Silicon Motion Announces New $200 Million Share Repurchase Program and Management to Purchase Shares
July 31 2017 - 6:00PM
Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon
Motion” or the “Company”) today announced that its Board of
Directors has authorized a new program for the Company to
repurchase up to $200 million of its ADS over a 12 month period.
Separately, Silicon Motion executive officers have notified the
Company that they intend to purchase $2.5 million of its ADSs.
“We believe that we are building a great
business with a strong foundation of increasing depth and breath of
storage products, from differentiated turnkey SSD controllers to
unique SSD solutions that address the growing needs of PC OEMs,
hyperscaler data centers, automotive OEMs and other applications,”
said Wallace Kou, Silicon Motion’s President and CEO. “This
year, our business is facing very strong headwind caused by
temporary NAND supply tightness. As supply growth accelerates
from new 3D NAND capacity coming on line, we believe current
headwind will turn to tailwind and our business will rebound.”
Repurchases under the new program will be made
in the open market or according to other methods in compliance with
Securities and Exchange Commission Rule 10b-18, subject to market
conditions, applicable legal requirements and other factors.
The Company expects to use cash on hand to fund the repurchases.
The plan does not obligate the Company to acquire any particular
amount of ADS, and it may be suspended at any time at the Company's
discretion.
As of June 30, 2017, the Company had
approximately $306.0 million of cash, cash equivalents, and
marketable securities, compared to approximately $219.1 million the
prior year.
The Company’s CEO, CFO and several other
executive officers have notified us of their intention to acquire
within the next 6 months a total of up to $2.5 million of the
Company’s ADSs, subject to compliance with relevant securities laws
and regulations and company policies.
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 third quarter of 2017 and full year 2017
expectations of 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 third
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 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 28, 2017, as amended on May 2, 2017.
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
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