REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
four ordinary shares |
|
|
* |
Not for trading, but only in connection with the listing on the Nasdaq Global Select Market of American Depositary Shares, or ADSs, each representing four ordinary shares. |
|
☒ |
Accelerated filer |
☐ |
|||||||
Non-accelerated filer |
☐ |
Emerging growth company |
|
☒ |
International Financial Reporting Standards as issued by the International Accounting Standards Board ☐ |
Other ☐ |
1 |
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Item 1. |
1 |
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Item 2. |
1 |
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Item 3. |
1 |
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Item 4. |
19 |
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Item 4A. |
24 |
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Item 5. |
24 |
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Item 6. |
40 |
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Item 7. |
46 |
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Item 8. |
47 |
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Item 9. |
48 |
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Item 10. |
49 |
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Item 11. |
54 |
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Item 12. |
54 |
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55 |
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Item 13. |
55 |
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Item 14. |
55 |
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Item 15. |
55 |
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Item 16A. |
57 |
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Item 16B. |
57 |
|||||
Item 16C. |
57 |
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Item 16D. |
58 |
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Item 16E. |
58 |
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Item 16F. |
58 |
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Item 16G. |
58 |
|||||
59 |
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Item 17. |
59 |
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Item 18. |
59 |
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Item 19. |
59 |
• |
“ADRs” are to the American depositary receipts that evidence our ADSs; |
• |
“ADSs” are to our American depositary shares, each of which represents four of our ordinary shares; |
• |
“CAGR” are to compound annual growth rate; |
• |
“China” or “PRC” are to the People’s Republic of China, excluding the special administrative regions of Hong Kong and Macau; |
• |
“Korea” are to the Republic of Korea, or South Korea; |
• |
“Korea Won” are to the legal currency of South Korea; |
• |
“Nasdaq” are to the Nasdaq Stock Market; |
• |
“NT dollar,” “NT dollars” or “NT$” are to New Taiwan dollars, the legal currency of Taiwan; |
• |
“ROC” or “Taiwan” are to the Republic of China, the official name of Taiwan; |
• |
“shares” or “ordinary shares” are to our ordinary shares, with a par value US$0.01 per share; |
• |
“U.S. GAAP” are to generally accepted accounting principles in the United States; |
• |
“U.S. dollar,” “U.S. dollars” or “US$” are to United States dollars, the legal currency of the United States; and |
• |
“we,” “us,” “our company,” “our,” “SMTC” and “Silicon Motion” are to Silicon Motion Technology Corporation, its predecessor entities and subsidiaries including but not limited to (i) Silicon Motion Technology (HK) Ltd., incorporated in Hong Kong, (ii) Silicon Motion, Inc., incorporated in Taiwan, or SMI Taiwan, and formerly known as Feiya Technology Corporation, (iii) Silicon Motion, Inc., a California, USA, corporation, or SMI USA, and (iv) Shanghai Baocun Information Technology Co., Ltd., incorporated in the PRC, or Shannon Systems. |
• |
the extent of the impact of the novel coronavirus (COVID-19) pandemic; |
• |
unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; |
• |
the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from these customers; |
• |
general economic conditions or conditions in the semiconductor or consumer electronics market; |
• |
decreases in the overall average selling prices of our products; |
• |
changes in the relative sales mix of our products; |
• |
the payment, or non-payment, of cash dividends in the future at the discretion of our board of directors; |
• |
changes in our cost of finished goods; |
• |
the effects on our business and our customer’s business taking into account the ongoing US-China tariffs and trade disputes; |
• |
the effects, if any, on the price of our ADSs as a result of the announcement and implementation of our previously announced share repurchase program; |
• |
the availability, pricing and timeliness of delivery of other components and raw materials used in our and our customers’ products; |
• |
our customers’ financial health, sales outlook, purchasing patterns and inventory adjustments based on consumer demand, market adoption of new technologies and general economic conditions; |
• |
our ability to successfully develop, introduce and sell innovative, new or enhanced products in a timely manner; and |
• |
the timing of new product announcements or introductions by us or by our competitors. |
Item 1. |
Identity of Directors, Senior Management and Advisers |
Item 2. |
Offer Statistics and Expected Timetable |
Item 3. |
Key Information |
Year Ended December 31, |
||||||||||||||||||||
2015 |
2016 |
2017 |
2018 |
2019 |
||||||||||||||||
US$ |
US$ |
US$ |
US$ |
US$ |
||||||||||||||||
(in thousands, except for per share data) |
||||||||||||||||||||
Consolidated Statements of Income Data: |
||||||||||||||||||||
Net sales |
361,297 |
556,146 |
523,404 |
530,348 |
457,253 |
|||||||||||||||
Cost of sales |
176,765 |
281,541 |
272,210 |
269,541 |
235,081 |
|||||||||||||||
Gross profit |
184,532 |
274,605 |
251,194 |
260,807 |
222,172 |
|||||||||||||||
Operating expenses: |
||||||||||||||||||||
Research and development |
71,161 |
92,405 |
102,053 |
102,028 |
110,305 |
|||||||||||||||
Sales and marketing |
20,173 |
25,765 |
25,868 |
29,279 |
25,108 |
|||||||||||||||
General and administrative |
15,714 |
17,072 |
16,933 |
17,633 |
17,878 |
|||||||||||||||
Impairment of goodwill and intangible assets |
— |
— |
10,337 |
4,069 |
15,970 |
|||||||||||||||
Amortization of intangible assets |
1,051 |
2,103 |
2,534 |
2,964 |
766 |
|||||||||||||||
Gain from disposal of noncurrent assets held for sale |
— |
— |
(1,880 |
) | — |
— |
||||||||||||||
Total operating expenses |
108,099 |
137,345 |
155,845 |
155,973 |
170,027 |
|||||||||||||||
Operating income |
76,433 |
137,260 |
95,349 |
104,834 |
52,145 |
|||||||||||||||
Total non-operating income |
2,067 |
1,370 |
3,652 |
5,027 |
19,929 |
|||||||||||||||
Income before income taxes |
78,500 |
138,630 |
99,001 |
109,861 |
72,074 |
|||||||||||||||
Income tax expense |
18,249 |
27,690 |
24,046 |
11,791 |
7,676 |
|||||||||||||||
Net income |
60,251 |
110,940 |
74,955 |
98,070 |
64,398 |
|||||||||||||||
Weighted average shares outstanding: |
||||||||||||||||||||
Basic |
138,100 |
140,919 |
142,738 |
144,123 |
140,708 |
|||||||||||||||
Diluted |
139,634 |
142,050 |
143,606 |
144,512 |
141,183 |
|||||||||||||||
Earnings per share: |
||||||||||||||||||||
Basic |
0.44 |
0.79 |
0.53 |
0.68 |
0.46 |
|||||||||||||||
Diluted |
0.43 |
0.78 |
0.52 |
0.68 |
0.46 |
|||||||||||||||
Earnings per ADS (1) : |
||||||||||||||||||||
Basic |
1.75 |
3.15 |
2.10 |
2.72 |
1.83 |
|||||||||||||||
Diluted |
1.73 |
3.12 |
2.09 |
2.71 |
1.82 |
|||||||||||||||
(1) | Each ADS represents four ordinary shares. |
As of December 31, |
||||||||||||||||||||
2015 |
2016 |
2017 |
2018 |
2019 |
||||||||||||||||
US$ |
US$ |
US$ |
US$ |
US$ |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Consolidated Balance Sheet Data: |
||||||||||||||||||||
Cash and cash equivalents |
180,519 |
274,483 |
359,453 |
284,989 |
323,166 |
|||||||||||||||
Other current assets |
134,657 |
202,417 |
209,344 |
213,501 |
242,033 |
|||||||||||||||
Working capital |
226,889 |
330,914 |
391,553 |
384,839 |
433,711 |
|||||||||||||||
Long-term investments |
133 |
120 |
— |
4,242 |
3,000 |
|||||||||||||||
Property and equipment, net |
50,469 |
47,892 |
51,370 |
101,410 |
98,488 |
|||||||||||||||
Goodwill and intangible assets, net |
75,990 |
73,883 |
66,393 |
59,352 |
17,489 |
|||||||||||||||
Other non-current assets |
3,860 |
7,231 |
7,172 |
9,120 |
13,553 |
|||||||||||||||
Total assets |
445,628 |
606,026 |
693,732 |
672,614 |
697,729 |
|||||||||||||||
Total liabilities |
101,130 |
163,263 |
199,681 |
140,337 |
160,945 |
|||||||||||||||
Total shareholders’ equity |
344,498 |
442,763 |
494,051 |
532,277 |
536,784 |
As of December 31, |
||||||||||||||||||||
2015 |
2016 |
2017 |
2018 |
2019 |
||||||||||||||||
As Adjusted |
||||||||||||||||||||
US$ |
US$ |
US$ |
US$ |
US$ |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Consolidated Cash Flow Data: |
||||||||||||||||||||
Net cash provided by operating activities |
65,946 |
125,568 |
103,881 |
108,242 |
77,695 |
|||||||||||||||
Net cash provided by (used in) investing activities (1) |
(58,458 |
) | (8,220 |
) | (14,548 |
) | (79,568 |
) | 34,668 |
|||||||||||
Net cash provided by (used in) financing activities |
(20,271 |
) | 2,194 |
(31,740 |
) | (101,820 |
) | (70,260 |
) | |||||||||||
Depreciation and amortization |
8,987 |
11,585 |
13,133 |
14,796 |
13,213 |
|||||||||||||||
Capital expenditures |
(23,664 |
) | (12,220 |
) | (11,683 |
) | (74,853 |
) | (11,015 |
) |
(1) | The selected consolidated statements of cash flow data for the year ended December 31, 2015 was retrospectively adjusted to reflect the Company’s election to early adopt the ASU 2016-18 of the classification and presentation of changes in restricted cash on the statement of cash flows. |
• | the impact of epidemics and pandemics, such as COVID-19, and other natural, or man-made disasters; |
• | competitive pressures and other factors such as the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; |
• | changes in demand for electronic devices into which our semiconductor solutions are directly or indirectly incorporated; |
• | our customers’ sales outlook, purchasing patterns and inventory adjustments based on market demand, adoption of new technologies and general economic conditions; |
• | the loss of one or more key customers or the significant reduction, timing or cancellation of orders from these customers; |
• | seasonality or cyclical fluctuations in our markets; |
• | our ability to develop or acquire, introduce, market and transition to volume production new or enhanced products and technologies in a cost-effective and timely manner; |
• | changes in supply and availability of flash memory components used in our and our customer’s products; |
• | changes in our product mix or customer mix and their effect on our gross margin; |
• | changes in foreign currency exchange rates; |
• | the availability and pricing of third party semiconductor foundry services; |
• | unpredictable volume and timing of customer orders, which are not fixed by contract but vary on an order-to-order basis; |
• | deferrals or reductions of customer orders in anticipation of new products or product enhancements from us or our competitors or other providers of integrated circuits; |
• | our ability to timely and accurately predict market requirements and evolving industry trends and to identify and capitalize upon opportunities in new markets; and |
• | the overall cyclicality of, and changing economic and market conditions in, the semiconductor industry. |
• | actual or anticipated variations in our quarterly operating results or those of our competitors, customers, or NAND flash vendors; |
• | actual or anticipated changes in NAND flash supply and demand dynamics; |
• | actual or anticipated changes in our market share or the market share of our competitors; |
• | the commencement or results of litigation; |
• | announcements by us, our competitors, our customers, or their other suppliers of new products or technological innovations; |
• | changes in financial estimates or recommendations by securities analysts; |
• | the payment or non-payment of cash dividends at the discretion of our board of directors; |
• | the announcement and implementation of share repurchase programs; |
• | announcements by us or our competitors of significant acquisitions, divestitures or partnerships; and |
• | actual or anticipated changes in the global economic or industry outlook. |
• | international economic and political conditions, such as political tensions between countries in which we do business (please also refer to Risk Factors relating to China and Taiwan); |
