During the fourth quarter, we had $14.4 million of capital expenditures, with $12.0 million spent on the purchase of additional operating facilities and $2.2 million for the routine purchase of software and design tools. We paid $4.6 million for previously deferred Shannon acquisition payments.

Our fourth quarter cash flows were as follows:

Returning Value to Shareholders

On October 23, 2015 the Board of Directors of the Company declared a $0.15 per ADS quarterly dividend.  On November 20, we recorded $5.2 million as dividend payments to our shareholders.

Business Outlook

“We expect to continue strong growth in 2016 led again by our Embedded Storage products, specifically client SSD controllers, eMMC controllers and enterprise SSDs,” said Wallace Kou, President and CEO of Silicon Motion. “We are upbeat about our first quarter as we expect our Embedded Storage sales growth to largely offset anticipated Expandable Storage seasonal weakness.”

For the first quarter of 2016, management expects:

• Revenue to decrease 2.5% to increase 2.5% sequentially
• Gross margin (non-GAAP) to be in the 49% to 51% range
• Operating margin (non-GAAP) to be in the 23% to 24% range

For the full-year 2016, management expects:

• Revenue to increase 12% to 20% as compared to full-year 2015
• Gross margin (non-GAAP) to be in the 49% to 51% range
• Operating margin (non-GAAP) to be in the 23% to 25% range

Conference Call & Webcast:

The Company’s management team will conduct a conference call at 8:00 am Eastern Time on January 29, 2016. 

Speakers
Wallace Kou, President & CEO
Riyadh Lai, CFO
Jason Tsai, Senior Director of Investor Relations and Strategy

CONFERENCE CALL ACCESS NUMBERS:
USA (Toll Free): 1 866 519 4004
USA (Toll): 1 845 675 0437   
Taiwan (Toll Free): 0080 112 6920
Participant Passcode: 1852 8965

REPLAY NUMBERS (for 7 days):
USA (Toll Free): 1 855 452 5696
USA (Toll): 1 646 254 3697
Participant Passcode: 1852 8965

A webcast of the call will be available on the Company's website at www.siliconmotion.com. 

Discussion of Non-GAAP Financial Measures

To supplement the Company’s unaudited selected financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including non-GAAP cost of sales, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per diluted ADS. These non-GAAP measures are not in accordance with or an alternative to GAAP, and may be different from non-GAAP measures used by other companies.  We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures.  The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure.  We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.