Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon
Motion” or the “Company”) today announced its financial results for
the quarter ended June 30, 2019. For the second quarter, net
sales (GAAP) increased to $98.8 million from $94.7 million in the
first quarter 2019. Net income (GAAP) increased to $26.5 million or
$0.75 per diluted ADS (GAAP) from $8.3 million or $0.23 per diluted
ADS (GAAP) in the first quarter 2019.
For the second quarter, net sales (non-GAAP)
increased to $94.3 million from $88.9 million in the first quarter
2019. Net income (non-GAAP) increased to $18.6 million or $0.52 per
diluted ADS (non-GAAP) from $15.0 million or $0.42 per diluted ADS
(non-GAAP) in the first quarter 2019.
_______________________________1 FCI results are
excluded from non-GAAP
Second Quarter 2019 Review “Our
controller sales continued to strengthen,” said Wallace Kou,
President and CEO of Silicon Motion. “Sales of both our SSD
and eMMC+UFS controllers grew, with SSD controllers to our flash
partners growing almost 30% sequentially, while to module makers
was weaker than expected. Sales of our eMMC+UFS controllers
were stronger than expected, while sales of SSD solutions were
worse. Our gross margins, however, were better than expected
due to more favorable mix of higher margin controllers.”
|
|
|
Key Financial Results |
|
|
(in millions, except percentages and per ADS amounts) |
GAAP |
Non-GAAP |
2Q 2019 |
1Q 2019 |
2Q 2018 |
2Q 2019 |
1Q 2019 |
2Q 2018 |
Revenue |
$98.8 |
$94.7 |
$138.1 |
$94.3 |
$88.9 |
$130.6 |
Gross profit |
$46.1 |
$47.6 |
$65.6 |
$48.5 |
$44.6 |
$61.8 |
Percent of revenue |
46.7% |
50.3% |
47.5% |
51.5% |
50.2% |
47.3% |
Operating expenses |
$33.8 |
$39.5 |
$31.6 |
$31.1 |
$28.6 |
$26.3 |
Operating income |
$12.4 |
$8.1 |
$34.0 |
$17.4 |
$16.0 |
$35.5 |
Percent of revenue |
12.5% |
8.5% |
24.6% |
18.4% |
18.0% |
27.2% |
Earnings per diluted ADS |
$0.75 |
$0.23 |
$0.85 |
$0.52 |
$0.42 |
$0.92 |
|
|
|
|
|
|
|
Other Financial Information |
|
|
|
(in millions) |
2Q 2019 |
1Q 2019 |
2Q 2018 |
Cash and cash equivalents, and short-term investments |
$345.2 |
$281.0 |
$364.2 |
Bank loans |
-- |
-- |
$12.0 |
Loan repayments |
-- |
-- |
$8.7 |
Capital expenditures |
$2.9 |
$1.2 |
$3.2 |
Dividend payments |
$10.9 |
$10.9 |
$10.8 |
|
|
|
|
During the second quarter, we had $2.9 million
of capital expenditures for the routine purchase of software,
design tools and other items.
Our second quarter cash flows were as
follows:
3 months ended June 30, 2019 |
|
(In $ millions) |
|
Net income (GAAP) |
26.5 |
|
Depreciation & amortization |
3.3 |
|
Changes in operating assets and liabilities |
20 |
|
Others |
(9.7 |
) |
Net cash provided by operating activities |
40.1 |
|
Disposal of long term investments |
45.7 |
|
Acquisition of property and equipment |
(2.9 |
) |
Net cash provided by investing activities |
42.8 |
|
|
|
Dividend |
(10.9 |
) |
Net cash used in financing activities |
(10.9 |
) |
Effects of changes in foreign currency exchange rates on cash |
(0.8 |
) |
Net increase in cash, cash equivalents and restricted cash |
71.2 |
|
|
|
|
Returning Value to ShareholdersOn October 29,
2018, 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 May 23, 2019, we paid $10.9 million to shareholders as
the third installment of our annual dividend.