• | unexpected changes in, or impositions of, legislative or regulatory requirements; |
• | complying with a variety of foreign laws; |
• | differing legal standards with respect to protection of intellectual property and employment practices; |
• | cultural differences in the conduct of business; |
• | inadequate local infrastructure that could result in business disruptions; |
• | exporting or importing issues related to export or import restrictions, tariffs, quotas and other trade barriers and restrictions, recently increased as a result of the ongoing trade disputes and tariffs between China and the U.S.; |
• | financial risks such as longer payment cycles and difficulty in collecting accounts receivable; |
• | adverse taxes rules, regulations and penalties; and |
• | other factors beyond our control such as nature disasters, terrorism, civil unrest, war and health emergencies, such as COVID-19. |
Item 4. |
Information on the Company |
Name of Entity |
Jurisdiction of Incorporation | |
Bigtera (Beijing) |
China | |
Shannon Systems |
China | |
Silicon Motion, Inc. |
California | |
Silicon Motion, Inc. |
Taiwan | |
Silicon Motion, Inc. (Shanghai) |
China | |
Silicon Motion, Inc. (Shenzhen) |
China | |
Silicon Motion (MCO) Ltd. |
Macau | |
Silicon Motion Technology (HK) Ltd. |
Hong Kong | |
FCI Inc.* |
Korea |
* |
In May 2019, we sold FCI to Dialog Semiconductor. |
• | the performance, features, quality and price of our products; |
• | the timing and success of new product introductions by us, our customers and our competitors; |
• | emergence, rate of adoption and acceptance of new industry standards; |
• | our ability to obtain adequate foundry capacity at competitive prices; and |
• | the number and nature of our competitors in a given market. |
Location |
Primary Use |
Approximate Square Footage |
||||
Hsinchu, Taiwan |
Research & development, management & administration |
200,800 |
||||
Taipei, Taiwan |
Research & development, sales & marketing |
74,600 |
||||
Shanghai, China |
Research & development, sales & marketing |
43,400 |
||||
Shenzhen, China |
Sales & marketing |
20,200 |
||||
Milpitas, California |
Sales & marketing, management |
13,300 |
||||
Others (1) |
Sales & marketing, management |
21,500 |
(1) | Korea, Macau, Hong Kong, Yokohama, Japan, Beijing, Nanjing, Hangzhou and Suzhou, China |
Item 4A. |
Unresolved Staff Comments |
Item 5. |
Operating and Financial Review and Prospects |
• | Total revenue decreased by 14% to US$457.3 million. |
• | Gross profit as a percentage of revenue decreased by 0.6% points to 48.6%. |
• | Total operating expenses increased by 9% to US$170.0 million. |
• | Operating profit decreased by 50% to US$52.1 million. |
• | Income tax expense as a percentage of income before income tax unchanged at 11%. |
• | Diluted earnings per ADS decreased by 33% to US$1.82. |
Year Ended December 31, |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
Currency |
||||||||||||
U.S. dollars |
87 |
% | 88 |
% | 95 |
% | ||||||
Korean won |
3 |
% | 3 |
% | 1 |
% | ||||||
Chinese yuan |
10 |
% | 9 |
% | 4 |
% |
• | cost of wafer fabrication; |
• | assembly, testing and shipping costs of our semiconductors; |
• | personnel and equipment costs associated with manufacturing support; |
• | quality assurance; |
• | cost of raw materials; and |
• | write-down of inventory. |
• | the selection of critical accounting policies; and |
• | the judgments and other uncertainties affecting the application of those critical accounting policies. |
Year Ended December 31, |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
Net sales |
100.0 |
% | 100.0 |
% | 100.0 |
% | ||||||
Cost of sales |
52.0 |
50.8 |
51.4 |
|||||||||
Gross profit |
48.0 |
49.2 |
48.6 |
|||||||||
Operating expenses: |
||||||||||||
Research and development |
19.5 |
19.2 |
24.1 |
|||||||||
Sales and marketing |
4.9 |
5.5 |
5.5 |
|||||||||
General and administrative |
3.2 |
3.3 |
3.9 |
|||||||||
Impairment of goodwill and intangible assets |
2.0 |
0.8 |
3.5 |
|||||||||
Amortization of intangible assets |
0.5 |
0.6 |
0.2 |
|||||||||
Gain from disposal of noncurrent assets held for sale |
(0.4 |
) | — |
— |
||||||||
Total operating expenses |
29.7 |
29.4 |
37.2 |
|||||||||
Operating income |
18.3 |
19.8 |
11.4 |
|||||||||
Non-operating income (expenses): |
||||||||||||
Gain from disposal of subsidiary |
0.0 |
0.0 |
2.7 |
|||||||||
Gain from disposal of long-term investments |
0.0 |
0.0 |
0.1 |
|||||||||
Gain from disposal of short-term investments |
0.0 |
0.0 |
0.0 |
|||||||||
Interest income |
0.8 |
1.2 |
1.5 |
|||||||||
Foreign exchange gain (loss), net |
(0.0 |
) | (0.1 |
) | 0.0 |
|||||||
Impairment of long-term investments |
(0.0 |
) | — |
— |
||||||||
Interest expense |
(0.1 |
) | (0.1 |
) | 0.0 |
|||||||
Loss on equity-method investment |
— |
(0.1 |
) | — |
||||||||
Other income (loss), net |
(0.0 |
) | 0.0 |
0.0 |
||||||||
Total non-operating income |
0.7 |
0.9 |
4.3 |
|||||||||
Income before income taxes |
19.0 |
20.7 |
15.7 |
|||||||||
Income tax expense |
4.6 |
2.2 |
1.7 |
|||||||||
Net income |
14.4 |
% | 18.5 |
% | 14.0 |
% | ||||||
Years Ended December 31 |
||||||||||||||||||||||||
2018 |
2019 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Net sales |
||||||||||||||||||||||||
Mobile Storage |
494,012 |
93 |
441,700 |
97 |
(52,312 |
) | (11 |
) | ||||||||||||||||
Mobile Communications |
30,163 |
6 |
10,356 |
2 |
(19,807 |
) | (66 |
) | ||||||||||||||||
Others |
6,173 |
1 |
5,197 |
1 |
(976 |
) | (16 |
) | ||||||||||||||||
Net sales |
530,348 |
100 |
457,253 |
100 |
(73,095 |
) | (14 |
) |
Years Ended December 31 |
||||||||||||||||||||||||
2018 |
2019 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Gross profit |
260,807 |
49 |
222,172 |
49 |
(38,635 |
) | (15 |
) |
Years Ended December 31 |
||||||||||||||||||||||||
2018 |
2019 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Salary and benefits |
53,922 |
10 |
57,165 |
13 |
3,243 |
6 |
||||||||||||||||||
Stock-based compensation |
13,278 |
2 |
9,927 |
2 |
(3,351 |
) | (25 |
) | ||||||||||||||||
Other research and development |
34,828 |
7 |
43,213 |
9 |
8,385 |
24 |
||||||||||||||||||
Research and development |
102,028 |
19 |
110,305 |
24 |
8,277 |
8 |
Years Ended December 31 |
||||||||||||||||||||||||
2018 |
2019 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Salary and benefits |
15,546 |
3 |
14,586 |
3 |
(960 |
) | (6 |
) | ||||||||||||||||
Stock-based compensation |
3,407 |
1 |
1,789 |
1 |
(1,618 |
) | (47 |
) | ||||||||||||||||
Other sales and marketing |
10,326 |
2 |
8,733 |
2 |
(1,593 |
) | (15 |
) | ||||||||||||||||
Sales and marketing |
29,279 |
6 |
25,108 |
6 |
(4,171 |
) | (14 |
) |
Years Ended December 31 |
||||||||||||||||||||||||
2018 |
2019 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Salary and benefits |
8,073 |
1 |
9,202 |
2 |
1,129 |
14 |
||||||||||||||||||
Stock-based compensation |
3,704 |
1 |
2,570 |
1 |
(1,134 |
) | (31 |
) | ||||||||||||||||
Other general and administrative |
5,856 |
1 |
6,106 |
1 |
250 |
4 |
||||||||||||||||||
General and administrative |
17,633 |
3 |
17,878 |
4 |
245 |
1 |
Years Ended December 31 |
||||||||||||||||||||||||
2018 |
2019 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Cost of sales |
390 |
— |
305 |
— |
(85 |
) | (22 |
) | ||||||||||||||||
Research and development |
13,278 |
2 |
9,927 |
2 |
(3,351 |
) | (25 |
) | ||||||||||||||||
Sales and marketing |
3,407 |
1 |
1,789 |
— |
(1,618 |
) | (47 |
) | ||||||||||||||||
General and administrative |
3,704 |
1 |
2,570 |
1 |
(1,134 |
) | (31 |
) | ||||||||||||||||
Total stock-based compensation |
20,779 |
4 |
14,591 |
3 |
(6,188 |
) | (30 |
) |
Years Ended December 31 |
||||||||||||||||||||||||
2017 |
2018 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Net sales |
||||||||||||||||||||||||
Mobile Storage |
480,735 |
92 |
494,012 |
93 |
13,277 |
3 |
||||||||||||||||||
Mobile Communications |
37,447 |
7 |
30,163 |
6 |
(7,284 |
) | (19 |
) | ||||||||||||||||
Others |
5,222 |
1 |
6,173 |
1 |
951 |
18 |
||||||||||||||||||
Net sales |
523,404 |
100 |
530,348 |
100 |
6,944 |
1 |
Years Ended December 31 |
||||||||||||||||||||||||
2017 |
2018 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Gross profit |
251,194 |
48 |
260,807 |
49 |
9,613 |
4 |
Years Ended December 31 |
||||||||||||||||||||||||
2017 |
2018 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Salary and benefits |
54,019 |
10 |
53,922 |
10 |
(97 |
) | 0 |
|||||||||||||||||
Stock-based compensation |
9,255 |
2 |
13,278 |
2 |
4,023 |
43 |
||||||||||||||||||
Other research and development |
38,779 |
8 |
34,828 |
7 |
(3,951 |
) | (10 |
) | ||||||||||||||||
Research and development |
102,053 |
20 |
102,028 |
19 |
(25 |
) | 0 |
Years Ended December 31 |
||||||||||||||||||||||||
2017 |
2018 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Salary and benefits |
14,425 |
3 |
15,546 |
3 |
1,121 |
8 |
||||||||||||||||||
Stock-based compensation |
3,167 |
1 |
3,407 |
1 |
240 |
8 |
||||||||||||||||||
Other sales and marketing |
8,276 |
1 |
10,326 |
2 |
2,050 |
25 |
||||||||||||||||||
Sales and marketing |
25,868 |
5 |
29,279 |
6 |
3,411 |
13 |
Years Ended December 31 |
||||||||||||||||||||||||
2017 |
2018 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Salary and benefits |
9,386 |
2 |
8,073 |
1 |
(1,313 |
) | (14 |
) | ||||||||||||||||
Stock-based compensation |
2,779 |
— |
3,704 |
1 |
925 |
33 |
||||||||||||||||||
Other general and administrative |
4,768 |
1 |
5,856 |
1 |
1,088 |
23 |
||||||||||||||||||
General and administrative |
16,933 |
3 |
17,633 |
3 |
700 |
4 |
Years Ended December 31 |
||||||||||||||||||||||||
2017 |
2018 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Cost of sales |
293 |
— |
390 |
— |
97 |
33 |
||||||||||||||||||
Research and development |
9,255 |
2 |
13,278 |
2 |
4,023 |
43 |
||||||||||||||||||
Sales and marketing |
3,167 |
1 |
3,407 |
1 |
240 |
8 |
||||||||||||||||||
General and administrative |
2,779 |
— |
3,704 |
1 |
925 |
33 |
||||||||||||||||||
Total stock-based compensation |
15,494 |
3 |
20,779 |
4 |
5,285 |
34 |
Year Ended December 31 |
||||||||
2018 |
2019 |
|||||||
US$ |
US$ |
|||||||
(in thousands) |
||||||||
Cash and cash equivalents |
284,989 |
323,166 |
||||||
Short-term investments |
3,609 |
2,010 |
||||||
Cash, cash equivalents and short-term investments |
288,598 |
325,176 |
Year Ended December 31, |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
(in thousands) |
||||||||||||
Consolidated Cash Flow Data: |
||||||||||||
Net cash provided by operating activities |
103,881 |
108,242 |
77,695 |
|||||||||
Net cash provided by (used in) investing activities |
(14,548 |
) | (79,568 |
) | 34,668 |
|||||||
Net cash used in financing activities |
(31,740 |
) | (101,820 |
) | (70,260 |
) | ||||||
Depreciation and amortization |
13,133 |
14,796 |
13,213 |
|||||||||
Capital expenditures |
(11,683 |
) | (74,853 |
) | (11,015 |
) |
• | Our net income includes substantial non-cash charges, namely US$13.2 million of depreciation and amortization, US$14.6 million of stock-based compensation and US$16.0 million of impairment of goodwill and intangible assets. |
• | Net working capital increased by US$20.3 million. Inventory increased by US$10.2 million, notes and accounts receivable increased by US$18.8 million, notes and accounts payable increased by US$4.4 million, income tax payable decreased by US$1.7 million, and other assets net of other liabilities provided US$5.9 million of cash. |
• | Our net income includes substantial non-cash charges, namely US$14.8 million of depreciation and amortization, US$20.8 million of stock-based compensation and US$4.1 million of impairment of goodwill and intangible assets. |
• | Net working capital increased by US$31.5 million. Inventory decreased by US$12.7 million, notes and accounts receivable increased by US$12.6 million, notes and accounts payable decreased by US$28.8 million, income tax payable decreased by US$7.3 million, and other assets net of other liabilities provided US$4.6 million of cash. |
Amount of Commitment Maturing by Year |
||||||||||||||||||||
Total |
Less Than 1 Year |
1-3 Years |
3-5 Years |
More Than 5 Years |
||||||||||||||||
US$ |
US$ |
US$ |
US$ |
US$ |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Operating leases |
9,301 |
3,321 |
4,110 |
1,819 |
51 |
|||||||||||||||
Pension |
2,167 |
2,167 |
(a) |
(a) |
(a) |
|||||||||||||||
Other contractual commitments |
5,735 |
5,735 |
— |
— |
— |
|||||||||||||||
Contractual cash obligations |
17,203 |
11,223 |
4,110 |
1,819 |
51 |
|||||||||||||||
(a) | Our pension obligation after one year has not been estimated. |
Item 6. |
Directors, Senior Management and Employees |
Name |
Age |
Position | ||||
James Chow |
