Financial Highlights
Silicon Motion Technology Corporation (NasdaqGS:SIMO) (“Silicon
Motion” or the “Company”) today announced its financial results for
the quarter ended June 30, 2018. For the second quarter, net
sales increased 6% sequentially to $138.1 million from $130.3
million in the first quarter 2018. Net income (GAAP) increased to
$30.7 million or $0.85 per diluted ADS (GAAP) from a net income
(GAAP) of $23.1 million or $0.64 per diluted ADS (GAAP) in the
first quarter 2018.
For the second quarter, net income (non-GAAP)
increased to $33.2 million or $0.92 per diluted ADS (non-GAAP) from
a net income (non-GAAP) of $25.6 million or $0.71 per diluted ADS
(non-GAAP) in the first quarter 2018.
Second Quarter 2018 Review “In
the second quarter, our client SSD controller sales continued to
grow sequentially as well as year-over-year. In
addition, our pipeline of SSD controller projects with NAND flash
makers increased over 50% sequentially in the quarter, which is
indicative of our customers growing focus on SSDs and our role as
their controller partner,” said Wallace Kou, President and CEO of
Silicon Motion. “Separately, our SSD solutions grew strongly
while our eMMC sales declined slightly.”
Sales
(in millions, except percentages) |
2Q 2018 |
1Q 2018 |
2Q 2017 |
Sales |
Mix |
Sales |
Mix |
Sales |
Mix |
Mobile Storage*Q/QY/Y |
$129.4+7%+6% |
94% |
$121.4-3%+4% |
93% |
$121.6+4%-6% |
92% |
Mobile Communications** |
$7.5 |
5% |
$7.9 |
6% |
$10.0 |
7% |
Others |
$1.1 |
1% |
$1.1 |
1% |
$1.2 |
1% |
Total revenueQ/QY/Y |
$138.1+6%+4% |
100% |
$130.3-4%+2% |
100% |
$132.7+4%-6% |
100% |
* |
Mobile Storage products
include Embedded Storage products (eMMC and SSD controllers and
data center and industrial SSD solutions) and Expandable Storage
products (SD memory cards and USB flash drive
controllers) |
** |
Mobile Communications
products include mobile TV SoCs |
Key Financial Results
(in millions, except percentages and per
ADS amounts) |
GAAP |
Non-GAAP |
2Q 2018 |
1Q 2018 |
2Q 2017 |
2Q 2018 |
1Q 2018 |
2Q 2017 |
Revenue |
$138.1 |
$130.3 |
$132.7 |
$138.1 |
$130.3 |
$132.7 |
Gross profit Percent of revenue |
$65.647.5% |
$62.648.0% |
$64.648.7% |
$65.647.5% |
$62.648.0% |
$64.648.7% |
Operating expenses |
$31.6 |
$37.7 |
$34.3 |
$30.2 |
$33.9 |
$32.8 |
Operating income Percent of
revenue |
$34.024.6% |
$24.919.1% |
$30.322.8% |
$35.425.7% |
$28.722.1% |
$31.823.9% |
Earnings per diluted ADS |
$0.85 |
$0.64 |
$0.67 |
$0.92 |
$0.71 |
$0.71 |
Other Financial Information
(in millions) |
2Q 2018 |
1Q 2018 |
2Q 2017 |
Cash and cash equivalents, and short-term
investments |
$364.2 |
$346.1 |
$306.0 |
Bank loans |
$12.0 |
$20.7 |
$25.0 |
Capital expenditures |
$3.2 |
$3.6 |
$2.1 |
Dividend payments |
$10.8 |
$10.8 |
$7.1 |
Loan repayments |
$8.7 |
$4.3 |
-- |
During the second quarter, we had $3.2 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 Jun. 30, 2018 |
|
|
(In $ millions) |
Net income (GAAP) |
|
30.7 |
Depreciation & amortization |
|
2.8 |
Changes in operating assets and liabilities |
|
5.7 |
Others |
|
2.0 |
Net cash provided by operating activities |
|
41.2 |
Acquisition of property and equipment |
|
(3.2) |
Long-term investment |
|
(3.0) |
Net cash used in investing activities |
|
(6.2) |
Dividend |
|
(10.8) |
Loans |
|
(8.7) |
Net cash used in financing activities |
|
(19.5) |
Effects of changes in foreign currency exchange rates
on cash |
|
(1.2) |
Net increase in cash, cash equivalents and restricted
cash |
|
14.3 |
Returning Value to ShareholdersOn October 24,
2017, the Board of Directors of the Company declared a $1.20 per
ADS annual dividend to be paid in quarterly installments of $0.30
per ADS. On May 23, 2018, we paid $10.8 million to shareholders as
the third installment of our annual dividend.
