##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 Form 10-Q
 
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the quarterly period ended November 30, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 Commission file number 0-7422
 
 STANDARD MICROSYSTEMS CORPORATION
 (Exact name of registrant as specified in its charter)
 DELAWARE
    
    11-2234952(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)80 Arkay Drive, Hauppauge, New York
    
    11788-3728(Address of principal executive offices)
    
    (Zip Code)
 Registrants telephone number, including area code:
(631) 435-6000
 þ o
  o þ o
 o þ




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##### 



TABLE OF CONTENTS
 Part I  FINANCIAL INFORMATIONItem 1.
    
    Financial StatementsCondensed Consolidated Balance Sheets as of November 30, 2007 and February 28, 2007Condensed Consolidated Income Statements for the Three and Nine-Month Periods
Ended November 30, 2007 and 2006Condensed Consolidated Statements of Cash Flows for the Nine-Month Periods Ended
November 30, 2007 and 2006Notes to Condensed Consolidated Financial StatementsItem 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 3.
    
    Quantitative and Qualitative Disclosures About Market RiskItem 4.
    
    Controls and ProceduresPart II  OTHER INFORMATIONItem 1.
    
    Legal ProceedingsItem 1A.
    
    Risk FactorsItem 2.
    
    Unregistered Sales of Equity Securities and Use of ProceedsItem 3.
    
    Defaults Upon Senior SecuritiesItem 4.
    
    Submission of Matters to a Vote of Security HoldersItem 5.
    
    Other InformationItem 6.
    
    ExhibitsSignaturesAmendment to Stock Option PlansCertification of Chief Executive Officer Pursuant to Section 302Certification of Chief Financial Officer Pursuant to Section 302Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906
  2




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PART I
 
 Item 1. Financial Statements
 STANDARD MICROSYSTEMS CORPORATION AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 November 30,
    
    
    February 28,2007
    
    
    2007(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    37,691
    
    
    $
    36,255Short-term investments
    
    
    152,934
    
    
    
    123,768Accounts receivable, net
    
    
    56,268
    
    
    
    48,014Inventories
    
    
    46,843
    
    
    
    50,873Deferred income taxes
    
    
    19,681
    
    
    
    19,312Other current assets
    
    
    11,445
    
    
    
    8,751Total current assets
    
    
    324,862
    
    
    
    286,973Property, plant and equipment, net
    
    
    59,455
    
    
    
    58,020Goodwill
    
    
    104,511
    
    
    
    98,259Intangible assets, net
    
    
    38,260
    
    
    
    40,256Deferred income taxes
    
    
    2,574
    
    
    
    7,094Other assets
    
    
    3,291
    
    
    
    3,037TOTAL ASSETS
    
    $
    532,953
    
    
    $
    493,639LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    31,864
    
    
    $
    25,617Deferred income on shipments to distributors
    
    
    17,174
    
    
    
    12,752Accrued expenses, income taxes and other liabilities
    
    
    33,885
    
    
    
    36,378Total current liabilities
    
    
    82,923
    
    
    
    74,747Deferred income taxes
    
    
    8,558
    
    
    
    10,100Other liabilities
    
    
    13,065
    
    
    
    16,850Commitments and contingenciesShareholders equity:Preferred stock
    
    
    
    
    
    
    Common stock
    
    
    2,611
    
    
    
    2,511Additional paid-in capital
    
    
    305,918
    
    
    
    276,701Retained earnings
    
    
    162,336
    
    
    
    139,657Treasury stock, at cost
    
    
    (59,270
    )
    
    
    (32,038
    )Accumulated other comprehensive income
    
    
    16,812
    
    
    
    5,111Total shareholders equity
    
    
    428,407
    
    
    
    391,942TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    532,953
    
    
    $
    493,639
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STANDARD MICROSYSTEMS CORPORATION AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)
 Three Months Ended
    
    
    Nine Months EndedNovember 30,
    
    
    November 30,2007
    
    
    2006
    
    
    2007
    
    
    2006(Unaudited)
    
    
    (Unaudited)Product sales
    
    $
    101,653
    
    
    $
    95,212
    
    
    $
    274,603
    
    
    $
    272,338Intellectual property revenues
    
    
    3,025
    
    
    
    2,852
    
    
    
    9,144
    
    
    
    8,534104,678
    
    
    
    98,064
    
    
    
    283,747
    
    
    
    280,872Costs and expenses:Costs of goods sold (exclusive of
amortization shown below)
    