69 |
Chairman of the Board | ||||
Wallace C. Kou |
61 |
President, Chief Executive Officer and Managing Director | ||||
Steve Chen |
48 |
Director | ||||
Tsung-Ming Chung |
70 |
Director | ||||
Lien-Chun Liu |
62 |
Director | ||||
Yung-Chien Wang |
57 |
Director | ||||
Han-Ping D. Shieh |
66 |
Director | ||||
Kenneth Kuan-Ming Lin |
67 |
Director | ||||
Riyadh Lai |
51 |
Chief Financial Officer | ||||
Nelson Duann |
51 |
Senior VP of Marketing & R&D and Director | ||||
Arthur Yeh |
59 |
VP of Sales, Asia and Greater China | ||||
Robert Fan |
56 |
President of SMI USA | ||||
Ken Chen |
58 |
VP of Operations | ||||
Kevin Yeh |
56 |
VP of R&D, Algorithm & Technology | ||||
Kevin Tsai |
54 |
Senior Director of R&D, System Validation |
• | convening shareholders’ meetings and reporting its work to shareholders at such meetings; |
• | implementing shareholders’ resolutions; |
• | determining our business plans and investment proposals; |
• | formulating our profit distribution plans and loss recovery plans; |
• | determining our debt and finance policies and proposals for the increase or decrease in our registered capital and the issuance of debentures; |
• | formulating our major acquisition and disposition plans, and plans for merger, division or dissolution; |
• | proposing amendments to our amended and restated memorandum and articles of association; and |
• | exercising any other powers conferred by the shareholders’ meetings or under our amended and restated memorandum and articles of association. |
As of December 31, |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
Management and administration |
128 |
132 |
120 |
|||||||||
Operations |
42 |
41 |
33 |
|||||||||
Research and development |
861 |
897 |
880 |
|||||||||
Sales and marketing |
219 |
237 |
204 |
|||||||||
Total |
1,250 |
1,307 |
1,237 |
|||||||||
Shares Beneficially Owned |
||||||||
Number |
% |
|||||||
Executive Officers and Directors: |
||||||||
James Chow (1) |
2,381,266 |
1.69 |
||||||
Wallace C. Kou (2) |
1,917,248 |
1.36 |
||||||
Steve Chen |
50,000 |
* |
||||||
Tsung-Ming Chung |
80,000 |
* |
||||||
Lien-Chun Liu |
234,280 |
* |
||||||
Yung-Chien Wang |
838,674 |
* |
||||||
Han-Ping D. Shieh |
60,800 |
* |
||||||
Kenneth Kuan-Ming Lin |
20,000 |
* |
||||||
Riyadh Lai (3) |
1,793,580 |
1.28 |
||||||
Nelson Duann |
46,000 |
* |
||||||
Arthur Yeh |
42,524 |
* |
||||||
Robert Fan |
62,000 |
* |
||||||
Ken Chen (4) |
200,649 |
* |
||||||
Kevin Yeh |
60,600 |
* |
||||||
Kevin Tsai |
— |
* |
* | Less than one percent |
(1) | Represents 2,381,266 shares owned by Mr. Chow. Mr. Chow is the chairman of Concord Consulting Inc. and Concord Financial Co. Ltd. which owned 42,445 and 196,491 shares, respectively. Mr. Chow disclaims any beneficial ownership of these shares. |
(2) | Represents 1,597,248 shares owned by Mr. Kou, 320,000 shares owned by his family members. |
(3) | Represents 973,700 shares owned by Mr. Lai and 819,880 shares owned by his spouse. |
(4) | Represents 18,324 shares owned by Mr. Chen and 182,325 shares owned by his spouse. |
Item 7. |
Major Shareholders and Related Party Transactions |
Identity of person or group |
Number of shares owned |
Percentage Owned (1) |
||||||
Massachusetts Financial Services Company |
15,272,360 |
(2) |
10.9 |
% | ||||
Cardinal Capital Management, LLC |
9,457,452 |
(3) |
6.7 |
% | ||||
Yiheng Capital Partners, L.P. |
7,906,040 |
(4) |
5.6 |
% | ||||
ARGA Investment Management, LP and Avula Rama Krishna. |
7,688,452 |
(5) |
5.5 |
% |
(1) | Based on 140,585,484 ordinary shares outstanding as of April 30, 2020. |
(2) | Massachusetts Financial Services Company held 3,818,090 ADSs (representing 15,272,360 ordinary shares) according to a Schedule 13G dated February 14, 2020. |
(3) | Cardinal Capital Management, LLC held 2,364,363 ADSs (representing 9,457,452 ordinary shares) according to a Schedule 13G filed February 14, 2020. |
(4) | Yiheng Capital Partners, L.P. held 1,976,510 (representing 7,906,040 ordinary shares) according to a Schedule 13G filed April 6, 2020. |
(5) | ARGA Investment Management, LP and Avula Rama Krishna held 2,088,771 ADSs (representing 7,688,452 ordinary shares), according to a Schedule 13G dated February 11, 2019. |
Item 8. |
Financial Information |
Item 9. |
The Offer and Listing |
Price per ADS (US$) |
||||||||
High |
Low |
|||||||
Annual: |
||||||||
2015 |
37.60 |
20.01 |
||||||
2016 |
55.85 |
27.41 |
||||||
2017 |
55.68 |
37.37 |
||||||
2018 |
61.85 |
31.73 |
||||||
2019 |
50.87 |
30.86 |
||||||
Quarterly: |
||||||||
First Quarter, 2018 |
56.51 |
42.57 |
||||||
Second Quarter, 2018 |
54.62 |
44.54 |
||||||
Third Quarter, 2018 |
61.85 |
47.88 |
||||||
Fourth Quarter, 2018 |
54.76 |
31.73 |
||||||
First Quarter, 2019 |
44.30 |
32.15 |
||||||
Second Quarter, 2019 |
44.41 |
36.43 |
||||||
Third Quarter, 2019 |
47.23 |
30.86 |
||||||
Fourth Quarter, 2019 |
50.87 |
34.73 |
||||||
First Quarter, 2020 |
53.04 |
26.72 |
||||||
Second Quarter, 2020 (1) |
52.46 |
35.10 |
||||||
Monthly |
||||||||
November 2019 |
44.55 |
41.18 |
||||||
December 2019 |
50.87 |
42.49 |
||||||
January 2020 |
53.04 |
45.62 |
||||||
February 2020 |
49.75 |
35.89 |
||||||
March 2020 |
38.58 |
26.72 |
||||||
April 2020 |
47.35 |
35.10 |
||||||
May 2020 |
52.46 |
41.04 |
||||||
June 2020 (1) |
47.43 |
43.89 |
(1) | Through June 10, 2020. |
Item 10. |
Additional Information |
• | banks and financial institutions; |
• | brokers and dealers in securities or currencies; |
• | insurance companies; |
• | tax-exempt organizations and retirement plans; |
• | grantor trusts; |
• | S corporations; |
• | persons holding ADSs or ordinary shares as part of hedging, conversion, constructive sale, straddle or other integrated transactions; |
• | persons who acquired their ordinary shares upon the exercise of employee stock options or otherwise as compensation; |
• | persons who have elected the mark-to-market method of accounting; |
• | persons who own 10% or more of our ADSs or shares; |
• | real estate investment trusts or regulated investment companies; |
• | U.S. persons whose “functional currency” is not the U.S. dollar; |
• | certain former citizens or long-term residents of the United States; and |
• | Non-U.S. Holders (as defined below). |
• | a citizen or resident individual of the United States; |
• | a corporation or other entity taxable as a corporation created or organized in or under the laws of the United States, any state thereof, or the District of Columbia; |
• | an estate the income of which is subject to U.S. federal income taxation, regardless of its source; or |
• | a trust if it is subject to the primary supervision of a court within the United States and one or more U.S. persons have the authority to control all substantial decisions of the trust or has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person. |
• | a foreign corporation that is eligible for the benefits of a comprehensive income tax treaty with the United States that includes an exchange of information program; or |
• | a foreign corporation if its stock with respect to which a dividend is paid or its ADSs backed by such stock are readily tradable on an established securities market within the United States. |
• | no law which is enacted in the Cayman Islands imposing any tax to be levied on profits or income or gains or appreciation applies to us or our operations; and |
• | the aforesaid tax or any tax in the nature of estate duty or inheritance tax are not payable on our ordinary shares, debentures or other obligations. |
Item 11. |
Quantitative and Qualitative Disclosures About Market Risk |
Item 12. |
Description of Securities Other Than Equity Securities |
Item 13. |
Defaults, Dividend Arrearages and Delinquencies |
Item 14. |
Material Modifications to the Rights of Security Holders and Use of Proceeds |
Item 15. |
Controls and Procedures |
Item 16A. |
Audit Committee Financial Expert |
Item 16B. |
Code of Ethics |
Item 16C. |
Principal Accountant Fees and Services |
2018 |
2019 |
|||||||
US$ |
US$ |
|||||||
(in thousands) |
||||||||
Audit Fees (1) |
1,011 |
881 |
||||||
Audit-Related Fees (2) |
— |
— |
||||||
Tax Fees (3) |
200 |
200 |
||||||
All Other Fees (4) |
— |
— |
||||||
Total |
1,211 |
1,081 |
(1) | Audit Fees |
(2) | Audit-Related Fees |
(3) | Tax Fees |
(4) | All other fees |
Item 16D. |
Exemptions from the Listing Standards for Audit Committees |
Item 16E. |
Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
Item 16F. |
Change in Registrant’s Certifying Accountant |
Item 16G. |
Corporate Governance |
Item 17. |
Financial Statements |
Item 18. |
Financial Statements |
Item 19. |
Exhibits |
Exhibit Number |
Description | |||
1.1 |
||||
1.2 |
||||
2.1 |
||||
2.2 |
||||
2.3 |
||||
4.1 |
||||
8.1* |
||||
11.1 |
||||
12.1* |
||||
12.2* |
||||
13.1* |
||||
23.1* |
||||
101.INS* |
Inline XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||
101.SCH* |
Inline XBRL Taxonomy Extension Schema Document | |||
101.CAL* |
Inline XBRL Taxonomy Extension Calculation Linkbase Document |
Exhibit Number |
Description | |||
101.DEF* |
Inline XBRL Taxonomy Extension Definition Linkbase Document | |||
101.LAB* |
Inline XBRL Taxonomy Extension Label Linkbase Document | |||
101.PRE* |
Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||
104 |
Cover Page Interactive Data File — the cover page XBRL tags are embedded within the Exhibit 101 Inline XBRL document set |
* | Filed herewith. |
Silicon Motion Technology Corporation | ||
By: |
/s/ Wallace C. Kou | |
Wallace C. Kou, President and Chief Executive Officer |
F- 2 |
||||
F- 4 |
||||
F- 5 |
||||
F- 6 |
||||
F- 7 |
||||
F- 8 |
||||
F- 9 |
• | We tested the effectiveness of controls over management’s goodwill impairment valuation, including those over the determination of the fair value of Shannon, such as controls related to management’s forecasts of revenue and selection of the discount rate. |
• | We evaluated management’s ability to accurately forecast future revenue by comparing actual results to management’s historical forecasts. |
• | We evaluated the reasonableness of management’s forecasts of revenue by comparing the forecasts to: |
• | Historical revenues. |
• | Internal communications to management and the Board of Directors of the Company’s business plans that support the forecast of revenue. |
• | Forecasted information included in Company’s press releases as well as in analyst and industry reports for the Company and its peer companies. |
• | We evaluated the impact of changes in management’s forecasts from November 30, 2019, the annual measurement date, to December 31, 2019. |
• | With the assistance of our fair value specialists, we evaluated the reasonableness of the discount rate by (1) testing the source information underlying the determination of the discount rate and the mathematical accuracy of the calculation, and (2) developing a range of independent estimates and comparing those to the discount rate selected by management. |
December 31 |
||||||||
2018 |
2019 |
|||||||
US$ |
US$ |
|||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
|
|
||||||
Short-term investments |
|
|
||||||
Notes and accounts receivable, net |
|
|
||||||
Inventories |
|
|
||||||
Restricted assets-current |
|
|
||||||
Noncurrent assets held for sale |
|
|
||||||
Prepaid expenses and other current assets |
|
|
||||||
Total current assets |
|
|
||||||
Long-term investments |
|
|
||||||
Property and equipment, net |
|
|
||||||
Deferred income tax assets, net |
|
|
||||||
Goodwill |
|
|
||||||
Intangible assets, net |
|
— |
||||||
Operating lease assets |
|
|
— |
|
|
|
| |
Other assets |
|
|
||||||
Total assets |
|
|
||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
Current Liabilities |
||||||||
Notes and accounts payable |
|
|
||||||
Income tax payable |
|
|
||||||
Refund liabilities |
|
|
||||||
Current portion of long-term payable |
|
— |
||||||
Accrued expenses and other current liabilities |
|
|
||||||
Total current liabilities |
|
|
||||||
Other long-term liabilities |
|
|
||||||
Total liabilities |
|
|
||||||
Commitments and Contingencies (Note 19) |
||||||||
Shareholders’ Equity |
||||||||
Ordinary Shares at US$ |
||||||||
Authorized: |
||||||||
Issued and outstanding: thousand shares in 2019 |
|
|
||||||
Additional paid-in capital |
|
|
||||||
Accumulated other comprehensive income (loss) |
|
( |
) | |||||
Retained Earnings |
|
|
||||||
Treasury Stock |
( |
) | — |
|||||
Total shareholders’ equity |
|
|
||||||
Total liabilities and shareholders’ equity |
|
|
||||||
Year Ended December 31 |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
NET SALES |
|
|
|
|||||||||
COST OF SALES |
|
|
|
|||||||||
GROSS PROFIT |
|
|
|
|||||||||
OPERATING EXPENSES |
||||||||||||