On August 1, 2017, the Company announced that
its Board of Directors had authorized a 12 month program for the
Company to repurchase up to $200 million. In the second
quarter, the Company did not repurchase any of its ADS and this
program has now expired.
Business Outlook“As NAND prices
continue to decline and SSD affordability and adoption are
improving, we are now increasing our full-year SSD controller
growth expectation to at least 30%, with strong third quarter
sequential growth,” said Wallace Kou, President and CEO of Silicon
Motion. “However, due to a one quarter delay of large SSD solutions
sales to a hyperscaler customer, we are now expecting our third
quarter net sales to be stable sequentially despite strong SSD
controller growth with revenue growth expected to improve in the
fourth quarter. We expect that our gross and operating margins will
benefit from the more favorable sales mix.”
For the third quarter of 2018, management
expects:
|
GAAP |
Non-GAAP Adjustment |
Non-GAAP |
Revenue |
$136.0m to $142.9m-1.5% to +3.5% Q/Q+7% to +12%
Y/Y |
-- |
$136.0m to $142.9m-1.5% to +3.5% Q/Q+7% to +12%
Y/Y |
Gross margin |
48.4% to 50.4% |
Approximately $0.1m* |
48.5% to 50.5% |
Operating margin |
19.8% to 22.7% |
Approximately $6.1m to $7.1m** |
25.0% to 27.0% |
* |
Projected gross margin
(non-GAAP) excludes $0.1 million of stock-based compensation. |
** |
Projected operating margin
(non-GAAP) excludes $0.7 million of amortization of intangible
assets and $5.4 million to $6.4 million of stock-based
compensation. |
For the full-year 2018, management
reiterates:
|
GAAP |
Non-GAAP Adjustment |
Non-GAAP |
Revenue |
$550m to $576m+5% to +10% Y/Y |
-- |
$550m to $576m+5% to +10% Y/Y |
Gross margin |
47.4% to 49.4% |
Approximately $0.5m* |
47.5% to 49.5% |
Operating margin |
20.1% to 22.6% |
Approximately $19.6m to $21.6m** |
24.0% to 26.0% |
* |
Projected gross margin
(non-GAAP) excludes $0.5 million of stock-based compensation. |
** |
Projected operating margin
(non-GAAP) excludes $3.0 million of amortization of intangible
assets and $16.6 million to $18.6 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 August 1, 2018.
SpeakersWallace Kou, President & CEORiyadh Lai, CFOJason Tsai,
Senior Director of Investor Relations and Strategy
CONFERENCE CALL ACCESS NUMBERS:USA (Toll Free):
1 866 519 4004USA (Toll): 1 845 675 0437 Taiwan
(Toll Free): 080 909 1568Participant Passcode: 7585148
REPLAY NUMBERS (for 7 days):USA (Toll Free): 1
855 452 5696USA (Toll): 1 646 254 3697Participant Passcode:
7585148A 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 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.
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.
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$. We do not use financial
instruments to manage the impact on our operations from changes in
foreign exchange rates, and because our operations are subject to
fluctuations in foreign exchange rates, we therefore exclude
foreign exchange gains and losses when presenting non-GAAP
financial measures.
Gain and loss on equity-method investment
consists of gain and/or loss related to our investment in a
privately-held company, which varies depending on the operational
and financial performance of the company in which we invested. We
believe that providing non-GAAP measures excluding these charges,
as well as the GAAP measures, assists our investors because such
charges are not reflective of our ongoing operations.
