Financial Highlights
Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon
Motion” or the “Company”) today announced its financial results for
the quarter ended December 31, 2016. For the fourth quarter,
net sales decreased 9% sequentially to $144.2 million from $158.6
million in the third quarter. Net income (GAAP) decreased to $26.2
million or $0.73 per diluted ADS (GAAP) from a net income (GAAP) of
$32.7 million or $0.92 per diluted ADS (GAAP) in the third quarter.
1 Embedded Storage comprises primarily eMMC and client SSD
controllers and enterprise and industrial SSD solutions.
For the fourth quarter, net income (non-GAAP) decreased to $33.9
million or $0.95 per diluted ADS (non-GAAP) from a net income
(non-GAAP) of $38.3 million or $1.07 per diluted ADS (non-GAAP) in
the third quarter.
Fourth Quarter 2016 Review“Due to continuing
strength of our SSD controller business, representing our ninth
consecutive quarter of SSD controller growth, we achieved fourth
quarter sales that were on the high-end of our expectations,” said
Wallace Kou, President and CEO of Silicon Motion. “Strength from
our SSD controllers was however offset by seasonally weak
eMMC controller sales and SSD Solutions project transitions.”
Sales
(in millions, except percentages) |
4Q 2016 |
3Q 2016 |
4Q 2015 |
|
Sales |
Mix |
Sales |
Mix |
Sales |
Mix |
Mobile Storage* |
$ |
130.3 |
|
90 |
% |
$ |
146.9 |
|
93 |
% |
$ |
87.5 |
|
89 |
% |
Q/Q |
|
-11 |
% |
|
|
|
13 |
% |
|
|
|
8 |
% |
|
|
Y/Y |
|
49 |
% |
|
|
|
82 |
% |
|
|
|
34 |
% |
|
|
Mobile Communications** |
$ |
12.5 |
|
9 |
% |
$ |
10.1 |
|
6 |
% |
$ |
8.8 |
|
9 |
% |
Others |
$ |
1.4 |
|
1 |
% |
$ |
1.6 |
|
1 |
% |
$ |
1.7 |
|
2 |
% |
Total revenue |
$ |
144.2 |
|
100 |
% |
$ |
158.6 |
|
100 |
% |
$ |
98.0 |
|
100 |
% |
Q/Q |
|
-9 |
% |
|
|
|
13 |
% |
|
|
|
3 |
% |
|
|
Y/Y |
|
47 |
% |
|
|
|
66 |
% |
|
|
|
22 |
% |
|
|
* Mobile Storage products include Embedded Storage products
(eMMC and client SSD controllers and enterprise and industrial SSD
solutions) and Expandable Storage products (SD and USB flash drive
controllers)
** Mobile Communications products include mobile
TV SoCs and handset transceivers
Key Financial Results
(in millions, except percentages and per ADS
amounts) |
GAAP |
Non-GAAP |
4Q 2016 |
3Q 2016 |
4Q 2015 |
4Q 2016 |
3Q 2016 |
4Q 2015 |
Revenue |
$ |
|
144.2 |
|
$ |
|
158.6 |
|
$ |
|
98.0 |
|
$ |
|
144.2 |
|
$ |
|
158.6 |
|
$ |
|
98.0 |
|
Gross profit |
$ |
|
72.1 |
|
$ |
|
77.4 |
|
$ |
|
49.0 |
|
$ |
|
72.3 |
|
$ |
|
77.6 |
|
$ |
|
49.1 |
|
Percent of revenue |
|
|
50.0 |
% |
|
|
48.8 |
% |
|
|
50.0 |
% |
|
|
50.2 |
% |
|
|
48.9 |
% |
|
|
50.1 |
% |
Operating expenses |
$ |
|
37.3 |
|
$ |
|
38.9 |
|
$ |
|
31.0 |
|
$ |
|
28.5 |
|
$ |
|
32.0 |
|
$ |
|
25.3 |
|
Operating income |
$ |
|
34.9 |
|
$ |
|
38.5 |
|
$ |
|
18.1 |
|
$ |
|
43.8 |
|
$ |
|
45.5 |
|
$ |
|
23.9 |
|
Percent of revenue |
|
|
24.2 |
% |
|
|
24.3 |
% |
|
|
18.4 |
% |
|
|
30.4 |
% |
|
|
28.7 |
% |
|
|
24.4 |
% |
Earnings per diluted ADS |
$ |
|
0.73 |
|
$ |
|
0.92 |
|
$ |
|
0.38 |
|
$ |
|
0.95 |
|
