS
shares as of May 31, 2000. The estimated market value of this investment at May
31, 2000 is $63.4 million, based on Chartered's closing market price on the
NASDAQ stock market as of that date. During the first quarter of fiscal 2001,
the Company sold a small portion of this investment, generating $3.2 million in
cash. The Company has continued to sell portions of this investment subsequent
to May 31, 2000, and will continue to consider such selling, should market
conditions be considered acceptable. During the first quarter, the Company sold
call options covering a portion of its investment in Chartered for proceeds of
$0.3 million. All of these options expired unexercised prior to May 31, 2000.
The Company has continued to sell call options covering portions of this
investment subsequent to May 31, 2000.
The Company has considered in the past, and will continue to consider, various
possible transactions to secure necessary foundry manufacturing capacity,
including equity investments in, prepayments to, or deposits with foundries, in
exchange for guaranteed capacity or other arrangements which address the
Company's manufacturing requirements.
In October 1998, the Company's Board of Directors authorized the Company to
repurchase up to one million shares of its common stock on the open market or
in private transactions. The Company repurchased 207,000 shares of its stock
for approximately $2.0 million during the first quarter of fiscal 2001. As of
May 31, 2000, the Company has repurchased 878,000 shares of its common stock,
at a cost of $6.4 million, under this program.
The Company believes that its existing cash, cash equivalents and investments
on hand, together with cash that it expects to generate from its operations,
will be sufficient to meet future operating and capital needs for at least the
next twelve months.
OTHER FACTORS THAT MAY AFFECT FUTURE OPERATING RESULTS
The Company's operating results are subject to general economic conditions and
a variety of risks characteristic of the semiconductor and related industries.
For a further discussion of such risks, see "Other Factors That May Affect
Future Operating Results" included within Part I, Item 1 - "Business" in the
Company's Annual Report on Form 10-K filed with the Securities and Exchange
Commission for the fiscal year ended February 29, 2000.
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest Rate Risk - As of May 31, 2000, the Company's $1.0 million of
short-term investments consisted primarily of investments in U.S. treasury,
corporate and municipal obligations with maturities of between three and twelve
months. If market interest rates were to increase immediately and uniformly by
10% from the levels at May 31, 2000, the fair value of these short-term
investments would decline by an immaterial amount. The Company generally
expects to hold its fixed income investments until maturity and therefore would
not expect operating results or cash flows to be affected to any significant
degree by the effect of a sudden change in market interest rates on short-term
investments.
Equity Price Risk - The Company is exposed to an equity price risk on its
investment in Chartered Semiconductor Manufacturing, Ltd. For every 10% adverse
change in the market value of Chartered Semiconductor common stock, the Company
would experience a decrease of approximately $6.3 million to its May 31, 2000
investment value. The Company has sold call options on this security in the
past and may do so again in the future to reduce some of this market risk.
Foreign Currency Risk - The Company has international sales and expenditures
and is therefore subject to certain foreign currency rate exposure. The Company
conducts a significant amount of its business in Asia. In order to reduce the
risk from fluctuation in foreign exchange rates, most of the Company's product
sales and all of its arrangements with its foundry, test and assembly vendors
are denominated in U.S. dollars. Transactions in the Japanese market made by
Toyo Microsystems Corporation (TMC), the Company's majority owned subsidiary,
are denominated in Japanese yen. The Company has never received a cash dividend
(repatriation of cash) from TMC nor does it expect to receive such a dividend
in the near future. The Company has not entered into any significant foreign
currency hedging activities.
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
None.
<PAGE>
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 thereunto duly authorized.
STANDARD MICROSYSTEMS CORPORATION
(Registrant)
DATE: July 14, 2000 /S/ Andrew M. Caggia
------------------------
(Signature)
Andrew M. Caggia
Senior Vice President - Finance (duly authorized officer)
and Chief Financial Officer (principal financial officer)