Silicon Motion Technology CorporationConsolidated
Statements of Income(in thousands, except percentages and per ADS
data, unaudited)
|
|
|
For the Three Months
Ended |
|
Jun. 30,
2017
($) |
Mar. 31, 2018
($) |
Jun. 30, 2018
($) |
Net
Sales |
132,732 |
|
130,344 |
|
138,055 |
|
Cost of
sales |
68,121 |
|
67,790 |
|
72,474 |
|
Gross
profit |
64,611 |
|
62,554 |
|
65,581 |
|
Operating
expenses |
|
|
|
Research & development |
24,476 |
|
25,832 |
|
20,014 |
|
Sales & marketing |
5,588 |
|
6,965 |
|
7,144 |
|
General & administrative |
3,750 |
|
4,163 |
|
3,718 |
|
Amortization of intangibles assets |
526 |
|
741 |
|
741 |
|
Operating
income |
30,271 |
|
24,853 |
|
33,964 |
|
|
|
|
|
Non-operating income (expense) |
|
|
|
Interest income, net |
958 |
|
1,213 |
|
1,394 |
|
Foreign exchange gain (loss), net |
(65 |
) |
1,076 |
|
(933 |
) |
Gain (loss) on equity-method investment |
- |
|
- |
|
(205 |
) |
Others, net |
(7 |
) |
58 |
|
42 |
|
Subtotal |
886 |
|
2,347 |
|
298 |
|
Income
before income tax |
31,157 |
|
27,200 |
|
34,262 |
|
Income tax
expense |
7,124 |
|
4,139 |
|
3,534 |
|
Net
income |
24,033 |
|
23,061 |
|
30,728 |
|
|
|
|
|
Earnings
per basic ADS |
$0.67 |
|
$0.64 |
|
$0.85 |
|
Earnings
per diluted ADS |
$0.67 |
|
$0.64 |
|
$0.85 |
|
|
|
|
|
Margin Analysis: |
|
|
|
Gross
margin |
48.7 |
% |
48.0 |
% |
47.5 |
% |
Operating
margin |
22.8 |
% |
19.1 |
% |
24.6 |
% |
Net
margin |
18.1 |
% |
17.7 |
% |
22.3 |
% |
|
|
|
|
Additional Data: |
|
|
|
Weighted
avg. ADS equivalents2 |
35,741 |
|
35,900 |
|
36,113 |
|
Diluted ADS
equivalents |
35,801 |
|
36,119 |
|
36,151 |
|
|
|
|
|
Silicon Motion Technology
CorporationReconciliation of GAAP to Non-GAAP Operating Results(in
thousands, except percentages and per ADS data, unaudited)
|
|
|
For the Three Months
Ended |
|
Jun. 30, 2017
($) |
Mar. 31, 2018
($) |
Jun. 30, 2018
($) |
Gross profit (GAAP) |
64,611 |
|
62,554 |
|
65,581 |
|
Gross margin (GAAP) |
48.7 |
% |
48.0 |
% |
47.5 |
% |
Stock-based compensation expense (A) |
2 |
|
59 |
|
5 |
|
Gross profit (non-GAAP) |
64,613 |
|
62,613 |
|
65,586 |
|
Gross margin (non-GAAP) |
48.7 |
% |
48.0 |
% |
47.5 |
% |
|
|
|
|
Operating expenses (GAAP) |
34,340 |
|
37,701 |
|
31,617 |
|
Stock-based compensation expense (A) |
(982 |
) |
(3,078 |
) |
(712 |
) |
Amortization of intangible assets |
(526 |
) |
(741 |
) |
(741 |
) |
Litigation expense |
- |
|
(13 |
) |
(8 |
) |
Operating expenses (non-GAAP) |
32,832 |
|
33,869 |
|
30,156 |
|
|
|
|
|
Operating profit (GAAP) |
30,271 |
|
24,853 |
|
33,964 |
|
Operating margin (GAAP) |
22.8 |
% |
19.1 |
% |
24.6 |
% |
Total adjustments to operating profit |
1,510 |
|
3,891 |
|
1,466 |
|
Operating profit (non-GAAP) |
31,781 |
|
28,744 |
|
35,430 |
|
Operating margin (non-GAAP) |
23.9 |
% |
22.1 |
% |
25.7 |
% |
|
|
|
|
Non-operating income (expense) (GAAP) |
886 |
|
2,347 |
|
298 |
|
Foreign exchange loss (gain), net |
65 |
|
(1,076 |
) |
933 |
|
Loss (gain) on equity-method investment |
- |
|
- |
|
205 |
|
Non-operating income (expense) (non-GAAP) |
951 |
|
1,271 |
|
1,436 |
|
|
|
|
|
Net income (GAAP) |
24,033 |
|
23,061 |
|
30,728 |
|
Total pre-tax impact of non-GAAP adjustments |
1,575 |
|
2,815 |
|
2,604 |
|
Income tax impact of non-GAAP adjustments |
(173 |
) |
(243 |
) |
(138 |
) |
Net income (non-GAAP) |