    
    49,441
    
    
    
    51,953
    
    
    
    136,171
    
    
    
    149,226Research and development
    
    
    18,570
    
    
    
    17,565
    
    
    
    54,751
    
    
    
    49,875Amortization of intangible assets
    
    
    1,694
    
    
    
    1,592
    
    
    
    4,987
    
    
    
    4,752Selling, general and administrative
    
    
    20,737
    
    
    
    20,919
    
    
    
    62,600
    
    
    
    53,131Income from operations
    
    
    14,236
    
    
    
    6,035
    
    
    
    25,238
    
    
    
    23,888Interest income
    
    
    2,039
    
    
    
    1,162
    
    
    
    5,105
    
    
    
    3,481Interest expense
    
    
    (98
    )
    
    
    (54
    )
    
    
    (272
    )
    
    
    (198
    )Other expense, net
    
    
    (1,563
    )
    
    
    (236
    )
    
    
    (1,279
    )
    
    
    (40
    )Income before provision for income taxes
    
    
    14,614
    
    
    
    6,907
    
    
    
    28,792
    
    
    
    27,131Provision for income taxes
    
    
    5,906
    
    
    
    2,088
    
    
    
    7,601
    
    
    
    7,952Net income
    
    $
    8,708
    
    
    $
    4,819
    
    
    $
    21,191
    
    
    $
    19,179Basic net income per share:
    
    $
    0.38
    
    
    $
    0.22
    
    
    
    0.92
    
    
    $
    0.87Diluted net income per share:
    
    $
    0.36
    
    
    $
    0.21
    
    
    $
    0.88
    
    
    $
    0.83Weighted average common shares outstanding:Basic
    
    
    23,041
    
    
    
    22,133
    
    
    
    22,959
    
    
    
    21,966Diluted
    
    
    24,131
    
    
    
    23,368
    
    
    
    24,038
    
    
    
    23,153
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STANDARD MICROSYSTEMS CORPORATION AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 Nine Months EndedNovember 30,2007
    
    
    2006(Unaudited)Cash flows from operating activities:Net income
    
    $
    21,191
    
    
    $
    19,179Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
    
    
    15,032
    
    
    
    14,394Excess tax benefits associated with stock-based compensation
    
    
    (850
    )
    
    
    (519
    )Stock-based compensation
    
    
    10,688
    
    
    
    3,325Deferred income taxes
    
    
    1,494
    
    
    
    335Changes in operating assets and liabilities, net of effects from business combinations:Accounts receivable
    
    
    (6,360
    )
    
    
    (7,946
    )Inventories
    
    
    4,920
    
    
    
    (11,116
    )Accounts payable, accrued expenses and other liabilities
    
    
    705
    
    
    
    5,368Deferred income
    
    
    4,422
    
    
    
    519Income taxes payable
    
    
    (1,284
    )
    
    
    889Other changes, net
    
    
    1,617
    
    
    
    (1,722
    )Net cash provided by operating activities
    
    
    51,575
    
    
    
    22,706Cash flows from investing activities:Capital expenditures
    
    
    (11,443
    )
    
    
    (22,704
    )Acquisition of OASIS SiliconSystems Holding AG, net of cash acquired
    
    
    
    
    
    
    (12,555
    )Purchases of short-term investments
    
    
    (528,771
    )
    
    
    (389,110
    )Sales of short-term investments
    
    
    499,605
    
    
    
    394,080Net cash used in investing activities
    
    
    (40,609
    )
    
    
    (30,289
    )Cash flows from financing activities:Excess tax benefits associated with stock-based compensation
    
    
    850
    
    
    
    519Proceeds from issuance of common stock
    
    
    17,238
    
    
    
    10,203Purchases of treasury stock
    
    
    (27,232
    )
    
    
    (6,078
    )Repayments of obligations under capital leases and notes payable
    
    
    (1,854
    )
    
    
    (982
    )Net cash  (used in) provided by financing activities
    
    
    (10,998
    )
    
    
    3,662Effect of foreign exchange rate changes on cash and cash equivalents
    
    
    1,468
    
    
    
    (84
    )Net increase
(decrease) in cash and cash equivalents
    
    
    1,436
    
    
    
    (4,005
    )Cash and cash equivalents at beginning of period
    
    
    36,255
    
    
    