$ |
|
1.07 |
|
$ |
|
0.55 |
|
Other Financial Information
(in millions) |
4Q 2016 |
3Q 2016 |
4Q 2015 |
Cash and cash equivalents, and short-term investments |
$ |
277.8 |
$ |
269.2 |
$ |
185.2 |
Bank loans |
$ |
25.0 |
$ |
35.0 |
|
-- |
Capital expenditures |
$ |
2.5 |
$ |
2.8 |
$ |
14.4 |
Dividend payments |
$ |
7.1 |
$ |
5.3 |
$ |
5.2 |
Loan repayments |
$ |
10.0 |
|
-- |
|
-- |
During the fourth quarter, we had $2.1 million of capital
expenditures for the routine purchase of software and design tools.
In this quarter, after loan repayments of $10.0 million, we had
$25.0 million of bank loans outstanding.
Our fourth quarter cash flows were as follows:
3 months ended December 31, 2016 |
|
|
(In $ millions) |
Net
income (GAAP) |
|
26.2 |
|
Depreciation & amortization |
|
2.7 |
|
Changes in operating assets and liabilities |
|
(3.1 |
) |
Others |
|
9.0 |
|
Net cash provided by operating activities |
|
34.8 |
|
Acquisition of property and equipment |
|
(2.5 |
) |
Changes in restricted assets |
|
0.1 |
|
Net cash used in investing activities |
|
(2.4 |
) |
|
|
|
|
Dividend |
|
(7.1 |
) |
Loans |
|
(10.0 |
) |
Net cash
used in financing activities |
|
(17.1 |
) |
Effects of changes in foreign currency exchange rates on cash |
|
(1.3 |
) |
Net increase in cash and cash equivalents |
|
14.0 |
|
|
|
|
Returning Value to ShareholdersOn October 24, 2016, the Board of
Directors of the Company declared a $0.80 per ADS annual dividend
to be paid in quarterly installments of $0.20 per ADS. On
November 17, 2016, we paid $7.1 million to shareholders as the
first installment of our annual dividend.
Business Outlook“For full year 2017, we expect
sales of our client SSD controllers to continue growing strongly,
but NAND flash availability will affect our SSD Solutions,” said
Wallace Kou, President and CEO of Silicon Motion. “NAND flash
tightness will start affecting our SSD Solutions beginning in the
first quarter. Additionally in the first quarter, our client
SSD controllers will decline seasonally, with growth restarting in
the following quarter.”
For the first quarter of 2017, management expects:
|
GAAP |
Non-GAAP Adjustment |
Non-GAAP |
Revenue |
$121m to $128m |
-- |
$121m to $128m |
|
-16% to -11% Q/Q |
|
-16% to -11% Q/Q |
|
+7% to +14% Y/Y |
|
+7% to +14% Y/Y |
Gross margin |
48% to 50% |
Approximately $0.1m* |
48% to 50% |
Operating margin |
20% to 22% |
Approximately $3.7m to 4.2m** |
23% to 25% |
* Gross margin (non-GAAP) excludes $0.1 million of stock-based
compensation.
** Operating margin (non-GAAP) excludes $0.5 million of
amortization of intangible assets, and $3.2 million to $3.7 million
of stock-based compensation.
For the full year 2017, management expects:
|
GAAP |
Non-GAAP Adjustment |
Non-GAAP |
Revenue |
$556m to $612m |
-- |
$556m to $612m |
|
0% to +10% Y/Y |
|
0% to +10% Y/Y |
Gross margin |
49% to 51% |
Approximately $0.5m* |
49% to 51% |
Operating margin |
24.4% to 26.4% |
Approximately $17.2m to 19.2m** |
27.5% to 29.5% |
* Gross margin (non-GAAP) excludes $0.5 million of stock-based
compensation.