25,435 |
|
25,633 |
|
33,194 |
|
|
|
|
|
Earnings per diluted ADS (GAAP) |
$0.67 |
|
$0.64 |
|
$0.85 |
|
Earnings per diluted ADS
(non-GAAP) |
$0.71 |
|
$0.71 |
|
$0.92 |
|
|
|
|
|
Shares used in computing earnings per diluted ADS
(GAAP) |
35,801 |
|
36,119 |
|
36,151 |
|
Non-GAAP Adjustments |
51 |
|
55 |
|
38 |
|
Shares used in computing earnings per diluted
ADS (non-GAAP) |
35,852 |
|
36,174 |
|
36,189 |
|
|
|
|
|
(A)
Excludes stock-based compensation as follows: |
|
|
|
Cost of Sales |
2 |
|
59 |
|
5 |
|
Research & development |
315 |
|
1,868 |
|
227 |
|
Sales & marketing |
596 |
|
659 |
|
433 |
|
General & administrative |
71 |
|
551 |
|
52 |
|
Silicon Motion Technology CorporationConsolidated
Statements of Income(in thousands, except percentages, and per ADS
data, unaudited)
|
|
|
For the Six Months
Ended |
|
Jun. 30, 2017
($) |
Jun.
30,2018($) |
Net Sales |
260,023 |
268,399 |
Cost of sales |
130,586 |
140,264 |
Gross profit |
129,437 |
128,135 |
Operating expenses |
|
|
Research & development |
48,814 |
45,846 |
Sales & marketing |
11,346 |
14,110 |
General & administrative |
7,970 |
7,881 |
Amortization of intangibles assets |
1,052 |
1,482 |
Operating income |
60,255 |
58,816 |
|
|
|
Non-operating expense (income) |
|
|
Interest income, net |
1,717 |
2,607 |
Foreign exchange gain (loss), net |
(420) |
143 |
Gain (loss) on equity-method investment |
- |
(205) |
Others, net |
(10) |
100 |
Subtotal |
1,287 |
2,645 |
Income before income tax |
61,542 |
61,461 |
Income tax expense |
13,998 |
7,673 |
Net income |
47,544 |
53,788 |
|
|
|
Earnings per basic ADS |
$1.34 |
$1.49 |
Earnings per diluted ADS |
$1.32 |
$1.49 |
|
|
|
Margin Analysis: |
|
|
Gross margin |
49.8% |
47.7% |
Operating margin |
23.2% |
21.9% |
Net margin |
18.3% |
20.0% |
|
|
|
Additional Data: |
|
|
Weighted
avg. ADS equivalents |
35,594 |
36,007 |
Diluted ADS equivalents |
35,887 |
36,135 |
|
|
|
Silicon Motion Technology
CorporationReconciliation of GAAP to Non-GAAP Operating Results(in
thousands, except percentages and per ADS data, unaudited)
|
|
|
For the Six Months
Ended |
|
Jun. 30, 2017
($) |
Jun. 30, 2018
($) |
Gross profit (GAAP) |
129,437 |
128,135 |
Gross margin (GAAP) |
49.8% |
47.7% |
Stock-based compensation expense(A) |
69 |
64 |
Gross profit (non-GAAP) |
129,506 |
128,199 |
Gross margin (non-GAAP) |
49.8% |
47.8% |
|
|
|
Operating expenses (GAAP) |
69,182 |
69,319 |
Stock-based compensation expense (A) |
(4,050) |
(3,790) |
Amortization of intangible assets |
(1,052) |
(1,482) |
Litigation expense |
- |
(21) |
Operating expenses (non-GAAP) |
64,080 |
64,026 |
|
|
|
Operating profit (GAAP) |
60,255 |
58,816 |
Operating margin (GAAP) |
23.2% |
21.9% |
Total adjustments to operating profit |
5,171 |
5,357 |
Operating profit (non-GAAP) |
65,426 |
64,173 |
Operating margin (non-GAAP) |
25.2% |
23.9% |
|
|
|
Non-operating income (expense) (GAAP) |
1,287 |
2,645 |
Foreign exchange loss (gain), net |
412 |
(143) |
Loss (gain) on equity-method investment |
- |
205 |
Non-operating income (expense) (non-GAAP) |
1,699 |
2,707 |
|
|
|
Net income (GAAP) |
47,544 |
53,788 |
Total pre-tax impact of non-GAAP adjustments |
5,583 |
5,419 |
Income tax impact of non-GAAP adjustments |
(593) |
(381) |
Net income (non-GAAP) |
52,534 |
58,826 |
|
|
|
Earnings per diluted ADS (GAAP) |