On November 21, 2018, the Company announced that
our Board of Directors had authorized a new program for the Company
to repurchase up to $200 million of our ADS over a 24 month
period. In the second quarter, we did not repurchase any of
our ADSs and since the start of this program, we have repurchase
$34.8 million of our ADSs.
Business Outlook“We expect our
revenues to continue growing quarter-after-quarter through the
balance of this year. We believe that full-year SSD
controller shipments will grow strongly and in-line with market
expectations, though revenue will likely be less than shipment
growth because of less favorable product mix. We believe our
client SSD controller market share has continued to increase and
that we are well positioned for continued SSD controller growth
next year. eMMC+UFS controller sales should continue growing
sequentially through the second half of this year, though full-year
sales will likely decline meaningfully. Our Shannon
open-channel SSDs are now in commercial deployment at our two B-A-T
customers, important milestones, but full-year sales will be down
sharply compared to last year. Next year, we are expecting
SSD solutions to rebound.”
For the third quarter of 2019, management
expects:
|
GAAP |
Non-GAAP Adjustment |
Non-GAAP |
Revenue |
$104m to $108m |
-- |
$104m to $108m |
|
+5% to 9% Q/Q |
|
+10% to 15% Q/Q |
Gross margin |
48.0% to 50.0% |
Approximately $0m |
48.0% to 50.0%* |
Operating margin |
13.8% to 17.8%** |
Approximately $3m to $4m |
17.3% to 20.3%*** |
* Excludes $0.1 million of stock-based compensation.** Excludes
yet to be determined Shannon goodwill and intangible assets
impairment charges.*** Excludes $0.3 million of amortization of
intangible assets and $2.4 million to $3.4 million of stock-based
compensation.
For the full-year 2019, management expects:
|
GAAP |
Non-GAAP Adjustment |
Non-GAAP |
Revenue |
$420m to $428m |
Approximately -$10m |
$410m to $418m* |
|
-21% to -19% Y/Y |
|
-18% to -16% Y/Y |
Gross margin |
46.8% to 48.8% |
Approximately -$0m |
47.9% to 49.9%** |
Operating margin |
11.4% to 15.0%*** |
Approximately $24m to $26m |
17.6% to 20.6%**** |
* Excludes $10.4 million FCI results (January to
May sales)** Excludes $5.7 million of FCI results (gross profit),
$5.0 million of Shannon inventory write-down and $0.3 million of
stock-based compensation.*** Excludes yet to be determined Shannon
goodwill and intangible assets impairment charges.**** Excludes
$3.0 million of FCI results (operating profit), $5.0 million of
Shannon inventory write-down, $1.0 million of amortization of
intangible assets and $14.8 million to $16.8 million of stock-based
compensation.
On May 15, 2019, we disclosed in our annual
report filed on Form 20-F that we reduced our Shannon 2019 sales
forecast meaningfully, which is a triggering event that will
require us to reevaluate our Shannon reporting unit’s goodwill and
intangible assets. Further deterioration in Shannon’s
operating performance since then has necessitated a $5.0 million
inventory write-down in the second quarter, and we believe we will
more than likely have to write-down a significant portion of the
reporting unit’s $33.7 million of goodwill and intangible assets
later this year.
Conference Call & Webcast:
The Company’s management team will conduct a
conference call at 8:00 am Eastern Time on July 31, 2019.
Speakers:Wallace Kou, President & CEORiyadh
Lai, CFOChris Chaney, Director of Investor Relations &
Strategy
CONFERENCE CALL ACCESS NUMBERS:USA (Toll Free):
1 866 519 4004USA (Toll): 1 845 675 0437 Taiwan
(Toll Free): 080 909 1568Participant Passcode: 4865285
REPLAY NUMBERS (for 7 days):USA (Toll Free): 1
855 452 5696USA (Toll): 1 646 254 3697Participant Passcode:
4865285
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 discontinued
operation, 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
revenue, expenses, gains and losses that we believe are not
indicative of our core operating results and because they are
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 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.
Shannon inventory write-down is related to the
deteriorating business outlook of our Shannon reporting unit and
high likelihood that a large portion of the unit’s goodwill and
intangible assets will need to be written down later in 2019.