    43,932Cash and cash equivalents at end of period
    
    $
    37,691
    
    
    $
    39,927
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STANDARD MICROSYSTEMS CORPORATION AND SUBSIDIARIES
 
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 1. BASIS OF PRESENTATION
       2. STOCK-BASED COMPENSATION
  Share-Based Payments (in thousands)
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Three Months Ended
    
    
    Nine Months EndedNovember 30,
    
    
    November 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Costs of goods sold
    
    $
    475
    
    
    $
    501
    
    
    $
    1,530
    
    
    $
    367Research and development
    
    
    2,955
    
    
    
    1,880
    
    
    
    6,999
    
    
    
    2,901Selling, general and administrative
    
    
    1,772
    
    
    
    3,033
    
    
    
    8,065
    
    
    
    3,140Stock-based compensation expense
under SFAS 123R, before income tax
benefit
    
    
    5,202
    
    
    
    5,414
    
    
    
    16,594
    
    
    
    6,408Tax benefit
    
    
    1,873
    
    
    
    1,743
    
    
    
    5,974
    
    
    
    2,063Stock-based compensation expense
under SFAS 123R, after income tax
benefit
    
    $
    3,329
    
    
    $
    3,671
    
    
    $
    10,620
    
    
    $
    4,345
 Employee and Director Stock Option Plans
  (shares in thousands):
 WeightedAverage
    
    
    WeightedFiscal
    
    
    Exercise
    
    
    Average2008
    
    
    Prices
    
    
    Contractual
    
    
    AggregateShares
    
    
    per Share
    
    
    Term
    
    
    Intrinsic ValueOptions outstanding at March 1, 2007
    
    
    4,302
    
    
    $
    20.81Granted
    
    
    214
    
    
    $
    34.38Exercised
    
    
    (942
    )
    
    $
    18.31Canceled or expired
    
    
    (173
    )
    
    $
    22.11Options outstanding at November 30, 2007
    
    
    3,401
    
    
    $
    22.29
    
    
    
    6.6
    
    
    $
    44,195,312Options exercisable at November 30, 2007
    
    
    1,538
    
    
    $
    19.85
    
    
    
    5.2
    
    
    $
    23,728,069
    7




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Three Months Ended
    
    
    Nine Months EndedNovember 30,
    
    
    November 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Dividend yield
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Expected volatility
    
    
    52
    %
    
    
    59
    %
    
    
    52
    %
    
    
    59
    %Risk-free interest rates
    
    
    3.59
    
    
    
    4.6-4.7
    
    
    
    3.59-4.59
    
    
    
    4.59-5.06Expective lives (in years)
    
    
    4.46
    
    
    
    4.42
    
    
    
    4.46
    
    
    
    4.42
 Restricted Stock Awards
  (shares in thousands)
 Number of
    
    
    Grant-DateShares
    
    
    Fair ValueRestricted stock shares outstanding at, March 1, 2007
    
    
    231
    
    
    $
    22.71Granted
    
    
    64
    
    
    $
    34.72Canceled or expired
    
    
    (6
    )
    
    $
    25.88Vested
    
    
    (87
    )
    
    $
    22.05Restricted stock shares outstanding at November 30, 2007
    
    
    202
    
    
    $
    26.68
  Stock
Appreciation Rights Plans
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(shares in thousands)
 WeightedAverage
    
    WeightedExercise
    
    AverageFiscal 2008
    
    Prices
    
    Contractual
    
    AggregateShares
    
    per Share
    
    Term
    
    Intrinsic ValueSARs outstanding at March 1, 2007
    
    
    2,775
    
    
    $
    25.54Granted
    
    
    314
    
    
    $
    34.86Exercised
    
    
    (334
    )
    
    $
    18.97Canceled or expired
    
    
    (63
    )
    
    $
    28.31SARs outstanding at November 30, 2007
    
    
    2,692
    
    
    $
    27.38
    
    
    
    8.26
    
    
    $
    21,485,124SARs exercisable at November 30, 2007
    
    
    669
    
    
    $
    24.61
    
    
    
    7.67
    
    
    $
    7,129,471
   Three Months Ended
    
    
    Nine Months EndedNovember 30,
    
    
    November 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Dividend yield
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Expected volatility
    
    
    52
    %
    
    
    59
    %
    
    
    52
    %
    
    
    59
    %Risk-free interest rates
    
    
    3.34-3.54
    
    
    
    4.67-4.85
    
    
    
    3.34-4.87
    
    
    
    4.67-4.85Expected lives (in years)
    
    
    1.29-4.40
    
    
    