** Operating margin (non-GAAP) excludes $2.1 million of
amortization of intangible assets, $0.6 million of litigation
expense, and $14.5 million to $16.5 million of stock-based
compensation.
Conference Call &
Webcast:The Company’s management team will conduct a
conference call at 8:00 am Eastern Time on January 24, 2017.
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: 4750 3600
REPLAY NUMBERS (for 7
days): USA (Toll Free): 1 855 452 5696
USA (Toll): 1 646 254 3697
Participant Passcode: 4750 3600A
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 gross profit (non-GAAP),
operating expenses (non-GAAP), operating profit (non-GAAP), net
income (non-GAAP), and earnings per diluted ADS (non-GAAP). 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.
Our non-GAAP financial measures are provided to
enhance the user’s overall understanding of our current financial
performance and our prospects for the future. Specifically, we
believe the non-GAAP results provide useful information to both
management and investors as these non-GAAP results exclude certain
expenses, gains and losses that we believe are not indicative of
our core operating results and because it is consistent with the
financial models and estimates published by many analysts who
follow the Company. We use non-GAAP measures to evaluate the
operating performance of our business, for comparison with our
forecasts, and for benchmarking our performance externally against
our competitors. Also, when evaluating potential
acquisitions, we exclude the items described below from our
consideration of the target’s performance and valuation.
Since we find these measures to be useful, we believe that our
investors benefit from seeing the results from management’s
perspective in addition to seeing our GAAP results. We
believe that these non-GAAP measures, when read in conjunction with
the Company’s GAAP financials, provide useful information to
investors by offering:
- the ability to make more meaningful period-to-period
comparisons of the Company’s on-going operating results;
- the ability to better identify trends in the Company’s
underlying business and perform related trend analysis;
- a better understanding of how management plans and measures the
Company’s underlying business; and
- an easier way to compare the Company’s operating results
against analyst financial models and operating results of our
competitors that supplement their GAAP results with non-GAAP
financial measures.
The following are explanations of each of the
adjustments that we incorporate into our non-GAAP measures, as well
as the reasons for excluding each of these individual items in our
reconciliation of these non-GAAP financial measures:
Stock-based compensation expense consists of
non-cash charges related to the fair value of and restricted stock
units awarded to employees. The Company believes that the exclusion
of these non-cash charges provides for more accurate comparisons of
our operating results to our peer companies due to the varying
available valuation methodologies, subjective assumptions and the
variety of award types. In addition, the Company believes it is
useful to investors to understand the specific impact of
share-based compensation on its operating results.
Amortization of intangibles assets consists of
non-cash charges that can be impacted by the timing and magnitude
of our acquisitions. The Company considers its operating
results without these charges when evaluating its ongoing
performance and forecasting its earnings trends, and therefore
excludes such charges when presenting non-GAAP financial
measures. The Company believes that the assessment of its
operations excluding these costs is relevant to its assessment of
internal operations and comparisons to the performance of its
competitors.
Litigation expenses consist of legal expenses
relating to intellectual property disputes, commercial claims and
other types of litigation. While litigation may arise in the
ordinary course of our business, we nevertheless consider
litigation to be an unusual and unplanned activity and therefore
exclude this charge when presenting non-GAAP financial
measures.
Acquisition-related expenses consist of direct
costs of acquisitions, such as transaction fees, which vary
significantly and are unique to each acquisition. The Company does
not acquire businesses on a predictable cycle, so we have excluded
the effect of these costs when presenting our non-GAAP financial
measures.
Foreign exchange gains and losses consist of
translation gains and/or losses of non-US$ denominated current
assets and current liabilities, as well as certain other balance
sheet items which result from the appreciation or depreciation of
non-US$ currencies against the US$. We do not use financial
instruments to manage the impact on our operations from changes in
foreign exchange rates, and because our operations are subject to
fluctuations in foreign exchange rates, we therefore exclude
foreign exchange gains and losses when presenting non-GAAP
financial measures.