Inventory write-down is necessary because a portion of our unit’s
SSD and NAND flash inventory is not saleable and/or higher than
fair market price.
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.
M&A transaction expenses consist of direct
costs of transactions, such as legal and financial adviser fees.
The Company does not undertake M&A transactions on a
predictable cycle, so we excluded the effect of these costs in
calculating our non-GAAP operating expenses and net income.
FCI results refers to operating results of our
mobile communications product-line, the sale of which was announced
on March 7, 2019 and closed on May 31, 2019. Under GAAP,
according to FASB ASU 2014-08, this disposal transaction does not
meet the threshold for presenting as a discontinued operation.
We are excluding FCI from our financial results for non-GAAP
as we believe this provides investors with enhanced transparency.
Impairment of goodwill and intangible assets
evaluates the recoverability of goodwill and intangible assets
annually, or sooner if events or changes in circumstances indicate
that the carrying amount may not be recoverable.
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$. We do not use financial
instruments to manage the impact on our operations from changes in
foreign exchange rates, and because our operations are subject to
fluctuations in foreign exchange rates, we therefore exclude
foreign exchange gains and losses when presenting non-GAAP
financial measures.
Gains on disposal of long-term investments
relate to gains from our sale of FCI, our specialty RF IC product
line, and sale of our investment in ProGrade, a professional-grade
memory card manufacturer.
Gain and loss on equity-method investment
consists of gain and/or loss related to our investment in a
privately-held company, which varies depending on the operational
and financial performance of the company in which we invested. We
believe that providing non-GAAP measures excluding these charges,
as well as the GAAP measures, assists our investors because such
charges are not reflective of our ongoing operations.
|
Silicon Motion
Technology CorporationConsolidated Statements of Income(in
thousands, except percentages and per ADS data, unaudited) |
|
|
|
For the Three Months Ended |
|
Jun. 30, 2018($) |
|
Mar. 31, 2019($) |
|
Jun. 30, 2019($) |
Net Sales |
|
138,055 |
|
|
|
94,694 |
|
|
|
98,846 |
|
Cost of sales |
|
72,474 |
|
|
|
47,075 |
|
|
|
52,717 |
|
Gross profit |
|
65,581 |
|
|
|
47,619 |
|
|
|
46,129 |
|
Operating expenses |
|
|
|
Research & development |
|
20,014 |
|
|
|
27,970 |
|
|
|
23,893 |
|
Sales & marketing |
|
7,144 |
|
|
|
6,962 |
|
|
|
6,062 |
|
General & administrative |
|
3,718 |
|
|
|
4,357 |
|
|
|
3,554 |
|
Amortization of intangibles assets |
|
741 |
|
|
|
255 |
|
|
|
255 |
|
Operating income |
|
33,964 |
|
|
|
8,075 |
|
|
|
12,365 |
|
Non-operating income
(expense) |
|
|
|
Interest income, net |
|
1,394 |
|
|
|
1,495 |
|
|
|
1,770 |
|
Gain on disposal of long-term investment |
|
- |
|
|
|
- |
|
|
|
12,904 |
|
Foreign exchange gain (loss), net |
|
(933 |
) |
|
|
494 |
|
|
|
(68 |
) |
Gain (loss) on equity-method investment |
|
(205 |
) |
|
|
- |
|
|
|
- |
|
Others, net |
|
42 |
|
|
|
17 |
|
|
|
34 |
|
Subtotal |
|
298 |
|
|
|
2,006 |
|
|
|
14,640 |
|
Income before income tax |
|
34,262 |
|
|
|
10,081 |
|
|
|
27,005 |
|
Income tax expense |
|
3,534 |
|
|
|
1,810 |
|
|
|
521 |
|
Net income |
|
30,728 |
|
|
|
8,271 |
|
|
|
26,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per basic ADS |
$ |
0.85 |
|
|
$ |
0.23 |
|
|
$ |
0.75 |
|
Earnings per diluted ADS |
$ |
0.85 |
|
|
$ |
0.23 |
|
|
$ |
0.75 |
|
|
|
|
|
Margin
Analysis: |
|
|
|
Gross margin |
|
47.5 |
% |
|
|
50.3 |
% |
|
|
46.7 |
% |
Operating margin |
|
24.6 |
% |
|
|
8.5 |
% |
|
|
12.5 |
% |
Net margin |
|
22.3 |
% |
|
|
8.7 |
% |
|
|
26.8 |
% |
|
|
|
|
Additional
Data: |
|
|
|
Weighted avg. ADS
equivalents2 |
|
36,113 |
|
|
|
35,286 |
|
|
|
35,518 |
|
Diluted ADS equivalents |
|
36,151 |
|
|
|
35,473 |
|
|
|
35,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________________2 Assumes all
outstanding ordinary shares are represented by ADSs. Each ADS
represents four ordinary shares.
