| (in millions) | 4Q 2017 | 3Q 2017 | 4Q 2016 | |||
| Cash and cash equivalents, and short-term investments | $ | 366.4 | $ | 332.8 | $ | 277.8 |
| Bank loans | $ | 25.0 | -- | $ | 25.0 | |
| Capital expenditures | $ | 3.5 | $ | 3.0 | $ | 2.5 |
| Dividend payments | $ | 10.7 | $ | 7.1 | $ | 7.1 |
| Loan repayments | -- | $ | 25.0 | $ | 10.0 | |
During the fourth quarter, we had $3.2 million of capital expenditures for the routine purchase of software and design tools.
Our fourth quarter cash flows were as follows:
| 3 months ended Dec. 31, 2017 | ||
| (In $ millions) | ||
| Net income (GAAP) | 9.9 | |
| Depreciation & amortization | 3.8 | |
| Impairment loss of goodwill | 10.3 | |
| Gain from disposal of other assets | (1.9) | |
| Changes in operating assets and liabilities | (9.8) | |
| Others | 7.4 | |
| Net cash provided by operating activities | 19.7 | |
| Acquisition of property and equipment | (3.5) | |
| Net cash used in investing activities | (3.5) | |
| Dividend | (10.7) | |
| Loans | 25.0 | |
| Net cash provided in financing activities | 14.3 | |
| Effects of changes in foreign currency exchange rates on cash | 1.3 | |
| Net increase in cash, cash equivalents and restricted cash | 31.8 | |
Returning Value to Shareholder
On October 24, 2017, the Board of Directors of the Company declared a $1.20 per ADS annual dividend to be paid in quarterly installments of $0.30 per ADS. On November 23, 2017, we paid $10.7 million to shareholders as the first installment of our annual dividend.
On August 1, 2017, the Company announced that its Board of Directors had authorized a new program for the Company to repurchase up to $200 million of its ADS over a 12 month period. In the fourth quarter, the Company did not repurchase any of its ADS.
Business Outlook
“This year, we believe that we will benefit from better industry dynamics. As NAND industry supply continues to increase, we expect both NAND cost and prices will fall further,” said Wallace Kou, President and CEO of Silicon Motion. “Our NAND partners are placing more emphasis on their client SSDs because of strong interest by PC and other OEMs in increasing adoption of SSDs, which is highly dependent on how quickly NAND prices fall. We believe NAND prices will fall quickly, but do not have good visibility on this, so our revenue guidance assumes SSD demand based solely on today’s NAND prices. We will revise our guidance when there is better clarity on market trends. In Q1, we believe that growth of SSD and eMMC controller sales should be more than offset by seasonal decline of our SSD solutions.”
For the first quarter of 2018, management expects:
| GAAP | Non-GAAP Adjustment | Non-GAAP | |
| Revenue | $127m to $132m
-7% to -3% Q/Q -1% to +4% Y/Y | -- | $127m to $132m
-7% to -3% Q/Q -1% to +4% Y/Y |
| Gross margin | 46.4% to 48.4% | Approximately $0.1m* | 46.5% to 48.5% |
| Operating margin | 17.8% to 20.0% | Approximately $3.9m to 4.0m** | 21.0% to 23.0% |
* Projected gross margin (non-GAAP) excludes $0.1 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $0.7 million of amortization of intangible assets, and $3.2 million to $3.3 million of stock-based compensation.
For the full-year 2018, management expects:
| GAAP | Non-GAAP Adjustment | Non-GAAP | |
| Revenue | $550m to $576m
+5% to +10% Y/Y | -- | $550m to $576m
+5% to +10% Y/Y |
| Gross margin | 46.9% to 48.9% | Approximately $0.5m* | 47.0% to 49.0% |
| Operating margin | 19.4% to 21.9% | Approximately $17.8m to19.8m** | 23.0% to 25.0% |