Research and development |
|
|
|
|||||||||
Sales and marketing |
|
|
|
|||||||||
General and administrative |
|
|
|
|||||||||
Impairment of goodwill and intangible assets |
|
|
|
|||||||||
Amortization of intangible assets |
|
|
|
|||||||||
Gain from disposal of noncurrent assets held for sale |
( |
) | — |
— |
||||||||
Total operating expenses |
|
|
|
|||||||||
OPERATING INCOME |
|
|
|
|||||||||
NON-OPERATING INCOME (EXPENSES) |
||||||||||||
Gain from disposal of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
| |
Gain from disposal of long-term investments |
|
|
— |
|
|
|
— |
|
|
|
| |
Gain from disposal of short-term investments |
|
|
|
|||||||||
Interest income |
|
|
|
|||||||||
Foreign exchange gain (loss), net |
( |
) | ( |
) | |
|||||||
Impairment of long-term investments |
( |
) | — |
— |
||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ||||||
Loss on equity-method investment |
— |
( |
) | — |
||||||||
Other income (loss), net |
( |
) |
|
|
||||||||
Total non-operating income |
|
|
|
|||||||||
INCOME BEFORE INCOME TAX |
|
|
|
|||||||||
INCOME TAX EXPENSE |
|
|
|
|||||||||
NET INCOME |
|
|
|
|||||||||
EARNINGS PER ORDINARY SHARE: |
||||||||||||
Basic |
|
|
|
|||||||||
Diluted |
|
|
|
|||||||||
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING |
||||||||||||
Basic (Thousands) |
|
|
|
|||||||||
Diluted (Thousands) |
|
|
|
|||||||||
EARNINGS PER ADS (one ADS equals four ordinary shares): |
||||||||||||
Basic |
|
|
|
|||||||||
Diluted |
|
|
|
|||||||||
WEIGHTED AVERAGE ADS OUTSTANDING |
||||||||||||
Basic (Thousands) |
|
|
|
|||||||||
Diluted (Thousands) |
|
|
|
|||||||||
Year Ended December 31 |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
NET INCOME |
|
|
|
|||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX EFFECT OF NIL |
||||||||||||
Change in net foreign currency translation adjustments |
|
( |
) | ( |
) | |||||||
Change in deferred pension gain (loss) |
— |
( |
) | |||||||||
OTHER COMPREHENSIVE INCOME (LOSS) |
|
( |
) | ( |
) | |||||||
TOTAL COMPREHENSIVE INCOME |
|
|
|
|||||||||
Ordinary Share |
Additional Paid-in Capital |
Accumulated Other Comprehensive Income (Loss) |
Retained Earnings |
Treasury Stock |
Total Shareholders’ Equity |
|||||||||||||||||||||||
Shares |
Amount |
|||||||||||||||||||||||||||
(thousands) |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
||||||||||||||||||||||
BALANCE, JANUARY 1, 2017 |
|
|
|
( |
) | |
— |
|
||||||||||||||||||||
Net income |
— |
— |
— |
— |
|
— |
|
|||||||||||||||||||||
Other comprehensive income |
— |
— |
— |
|
— |
— |
|
|||||||||||||||||||||
Stock-based compensation expenses |
— |
— |
|
— |
— |
— |
|
|||||||||||||||||||||
Issuance of ordinary shares upon exercise of employee stock options and restricted stock units |
|
|
|
— |
— |
— |
|
|||||||||||||||||||||
Dividends declared (US$ |
— |
— |
— |
— |
( |
) | — |
( |
) | |||||||||||||||||||
BALANCE, DECEMBER 31, 2017 |
|
|
|
|
|
— |
|
|||||||||||||||||||||
Net income |
— |
— |
— |
— |
|
— |
|
|||||||||||||||||||||
Other comprehensive income (loss) |
— |
— |
— |
( |
) | — |
— |
( |
) | |||||||||||||||||||
Stock-based compensation expenses |
— |
— |
|
— |
— |
— |
|
|||||||||||||||||||||
Issuance of ordinary shares upon exercise of employee stock options and restricted units |
|
|
( |
) | — |
— |
— |
( |
) | |||||||||||||||||||
Share repurchase |
— |
— |
— |
— |
— |
( |
) | ( |
) | |||||||||||||||||||
Dividends declared (US$ |
— |
— |
— |
— |
( |
) | — |
( |
) | |||||||||||||||||||
BALANCE, DECEMBER 31, 2018 |
|
|
|
|
|
( |
) | |
||||||||||||||||||||
Net income |
— |
— |
— |
— |
|
— |
|
|||||||||||||||||||||
Other comprehensive income (loss) |
— |
— |
— |
( |
) | — |
— |
( |
) | |||||||||||||||||||
Stock-based compensation expenses |
— |
— |
|
— |
— |
— |
|
|||||||||||||||||||||
Issuance of ordinary shares upon exercise of restricted stock |
|
|
( |
) | — |
— |
— |
( |
) | |||||||||||||||||||
Share repurchase |
— |
— |
— |
— |
— |
( |
) | ( |
) | |||||||||||||||||||
Treasury stock retired |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
— |
| |
Dividends declared (US$ |
— |
— |
— |
— |
( |
) | — |
( |
) | |||||||||||||||||||
BALANCE, DECEMBER 31, 2019 |
|
|
|
( |
) | |
|
|
||||||||||||||||||||
Year Ended December 31 |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||||||
Net income |
|
|
|
|||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||
Depreciation and amortization |
|
|
|
|||||||||
Amortization of intangible assets |
|
|
|
|||||||||
Gain from disposal of short-term investments |
( |
) |
( |
) |
( |
) | ||||||
Gain from disposal of subsidiary |
— |
— |
( |
) | ||||||||
Gain from disposal of long-term investments |
— |
— |
( |
) | ||||||||
Loss on equity-method investment |
— |
|
— |
|||||||||
Impairment of long-term investments |
|
— |
— |
|||||||||
Stock-based compensation |
|
|
|
|||||||||
Loss on disposal of property and equipment |
|
|
|
|||||||||
Impairment of goodwill and intangible assets |
|
|
|
|||||||||
Gain from disposal of noncurrent assets held for sale |
( |
) |
— |
— |
||||||||
Deferred income taxes |
|
( |
) |
|
||||||||
Changes in operating assets and liabilities: |
||||||||||||
Short-term investments |
( |
) |
|
|
||||||||
Notes and accounts receivable |
( |
) |
( |
) |
( |
) | ||||||
Inventories |
( |
) |
|
( |
) | |||||||
Prepaid expenses and other current assets |
|
|
( |
) | ||||||||
Other assets |
( |
) |
|
( |
) | |||||||
Notes and accounts payable |
|
( |
) |
|
||||||||
Refund liabilities |
— |
|
|
|||||||||
Accrued expenses and other current liabilities |
|
( |
) |
|
||||||||
Income tax payable |
( |
) |
( |
) |
( |
) | ||||||
Other liabilities |
|
|
( |
) | ||||||||
Net cash provided by operating activities |
|
|
|
|||||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||||||
Purchase of long-term investment |
— |
( |
) |
— |
||||||||
Proceeds from sale of subsidiary |
— |
— |
|
|||||||||
Proceeds from sale of long-term investment |
— |
— |
|
|||||||||
Business acquisition-net of cash, cash equivalents, and restricted cash acquired |
( |
) |
— |
— |
||||||||
Purchase of property and equipment |
( |
) |
( |
) |
( |
) | ||||||
Net cash provided by (used in) investing activities |
( |
) |
( |
) |
|
|||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||||||
Proceeds from issuance of ordinary shares upon exercise of employee stock options |
|
— |
— |
|||||||||
Proceeds from bank loan |
|
— |
— |
|||||||||
Repayments of bank loan |
( |
) |
( |
) |
— |
|||||||
Dividends paid |
( |
) |
( |
) |
( |
) | ||||||
Share repurchase |
— |
( |
) |
( |
) | |||||||
Net cash used in financing activities |
( |
) |
( |
) |
( |
) | ||||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH |
|
( |
) |
|
||||||||
EFFECT OF EXCHANGE RATE CHANGES |
|
( |
) |
( |
) | |||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR |
|
|
|
|||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF YEAR |
|
|
|
|||||||||
SUPPLEMENTAL INFORMATION |
||||||||||||
Interest paid |
|
|
— |
|||||||||
Income taxes paid |
|
|
|
|||||||||
Acquisition of Bigtera |
||||||||||||
Fair value of assets acquired, net of cash, cash equivalents, and restricted cash acquired |
|
— |
— |
|||||||||
Other current liabilities |
( |
) |
— |
— |
||||||||
Other long-term liabilities |
( |
) |
— |
— |
||||||||
Cash paid for business acquisition, net of cash, cash equivalents, and restricted cash acquired |
|
— |
— |
|||||||||
Disposal of FCI |
||||||||||||
Total consideration |
— |
— |
|
|||||||||
Other current assets |
— |
— |
( |
) | ||||||||
Cash and restricted cash disposed |
— |
— |
( |
) | ||||||||
Proceeds from sale of subsidiary |
— |
— |
|
|||||||||
Year Ended December 31, 201 7 |
Year Ended December 31, 201 8 |
Year Ended December 31, 201 9 |
||||||||||||||||||||||||||||||||||
US$ |
US$ |
US$ |
||||||||||||||||||||||||||||||||||
Foreign currency items |
Defined benefit pension plans |
Accumulated other comprehensive income (loss) |
Foreign currency items |
Defined benefit pension plans |
Accumulated other comprehensive income (loss) |
Foreign currency items |
Defined benefit pension plans |
Accumulated other comprehensive income (loss) |
||||||||||||||||||||||||||||
Beginning balance |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Current-period change |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Ending balance |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
December 31 |
||||||||
2018 |
2019 |
|||||||
US$ |
US$ |
|||||||
Cash and deposits in bank |
|
|
||||||
Time deposits |
|
|
||||||
Bonds acquired under repurchase agreements |
|
|
||||||
Total cash and cash equivalents |
|
|
||||||
Restricted cash |
|
|
||||||
|
|
|||||||
December 31 |
||||||||
2018 |
2019 |
|||||||
US$ |
US$ |
|||||||
Trading securities |
|
|
December 31 |
||||||||
2018 |
2019 |
|||||||
US$ |
US$ |
|||||||
Trade accounts receivable |
|
|
||||||
Allowance for doubtful accounts |
( |
) | ( |
) | ||||
|
|
|||||||
Year Ended December 31 |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Allowances for doubtful accounts |
||||||||||||
Balance, beginning of year |
|
|
|
|||||||||
Additions (reversals) charged to expense, net |
( |
) | |
|
||||||||
Write-offs |
— |
— |
( |
) | ||||||||
Balance, end of year |
|
|
|
|||||||||
Year Ended December 31 |
||||
2017 |
||||
US$ |
||||
Allowances for sales returns and discounts * |
||||
Balance, beginning of year |
|
|||
Additions charged to expense, net |
|
|||
Actual sales return and discount |
( |
) | ||
Balance, end of year |
|
|||
* |
As of January 1, 2018, the Company has adopted the new revenue recognition standard (ASC 606). Allowance for sales returns and discounts for the year ended December 31, 2018 has been adjusted to reflect these changes in accounting policies, see Note 2 summary of significant accounting policies. |
December 31 |
||||||||
2018 |
2019 |
|||||||
US$ |
US$ |
|||||||
Finished goods |
|
|
||||||
Work in process |
|
|
||||||
Raw materials |
|
|
||||||
|
|
|||||||
Percentage of Ownership |
D ecember 31 |
|||||||||||||||
2018 |
2019 |
2018 |
2019 |
|||||||||||||
US$ |
US$ |
|||||||||||||||
Cost less impairment method: |
||||||||||||||||
Cashido Corp. (Cashido) |
|
% | |
% | — |
— |
||||||||||
Vastview Technology, Corp. (Vastview) |
|
% | |
% | — |
— |
||||||||||
Deep Vision, Inc (Deep Vision) |
|
% | |
% | |
|
||||||||||
Equity method: |
||||||||||||||||
ProGrade Digital, Inc. (ProGrade) |
|
% | — |
|
— |
|||||||||||
|
|
|||||||||||||||
December 31 |
||||||||
2018 |
2019 |
|||||||
US$ |
US$ |
|||||||
Assets held for sale |
|
|
||||||
|
|
|||||||
December 31 |
||||||||
2018 |
2019 |
|||||||
US$ |
US$ |
|||||||
Cost: |
||||||||
Land |
|
|
||||||
Buildings |
|
|
||||||
Machinery and equipment |
|
|
||||||
Furniture and fixtures |
|
|
||||||
Leasehold and buildings improvement |
|
|
||||||
Software |
|
|
||||||
Total |
|
|
||||||
Accumulated depreciation: |
||||||||
Buildings |
|
|
||||||
Machinery and equipment |
|
|
||||||
Furniture and fixtures |
|
|
||||||
Leasehold and buildings improvement |
|
|
||||||
Software |
|
|
||||||
|
|
|||||||
Prepayment and construction in progress |
|
|
||||||
|
|
|||||||
December 31 |
||||||||||||||||||||||||||||||||
2018 |
2019 |
|||||||||||||||||||||||||||||||
US$ |
US$ |
|||||||||||||||||||||||||||||||
Cost |
Accumulated Impairment |
Accumulated Amortization |
Net Carrying Amount |
Cost |
Accumulated Impairment |
Accumulated Amortization |
Net Carrying Amount |
|||||||||||||||||||||||||
Acquisition-related intangible assets |
|
( |
) | ( |
) | |
|
( |
) | ( |
) | — |
December 31 |
||||||||||||||||||||||||||||||||||||
2018 |
2019 |
|||||||||||||||||||||||||||||||||||
US$ |
US$ |
|||||||||||||||||||||||||||||||||||
Cost |
Accumulated Impairment |
Foreign Currency Adjustment |
Net Carrying Amount |
Cost |
Disposal of FCI |
Accumulated Impairment |
Foreign Currency Adjustment |
Net Carrying Amount |
||||||||||||||||||||||||||||
Goodwill |
|
( |
) |
( |
) |
|
|
( |
) |
( |
) |
( |
) |
|
December 31 |
||||||||
2018 |
2019 |
|||||||
US$ |
US$ |
|||||||
Refund liabilities (Note 5 ) |
|
|
||||||
Year Ended December 31 |
||||||||
2018 |
2019 |
|||||||
US$ |
US$ |
|||||||
Refund liabilities |
||||||||
Balance, beginning of year |
|
|
||||||
Additions |
|
|
||||||
Actual sales return and discount |
( |
) | ( |
) | ||||
Balance, end of year |
|
|
||||||
December 31 |
||||||||
2018 |
2019 |
|||||||
US$ |
US$ |
|||||||
Wages and bonus |
|
|
||||||
Dividends |
|
|
||||||
Research and development payable |
|
|
||||||
License fees and royalties |
|
|
||||||
Professional fees |
|
|
||||||
Equipment |
|
|
||||||
Lease liabilities |
|
|
— |
|
|
|
|
|
Others |
|
|
||||||
|
|
|||||||
December 31 |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Change in benefit obligation |
||||||||||||