|
Silicon Motion Technology CorporationReconciliation of GAAP to
Non-GAAP Operating Results(in thousands, except percentages and per
ADS data, unaudited) |
|
|
|
For the Three Months Ended |
|
Jun. 30,2018($) |
|
Mar. 31,2019($) |
|
Jun. 30,2019($) |
Revenue (GAAP) |
|
138,055 |
|
|
|
94,694 |
|
|
|
98,846 |
|
FCI results |
|
(7,503 |
) |
|
|
(5,793 |
) |
|
|
(4,566 |
) |
Revenue (non-GAAP) |
|
130,552 |
|
|
|
88,901 |
|
|
|
94,280 |
|
|
|
|
|
Gross profit (GAAP) |
|
65,581 |
|
|
|
47,619 |
|
|
|
46,129 |
|
Gross margin (GAAP) |
|
47.5 |
% |
|
|
50.3 |
% |
|
|
46.7 |
% |
Stock-based compensation expense (A) |
|
5 |
|
|
|
95 |
|
|
|
7 |
|
Shannon inventory write-down |
|
- |
|
|
|
- |
|
|
|
4,985 |
|
FCI results |
|
(3,806 |
) |
|
|
(3,078 |
) |
|
|
(2,597 |
) |
Gross profit (non-GAAP) |
|
61,780 |
|
|
|
44,636 |
|
|
|
48,524 |
|
Gross margin (non-GAAP) |
|
47.3 |
% |
|
|
50.2 |
% |
|
|
51.5 |
% |
|
|
|
|
Operating expenses (GAAP) |
|
31,617 |
|
|
|
39,544 |
|
|
|
33,764 |
|
Stock-based compensation expense (A) |
|
(669 |
) |
|
|
(4,095 |
) |
|
|
(275 |
) |
Amortization of intangible assets |
|
(741 |
) |
|
|
(255 |
) |
|
|
(255 |
) |
Impairment loss of goodwill and intangible assets |
|
- |
|
|
|
- |
|
|
|
- |
|
M&A transaction expenses |
|
- |
|
|
|
(226 |
) |
|
|
226 |
|
Litigation expense |
|
(8 |
) |
|
|
2 |
|
|
|
- |
|
FCI results |
|
(3,940 |
) |
|
|
(6,357 |
) |
|
|
(2,324 |
) |
Operating expenses (non-GAAP) |
|
26,259 |
|
|
|
28,613 |
|
|
|
31,136 |
|
|
|
|
|
Operating profit (GAAP) |
|
33,964 |
|
|
|
8,075 |
|
|
|
12,365 |
|
Operating margin (GAAP) |
|
24.6 |
% |
|
|
8.5 |
% |
|
|
12.5 |
% |
Total adjustments to operating profit |
|
1,557 |
|
|
|
7,948 |
|
|
|
5,023 |
|
Operating profit
(non-GAAP) |
|
35,521 |
|
|
|
16,023 |
|
|
|
17,388 |
|
Operating margin (non-GAAP) |
|
27.2 |
% |
|
|
18.0 |
% |
|
|
18.4 |
% |
|
|
|
|
Non-operating income
(expense) (GAAP) |
|
298 |
|
|
|
2,006 |
|
|
|
14,640 |
|
Foreign exchange loss (gain), net |
|
933 |
|
|
|
(494 |
) |
|
|
68 |
|
Gain on disposal of long-term investment |
|
- |
|
|
|
- |
|
|
|
(12,904 |
) |
Loss (gain) on equity-method investment |
|
205 |
|
|
|
- |
|
|
|
- |
|
FCI results |
|
(22 |
) |
|
|
(8 |
) |
|
|
8 |
|
Non-operating income
(expense) (non-GAAP) |
|
1,414 |
|
|
|
1,504 |
|
|
|
1,812 |
|
|
|
|
|
Net income (GAAP) |
|
30,728 |
|
|
|
8,271 |
|
|
|
26,484 |
|
Total pre-tax impact of non-GAAP adjustments |
|
2,673 |
|
|
|
7,446 |
|
|
|
(7,805 |
) |
Income tax impact of non-GAAP adjustments |
|
(133 |
) |
|
|
(674 |
) |
|
|
(76 |
) |
Net income (non-GAAP) |
