Silicon Motion Announces New Share Repurchase and Initiates Quarterly Dividend
January 22 2013 - 8:00AM
Silicon Motion Technology Corporation (Nasdaq:SIMO) ("Silicon
Motion" or the "Company"), a global leader in designing and
marketing NAND flash controllers for solid state storage devices
and specialty RF IC solutions for mobile devices, announces today
that its Board of Directors has authorized a new share repurchase
program and has also approved its first quarterly cash dividend.
The new stock repurchase program authorizes the Company to
purchase up to $40 million of its American Depositary Shares
("ADS") over a 12 month period. Since authorizing its first stock
repurchase program in March 2008, the Company has spent $54.3
million to repurchase and retire 6.2 million ADSs.
Separately, the board of directors of the Company has declared
the payment of its first quarterly dividend of $0.15 per ADS which
will be paid on March 4, 2013 to all shareholders of record as of
February 21, 2013.
"We are executing well on our long-term strategy and our
investments in our New Growth Products have been paying
off. In 2012, we grew our revenue approximately 25%, driven
principally by rapid ramp of our new eMMC controllers and expanding
sales of our LTE transceivers, our two major New Growth
Products. Our New Growth Products now represent almost a third
of our sales," said Wallace Kou, Silicon Motion's President and
CEO. "We remain confident in our long-term strategy, growth
prospects, strong financial position and ongoing ability to
generate cash. We believe we have sufficient cash to invest in
our future, and additionally can return some of our excess funds to
shareholders through both a share repurchase as well as a dividend
program."
Purchases under the new share repurchase program will be made in
the open market or according to other methods in compliance with
Rule 10b-18 of the Securities Exchange Act, subject to market
conditions, applicable legal requirements and other factors. The
plan does not obligate the Company to acquire any particular amount
of ADSs, and it may be suspended at any time at the Company's
discretion.
The payment of future cash dividends are subject to the Board's
continuing determination that the payment of dividends are in the
best interests of the Company's shareholders and are in compliance
with all laws and agreements of the Company applicable to the
declaration and payment of cash dividends.
As of December 31, 2012, the Company had approximately $169.6
million of cash, cash equivalents, and short-term securities,
compared to approximately $91.7 million the prior year.
About Silicon Motion:
We are a fabless semiconductor company that designs, develops
and markets high performance, low-power semiconductor solutions for
the multimedia consumer electronics market. We have two major
product lines, mobile storage and mobile communications. Our mobile
storage business is composed of microcontrollers used in NAND flash
memory storage products such as flash memory cards, USB flash
drives, SSDs, and embedded flash applications. Our mobile
communications business is composed primarily of handset
transceivers and mobile TV IC solutions. For further information on
Silicon Motion, visit 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
including any effects of the general global economic slowdown
beginning in 2007; 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; changes in
the relative sales mix of our products; demand, adoption and sales
of our New Growth Products; the effect, if any, on the price of our
ADS as a result of the implementation, if at all, 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, including the general global economic slowdown which
began in 2007 as it effects the Company, 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, 2012, as amended on May 15,
2012. We assume no obligation to update any forward-looking
statements, which apply only as of the date of this press
release.
CONTACT: Investor Contact:
Jason Tsai
Director of IR and Strategy
Tel: +1 408 519 7259
Fax: +1 408 519 7101
E-mail: jtsai@siliconmotion.com
Selina Hsieh
Investor Relations
Tel: +886 3 552 6888 x2311
Fax: +886 3 560 0336
E-mail: ir@siliconmotion.com
Media Contact:
Sara Hsu
Project Manager
Tel: +886 2 2219 6688 x3509
Fax: +886 2 2219 6868
E-mail: sara.hsu@siliconmotion.com
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