Silicon Motion Announces $200 Million Share Repurchase Program
November 21 2018 - 08:00AM
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 American Depositary Shares
(ADSs) over a 24 month period, effective immediately.
“We continue to see our controllers benefiting
from accelerating SSD adoption in PCs and growing interest in UFS
embedded memory by smartphone OEMs, and are making solid progress
with our hyperscale SSD projects,” said Wallace Kou, Silicon
Motion’s President and CEO. “While our primary focus in creating
long-term shareholder value is through growing our business, we
have for many years also been delivering value by paying dividends.
We are now seeking to boost shareholder returns by
opportunistically repurchasing our shares.”
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 September 30, 2018, the Company had
approximately $308.2 million of cash, cash equivalents and
short-term investments.
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.
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; 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 the relative sales mix of our products;
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 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: |
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Investor Contact: |
Jason Tsai |
|
Selina Hsieh |
Senior Director of IR
and Strategy |
|
Investor Relations |
E-mail:
jtsai@siliconmotion.com |
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E-mail:
ir@siliconmotion.com |
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Media Contact: |
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Sara Hsu |
|
|
Project Manager |
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E-mail:
sara.hsu@siliconmotion.com |
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