|
33,268 |
|
|
|
15,043 |
|
|
|
18,603 |
|
|
|
|
|
Earnings per diluted ADS (GAAP) |
$ |
0.85 |
|
|
$ |
0.23 |
|
|
$ |
0.75 |
|
Earnings per diluted ADS (non-GAAP) |
$ |
0.92 |
|
|
$ |
0.42 |
|
|
$ |
0.52 |
|
|
|
|
|
Shares used in
computing earnings per diluted ADS (GAAP) |
|
36,151 |
|
|
|
35,473 |
|
|
|
35,536 |
|
Non-GAAP Adjustments |
|
33 |
|
|
|
85 |
|
|
|
29 |
|
Shares used in computing earnings per diluted ADS
(non-GAAP) |
|
36,184 |
|
|
|
35,558 |
|
|
|
35,565 |
|
|
|
|
|
(A) Excludes
stock-based compensation as follows: |
|
|
|
Cost of Sales |
|
5 |
|
|
|
95 |
|
|
|
7 |
|
Research & development |
|
213 |
|
|
|
2,696 |
|
|
|
128 |
|
Sales & marketing |
|
407 |
|
|
|
555 |
|
|
|
107 |
|
General & administrative |
|
49 |
|
|
|
844 |
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Motion Technology CorporationConsolidated Statements of
Income(in thousands, except percentages, and per ADS data,
unaudited) |
|
|
|
For the Six Months Ended |
|
Jun. 30,
2018($) |
|
Jun. 30,
2019($) |
Net Sales |
|
268,399 |
|
|
|
193,540 |
|
Cost of sales |
|
140,264 |
|
|
|
99,792 |
|
Gross profit |
|
128,135 |
|
|
|
93,748 |
|
Operating expenses |
|
|
Research & development |
|
45,846 |
|
|
|
51,862 |
|
Sales & marketing |
|
14,110 |
|
|
|
13,025 |
|
General & administrative |
|
7,881 |
|
|
|
7,911 |
|
Amortization of intangibles assets |
|
1,482 |
|
|
|
510 |
|
Operating income |
|
58,816 |
|
|
|
20,440 |
|
|
|
|
Non-operating expense (income) |
|
|
Interest income, net |
|
2,607 |
|
|
|
3,265 |
|
Gain on disposal of long-term investment |
|
- |
|
|
|
12,904 |
|
Foreign exchange gain (loss), net |
|
143 |
|
|
|
425 |
|
Gain (loss) on equity-method investment |
|
(205 |
) |
|
|
- |
|
Others, net |
|
100 |
|
|
|
53 |
|
Subtotal |
|
2,645 |
|
|
|
16,647 |
|
Income before income tax |
|
61,461 |
|
|
|
37,087 |
|
Income tax expense |
|
7,673 |
|
|
|
2,331 |
|
Net income |
|
53,788 |
|
|
|
34,756 |
|
|
|
|
|
|
|
|
|
Earnings per basic ADS |
$ |
1.49 |
|
|
$ |
0.98 |
|
Earnings per diluted ADS |
$ |
1.49 |
|
|
$ |
0.98 |
|
|
|
|
|
|
|
|
|
Margin Analysis: |
|
|
Gross margin |
|
47.7 |
% |
|
|
48.4 |
% |
Operating margin |
|
21.9 |
% |
|
|
10.6 |
% |
Net margin |
|
20.0 |
% |
|
|
18.0 |
% |
|
|
|
Additional Data: |
|
|
Weighted avg. ADS
equivalents |
|
36,007 |
|
|
|
35,402 |
|
Diluted ADS equivalents |
|
36,135 |
|
|
|
35,505 |
|
|
|
|
|
|
|
|
|
|
Silicon Motion Technology CorporationReconciliation of GAAP to
Non-GAAP Operating Results(in thousands, except percentages and per
ADS data, unaudited) |
|
|
|
For the Six Months Ended |