    2.25-4.34
    
    
    
    1.29-4.44
    
    
    
    2.25-4.34
 3. INVESTMENTS
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4. BALANCE SHEET DATA
 (in thousands)
 November 30,
    
    February 28,2007
    
    2007Raw materials
    
    $
    1,602
    
    
    $
    2,307Work-in-process
    
    
    24,517
    
    
    
    20,861Finished goods
    
    
    20,724
    
    
    
    27,705$
    46,843
    
    
    $
    50,873
 (in thousands)
 November 30,
    
    February 28,2007
    
    2007Land
    
    $
    578
    
    
    $
    578Buildings and improvements
    
    
    32,698
    
    
    
    32,303Machinery and equipment
    
    
    116,729
    
    
    
    104,281150,005
    
    
    
    137,162Less: accumulated depreciation
    
    
    (90,550
    )
    
    
    (79,142
    )$
    59,455
    
    
    $
    58,020
 5. NET INCOME PER SHARE
  (in
thousands)
 Three Months Ended
    
    Nine Months EndedNovember 30,
    
    November 30,2007
    
    2006
    
    2007
    
    2006Average shares
outstanding for
basic net income
per share
    
    
    23,041
    
    
    
    22,133
    
    
    
    22,959
    
    
    
    21,966Dilutive effect of
stock options and
unvested restricted
stock awards
    
    
    1,090
    
    
    
    1,235
    
    
    
    1,079
    
    
    
    1,187Average shares
outstanding for
diluted net income
per share
    
    
    24,131
    
    
    
    23,368
    
    
    
    24,038
    
    
    
    23,153
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6. COMPREHENSIVE INCOME
  (in thousands)
 Three Months Ended
    
    
    Nine Months EndedNovember 30,
    
    
    November 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net income
    
    $
    8,708
    
    
    $
    4,819
    
    
    $
    21,191
    
    
    $
    19,179Other comprehensive income:Change in foreign currency translation adjustments
    
    
    8,577
    
    
    
    2,169
    
    
    
    11,546
    
    
    
    5,693Change in unrealized gain on marketable equity
securities, net of taxes
    
    
    9
    
    
    
    
    
    
    
    15
    
    
    
    Change in minimum pension liability adjustment,
net of taxes
    
    
    47
    
    
    
    8
    
    
    
    140
    
    
    
    6Total comprehensive income
    
    $
    17,341
    
    
    $
    6,996
    
    
    $
    32,892
    
    
    $
    24,878
 (in thousands)
 November 30,
    
    
    February 28,2007
    
    
    2007Unrealized gains and losses on investments
    
    $
    (5
    )
    
    $
    (21
    )Foreign currency items
    
    
    17,181
    
    
    
    5,636Minimum pension liability adjustment
    
    
    (364
    )
    
    
    (504
    )Total accumulated other comprehensive income
    
    $
    16,812
    
    
    $
    5,111
 7. BUSINESS RESTRUCTURING
  8. GOODWILL AND INTANGIBLE ASSETS
   11




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(in thousands)
 November 30, 2007
    
    
    February 28, 2007Accumulated
    
    
    
    
    
    
    AccumulatedCost
    
    
    Amortization
    
    
    Cost
    
    
    AmortizationPurchased technologies
    
    $
    40,866
    
    
    $
    17,226
    
    
    $
    38,846
    
    
    $
    12,718Customer relationships and contracts
    
    
    12,210
    
    
    
    4,275
    
    
    
    10,988
    
    
    
    2,709Total  finite-lived intangible assets
    
    
    53,076
    
    
    
    21,501
    
    
    
    49,834
    
    
    
    15,427Trademark and other
    
    
    6,685
    
    
    
    
    
    
    
    5,849
    
    
    
    $
    59,761
    
    
    $
    21,501
    
    
    $
    55,683
    
    
    $
    15,427
  (in thousands)
 Period
    
    AmountRemainder of fiscal 2008
    
    $
    1,721Fiscal 2009
    
    $
    6,111Fiscal 2010
    
    $
    5,854Fiscal 2011
    
    $
    5,854Fiscal 2012
    
    $
    5,854Fiscal 2013 and thereafter
    
    $
    6,315
 9. INCOME TAXES
 Accounting for Uncertainty in Income Taxesan interpretation of FASB Statement No. 109
   12




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10. RETIREMENT PLANS
  (in
thousands)
 Three Months Ended
    