Projected benefit obligation at beginning of year |
|
|
|
|||||||||
Service cost |
|
|
|
|||||||||
Interest cost |
|
|
|
|||||||||
Actuarial loss (gain) |
( |
) | |
|
||||||||
Benefits paid |
( |
) | ( |
) | ( |
) | ||||||
Disposal of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Projected benefit obligation at end of year |
|
|
|
|||||||||
Change in plan assets |
||||||||||||
Fair value of plan assets at beginning of year |
|
|
|
|||||||||
Actual return on plan assets |
|
|
|
|||||||||
Employer contributions |
|
|
|
|||||||||
Benefits paid |
( |
) | ( |
) | ( |
) | ||||||
Disposal of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Fair value of plan assets at end of year |
|
|
|
|||||||||
Funded status recognized as an other liabilities |
( |
) | ( |
) | ( |
) | ||||||
Year Ended December 31 |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Net loss |
|
|
|
|||||||||
Total recognized in accumulated other comprehensive income |
|
|
|
|||||||||
Year Ended December 31 |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Service cost |
|
|
|
|||||||||
Interest cost |
|
|
|
|||||||||
Projected return on plan assets |
( |
) | ( |
) | ( |
) | ||||||
Amortization of unrecognized net transition obligation and unrecognized net actuarial gain |
|
|
|
|||||||||
Net periodic benefit cost |
|
|
|
|||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Recognize the decrease in net gain (loss) |
( |
) | — |
|
||||||||
Amortization of net loss |
— |
|
|
|||||||||
Total recognized in other comprehensive loss (income) |
( |
) | — |
|
||||||||
US$ |
||||
2020 |
|
|||
2021 |
|
|||
2022 |
|
|||
2023 |
|
|||
2024 |
|
|||
2025 and thereafter |
|
2017 |
2018 |
2019 |
|||||||||||||||||||
Taiwan |
Korea |
Taiwan |
Korea |
Taiwan |
|||||||||||||||||
Weighted-average assumptions used to determine benefit obligations: |
|||||||||||||||||||||
Discount rate |
|
% | |
% | |
% | |
% | |
% | |||||||||||
Rate of compensation increase |
|
% | |
% | |
% | |
% | |
% | |||||||||||
Weighted-average assumptions used to determine net projected benefit cost: |
|||||||||||||||||||||
Discount rate |
|
% | |
% | |
% | |
% | |
% | |||||||||||
Expected long-term return on plan assets |
|
% | |
% | |
% | |
% | |
% | |||||||||||
Rate of compensation increase |
|
% | |
% | |
% | |
% | |
% |
December 31 |
||||
2018 |
||||
US$ |
||||
Guaranteed interest contract |
||||
Kyobo Life Insurance Co. Ltd. |
|
|||
Shinhan Investment Co. |
|
|||
Fixed deposit |
||||
Industrial Bank of Korea |
|
|||
|
||||
Year Ended December 31 |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Current |
|
|
|
|||||||||
Deferred |
|
( |
) | |
||||||||
Income tax expense |
|
|
|
|||||||||
Year Ended December 31 |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Domestic |
( |
) | ( |
) | ( |
) | ||||||
Foreign |
|
|
|
|||||||||
|
|
|
||||||||||
Year Ended December 31 |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Tax expense at statutory rate of Cayman |
|
|
|
|||||||||
Differences between Cayman and foreign statutory tax rates |
|
|
|
|||||||||
Permanent differences |
( |
) | ( |
) | |
|||||||
Temporary differences |
( |
) | ( |
) | |
|||||||
Alternative minimum tax |
|
|
|
|||||||||
Income tax on undistributed earnings |
|
|
|
|||||||||
Net changes in income tax credit |
|
|
|
|||||||||
Net changes in valuation allowance of deferred income tax assets |
( |
) | |
( |
) | |||||||
Net operating loss carryforwards |
|
( |
) | ( |
) | |||||||
Liabilities related to unrealized tax benefits |
|
( |
) | ( |
) | |||||||
Adjustment of prior years’ taxes and others |
|
|
( |
) | ||||||||
Income tax expense |
|
|
|
|||||||||
December 31 |
||||||||
2018 |
2019 |
|||||||
US$ |
US$ |
|||||||
Notes and accounts receivable |
|
|
||||||
Stock-based compensation |
|
|
||||||
Allowance for sales return |
|
|
||||||
Inventory reserve |
|
|
||||||
Foreign currency translation |
( |
) | ( |
) | ||||
Property and equipment |
( |
) | ( |
) | ||||
Investment tax credits |
|
|
||||||
Net operating loss carryforwards |
|
|
||||||
Others |
|
|
||||||
Valuation allowance |
( |
) | ( |
) | ||||
|
|
|||||||
Year Ended December 31 |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Balance, beginning of year |
|
|
|
|||||||||
Increases in tax positions taken in current year |
|
|
|
|||||||||
Decrease in tax position taken in prior year primarily related to the resolution of tax audit |
( |
) | ( |
) | ( |
) | ||||||
Balance, end of year |
|
|
|
|||||||||
Tax Jurisdiction |
Tax Years |
|||
China |
|
|||
Hong Kong |
|
|||
Taiwan |
|
|||
United States |
|
2017 |
2018 |
2019 |
||||||||||||||||||||||
Dividends Per Share (US$) |
Amount (in US$ thousand) |
Dividends Per Share (US$) |
Amount (in US$ thousand) |
Dividends Per Share (US$) |
Amount (in US$ thousand) |
|||||||||||||||||||
First quarter |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Second quarter |
$ | |
|
$ | |
|
$ | |
|
|||||||||||||||
Third quarter |
$ | |
|
$ | |
|
$ | |
|
|||||||||||||||
Fourth quarter |
$ | |
|
$ | |
|
$ | |
|
|||||||||||||||
$ | |
$ | |
$ | |
|||||||||||||||||||
Unit (in Thousands) |
||||
Available for grant at January 1, 2017 |
|
|||
Restricted stock units granted |
( |
) | ||
Restricted stock units forfeited |
|
|||
Available for grant at December 31, 2017 |
|
|||
Restricted stock units granted |
( |
) | ||
Restricted stock units forfeited |
|
|||
Available for grant at December 31, 2018 |
|
|||
Restricted stock units granted |
( |
) | ||
Restricted stock units forfeited |
|
|||
Available for grant at December 31, 2019 |
|
|||
Number of Options Shares (in Thousands) |
Weighted Average Exercise Price (US$) |
Weighted Average Remaining Contractual Life (Years) |
||||||||||
Outstanding at January 1, 201 7 |
|
|
|
|||||||||
Options exercised |
( |
) | |
|||||||||
Outstanding at December 31, 2017 |
|
|
— |
|||||||||
Number of Non-vested Stock Units (in Thousands) |
Weighted Average Grant Date Fair Value (US$) |
Weight Average Remaining Recognition Period (Years) |
||||||||||
Non-vested at January 1, 2017 |
|
|
|
|||||||||
Restricted stock units granted |
|
|
||||||||||
Restricted stock units vested |
( |
) | |
|||||||||
Restricted stock units forfeited |
( |
) | |
|||||||||
Non-vested at December 31, 2017 |
|
|
|
|||||||||
Restricted stock units granted |
|
|
||||||||||
Restricted stock units vested |
( |
) | |
|||||||||
Restricted stock units forfeited |
( |
) | |
|||||||||
Non-vested at December 31, 2018 |
|
|
|
|||||||||
Restricted stock units granted |
|
|
|
|||||||||
Restricted stock units vested |
( |
) | |
|||||||||
Restricted stock units forfeited |
( |
) | |
|||||||||
Non-vested at December 31, 2019 |
|
|
|
|||||||||
Year Ended December 31 |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Cost of sales |
|
|
|
|||||||||
Research and development |
|
|
|
|||||||||
Sales and marketing |
|
|
|
|||||||||
General and administrative |
|
|
|
|||||||||
|
|
|
||||||||||
Operating Lease Obligations |
||||
Fiscal Year: |
||||
2020 |
$ |
|
||
2021 |
|
|||
2022 |
|
|||
2023 |
|
|||
2024 |
|
|||
2025 and thereafter |
|
|||
Total |
|
|||
Less imputed interest |
|
|||
Present value of net future minimum lease payments |
|
|||
Less operating lease liabilities-current |
|
|||
Long-term operating lease liabilities |
$ |
|
||
Year Ended December 31 |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Mobile Storage |
|
|
|
|||||||||
Mobile Communications |
|
|
|
|||||||||
Others |
|
|
|
|||||||||
|
|
|
||||||||||
Year Ended December 31 |
||||||||||||
2017 (1) |
2018 (1) |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Taiwan |
|
|
|
|||||||||
United States |
|
|
|
|||||||||
Korea |
|
|
|
|||||||||
China |
|
|
|
|||||||||
Malaysia |
|
|
|
|||||||||
Singapore |
|
|
|
|||||||||
Others |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) |
The figure represents the revenue by geographic area based on the bill-to location. Commencing in 2019, revenue derived from Japan was reclassified to others. The above breakdown for 2017 and 2018 has been reclassified on the same basis. |
Year Ended December 31 |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
||||||||||||||||||||||
US$ |
% |
US$ |
% |
US$ |
% |
|||||||||||||||||||
Intel |
|
|
|
|
|
|
||||||||||||||||||
Micron |
* |
* |
* |
* |
|
|
||||||||||||||||||
SK Hynix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
|
|
* |
|
* | Less than 10% |
Year Ended December 31 |
||||||||||||
2017 |
2018 |
2019 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Taiwan |
|
|
|
|||||||||
United States |
|
|
|
|||||||||
Korea |
|
|
|
|||||||||
China |
|
|
|
|||||||||
Japan |
|
|
|
|||||||||
|
|
|
||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
US$ |
US$ |
US$ |
US$ |
|||||||||||||
Assets |
||||||||||||||||
Short-term investments — trading securities |
— |
— |
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
US$ |
US$ |
US$ |
US$ |
|||||||||||||
Assets |
||||||||||||||||
Short-term investments — trading securities |
— |
— |
Exhibit 8.1
Subsidiaries of Silicon Motion Technology Corporation
Name of Entity |
Jurisdiction of Incorporation | |
Bigtera (Beijing) |
China | |
Shannon Systems |
China | |
Silicon Motion, Inc. |
California | |
Silicon Motion, Inc. |
Taiwan | |
Silicon Motion, Inc. (Shanghai) |
China | |
Silicon Motion, Inc. (Shenzhen) |
China | |
Silicon Motion (MCO) Ltd. |
Macau | |
Silicon Motion Technology (HK) Ltd. |
Hong Kong | |
FCI Inc.* |
Korea |
* | We completed the sale of FCI Inc. in May 2019. |
Exhibit 12.1
Certification by the Chief Executive Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
I, Wallace C. Kou, certify that:
1. I have reviewed this annual report on Form 20-F of Silicon Motion Technology Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
4. The companys other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the companys disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the companys internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the companys internal control over financial reporting; and
5. The companys other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the companys auditors and the audit committee of companys board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the companys ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the companys internal control over financial reporting.
Date: June 12, 2020
/s/ Wallace C. Kou | ||
Name: |
Wallace C. Kou | |
Title: |
President and Chief Executive Officer |
Exhibit 12.2
Certification by the Chief Financial Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
I, Riyadh Lai, certify that:
1. I have reviewed this annual report on Form 20-F of Silicon Motion Technology Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
4. The companys other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the companys disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the companys internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the companys internal control over financial reporting; and
5. The companys other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the companys auditors and the audit committee of companys board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the companys ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the companys internal control over financial reporting.
Date: June 12, 2020
/s/ Riyadh Lai | ||
Name: |
Riyadh Lai | |
Title: |
Chief Financial Officer |
Exhibit 13.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned each hereby certifies that, to his knowledge, the annual report on Form 20-F of Silicon Motion Technology Corporation for the year ended December 31, 2019 fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and that the information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of Silicon Motion Technology Corporation.
The foregoing certification is being furnished pursuant to 18 U.S.C. Section 1350 solely for purposes of complying with the provisions of Section 906 of the Sarbanes-Oxley Act of 2002, is not intended to be used or relied upon for any other purpose and is not being filed as part of the periodic report or as a separate disclosure document.
Date: June 12, 2020
/s/ Wallace C. Kou | ||
Name: |
Wallace C. Kou | |
Title: |
President and Chief Executive Officer | |
/s/ Riyadh Lai | ||
Name: |
Riyadh Lai | |
Title: |
Chief Financial Officer |
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in Registration Statement No. 333-204876 on Form S-8 of our reports dated June 12, 2020, relating to the consolidated financial statements of Silicon Motion Technology Corporation and subsidiaries and the effectiveness of Silicon Motion Technology Corporation and subsidiaries internal control over financial reporting, appearing in the Annual Report on Form 20-F for the year ended December 31, 2019.