|
Jun. 30, 2018($) |
|
Jun. 30,
2019($) |
Revenue (GAAP) |
|
268,399 |
|
|
|
193,540 |
|
FCI results |
|
(15,375 |
) |
|
|
(10,359 |
) |
Revenue (non-GAAP) |
|
253,024 |
|
|
|
183,181 |
|
|
|
|
Gross profit (GAAP) |
|
128,135 |
|
|
|
93,748 |
|
Gross margin (GAAP) |
|
47.7 |
% |
|
|
48.4 |
% |
Stock-based compensation expense(A) |
|
52 |
|
|
|
102 |
|
Shannon inventory write-down |
|
- |
|
|
|
4,985 |
|
FCI results |
|
(7,548 |
) |
|
|
(5,675 |
) |
Gross profit (non-GAAP) |
|
120,639 |
|
|
|
93,160 |
|
Gross margin (non-GAAP) |
|
47.7 |
% |
|
|
50.9 |
% |
|
|
|
Operating expenses (GAAP) |
|
69,319 |
|
|
|
73,308 |
|
Stock-based compensation expense (A) |
|
(3,536 |
) |
|
|
(4,369 |
) |
Amortization of intangible assets |
|
(1,482 |
) |
|
|
(510 |
) |
Litigation expense |
|
(21 |
) |
|
|
2 |
|
FCI results |
|
(8,520 |
) |
|
|
(8,682 |
) |
Operating expenses (non-GAAP) |
|
55,760 |
|
|
|
59,749 |
|
|
|
|
Operating profit (GAAP) |
|
58,816 |
|
|
|
20,440 |
|
Operating margin (GAAP) |
|
21.9 |
% |
|
|
10.6 |
% |
Total adjustments to operating profit |
|
6,063 |
|
|
|
12,971 |
|
Operating profit
(non-GAAP) |
|
64,879 |
|
|
|
33,411 |
|
Operating margin (non-GAAP) |
|
25.6 |
% |
|
|
18.2 |
% |
|
|
|
Non-operating income
(expense) (GAAP) |
|
2,645 |
|
|
|
16,647 |
|
Foreign exchange loss (gain), net |
|
(143 |
) |
|
|
(425 |
) |
Gain on disposal of long-term investment |
|
- |
|
|
|
(12,904 |
) |
Loss (gain) on equity-method investment |
|
205 |
|
|
|
- |
|
FCI results |
|
(33 |
) |
|
|
(3 |
) |
Non-operating income
(expense) (non-GAAP) |
|
2,674 |
|
|
|
3,315 |
|
|
|
|
Net income (GAAP) |
|
53,788 |
|
|
|
34,756 |
|
Total pre-tax impact of non-GAAP adjustments |
|
6,092 |
|
|
|
(361 |
) |
Income tax impact of non-GAAP adjustments |
|
(370 |
) |
|
|
(750 |
) |
Net income (non-GAAP) |
|
59,510 |
|
|
|
33,645 |
|
|
|
|
Earnings per diluted ADS (GAAP) |
$ |
1.49 |
|
|
$ |
0.98 |
|
Earnings per diluted ADS (non-GAAP) |
$ |
1.64 |
|
|
$ |
0.95 |
|
|
|
|
Shares used in computing earnings per diluted ADS
(GAAP) |
|
36,135 |
|
|
|
35,505 |
|
Non-GAAP Adjustments |
|
41 |
|
|
|
56 |
|
Shares used in computing earnings per diluted ADS
(non-GAAP) |
|
36,176 |
|
|
|
35,561 |
|
|
|
|
(A) Excludes stock-based
compensation as follows: |
|
|
Cost of Sales |
|
52 |
|
|
|
102 |
|
Research & development |
|
1,965 |
|
|
|
2,823 |
|
Sales & marketing |
|
1,007 |
|
|
|
662 |
|
General & administrative |
|
564 |
|
|
|
884 |
|
|
|
|
|
|
|
|
Silicon Motion Technology CorporationConsolidated Balance Sheet (In
thousands, unaudited) |
|
|
|
|
|
|
|
Jun.