Impairment of long-term investments relates to the
other-than-temporary, non-operating write down of the Company's
minority stake investments. We do not consider these investments,
which were made before 2007, to be strategic and exclude the
performance of these investments when evaluating our ongoing
performance and forecasting our earnings trends, and therefore
excluding losses (and gains) from the investments when presenting
non-GAAP financial measures.
Silicon Motion Technology Corporation |
Consolidated Statements of Income |
(in thousands, except percentages and per ADS data,
unaudited) |
|
|
|
|
|
For the Three Months
Ended |
|
|
Dec. 31,
2015 ($) |
|
Sep. 30,
2016 ($) |
|
Dec. 31,
2016 ($) |
Net
Sales |
|
|
98,041 |
|
|
|
158,580 |
|
|
|
144,198 |
|
Cost of
sales |
|
|
49,028 |
|
|
|
81,175 |
|
|
|
72,080 |
|
Gross
profit |
|
|
49,013 |
|
|
|
77,405 |
|
|
|
72,118 |
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
Research
& development |
|
|
19,281 |
|
|
|
25,934 |
|
|
|
26,038 |
|
Sales
& marketing |
|
|
6,136 |
|
|
|
7,548 |
|
|
|
5,651 |
|
General
& administrative |
|
|
5,008 |
|
|
|
4,878 |
|
|
|
5,048 |
|
Amortization of intangibles assets |
|
|
526 |
|
|
|
526 |
|
|
|
526 |
|
Operating
income |
|
|
18,062 |
|
|
|
38,519 |
|
|
|
34,855 |
|
Non-operating income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on
sale of investments |
|
|
1 |
|
|
|
- |
|
|
|
- |
|
Interest
income, net |
|
|
455 |
|
|
|
541 |
|
|
|
623 |
|
Foreign
exchange gain (loss), net |
|
|
(523 |
) |
|
|
(375 |
) |
|
|
112 |
|
Impairment of long-term investments |
|
|
- |
|
|
|
- |
|
|
|
(13 |
) |
Others,
net |
|
|
- |
|
|
|
28 |
|
|
|
(4 |
) |
Subtotal |
|
|
(67 |
) |
|
|
194 |
|
|
|
718 |
|
Income
before income tax |
|
|
17,995 |
|
|
|
38,713 |
|
|
|
35,573 |
|
Income
tax expense |
|
|
4,614 |
|
|
|
5,991 |
|
|
|
9,416 |
|
Net
income |
|
|
13,381 |
|
|
|
32,722 |
|
|
|
26,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per basic ADS |
|
$ |
0.38 |
|
|
$ |
0.93 |
|
|
$ |
0.74 |
|
Earnings
per diluted ADS |
|
$ |
0.38 |
|
|
$ |
0.92 |
|
|
$ |
0.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin Analysis: |
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin |
|
|
50.0 |
% |
|
|
48.8 |
% |
|
|
50.0 |
% |
Operating
margin |
|
|
18.4 |
% |
|
|
24.3 |
% |
|
|
24.2 |
% |
Net
margin |
|
|
13.6 |
% |
|
|
20.6 |
% |
|
|
18.1 |
% |
|
|
|
|
|
Additional Data: |
|
|
|
|
Weighted
avg. ADS equivalents2 |
|
|
34,875 |
|
|
|
35,308 |
|
|
|
35,324 |
|
Diluted
ADS equivalents |
|
|
35,288 |
|
|
|
35,539 |
|
|
|
35,623 |
|
|
|
|
|
|
2 Assumes all outstanding ordinary shares are
represented by ADSs. Each ADS represents four ordinary
shares.
Silicon Motion Technology Corporation |
Reconciliation of GAAP to Non-GAAP Operating Results |
(in thousands, except percentages and per ADS data,
unaudited) |
|
|
|
For the Three Months Ended |
|
|
Dec.