/s/ Deloitte & Touche
Taipei, Taiwan
The Republic of China
June 12, 2020
Noncurrent Assets Held for Sale |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent Assets Held for Sale | 8. NONCURRENT ASSETS HELD FOR SALE
The Company vacated from premises in an office building located in Shanghai, China and in 2018 took actions to sell this property. The sale plan met all of the held-for-sale criteria in accordance with ASC 360 — Property, Plant and Equipment and accordingly, in 2018, the property was reclassified to noncurrent assets held for sale. The Company has actively marketed the asset, but because of challenging market conditions, no reasonable offers to purchase have been received, and continues to actively seek the sale of this property. In 2017, the Company sold another property to a non-affiliated third party and recognized a gain from disposal of US$ thousand. |
Short-Term Investments |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments | 4. SHORT-TERM INVESTMENTS
The Company classified certain short-term investments as trading securities. Realized gains on sales of these trading securities were US$103 thousand, US$134 thousand and US$48 thousand for the years ended December 31, 2017, 2018 and 2019, respectively The amount of unrealized losses related to trading securities at year end was nil for the years ended December 31, 2017, 2018 and 2019, respectively. |
Summary of Significant Accounting Policies (Policies) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. GAAP. The consolidated financial statements include the accounts of SMTC and its wholly-owned subsidiaries. The Company owns 100% of the outstanding shares in all of its subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. The actual results could differ from those estimates. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of Subsidiary | Disposal of Subsidiary The Company accounts for the disposal of a subsidiary when it ceases to control the subsidiary’s assets and liabilities. A gain or loss is recognized and measured as the difference between the fair value of consideration received or to be received and the value of assets, liabilities and equity components de-recognized, related to that subsidiary when deconsolidated. On May 31, 2019, the Company completed the sale of FCI to Dialog Semiconductor for a total consideration of approximately US$ The Company derecognized the assets and liabilities and recorded a gain of US$12,409 thousand, net of transaction fees on the disposal, which is the difference between the consideration of US$54 million and the US$39,367 thousand carrying value of the subsidiary. US$5,400 thousand of the consideration was withheld and deposited into an escrow account and, as the escrowed amount is expected to be released within 12 months, it was classified as restricted assets-current on the consolidated balance sheet as of December 31, 2019. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to a significant concentration of credit risk consist principally of cash equivalents, short term investments and accounts receivable. Cash, cash equivalents and short-term investments balances are maintained with high quality financial institutions, the composition and maturities of which are regularly monitored by management. The Company believes that the concentration of credit risk in its trade receivables, is substantially mitigated by the Company’s credit evaluation process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers’ financial conditions and limits the amount of credit extended based upon payment history and the customer’s current credit worthiness. The Company regularly reviews the allowance for bad debt and doubtful accounts by considering factors such as historical experience, credit quality, age of the accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. Historically, a relatively small number of customers have accounted for a significant portion of our net revenue. Sales to two customers in 2017
, 2018 and 2019, accounted for 10% or more of our net r 39%evenue , representing , 34% and 31% of our net revenue in 2017, 2018 and 2019 , respectively. In 2019, the significant customers were Intel and Micron and in 2017 and 2018,were SK and Intel. The Company’s top ten customers in 2017 72, 2018 and 2019 accounted for approximately % 69, % and 74% of net sales, respectively. |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amount of the Company’s financial instruments, including cash and cash equivalents, notes and accounts receivable and notes and accounts payables approximates fair value due to the short-term maturity of the instruments. Fair values of short-term investments represent quoted market prices, if available. If no quoted market prices are available, fair values are estimated based on discounted cash flow, or other valuation techniques. Long-term investments in privately-held companies with no readily determinable market value are recorded using the cost method, since the cost of obtaining verifiable fair value is unreasonably high. Upon adoption of Accounting Standard Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) starting January 1, 2018, these investments are measured at cost less impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Any resulting change in carrying amount would be reflected in net income. The Company’s long-term liabilities approximate their fair values as they contain interest rates that vary according to market interest rates. Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that assets or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the Company. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1 — Use unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Use observable inputs other than Level 1 prices such as quoted prices for identical or similar instruments in markets that are not active, quoted prices for similar instruments in active markets, and model-based valuation in which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Use inputs that are generally unobservable and reflect the use of significant management judgments and estimates. See Note 21, “Fair Value Measurement”, for the related disclosure. |
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Cash Equivalents | Cash Equivalents The Company considers all highly liquid instruments acquired with a remaining maturity of three months or less when purchased to be cash equivalents. In addition, time deposits with maturities ranging from more than three months to one year are considered qualified as cash equivalents as the nature of the time deposits are similar to cash such that without advance notice to the bank, they can be readily converted into known amounts of cash with the principal of the time deposits protected and not subject to penalty in the event of an early withdrawal. Also, the risk of changes in value because of changes in interest rates is insignificant due to the fact that the Company can still earn interest based on a rate close to the
on-going published interest rate applicable for the actual period of the time deposits in the event of an early withdrawal. Cash and cash equivalents are stated at cost, which approximates their fair value. |
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Short-term Investments | Short-term Investments The Company’s short-term investments primarily includes short-term income yielding investments with original maturities greater than three months from the purchase date and remaining maturities less than one year. These short-term investments consist mostly of bond funds and principal protected notes that are bought and held principally for the purpose of selling them in the near term and are classified as trading securities as well as senior notes classified as held-to-maturity investments with maturities less than one year. Trading securities are reported at fair value with the subsequent changes in fair value recorded in earnings as unrealized gains and losses. Senior notes are measured at amortized cost using the effective interest method less any impairment. |
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Allowance for Doubtful Receivables | Allowance for Doubtful Receivables An allowance for doubtful receivables is provided based on a review of the collectability of accounts receivables. The Company determines the amount of allowance for doubtful receivables by examining the historical collection experience and current trends in the credit quality of its customers as well as its internal credit policies. |
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Inventories | Inventories Inventories are stated at the lower of cost or net realizable value for raw materials, work in process and finished goods . Inventories are recorded at standard cost and adjusted to the approximate weighted-average cost at the balance sheet date. The Company assesses its net realizable value of the inventory for estimated obsolescence or unmarketable inventory based upon management’s assumptions about future demand and market conditions. In estimating reserves for obsolescence, the Company primarily evaluates estimates based on the timing of the introduction of new products and the quantities remaining of old products and provides reserves for inventory on hand in excess of the estimated demand. Estimated losses on slow-moving items are recognized and included in the allowance for losses. |
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Long-term Investments | Long-term Investments Investee companies over which the Company had the ability to exercise significant influence but did not have a controlling interest and was the primary beneficiary were accounted for using the equity method. Significant influence was generally considered to exist when the Company had an ownership interest in the voting shares of the investee between 20% and 50%, and other factors, such as representation in the investee’s board of directors, voting rights and the impact of commercial arrangements, were considered in determining whether the equity method of accounting was appropriate. Under this method of accounting, the Company recorded its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. The Company evaluated its equity method investments for impairment whenever events or changes in circumstances indicated that the carrying amounts of such investments might not be recoverable. Prior to adopting ASU 2016-01 on January 1, 2018, the Company had long-term investments in companies that it does not exercise significant influence and accounted for these investments under the cost method. Management regularly evaluates financial information related to these investments to determine whether an other than temporary decline in their value exists. Factors indicative of an other than temporary decline include recurring operating losses, credit defaults and subsequent rounds of financings at an amount below the cost basis of the investment. Management periodically weighs all quantitative and qualitative factors in determining if any impairment loss exists. When a decline in value is deemed to be other-than-temporary, the Company recognizes an impairment loss in other income and expense. After adopting ASU 2016-01 on January 1, 2018, the Company elected to record equity investments without readily determinable fair values and not accounted for by the equity method at cost less impairment, adjusted for subsequent observable price changes whether there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. |
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Noncurrent Assets Held for Sale | Noncurrent Assets Held for Sale Noncurrent assets are presented separately as held for sale when the Company is committed to selling the asset, an active plan of sale has commenced, and the sale is expected to be completed within 12 months or under a specified market condition that meets an exception to one-year requirement. Assets held for sale are measured at the lower of their carrying amount and fair value less cost to sell. Assets held for sale are no longer amortized or depreciated. |
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Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Significant additions, renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred. Depreciation is computed using the straight-line method over estimated useful lives that range as follows: buildings — 25 to 50 years; machinery and equipment — 3 to 6 years; furniture and fixtures — 3 to 8 years; software — 1 to 5 years; leasehold and buildings improvement — the shorter of the estimated useful life or lease term, which is generally 2 to 6 years. Land is not depreciated. Depreciation expense on property equipment were approximately US$10,599 thousand, US$11,832 thousand and US$12,447 thousand for the years ended December 31, 2017, 2018 and 2019 , respectively. Upon the sale or other disposal of property and equipment, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss is credited or charged to operating income. |
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Lease | Lease On January 1, 2019, the Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02) using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows the Company to carry forward the historical lease classification. The Company elected to apply the short-term lease measurement and recognition exemption in which right-of-use assets and lease liabilities are not recognized for short-term leases. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting under Topic 840. Upon adoption, the Company recognized leased assets and corresponding liabilities in operating lease assets of US$7,202 thousand, which includes US$238 thousand of previously recognized prepaid use rights, as well as corresponding accrued expenses and other current liabilities of US$1,428 thousand and other long-term liabilities of US$5,536 thousand. The lease assets include adjustments for prepayments and accrued lease payments. The adoption did not impact the beginning retained earnings, or the prior year consolidated statements of income and statements of cash flows. Under Topic 842, the Company determines if an arrangement is a lease at inception. The lease assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of the leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments. The operating lease asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. When determining the probability of exercising such options, the Company considers contract-based, asset-based, entity-based, and market-based factors. The lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. Variable lease costs are expensed as incurred on the consolidated statements of income. The lease agreements generally do not contain any residual value guarantees or restrictive covenants. The Company recognized leased assets in operating lease assets of US$8,603 thousand and corresponding accrued expenses and other current liabilities of US$3,046 thousand, and other long-term liabilities of US$5,621 thousand. The weight average remaining lease term was 3.5 years, and the weight average discount rate was 3.78% as of December 31, 2019. |
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Government Grants | Government Grants Grants received by the Company from the Korean government to assist with specific research and development activities were deducted from those research and development costs incurred, in the period in which the related expenses are incurred, to the extent that they are non-refundable. Government grants that were used for the acquisition of fixed assets were deducted from the acquisition costs of the acquired assets and amortized over the useful lives of the related assets. The Company recognized refundable government grants as long-term payable and current portion of long-term payable on its consolidated balance sheet. |
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Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is the excess of the purchase price paid over the fair value of the net tangible and intangible assets acquired in a business combination. Intangible assets, which consist primarily of development technology, are amortized over their estimated useful lives, of 3.5 to 5.5 years. |
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Impairment of Goodwill and Long-Lived Assets | Impairment of Goodwill and Long-Lived Assets The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate the carrying value may not be recoverable. The determination of recoverability is based on an estimate of undiscounted cash flows expected to result from the use of an asset and its eventual disposition. The estimate of cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. Estimates of undiscounted cash flows may differ from actual cash flows due to, among other things, technological changes, economic conditions, changes to the business model or changes in operating performance. If the sum of the undiscounted cash flows is less than the carrying value, an impairment loss is recognized, measured as the amount by which the carrying value exceeds the fair value of the asset. Fair value is determined by reference to quoted market prices, if available, or discounted cash flows, as appropriate. See Note 10, “Goodwill and Acquired Intangible Assets,” regarding impairment testing in fiscal year 2017, 2018 and 2019. The Company monitors the recoverability of goodwill recorded in connection with acquisitions, by reporting unit, annually, or sooner if events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company conducts its annual impairment test of goodwill on November 30. Reporting units may be operating segments as a whole or an operation one level below an operating segment, referred to as a component. Prior to fiscal 2017, goodwill impairment is tested using a two-step approach. The first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired and the second step is not required. If the fair value of the reporting unit is less than its carrying amount, the second step of the impairment test measures the amount of the impairment loss, if any, by comparing the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The implied fair value of goodwill is calculated in the same manner that goodwill is calculated in a business combination, whereby the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit, with the excess purchases price over the amounts assigned to assets and liabilities. In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2017-04, which removes step two from the goodwill impairment test. The Company elected to early adopt this ASU in the fourth quarter of 2017, in conjunction with the Company’s annual review for impairment.Estimating fair value is performed by utilizing various valuation approaches, such as income approach or market approach. The total of all reporting unit fair values is also compared to the Company’s market capitalization plus control premium for reasonableness. See Note 10, “Goodwill and Acquired Intangible Assets,” regarding impairment testing. |
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Other Assets | Other Assets Other assets primarily consist of industrial property right and deposit for office leases. |
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Restricted Assets | Restricted Assets Restricted assets consist of restricted cash. Restricted cash represents cash set aside as collateral for obtaining capacity, escrow relating to the sale of a subsidiary and borrowings as well as cash received from government grants with restriction on its usage. |
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Bank loans | Bank loans Revolver credit from financial institutions are stated at the amount of unpaid principal. |
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Other long-term liabilities | Other long-term liabilities Other long-term liabilities primarily consist of noncurrent lease liabilities and unrecognized tax benefit. |
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Pension Costs | Pension Costs For employees under defined contribution pension plans, pension costs are recorded based on the actual contributions made to employees’ individual pension accounts. For employees under defined benefit pension plans, pension costs are recorded based on actuarial calculations. |