30,2018 ($) |
|
Mar.
31,2019 ($) |
|
Jun.
30,2019 ($) |
Cash and cash equivalents |
356,200 |
|
277,168 |
|
342,930 |
Short-term investments |
7,961 |
|
3,833 |
|
2,309 |
Accounts receivable (net) |
78,657 |
|
80,591 |
|
80,782 |
Inventories |
93,716 |
|
77,814 |
|
79,252 |
Refundable deposits –
current |
19,337 |
|
18,675 |
|
24,074 |
Prepaid expenses and other current assets |
7,687 |
|
39,039 |
|
17,663 |
Total current assets |
563,558 |
|
497,120 |
|
547,010 |
Long-term investments |
4,510 |
|
4,242 |
|
3,000 |
Property and equipment
(net) |
51,638 |
|
97,970 |
|
97,981 |
Goodwill and intangible assets
(net) |
64,904 |
|
58,935 |
|
33,714 |
Other assets |
6,995 |
|
13,491 |
|
13,911 |
Total assets |
691,605 |
|
671,758 |
|
695,616 |
|
|
|
|
|
|
Accounts payable |
41,975 |
|
28,557 |
|
37,845 |
Loans |
12,000 |
|
- |
|
- |
Income tax payable |
6,736 |
|
2,219 |
|
1,346 |
Accrued expenses and other
current liabilities |
53,160 |
|
63,858 |
|
54,183 |
Total current liabilities |
113,871 |
|
94,634 |
|
93,374 |
Other liabilities |
27,307 |
|
32,313 |
|
31,884 |
Total liabilities |
141,178 |
|
126,947 |
|
125,258 |
Shareholders’ equity |
550,427 |
|
544,811 |
|
570,358 |
Total liabilities &
shareholders’ equity |
691,605 |
|
671,758 |
|
695,616 |
|
|
|
|
|
|
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 our controllers are widely used in embedded
storage products such as SSDs and eMMC+UFS devices, which are found
in smartphones, PCs and commercial and industrial applications. We
have shipped over six billion NAND controllers in the last ten
years, more than any other company in the world. We also
supply customized high-performance hyperscale data center 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 2019 and full year 2019
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 2019 and full year 2019. Forward-looking statements also
include, without limitation, statements regarding trends in the
semiconductor or consumer electronics markets 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;
the effects on our business and our customer’s business taking into
account the ongoing US-China tariffs and trade disputes; potential
write-downs of our Shannon unit’s goodwill and intangible
assets; decreases in the overall average selling prices of our
products; changes in the relative sales mix of our products;
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 and any announced planned increases in such dividends;
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; any potential impairment
charges that may be incurred related to businesses previously
acquired or divested in the future; 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 May 15, 2019. We assume no obligation to update
any forward-looking statements, which apply only as of the date of
this press release.
Investor
Contact: |
Investor
Contact: |
Christopher Chaney |
Selina Hsieh |
Director, Investor Relations & Strategy |
Investor Relations |
E-mail: CChaney@siliconmotion.com |
E-mail: ir@siliconmotion.com |
|
|
Media Contact: |
|
Sara Hsu |
|
Project Manager |
|
E-mail: sara.hsu@siliconmotion.com |
|
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