31,2015 ($) |
|
Sep. 30, 2016
($) |
|
Dec. 31, 2016
($) |
Gross profit (GAAP) |
|
|
49,013 |
|
|
|
77,405 |
|
|
|
72,118 |
|
Gross margin (GAAP) |
|
|
50.0 |
% |
|
|
48.8 |
% |
|
|
50.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense(A) |
|
|
132 |
|
|
|
156 |
|
|
|
199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (non-GAAP) |
|
|
49,145 |
|
|
|
77,561 |
|
|
|
72,317 |
|
Gross margin (non-GAAP) |
|
|
50.1 |
% |
|
|
48.9 |
% |
|
|
50.2 |
% |
|
|
|
|
|
Operating expenses (GAAP) |
|
|
30,951 |
|
|
|
38,886 |
|
|
|
37,263 |
|
Stock-based compensation expense (A) |
|
|
(5,091 |
) |
|
|
(6,320 |
) |
|
|
(8,228 |
) |
Amortization of intangible assets |
|
|
(526 |
) |
|
|
(526 |
) |
|
|
(526 |
) |
Litigation expense |
|
|
(36 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
Acquisition-related expense |
|
|
(38 |
) |
|
|
- |
|
|
|
- |
|
Operating expenses (non-GAAP) |
|
|
25,260 |
|
|
|
32,039 |
|
|
|
28,507 |
|
|
|
|
|
|
Operating profit (GAAP) |
|
|
18,062 |
|
|
|
38,519 |
|
|
|
34,855 |
|
Operating margin (GAAP) |
|
|
18.4 |
% |
|
|
24.3 |
% |
|
|
24.2 |
% |
Total adjustments to operating profit |
|
|
5,823 |
|
|
|
7,003 |
|
|
|
8,955 |
|
Operating profit (non-GAAP) |
|
|
23,885 |
|
|
|
45,522 |
|
|
|
43,810 |
|
Operating margin (non-GAAP) |
|
|
24.4 |
% |
|
|
28.7 |
% |
|
|
30.4 |
% |
|
|
|
|
|
Non-operating income (expense) (GAAP) |
|
|
(67 |
) |
|
|
194 |
|
|
|
718 |
|
Foreign exchange loss (gain), net |
|
|
523 |
|
|
|
375 |
|
|
|
(112 |
) |
Impairment of long-term investments |
|
|
- |
|
|
|
- |
|
|
|
13 |
|
Non-operating income (expense) (non-GAAP) |
|
|
456 |
|
|
|
569 |
|
|
|
619 |
|
|
|
|
|
|
Net income (GAAP) |
|
|
13,381 |
|
|
|
32,722 |
|
|
|
26,157 |
|
Total
pre-tax impact of non-GAAP adjustments |
|
|
6,346 |
|
|
|
7,378 |
|
|
|
8,856 |
|
Income
tax impact of non-GAAP adjustments |
|
|
(76 |
) |
|
|
(1,768 |
) |
|
|
(1,147 |
) |
Net income (non-GAAP) |
|
|
19,651 |
|
|
|
38,332 |
|
|
|
33,866 |
|
|
|
|
|
|
Earnings per diluted ADS (GAAP) |
|
$ |
0.38 |
|
|
$ |
0.92 |
|
|
$ |
0.73 |
|
Earnings per diluted ADS (non-GAAP) |
|
$ |
0.55 |
|
|
$ |
1.07 |
|
|
$ |
0.95 |
|
|
|
|
|
|
Shares used in computing earnings per diluted ADS
(GAAP) |
|
|
35,288 |
|
|
|
35,539 |
|
|
|
35,623 |
|
Non-GAAP Adjustments |
|
|
205 |
|
|
|
244 |
|
|
|
201 |
|
Shares used in computing earnings per diluted ADS
(non-GAAP) |