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Revenue Recognition | Revenue Recognition Through the fiscal year ended December 31, 2017, revenue from product sales was generally recognized upon shipment to the customer provided that the Company had received a signed purchase order, the price was fixed or determinable, transfer of title had occurred in accordance with the shipping terms specified in the arrangement with the customer, collectability from the customer was considered reasonably assured, product returns were reasonably estimable and there were no remaining significant obligations or customer acceptance requirements. Revenue on development service orders was generally recognized upon completion and customer acceptance of contractually agreed milestones. As a result of the adoption of the new revenue standard (ASC 606) on January 1, 2018, using the modified retrospective method with the cumulative effect of initially applying it recognized at the date of initial application, the Company revised its revenue recognition policy. The Company now recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Under the new revenue recognition standard, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company enters into contracts that may include products that are capable of being distinct and accounted for as separate performance obligations. To date, the majority of the revenue has been generated by sales associated with products of storage and mobile communication, where a single performance obligation is identified in general. Revenue from services has been insignificant. Performance obligations associated with product sales transactions are generally satisfied when control passes to customers upon shipment or the written acceptance of the customers. Accordingly, product revenue is recognized at a point in time when control of the asset is transferred to the customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a product to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods. Some of the Company’s sales are made to distributors. Control passes to the distributor upon shipment, and terms and payment by the Company’s distributors is not contingent on resale of the product. The Company grants certain distributors limited rights of return and price protection rights on unsold products. The return rights are generally limited to five percent of the monetary value of products purchased within the preceding six months, provided that the distributor places a corresponding restocking order of equal or greater value. An allowance for sales returns for distributors and all customers is recorded at the time of sale based on historical returns information available, management’s judgment and any known factors at the time the financial statements are prepared that would significantly affect the allowance. Price protection rights are based on the inventory products the distributors have on hand at the date the price protection is offered. The actual price adjustments to distributors incurred by the Company are minimal. The Company provides the warranty for manufacturing defects of its products. Warranty returns have been infrequent and relate to defective or off-specification parts. The Company estimates a reserve for warranty based on historical experience and records this amount to cost of sales. For the years ended December 31, 2017, 2018 and 2019, the Company did not experience significant costs associated with warranty returns. |
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Research and Development | Research and Development Research and development costs consist of expenditures incurred during the course of planned research and investigation aimed at the discovery of new knowledge that will be useful in developing new products or at significantly enhancing existing products as well as expenditures incurred for the design and testing of product alternatives. All expenditures related to research and development activities of the Company are charged to operating expenses when incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. |
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Income Taxes | Income Taxes The provision for income tax represents income tax paid and payable for the current year plus changes in the deferred income tax assets and liabilities during the years. Deferred income tax assets are recognized for net operating loss carryforwards, research and development credits, and temporary differences. The Company believes that uncertainty exists regarding the realizability of certain deferred income tax assets and, accordingly, has established a valuation allowance for those deferred income tax assets to the extent the realizability is not deemed to be more likely than not. Deferred income tax assets and liabilities are measured using enacted tax rates. The Company utilizes a two step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained in a dispute with taxing authorities, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. |
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Foreign Currency Transactions | Foreign Currency Transactions Foreign currency transactions are recorded at the rates of exchange in effect when the transaction occurs. Gains or losses, resulting from the application of different foreign exchange rates when cash in foreign currency is converted into the entities’ functional currency, or when foreign currency receivables and payables are settled, are credited or charged to income in the period of conversion or settlement. At the balance sheet date, assets and liabilities denominated in foreign currencies are remeasured based on prevailing exchange rates and any resulting gains or losses are credited or charged to income. |
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Translation of Foreign Currency Financial Statements | Translation of Foreign Currency Financial Statements The reporting currency of the Company is the U.S. dollars. The functional currency of some of the Company’s subsidiaries is the local currency of the respective entity. Accordingly, the financial statements of the foreign subsidiaries were translated into U.S. dollars at the following exchange rates: assets and liabilities — current rate on the balance sheet date; shareholders’ equity — historical rates; income and expenses — average rate during the period. The resulting translation adjustment is recorded as a separate component of comprehensive income. |
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Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income and loss represents net income (loss) plus the results of certain changes in shareholders’ equity during a period from
non-owner sources. The following table presents the components of accumulated other comprehensive income (loss) as of December 31, 2017, 2018 and 2019 :
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Legal Contingencies | Legal Contingencies The Company is regularly involved in various claims and legal proceedings. Periodically, the Company reviews the status of each significant matter and assesses the potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. Because of uncertainties related to these matters, accruals are based only on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to the pending claims and litigation and revises these estimates as appropriate. Such revisions in the estimates of the potential liabilities could have a material impact on the results of operations and financial position. |
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Earnings Per Share | Earnings Per Share Basic earnings per share are computed by dividing net earnings attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share are computed by dividing net income attributable to ordinary shareholders by the weighted-average number of ordinary shares and potentially dilutive shares of ordinary shares outstanding during the period. Dilutive shares outstanding include unvested RSUs. Dilutive securities are excluded from the computation of the diluted income per share in periods when their effect is anti-dilutive. The effect of dilutive securities were 868 thousand shares (218 thousand ADSs ), 389 thousand shares (97 thousand ADSs) and 475 thousand shares (119 thousand ADSs) for the years ended December 31, 2017 , 2018 and 2019 , respectively. |
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Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718 Compensation — Stock Compensation. The value of our restricted stock units is based on the fair value of our shares on the date of grant and expensed over the vesting period. Prior to the initial declaration of a quarterly cash dividend on January 22, 2013, the fair value of restricted stock units (“RSUs”) was measured based on the grant date share price, as the Company did not historically pay cash dividends on our common stock. For awards granted on or subsequent to January 22, 2013, the fair value of RSUs was measured based on the grant date share price, less the present value of expected dividends during the vesting period, discounted at a risk-free interest rate. |
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Treasury Stock | Treasury Stock Treasury stock is stated at cost and shown as a reduction to shareholders’ equity. The Company retires ordinary shares repurchased under a share repurchase plan. Accordingly, upon retirement the excess of the purchase price over par value is allocated between additional paid-in capital and retained earnings based on the average issuance price of the shares repurchased. A repurchase of ADSs is recorded as treasury stock until the Company completes the withdrawal of the underlying ordinary shares from the ADS program. |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued an accounting update to amend the guidance on the impairment of financial instruments that are not measured at fair value through profit and loss. The amendment introduces a current expected credit loss (CECL) model based on expected losses rather than incurred losses to estimate credit losses on financial instruments measured at amortized cost and requires a broader range of reasonable and supportable information to estimate expected credit loss. In addition, under the amendment, an entity recognizes an allowance for expected credit losses on financial instruments measured at amortized cost and available-for-sale debt securities rather than the current methodology of delaying recognition of credit losses until it is probable a loss has been incurred. In November 2018, the FASB issued an accounting update to clarify that receivables arising from operating leases are not within the scope of new credit losses guidance. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The amendment is effective for fiscal years beginning after December 15, 2019, and earlier adoption is permitted as of the fiscal years beginning after December 15, 2018. The adoption of the amendments did not have a material impact on the Company’s financial position, results of operations, cash flow and financial statement disclosures. In August 2018, the FASB issued an accounting update to amend fair value measurement disclosure requirements to eliminate, add and modify certain disclosures to improve the effectiveness of such disclosure. The amendments removed (1) the disclosure requirements for transfers between Levels 1 and 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels of the fair value hierarchy; and (3) the valuation processes for Level 3 fair value measurements. Additionally, the amendments modified the disclosure requirements for investments in certain entities that calculate net asset value and measurement uncertainty. Finally, the amendments added disclosure requirements for the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. This amendment is effective for annual periods beginning after December 15, 2019. Early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s financial position, results of operations, cash flow and financial statement disclosures. In August 2018, the FASB issued an accounting update to modify the disclosure requirements by removing, modifying and clarifying disclosures related to defined benefit plans. This amendment modified the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Certain disclosure requirements have been removed while the disclosure requirements of (1) the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates; (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period, have been added. The amendment also clarified the disclosure requirements with respect to the projected benefit obligation and the accumulated benefit obligation. The amendment is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The amendments should be applied on a retrospective basis to all periods presented. The adoption of this amendment is not expected to have a material impact on the Company’s financial position, results of operations, cash flow and financial statement disclosures. In December 2019, the FASB issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for the C ompany in the first quarter of 2021 on a prospective basis, and early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s financial position, results of operations, cash flow and financial statement disclosures. |
Long-lived Assets (Property And Equipment, net) by Geographic Area (Detail) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 98,488 | $ 101,410 | $ 51,370 |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 94,996 | 96,920 | 36,369 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 315 | 348 | 242 |
Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 23 | 1,645 | 1,936 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 3,117 | 2,447 | 12,798 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 37 | $ 50 | $ 25 |
Notes and Accounts Receivable (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Notes and Accounts Receivable |
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Changes in Allowances | The changes in the allowances are summarized as follows:
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Property and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment |
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Components of Inventories (Detail) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 26,305 | $ 26,059 |
Work in process | 37,342 | 30,830 |
Raw materials | 24,792 | 24,629 |
Inventory, Net | $ 88,439 | $ 81,518 |
Short Term Investments (Detail) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
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Investments, Debt and Equity Securities [Abstract] | ||
Trading securities | $ 2,010 | $ 3,609 |
Organization and Operations - Additional Information (Detail) |
12 Months Ended |
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Dec. 31, 2019
Product
| |
Minimum | |
Organization and Operations [Line Items] | |
Number of product shipped in last ten years | 6,000,000,000 |
Pension Plan - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligation | $ 939 | $ 3,864 | $ 3,210 |
Estimated amortization of net gain from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | 35 | ||
SMI Taiwan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions and Recognized Pension Costs under Labor Pension Act | $ 1,783 | $ 1,682 | $ 1,579 |
Contributions Based on Percentage Employee Salaries under Labor Standards Law | 2.00% | ||
The contribution under defined benefit plans | $ 62 | ||
SMI Taiwan | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of Contribution by an Employer to Employees Pension | 6.00% |
Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Loss (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income (Loss): | |||
Recognize the decrease in net gain (loss) | $ 15 | $ (285) | |
Amortization of net loss | |||
Total recognized in other comprehensive loss (income) | $ 15 | $ (285) |
Summary of Major Jurisdictions and Tax Year Subject to Examination Tax Authorities (Detail) |
12 Months Ended |
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Dec. 31, 2019 | |
China | |
Income Tax Examination [Line Items] | |
Years Subject to Income Tax Examination | 2016 and onward |
HONG KONG | |
Income Tax Examination [Line Items] | |
Years Subject to Income Tax Examination | 2016 and onward |
Taiwan | |
Income Tax Examination [Line Items] | |
Years Subject to Income Tax Examination | 2014 and onward |
United States | |
Income Tax Examination [Line Items] | |
Years Subject to Income Tax Examination | 2014 onward |
Refund Liabilities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Change in Refund Liabilities |
Estimated sales returns and other allowances are made and adjusted based on historical experience and the consideration of varying contractual terms. The changes in the refund liabilities are summarized as follows:
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Shareholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Federal Home Loan Banks [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Dividends Declared Per Ordinary Share | The Company declared cash dividends per ordinary share during the periods presented as follows:
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Fair Value Measurement (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured at Fair Value on Recurring Basis | For the years ended December 31, 2018 and 2019, none of the Company’s assets measured on a recurring basis was determined by using significant unobservable inputs. The following table presents our assets measured at fair value on a recurring basis as of December 31, 2018 and 2019: December 31, 2018
December 31, 2019
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Lease - Schedule Of Future Minimum Rental Payments For Operating Leases (Detail) $ in Thousands |
Dec. 31, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
2020 | $ 3,321 |
2021 | 2,652 |
2022 | 1,458 |
2023 | 1,087 |
2024 | 732 |
2025 and Thereafter | 51 |
Total | 9,301 |
Less imputed interest | 634 |
Present value of net future minimum lease payments | 8,667 |
Less operating lease liabilities-current | 3,046 |
Long-term operating lease liabilities | $ 5,621 |
Cumulative Value of Intangible Assets Related to Acquisition (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
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Finite-Lived Intangible Liabilities [Line Items] | ||
Accumulated Impairment | $ (255) | $ (3,444) |
FCI, Centronix, BTL, Shannon and Bigtera | ||
Finite-Lived Intangible Liabilities [Line Items] | ||
Cost | 13,117 | 13,117 |
Accumulated Impairment | (3,699) | (3,444) |
Accumulated Amortization | $ (9,418) | (8,652) |
Net Carrying Amount | $ 1,021 |
Summary of Noncurrent Assets Held for Sale (Detail) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 10,405 | $ 10,576 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 10,405 | $ 10,576 |
Summary of Stock Option Activity and Related Information (Detail) shares in Thousands |
12 Months Ended |
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Dec. 31, 2017
$ / shares
shares
| |
Number of Options Shares | |
Outstanding at beginning period | shares | 258 |
Options exercised | shares | (258) |
Outstanding at ending period | shares | |
Weighted Average Exercise Price | |
Outstanding at beginning period | $ / shares | $ 1.47 |
Options exercised | $ / shares | 1.47 |
Outstanding at ending period | $ / shares | |
Outstanding at ending period | 3 months |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Ordinary Shares, par value | $ 0.01 | $ 0.01 |
Ordinary Shares, Authorized | 500,000,000 | 500,000,000 |
Ordinary Shares, Issued | 139,110,000 | 144,679,000 |
Ordinary Shares, outstanding | 139,110,000 | 144,679,000 |
Segment Information |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | 20. SEGMENT INFORMATION The Company is the global leader and pioneer in developing NAND flash controllers for solid storage devices. The Company currently operates as one reportable segment. The chief operating decision maker (“CODM”) is the Chief Executive Officer. The fact that the Company operates in only one reportable segment is because the decisions on allocation of resources and other operational decisions are made by the CODM based on his direct involvement with the Company’s operations and product development. The Company groups its products into three categories, based on the markets in which they may be used. The following summarizes the Company’s revenue by product category:
Revenue is attributed to a geographic area based on the
bill-to location. The following summarizes the Company’s revenue by geographic area:
Major customers representing at least 10% of net sales
Long-lived assets (property and equipment, net) by geographic area were as follows:
|
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Statement of Stockholders' Equity [Abstract] | |||||||||||||||
Dividends declared, per share | $ 0.0875 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.050 | $ 0.050 | $ 0.050 | $ 0.35 | $ 0.30 | $ 0.30 |