    
    Nine Months EndedNovember 30,
    
    
    November 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Components of net periodic benefit costs:Service cost  benefits earned during the period
    
    $
    145
    
    
    $
    92
    
    
    $
    420
    
    
    $
    275Interest cost on projected benefit obligations
    
    
    87
    
    
    
    110
    
    
    
    261
    
    
    
    329Amortization of net obligation
    
    
    65
    
    
    
    79
    
    
    
    195
    
    
    
    236Net periodic pension expense
    
    $
    297
    
    
    $
    281
    
    
    $
    876
    
    
    $
    840
 November 30,
    
    
    February 28,2007
    
    
    2007Amounts recognized in accumulated other comprehensive income:Transition obligation
    
    $
    409
    
    
    $
    603Net loss
    
    
    190
    
    
    
    190Prior service cost
    
    
    5
    
    
    
    5Total amount recognized in accumulated other comprehensive income
    
    $
    604
    
    
    $
    798
   11. COMMON STOCK REPURCHASE PROGRAM
  13




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12. OPERATING SEGMENT INFORMATION
 Disclosures about Segments of an
Enterprise and Related Information.
 13. COMMITMENTS AND CONTINGENCIES
 United States Customs Liability Payment
  OPTi, Inc. Patent Infringement Lawsuit
  14. RECENT ACCOUNTING PRONOUNCEMENTS
 Fair Value Measurements (SFAS No. 157)
 The Fair Value Option for Financial Assets and
Financial Liabilities
 Business Combinations,
 Noncontrolling Interests in Consolidated
Financial Statements  an Amendment of Accounting Research Bulletin, or ARB No. 51
 14




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STANDARD MICROSYSTEMS CORPORATION AND SUBSIDIARIES
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 
 Item 2. Managements Discussion and Analysis of Financial Conditions and Results of
Operations
 GENERAL
 Financial Statements
 Forward-Looking Statements
  Risk Factors
 Description of Business
 ®
  15




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CRITICAL ACCOUNTING POLICIES & ESTIMATES
   
    
    Revenue Recognition
    
    Inventory Valuation
    
    Valuation of Long-Lived Assets
    
    Valuation of Share-Based Payments
    
    Accounting for Income Taxes and Uncertain Tax Positions
    
    Legal Contingencies
 Accounting for Income Tax Uncertainties Financial
Statements
 RESULTS OF OPERATIONS
 Sales and Revenues
 (dollars in millions)
 Three Months Ended November 30,2007
    
    
    2006Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentConsumer Electronics & Infotainment
    
    $
    42.9
    
    
    
    42
    %
    
    $
    38.8
    
    
    
    41
    %Mobile & Desktop PC
    
    
    42.8
    
    
    
    42
    %
    
    
    41.9
    
    
    
    44
    %Industrial & Other
    
    
    16.0
    
    
    
    16
    %
    
    
    14.5
    
    
    
    15
    %Total Product Sales
    
    
    101.7
    
    
    
    100
    %
    
    
    95.2
    
    
    
    100
    %Intellectual Property Revenues
    
    
    3.0
    
    
    
    
    
    
    
    2.9Total Sales and Revenues
    
    $
    104.7
    
    
    
    
    
    
    $
    98.1
 16




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##### Table of Contents



Nine Months Ended November 30,2007
    
    
    2006Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentConsumer Electronics & Infotainment
    
    $
    110.8
    
    
    
    40
    %
    
    $
    107.9
    
    
    
    40
    %Mobile & Desktop PC
    
    
    117.9
    
    
    
    43
    %
    
    
    120.9
    
    
    
    44
    %Industrial & Other
    
    
    45.9
    
    
    
    17
    %
    
    
    43.6
    
    
    
    16
    %Total Product Sales
    
    
    274.6
    
    
    
    100
    %
    
    
    272.4
    
    
    
    100
    %Intellectual Property Revenues
    
    
    9.1
    
    
    
    
    
    
    
    8.5Total Sales and Revenues
    
    $
    283.7
    
    
    
    
    
    
    $
    280.9
       17




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##### Table of Contents



Costs of Goods Sold
   Research and Development Expenses
   Selling, General and Administrative Expenses
   Amortization of Intangible Assets
  Interest and Other Income (Expense)
  18




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##### Table of Contents



Out-of-Period
Adjustments
  Provision for Income Taxes
     19




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##### Table of Contents



LIQUIDITY & CAPITAL RESOURCES
          COMMITMENTS AND CONTINGENCIES
 United States Customs Liability Payment
  20