|
|
35,493 |
|
|
|
35,783 |
|
|
|
35,824 |
|
|
|
|
|
|
(A)
Excludes stock-based compensation as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
132 |
|
|
|
156 |
|
|
|
199 |
|
Research & development |
|
|
3,323 |
|
|
|
4,009 |
|
|
|
5,076 |
|
Sales & marketing |
|
|
859 |
|
|
|
1,038 |
|
|
|
1,476 |
|
General & administrative |
|
|
909 |
|
|
|
1,273 |
|
|
|
1,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Motion Technology Corporation |
Consolidated Statements of Income |
(in thousands, except percentages, and per ADS data,
unaudited) |
|
|
|
|
For the Year Ended |
|
|
Dec. 31,
2015 ($) |
|
Dec. 31,
2016 ($) |
Net Sales |
|
|
361,297 |
|
|
|
556,146 |
|
Cost of sales |
|
|
176,765 |
|
|
|
281,541 |
|
Gross profit |
|
|
184,532 |
|
|
|
274,605 |
|
Operating expenses |
|
|
|
|
|
|
|
|
Research & development |
|
|
71,161 |
|
|
|
92,405 |
|
Sales & marketing |
|
|
20,173 |
|
|
|
25,765 |
|
General & administrative |
|
|
15,714 |
|
|
|
17,072 |
|
Amortization of intangibles assets |
|
|
1,051 |
|
|
|
2,103 |
|
Operating income |
|
|
76,433 |
|
|
|
137,260 |
|
|
|
|
|
|
|
|
|
|
Non-operating expense (income) |
|
|
|
|
|
|
|
|
Gain on
sale of investments |
|
|
3 |
|
|
|
2 |
|
Interest
income, net |
|
|
1,978 |
|
|
|
2,031 |
|
Foreign
exchange gain (loss), net |
|
|
76 |
|
|
|
(692 |
) |
Impairment of long-term investments |
|
|
- |
|
|
|
(13 |
) |
Others,
net |
|
|
10 |
|
|
|
42 |
|
Subtotal |
|
|
2,067 |
|
|
|
1,370 |
|
Income before income tax |
|
|
78,500 |
|
|
|
138,630 |
|
Income tax expense |
|
|
18,249 |
|
|
|
27,690 |
|
Net income |
|
|
60,251 |
|
|
|
110,940 |
|
|
|
|
|
|
|
|
|
|
Earnings per basic ADS |
|
$ |
1.75 |
|
|
$ |
3.15 |
|
Earnings per diluted ADS |
|
$ |
1.73 |
|
|
$ |
3.12 |
|
|
|
|
|
|
|
|
|
|
Margin Analysis: |
|
|
|
|
|
|
|
|
Gross margin |
|
|
51.1 |
% |
|
|
49.4 |
% |
Operating margin |
|
|
21.2 |
% |
|
|
24.7 |
% |
Net margin |
|
|
16.7 |
% |
|
|
20.0 |
% |
|
|
|
|
|
|
|
|
|
Additional Data: |
|
|
|
|
|
|
|
|
Weighted
avg. ADS equivalents |
|
|
34,525 |
|
|
|
35,230 |
|
Diluted ADS equivalents |
|
|
34,909 |
|
|
|
35,513 |
|
|
|
|
|
|
|
|
|
|
Silicon Motion Technology Corporation |
Reconciliation of GAAP to Non-GAAP Operating Results |
(in thousands, except percentages and per ADS data,
unaudited) |
|
|
|
For the Year Ended |
|
|
Dec. 31, 2015
($) |
|
Dec. 31, 2016
($) |
Gross profit (GAAP) |