Shareholders' Equity |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Banks [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | 16. SHAREHOLDERS’ EQUITY Dividends The Company declared cash dividends per ordinary share during the periods presented as follows:
Beginning on November 2, 2015, the board of directors, instead of declaring a quarterly dividend, declared an annual dividend of US $ 0.60 , equivalent to US $per ordinary shares, payable in four quarterly installments. The board of directors declared annual dividends of US $, US $1.20 and US $1.40, equivalent to US $, 0.30US $ and 0.35US $per common share, payable in four quarterly installments on October 24, 2017, October 29, 2018 and October 25, 2019, respectively. Future dividends, if any, will be declared by and subject to the discretion of the Company’s board of directors. If the Company’s board of directors decides to distribute dividends, the form, frequency and amount of such dividends will depend upon the Company’s future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors the board of directors may deem relevant . Any future dividend the Company declares will be paid to the holders of ADSs, subject to the terms of the deposit agreement, to the same extent as holders of the Company’s ordinary shares, to the extent permitted by applicable laws and regulations, less the fees and expenses payable under the deposit agreement. Any dividend the Company declares will be distributed by the depositary bank to the holders of our ADSs. Cash dividends on our ordinary shares, if any, will be paid in U.S. dollars. For non-cash financing activities, net increase in dividends payable arising from the declared dividend was US$11,069 thousand, US$420 thousand and US$4,048 thousand for the year ended December 31, 2017, 2018 and 2019, respectively. Treasury Stock On November 21, 2018, the board of directors of the Company approved share buyback plans to repurchase up to US$200 million of the Company’s ADSs over a 24 month period. The program did not obligate the Company to acquire any particular amount of ADS and the program may be modified or suspended at any time at the Company’s discretion. All the treasury stock under this share repurchase program was retired in September 2019. For the years ended December 31, 2018 and 2019, the Company repurchased 1,006 thousand and 762 thousand ADSs for a total cost of US$34,755 thousand and US$25,103 thousand, respectively. The weighted average purchase price per ADS repurchased was US$34.54 and US$32.82 in 2018 and 2019, respectively. |
Refund Liabilities |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Refund Liabilities | 12. REFUND LIABILITIES
Estimated sales returns and other allowances are made and adjusted based on historical experience and the consideration of varying contractual terms. The changes in the refund liabilities are summarized as follows:
|
Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue by Product Category | The Company groups its products into three categories, based on the markets in which they may be used. The following summarizes the Company’s revenue by product category:
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Revenue by Geographic Area | Revenue is attributed to a geographic area based on the
bill-to location. The following summarizes the Company’s revenue by geographic area:
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Major customers representing at least 10% of net sales | Major customers representing at least 10% of net sales
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Long-Lived Assets (Property and Equipment, Net) by Geographic Area | Long-lived assets (property and equipment, net) by geographic area were as follows:
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Goodwill and Acquired Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Value of Intangible Assets Related to Acquisition |
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Schedule of Goodwill |
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Income Tax Expense | The components of income tax expense are as follows:
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Income (Loss) Before Income Taxes for Domestic and Foreign Entities | The income (loss) before income taxes for domestic and foreign entities is as follows:
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Reconciliation of Income Tax Expense on Pretax Income at Statutory Rate and Income Tax Expense | The Company and its subsidiaries file separate income tax returns. A reconciliation of income tax expense on pretax income at statutory rate and income tax expense is shown below:
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Deferred Income Tax Assets (Liabilities) | Deferred income tax assets (liabilities) are as follows:
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Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows:
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Summary of Major Jurisdictions and Tax Year Subject to Examination by Tax Authorities | The following table summarizes the Company’s major jurisdictions and tax year that remain subject to examination by tax authorities as of December 31, 2019:
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Commitments And Contingencies - Additional Information (Detail) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Apr. 17, 2009 |
Mar. 31, 2010 |
Dec. 31, 2017 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Apr. 25, 2007 |
|
Commitments and Contingencies Disclosure [Line Items] | ||||||
Restricted cash deposited | $ 25,087 | $ 22,138 | ||||
Unpaid accounts receivable from distributor, filed for Chapter 11 bankruptcy protection | $ 110,351 | 92,408 | ||||
Adversary proceeding pending on litigation filled by AASI creditor liquidating trust | $ 854 | |||||
Litigation settlement expenses | $ 220 | |||||
FCI | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Restricted cash deposited | $ 448 | |||||
All American | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Unpaid accounts receivable from distributor, filed for Chapter 11 bankruptcy protection | $ 256 | |||||
Distribution claim received as beneficiary | $ 265 |
Goodwill And Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | 60 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2011 |
Jul. 03, 2017 |
Jul. 01, 2015 |
|
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Accumulated Impairment | $ 255 | $ 3,444 | ||||
Amortization of intangible assets | 766 | 2,964 | $ 2,534 | |||
Goodwill | 17,489 | 58,331 | ||||
Goodwill impairment | $ 15,715 | $ 625 | ||||
FCI, Centronix and BTL | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Goodwill acquired during period | $ 66,300 | |||||
Shannon Systems | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Goodwill | $ 33,204 | |||||
Bigtera | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Goodwill | $ 625 |
Noncurrent Assets Held For Sale - Additional Information (Detail) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Restructuring and Related Activities [Abstract] | |
Gain from disposal of noncurrent assets held for sale | $ 1,880 |
Summary of Status of Restricted Stock Units and Changes (Detail) - Restricted Stock Units - $ / shares shares in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Number of Nonvested Stock Units | ||||
Nonvested at beginning period | 1,621 | 1,538 | 1,767 | |
Restricted stock units granted | 1,584 | 1,622 | 1,391 | |
Restricted stock units vested | (1,505) | (1,517) | (1,593) | |
Restricted stock units forfeited | (57) | (22) | (27) | |
Nonvested at ending period | 1,643 | 1,621 | 1,538 | 1,767 |
Weighted Average Grant Date Fair Value | ||||
Nonvested at beginning period | $ 13.85 | $ 10.36 | $ 11.65 | |
Restricted stock units granted | 8.01 | 13.86 | 10.75 | |
Restricted stock units vested | 14.12 | 9.79 | 12.08 | |
Restricted stock units forfeited | 9.59 | 11.75 | 10.69 | |
Nonvested at ending period | $ 8.08 | $ 13.85 | $ 10.36 | $ 11.65 |
Weighted Average Remaining Recognition Period (Years) | ||||
Nonvested at ending period | 3 months 14 days | 4 months 17 days | 3 months 29 days | 5 months 19 days |
Equity Incentive Plan |
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Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Incentive Plan | 17. EQUITY INCENTIVE PLAN 2005 Equity Incentive Plan and 2015 Equity Incentive Plan On April 22, 2005, the Company adopted its 2005 Equity Incentive Plan (“the 2005 Plan”). The 2005 Plan provides for the grant of stock options, stock bonuses, restricted stock awards, restricted stock units and stock appreciation rights, which may be granted to employees (including officers), directors and consultants. The 2005 Plan reserved 10,000 thousand shares of ordinary shares, inclusive of the number of assumed share options under the 2004 Plan, for issuance upon the exercise of stock options. In 2006, the Company amended the 2005 Plan to reserve an additional 15,000 thousand ordinary shares for issuance upon exercise of stock options and restricted stock units. In 2009, the Company amended the Plan to reserve an additional 15,000 thousand ordinary shares for issuance upon exercise of stock options and restricted stock units. Restricted stock units are converted into shares of the Company’s ordinary shares upon vesting on one-for-one basis. The vesting of restricted stock unit is subject to the employee’s continuing service to the Company. The cost of these awards is determined using the fair value of the Company’s ordinary share on the date of the grant, and compensation is recognized on a straight-line basis over the requisite service period. The Company’s restricted stock units are considered non-vested share awards as defined under ASC 718. In April 2010, the Company’s Board of Directors and Compensation Committee approved an employee stock option exchange program that required certain employees to exchange eligible stock options for a lesser number of new stock options that have approximately the same fair values as the options surrendered. Eligible options included stock options granted between August 17, 2005 and July 31, 2008 that had an exercised price above US$1.85. In 2010, 4,369 thousand eligible stock options were exchanged for 3,785 thousand new stock options granted. The new stock options have an exercise price of US$1.47, which was equal to the market price of the Company’s ordinary share on April 26, 2010, the date eligible stock options were surrendered and new stock options granted. The new stock options were issued under the 2005 Plan and are subject to its terms and conditions. The new stock options will continue to vest according to the original vesting schedule. Using the Black-Scholes option pricing model, the Company determined that the fair value of the surrendered stock options on a grant-by-grant basis was approximately equal, as of the date of the exchange, to the fair value of the new stock options granted, resulting in insignificant incremental share-based compensation.On June 3, 2015, the Company adopted its 2015 Equity Incentive Plan (“the 2015 Plan”). The 2015 Plan provides for the grant of stock options, stock bonuses, restricted stock awards, restricted stock units and stock appreciation rights, which may be granted to employees (including officers), directors and consultants. The 2015 Plan reserved 20,000 thousand shares of ordinary shares for issuance upon exercise of stock options and restricted stock units. Stock Option and Restricted Stock Units Activity The following is a summary of, the 2005 Plan and the 2015 Plan, which includes stock options and restricted stock units:
Stock Options A summary of the stock option activity and related information is as follows:
No stock options were granted in 2017, 2018 and 2019. The intrinsic value of options exercised, determined as of the date of option exercise, was US$3,040 thousand, nil and nil , 2017, 2018 and 2019, respectively. As of December 31, 2019, total unrecognized compensation cost related to non-vested share-based compensation awards granted under the Company’s stock option plans, net of estimated forfeitures, was nil.The total cash received from employees as a result of employee stock option exercises were US$380 thousand, nil and nil for the years ended December 31, 2017, 2018 and 2019, respectively. The related tax effect for stock-based compensation benefit (expense) were US$ thousand, US$ 177thousand and (US$49) thousand for 2017, 2018 and 2019, respectively. The related tax effect for stock-based compensation expense for option and restricted stock units exercised during 2017, 2018 and 2019 was US$ thousand, US$ 2,211 thousand and US$ 3,446thousand, respectively. The related tax effect was determined using the applicable tax rates in jurisdictions to which this expense relates. Restricted Stock Units A summary of the status of restricted stock units and changes is as follows:
As of December 31, 2019, there was US$3,665 thousand of total unrecognized compensation cost related to restricted stock units granted under the 2015 Plan. Stock-based Compensation Expense The following table shows total stock-based compensation expense included in the Consolidated Statements of Income for the years ended December 31, 2017, 2018 and 2019.
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Accrued Expenses and Other Current Liabilities |
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Accrued Expenses and Other Current Liabilities | 13. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
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Fair Value Measurement |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | 21. FAIR VALUE MEASUREMENT The following section describes the valuation methodologies the Company uses to measure assets and liabilities at fair value. The Company uses quoted prices in active markets for identical assets to determine fair value where applicable. This pricing methodology applies to Level 1 investments such as bond funds. The fair value of the principal protected notes was determined by its present value utilizing rate of return as the market observable input and therefore, these are classified as Level 2 instruments. This is because there generally are no quoted prices in active markets for identical principal protected notes at the reporting date. Hence, in order to determine the fair value, the Company must use observable inputs other than quoted prices in active markets for identical or similar instruments, quoted prices for similar instruments in active markets, or other inputs that are observable. For the years ended December 31, 2018 and 2019, none of the Company’s assets measured on a recurring basis was determined by using significant unobservable inputs. The following table presents our assets measured at fair value on a recurring basis as of December 31, 2018 and 2019: December 31, 2018
December 31, 2019
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Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | 9. PROPERTY AND EQUIPMENT
In April 2006, the Company began leasing a property located in Taipei, Taiwan to a third party. The lessee has been renewing the operating lease annually and last renewed in March 2020. Net carrying value of the properties as of December 31, 2018 and 2019 was US$ thousand and US$ 673 thousand, respectively. Annual rental income from the lease is about US$ 42 thousand each year. In September 2018, the Company paid US $thousand to acquire land in Hsinchu, Taiwan for the purpose of constructing its future Taiwan headquarters building. For non-cash investing activities, increase (decrease) in accrued expenses and other current liabilities arising from the purchase of property, plant and equipment was US$1,474 thousand, US$(1,631) thousand and US$(707) thousand for the year ended December 31, 2017, 2018 and 2019, respectively. |
Notes and Accounts Receivable |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes and Accounts Receivable | 5. NOTES AND ACCOUNTS RECEIVABLE
The changes in the allowances are summarized as follows:
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Noncurrent Assets Held for Sale (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Noncurrent Assets Held for Sale |
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Related Party Transactions |
12 Months Ended |
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Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 22 . RELATED PARTY TRANSACTIONS Lease support arrangements, known in Korea as Jeonse, were in place for certain Korean employees, primarily executive officers. These arrangements, in place from 2007 to 2019, consisted of a program which the Company facilitated housing arrangements by depositing funds with lessors who are either third parties, employees or relatives of the employees. Such funds would serve to establish the leasehold interest for the employees. When such arrangements were finished, the Company received the deposited funds back in full. The deposited amount of these arrangements for such employees was US$1.5 million and nil as of December 31, 2018, and 2019, respectively. These arrangements ended in 2019 with the divestiture of FCI. |
Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments - trading securities | $ 2,010 | $ 3,609 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments - trading securities | $ 2,010 | $ 3,609 |
Short-Term Investments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Short Term Investments |
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Short Term Investments - Additional Information (Detail) - Trading Securities - USD ($) |
12 Months Ended | ||
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Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Gain (Loss) on Securities [Line Items] | |||
Realized gains on sales of short-term investments, trading securities | $ 48,000 | $ 134,000 | $ 103,000 |
Unrealized holding loss on short-term investment | $ 0 | $ 0 | $ 0 |
Inventories - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Inventory Disclosure [Abstract] | |||
Inventory written down | $ 9,085 | $ 2,095 | $ 698 |
Income (loss) Before Income Taxes for Domestic and Foreign Entities (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes, domestic | $ (3,911) | $ (23,750) | $ (27,902) |
Income (loss) before income taxes, foreign | 75,985 | 133,611 | 126,903 |
INCOME BEFORE INCOME TAX | $ 72,074 | $ 109,861 | $ 99,001 |
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
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Payables and Accruals [Abstract] | ||
Wages and bonus | $ 26,643 | $ 25,169 |
Dividends | 36,919 | 32,871 |
Research and development payable | 5,693 | 3,108 |
License fees and royalties | 9,371 | 6,739 |
Professional fees | 1,772 | 1,867 |
Equipment | 557 | 1,264 |
Lease liabilities | 3,046 | |
Others | 12,075 | 8,401 |
Accrued expenses and other current liabilities | $ 96,076 | $ 79,419 |
Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Net Periodic Benefit Cost: | |||
Service cost | $ 275 | $ 568 | $ 1,572 |
Interest cost | 91 | 126 | 336 |
Projected return on plan assets | (77) | (78) | (58) |
Amortization of unrecognized net transition obligation and unrecognized net actuarial gain | 48 | 41 | 37 |
Net periodic benefit cost | $ 337 | $ 657 | $ 1,887 |
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Income Tax Disclosure [Abstract] | |||
Balance, beginning of year | $ 18,707 | $ 15,056 | $ 10,286 |
Increases in tax positions taken in current year | 6,890 | 5,937 | 6,647 |
Decrease in tax position taken in prior year primarily related to the resolution of tax audit | (4,942) | (2,286) | (1,877) |
Balance, end of year | $ 20,655 | $ 18,707 | $ 15,056 |
Short-Term Bank Loans - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Short-term Debt [Line Items] | |||
Interest expense | $ 0 | $ 355 | $ 387 |
Pledged deposit | $ 0 | $ 0 | |
Minimum | |||
Short-term Debt [Line Items] | |||
Interest rate | 1.51% | ||
Maximum | |||
Short-term Debt [Line Items] | |||
Interest rate | 2.95% |
Revenue by Product Category (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||||||
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Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Segment Reporting Information [Line Items] | |||||||
NET SALES | $ 457,253 | $ 530,348 | [1] | $ 523,404 | [1] | ||
Mobile Storage | |||||||
Segment Reporting Information [Line Items] | |||||||
NET SALES | 441,700 | 494,012 | 480,735 | ||||
Mobile Communications | |||||||
Segment Reporting Information [Line Items] | |||||||
NET SALES | 10,356 | 30,163 | 37,447 | ||||
Others | |||||||
Segment Reporting Information [Line Items] | |||||||
NET SALES | $ 5,197 | $ 6,173 | $ 5,222 | ||||
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