Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon
Motion” or the “Company”) today announced its financial results for
the quarter ended September 30, 2020. For the third quarter,
net sales (GAAP) decreased sequentially to $126.0 million from
$136.8 million in second quarter 2020. Net income (GAAP) decreased
to $24.3 million or $0.70 per diluted ADS (GAAP) from net income
(GAAP) of $28.2 million or $0.80 per diluted ADS (GAAP) in second
quarter 2020.
For the third quarter, net income (non-GAAP)
decreased to $26.7 million or $0.76 per diluted ADS (non-GAAP) from
net income (non-GAAP) of $28.6 million or $0.81 per diluted ADS
(non-GAAP) in second quarter 2020.
Third Quarter 2020 Review “Our
third quarter results exceeded expectations due to stronger sales
of SSD controllers,” said Wallace Kou, President and CEO of Silicon
Motion. “And as expected, our eMMC+UFS controller sales
declined significantly due to a temporary customer inventory
adjustment, while our SSD solutions sales were softer than
anticipated.”
Key Financial Results
(in millions, except percentages and per ADS amounts) |
GAAP |
Non-GAAP |
3Q 2020 |
|
2Q 2020 |
|
3Q 2019 |
|
3Q 2020 |
|
2Q 2020 |
|
3Q 2019 |
|
Revenue |
$ |
126.0 |
|
$ |
136.8 |
|
$ |
110.5 |
|
$ |
126.0 |
|
$ |
136.8 |
|
$ |
113.2 |
|
Gross profit Percent of revenue |
|
$61.849.1 |
% |
|
$68.450.0 |
% |
|
$54.849.6 |
% |
|
$61.949.1 |
% |
|
$68.450.0 |
% |
|
$56.449.8 |
% |
Operating expenses |
$ |
36.0 |
|
$ |
38.3 |
|
$ |
50.2 |
|
$ |
32.9 |
|
$ |
38.0 |
|
$ |
31.4 |
|
Operating income Percent of revenue |
|
$25.820.5 |
% |
|
$30.122.0 |
% |
|
$4.64.1 |
% |
|
$29.023.0 |
% |
|
$30.422.2 |
% |
|
$25.022.1 |
% |
Earnings per diluted ADS |
$ |
0.70 |
|
$ |
0.80 |
|
$ |
0.12 |
|
$ |
0.76 |
|
$ |
0.81 |
|
$ |
0.69 |
|
Other Financial Information
(in millions) |
3Q 2020 |
2Q 2020 |
3Q 2019 |
Cash, cash equivalents, restricted cash and short-term
investments—end of period |
$ |
368.4 |
$ |
379.7 |
$ |
337.9 |
Routine capital expenditures |
$ |
2.6 |
$ |
4.1 |
$ |
3.9 |
Dividend payments |
$ |
12.3 |
$ |
12.3 |
$ |
10.0 |
During the third quarter, we had $2.6 million of
capital expenditures for the routine purchase of software, design
tools and other items.
Returning Value to ShareholdersOn October 25,
2019, our Board of Directors declared a $1.40 per ADS annual
dividend to be paid in quarterly installments of $0.35 per ADS.
On August 20, 2020, we paid $12.3 million to shareholders as
the fourth installment of our annual dividend. On October 26,
2020, our Board of Directors declared a $1.40 per ADS annual
dividend to be paid in quarterly installments of $0.35 per ADS. The
first installment of our annual dividend will be paid on November
25, 2020.
On November 21, 2018, we 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 third quarter, we purchased $25.0 million of
our ADSs at an average price of $39.91 per ADS. Since the
start of this program, we have repurchased $84.8 million of our
ADSs and $115.2 million remains unused under the program. On
October 26, 2020, the Board of Directors of the Company authorized
the extension of the expiration of this program to November 21,
2021.
Business Outlook“We expect our
fourth quarter revenue to rebound as SSD controller sales
strengthen further,” said Wallace Kou, President and CEO of Silicon
Motion. “In addition, our eMMC+UFS controllers are making
good progress towards recovery in the fourth quarter while SSD
solutions are expected to be seasonally down. We expect our
fourth quarter to be a solid finish to an unpredictable year and a
good foundation for a stronger 2021.”