|
|
184,532 |
|
|
|
274,605 |
|
Gross margin (GAAP) |
|
|
51.1 |
% |
|
|
49.4 |
% |
|
|
|
|
|
|
|
|
|
Stock-based compensation expense(A) |
|
|
262 |
|
|
|
400 |
|
|
|
|
|
|
|
|
|
|
Gross profit (non-GAAP) |
|
|
184,794 |
|
|
|
275,005 |
|
Gross margin (non-GAAP) |
|
|
51.2 |
% |
|
|
49.4 |
% |
|
|
|
|
Operating expenses (GAAP) |
|
|
108,099 |
|
|
|
137,345 |
|
Stock-based compensation expense (A) |
|
|
(10,157 |
) |
|
|
(16,964 |
) |
Amortization of intangible assets |
|
|
(1,051 |
) |
|
|
(2,103 |
) |
Litigation expense |
|
|
(128 |
) |
|
|
(52 |
) |
Acquisition-related expense |
|
|
(358 |
) |
|
|
- |
|
Operating expenses (non-GAAP) |
|
|
96,405 |
|
|
|
118,226 |
|
|
|
|
|
Operating profit (GAAP) |
|
|
76,433 |
|
|
|
137,260 |
|
Operating margin (GAAP) |
|
|
21.2 |
% |
|
|
24.7 |
% |
Total adjustments to operating profit |
|
|
11,956 |
|
|
|
19,519 |
|
Operating profit (non-GAAP) |
|
|
88,389 |
|
|
|
156,779 |
|
Operating margin (non-GAAP) |
|
|
24.5 |
% |
|
|
28.2 |
% |
|
|
|
|
Non-operating income (expense) (GAAP) |
|
|
2,067 |
|
|
|
1,370 |
|
Foreign exchange loss (gain), net |
|
|
(76 |
) |
|
|
692 |
|
Impairment of long-term investments |
|
|
- |
|
|
|
13 |
|
Non-operating income (expense) (non-GAAP) |
|
|
1,991 |
|
|
|
2,075 |
|
|
|
|
|
Net income (GAAP) |
|
|
60,251 |
|
|
|
110,940 |
|
Total
pre-tax impact of non-GAAP adjustments |
|
|
11,880 |
|
|
|
20,224 |
|
Income
tax impact of non-GAAP adjustments |
|
|
1,908 |
|
|
|
(1,171 |
) |
Net income (non-GAAP) |
|
|
74,039 |
|
|
|
129,993 |
|
|
|
|
|
Earnings per diluted ADS (GAAP) |
|
$ |
1.73 |
|
|
$ |
3.12 |
|
Earnings per diluted ADS (non-GAAP) |
|
$ |
2.11 |
|
|
$ |
3.64 |
|
|
|
|
|
Shares used in computing earnings per diluted ADS
(GAAP) |
|
|
34,909 |
|
|
|
35,513 |
|
Non-GAAP Adjustments |
|
|
158 |
|
|
|
155 |
|
Shares used in computing earnings per diluted ADS
(non-GAAP) |
|
|
35,067 |
|
|
|
35,668 |
|
|
|
|
|
(A) Excludes stock-based
compensation as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
262 |
|
|
|
400 |
|
Research & development |
|
|
6,565 |
|
|
|
10,529 |
|
Sales & marketing |
|
|
1,790 |
|
|
|
3,122 |
|
General & administrative |
|
|
1,802 |
|
|
|
3,313 |
|
|
|
|
|
|
|
|
|
|
Silicon Motion Technology Corporation |
Consolidated Balance Sheet |
(In thousands, unaudited) |
|
|
|
|
|
|
|
|
|
Dec.
31,2015 ($) |
|
Sep.
30,2016 ($) |
|
Dec.