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##### Table of Contents



OPTi, Inc. Patent Infringement Lawsuit
  RECENT ACCOUNTING PRONOUNCEMENTS
 Fair Value Measurements (SFAS No. 157)
 The Fair Value Option for Financial Assets and
Financial Liabilities
 Business Combinations,
 Noncontrolling Interests in Consolidated
Financial Statements  an Amendment of Accounting Research Bulletin, or ARB No. 51
 21




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##### Table of Contents



Item 3. Quantitative and Qualitative Disclosures About Market Risk
 Interest Rate Risk
    Equity Price Risk
  Foreign Currency Risk
   
 Item 4. Controls and Procedures
  22




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##### Table of Contents



PART II
 
 Item 1.Legal Proceedings
  
 Item 1.A. Risk Factors
   
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
     TotalNumber ofShares
    
    MaximumTotal
    
    
    
    Purchased as
    
    Number ofNumber of
    
    Average
    
    Part of Publicly
    
    Shares thatShares
    
    Price per
    
    Announced
    
    may Yet bePeriod
    
    Purchased
    
    Share
    
    Plans
    
    PurchasedSeptember 2007
    
    
    179,305
    
    
    $
    37.31
    
    
    
    179,305
    
    
    
    307,793October 2007
    
    
    134,281
    
    
    $
    38.67
    
    
    
    134,281
    
    
    
    173,512November 2007
    
    
    168,596
    
    
    $
    35.96
    
    
    
    168,596
    
    
    
    1,004,916
    *Total
    
    
    482,182
    
    
    $
    37.22
    
    
    
    482,182
  23




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##### Table of Contents



Item 3. Defaults Upon Senior Securities
  
 Item 4. Submission of Matters to a Vote of Security Holders
  
 Item 5. Other Information
  
 Item 6. Exhibits
 10.1*
    
    
    
    Amendments of the 1993 Stock Option Plan for Officers
and Key Employees, 1994 Stock Option Plan for Officers and
Key Employees, 1996 Stock Option Plan for Officers and Key
Employees, 1998 Stock Option Plan for Officers and Key
Employees, 1999 Stock Option Plan for Officers and Key
Employees, 2000 Stock Option Plan for Officers and Key
Employees, 2001 Stock Option and Restricted Stock Plan of
Standard Microsystems Corporation, 2003 Stock Option and
Restricted Stock Plan and 2005 Inducement Stock Option and
Restricted Stock Plan of Standard Microsystems Corporation.31.1
    
    
    
    Certification of Chief Executive Officer pursuant to Rule
13a-14(a) (17 CFR 240.13a-14(a)), as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.31.2
    
    
    
    Certification of Chief Financial Officer pursuant to Rule
13a-14(a) (17 CFR 240.13a-14(a)), as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.32.1
    
    
    
    Certifications of Chief Executive Officer and Chief
Financial Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.
 *   Indicates
a management or compensatory plan or arrangement.


24



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##### Table of Contents



SIGNATURE
  STANDARD MICROSYSTEMS CORPORATIONBy:
    /s/  Joseph S. Durko(Signature)Joseph S. Durko
Vice President, Corporate Controller and Chief
Accounting Officer (duly authorized officer)DATE: December 21, 2007 25




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNo.
    
    
    
    Description10.1*
    
    
    
    Amendments of the 1993 Stock Option Plan for Officers
and Key Employees, 1994 Stock Option Plan for Officers
and Key Employees, 1996 Stock Option Plan for Officers
and Key Employees, 1998 Stock Option Plan for Officers
and Key Employees, 1999 Stock Option Plan for Officers
and Key Employees, 2000 Stock Option Plan for Officers
and Key Employees, 2001 Stock Option and Restricted Stock
Plan of Standard Microsystems Corporation, 2003 Stock
Option and Restricted Stock Plan and 2005 Inducement
Stock Option and Restricted Stock Plan of Standard
Microsystems Corporation.31.1
    
    
    
    Certification of Chief Executive Officer pursuant to Rule
13a-14(a) (17 CFR 240.13a-14(a)), as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.31.2
    
    
    
    Certification of Chief Financial Officer pursuant to Rule
13a-14(a) (17 CFR 240.13a-14(a)), as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.32.1
    
    
    
    Certifications of Chief Executive Officer and Chief
Financial Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.
 *   Indicates
a management or compensatory plan or arrangement.


26