$1.32 |
$1.49 |
Earnings per diluted ADS
(non-GAAP) |
$1.46 |
$1.63 |
|
|
|
Shares used in computing earnings per diluted
ADS (GAAP) |
35,887 |
36,135 |
Non-GAAP Adjustments |
65 |
46 |
Shares used in computing earnings per diluted
ADS (non-GAAP) |
35,952 |
36,181 |
|
|
|
(A) Excludes stock-based
compensation as follows: |
|
|
Cost of Sales |
69 |
64 |
Research & development |
2,165 |
2,095 |
Sales & marketing |
1,205 |
1,092 |
General & administrative |
680 |
603 |
|
|
|
|
|
|
Silicon Motion Technology CorporationConsolidated
Balance Sheet (In thousands, unaudited)
|
|
|
|
|
Jun.
30,2017 ($) |
Mar.
31,2018 ($) |
Jun.
30,2018 ($) |
Cash
and cash equivalents |
303,612 |
341,695 |
356,200 |
Short-term investments |
2,354 |
4,387 |
7,961 |
Accounts
receivable (net) |
76,644 |
80,933 |
78,657 |
Inventories |
81,767 |
93,370 |
93,716 |
Refundable
deposits – current |
44,119 |
19,414 |
19,337 |
Prepaid
expenses and other current assets |
11,278 |
8,999 |
7,687 |
Total current
assets |
519,774 |
548,798 |
563,558 |
Long-term
investments |
120 |
1,715 |
4,510 |
Property and
equipment (net) |
48,910 |
51,587 |
51,638 |
Goodwill and
intangible assets (net) |
72,840 |
65,653 |
64,904 |
Other
assets |
5,593 |
7,283 |
6,995 |
Total
assets |
647,237 |
675,036 |
691,605 |
|
|
|
|
Accounts
payable |
32,949 |
31,077 |
41,975 |
Loans |
25,000 |
20,700 |
12,000 |
Income tax
payable |
21,355 |
11,775 |
6,736 |
Accrued
expenses and other current liabilities |
50,750 |
66,371 |
53,160 |
Total
current liabilities |
130,054 |
129,923 |
113,871 |
Other
liabilities |
21,354 |
23,785 |
27,307 |
Total
liabilities |
151,408 |
153,708 |
141,178 |
Shareholders’
equity |
495,829 |
521,328 |
550,427 |
Total
liabilities & shareholders’ equity |
647,237 |
675,036 |
691,605 |
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 eMMCs, which are found in
smartphones, PCs, commercial and industrial applications. We ship
over 750 million NAND controllers annually and have shipped over
five billion NAND controllers in the last ten years, more than any
other company in the world. We also supply specialized
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 2018 and full year 2018
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 2018 and full year 2018. 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;
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; the effect,
if any, on the price of our ADS as a result of the implementation
of the announced share repurchase program; 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
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 April 30, 2018. We assume no
obligation to update any forward-looking statements, which apply
only as of the date of this press release.
Investor Contact:Jason
TsaiSenior Director of IR and StrategyE-mail:
jtsai@siliconmotion.com |
Investor Contact:Selina
HsiehInvestor RelationsE-mail: ir@siliconmotion.com |
|
|
Media Contact:Sara
HsuProject ManagerE-mail: sara.hsu@siliconmotion.com |
|
____________________1 Embedded Storage comprises primarily eMMC
and SSD controllers and data center and industrial SSD solutions.2
Assumes all outstanding ordinary shares are represented by
ADSs. Each ADS represents four ordinary shares.
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