31,2016 ($) |
Cash and
cash equivalents |
|
180,519 |
|
260,468 |
|
274,483 |
Short-term investments |
|
4,681 |
|
8,683 |
|
3,302 |
Accounts
receivable (net) |
|
58,963 |
|
61,800 |
|
73,599 |
Inventories |
|
47,110 |
|
79,728 |
|
71,873 |
Refundable deposits – current |
|
19,328 |
|
44,289 |
|
44,393 |
Prepaid
expenses and other current assets |
|
4,575 |
|
6,392 |
|
9,236 |
Total
current assets |
|
315,176 |
|
461,360 |
|
476,886 |
Long-term
investments |
|
133 |
|
133 |
|
120 |
Property
and equipment (net) |
|
50,469 |
|
48,726 |
|
47,892 |
Goodwill
and intangible assets (net) |
|
75,990 |
|
74,423 |
|
73,883 |
Other
assets |
|
3,860 |
|
11,033 |
|
7,231 |
Total
assets |
|
445,628 |
|
595,675 |
|
606,012 |
|
|
|
|
|
|
|
Accounts
payable |
|
22,541 |
|
38,207 |
|
31,739 |
Loans |
|
- |
|
35,000 |
|
25,000 |
Income
tax payable |
|
13,395 |
|
22,148 |
|
20,271 |
Accrued
expenses and other current liabilities |
|
52,351 |
|
73,308 |
|
68,960 |
Total
current liabilities |
|
88,287 |
|
168,663 |
|
145,970 |
Other
liabilities |
|
12,843 |
|
16,766 |
|
17,319 |
Total
liabilities |
|
101,130 |
|
185,429 |
|
163,289 |
Shareholders’ equity |
|
344,498 |
|
410,246 |
|
442,723 |
Total
liabilities & shareholders’ equity |
|
445,628 |
|
595,675 |
|
606,012 |
|
|
|
|
|
|
|
About Silicon Motion:We are the global leader
in supplying NAND flash controllers for solid state storage devices
and the merchant leader in supplying SSD controllers. We have
the broadest portfolio of controller technologies and solutions and
ship over 750 million NAND controllers annually, more than any
other company in the world. Our controllers are widely used
in embedded storage products such as SSDs and eMMCs which are found
in smartphones, PCs and industrial and commercial
applications. We also supply specialized high-performance
hyperscale datacenter and industrial SSD solutions. Our
customers include most of the NAND flash vendors, storage device
module makers and leading OEMs. For further information on
Silicon Motion, visit us at www.siliconmotion.com.
Forward-Looking Statements:This press release
contains "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, including without
limitation, statements about Silicon Motion’s currently expected
first quarter of 2017 and full year 2017 revenue, gross margin and
operating expenses, all of which reflect management’s estimates
based on information available at this time of this press
release. While Silicon Motion believes these estimates to be
meaningful, these amounts could differ materially from actual
reported amounts for the first quarter of 2017 and full year 2017.
Forward-looking statements also include, without limitation,
statements regarding trends in the multimedia consumer electronics
market and our future results of operations, financial condition
and business prospects. In some cases, you can identify
forward-looking statements by terminology such as “may,” “will,”
“should,” “expect,” “intend,” “plan,” “anticipate,” “believe,”
“estimate,” “predict,” “potential,” “continue,” or the negative of
these terms or other comparable terminology. Although such
statements are based on our own information and information from
other sources we believe to be reliable, you should not place undue
reliance on them. These statements involve risks and
uncertainties, and actual market trends or our actual results of
operations, financial condition or business prospects may differ
materially from those expressed or implied in these forward looking
statements for a variety of reasons. Potential risks and
uncertainties include, but are not limited to the 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 markets; decreases in the overall average
selling prices of our products; changes in the relative sales mix
of our products; our ability to continue to successfully integrate
our 2015 acquisition of Shannon Systems; changes in our cost of
finished goods; the payment, or non-payment, of cash dividends,
including our recently announced increase to our annual dividend,
in the future at the discretion of our board of directors; changes
in our cost of finished goods; the availability, pricing, and
timeliness of delivery of other components and raw materials used
in our customers’ products; our customers’ sales outlook,
purchasing patterns, and inventory adjustments based on consumer
demands and general economic conditions, its customers and
consumers; our ability to successfully develop, introduce, and sell
new or enhanced products in a timely manner; and the timing of new
product announcements or introductions by us or by our competitors.
For additional discussion of these risks and uncertainties and
other factors, please see the documents we file from time to time
with the Securities and Exchange Commission, including our Annual
Report on Form 20-F filed on April 29, 2016. We assume no
obligation to update any forward-looking statements, which apply
only as of the date of this press release.
Investor Contact:
Jason Tsai
Senior Director of IR and Strategy
E-mail: jtsai@siliconmotion.com
Investor Contact:
Selina Hsieh
Investor Relations
E-mail: ir@siliconmotion.com
Media Contact:
Sara Hsu
Project Manager
E-mail: sara.hsu@siliconmotion.com
Silicon Motion Technology (NASDAQ:SIMO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Silicon Motion Technology (NASDAQ:SIMO)
Historical Stock Chart
From Apr 2023 to Apr 2024