For the fourth quarter of 2020, management
expects:
|
GAAP |
Non-GAAP Adjustment |
Non-GAAP |
Revenue |
$130m to $139m3% to 10% Q/Q |
-- |
$130m to $139m3% to 10% Q/Q |
Gross margin |
47.9% to 49.9% |
Approximately $0.2m* |
48.0% to 50.0% |
Operating margin |
12.3% to 14.4% |
Approximately $8.4m to $9.4m** |
19.5% to 20.5% |
* Projected gross margin (non-GAAP) excludes $0.2 million of
stock-based compensation.**Projected operating margin (non-GAAP)
excludes $8.4 million to $9.4 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 November 3, 2020.
Speakers:Wallace Kou, President
& CEORiyadh Lai, CFOChris Chaney, Director of Investor
Relations & Strategy
Conference Call
DetailsParticipants must register in advance to join the
conference using the link provided below and should dial in 10
minutes prior to the call start time. Conference access information
(including dial-in numbers, the passcode, and a unique access pin)
will be provided in the email received upon registration.
Participant Online Registration:
http://apac.directeventreg.com/registration/event/4868134
Replay Numbers (for 7 days):
USA (Toll
Free): |
1 855 452
5696 |
USA (Toll): |
1 646 254 3697 |
Participant Passcode: |
4868134 |
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 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:
SSD solutions restructuring are charges relate to the
restructuring of our underperforming Shannon and Bigtera product
lines and include goodwill and intangible assets impairment
expenses, the write-down of NAND flash and SSD inventory valuation
and customer sales returns and accounts receivable attributable to
these product lines.
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 intangible assets consist 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$. We do not use financial
instruments to manage the impact on our operations from changes in
foreign exchange rates, and because our operations are subject to
fluctuations in foreign exchange rates, we therefore exclude
foreign exchange gains and losses when presenting non-GAAP
financial measures.
Gain on disposal of long-term investments relate to gains from
our sale of FCI, our specialty RF IC product line, and the sale of
our investment in ProGrade, a professional-grade memory card
manufacturer.
|
Silicon Motion Technology Corporation |
Consolidated Statements of Income |
(in thousands, except percentages and per ADS data, unaudited) |
|
|
For Three Months Ended |
|
For the Nine Months Ended |
|
Sep. 30, |
|
|
Jun. 30, |
|
|
Sep. 30, |
|
|
Sep. 30, |
|
|
Sep. 30, |
|
|
2019 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
($) |
|
|
($) |
|
|
($) |
|
|
($) |
|
|
($) |
|
Net Sales |
110,518 |
|
|
136,811 |
|
|
126,043 |
|
|
304,058 |
|
|
395,624 |
|
Cost of sales |
55,727 |
|
|
68,417 |
|
|
64,217 |
|
|
155,519 |
|
|
201,512 |
|
Gross profit |
54,791 |
|
|
68,394 |
|
|
61,826 |
|
|
148,539 |
|
|
194,112 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
Research & development |
24,439 |
|
|
28,901 |
|
|
26,378 |
|
|
76,394 |
|
|
84,624 |
|
Sales & marketing |
5,922 |
|
|
5,823 |
|
|
6,077 |
|
|
18,990 |
|
|
18,394 |
|
General & administrative |
3,648 |
|
|
3,531 |
|
|
3,528 |
|
|
11,593 |
|
|
11,019 |
|
Amortization of intangible assets |
255 |
|
|
- |
|
|
- |
|
|
766 |
|
|
- |
|
Impairment of goodwill and intangible assets |
15,970 |
|
|
- |
|
|
- |
|
|
15,970 |
|
|
- |
|
Operating income |
4,557 |
|
|
30,139 |
|
|
25,843 |
|
|
24,826 |
|
|
80,075 |
|
Non-operating income
(expense) |
|
|
|
|
|
|
|
|
|
Interest income, net |
1,751 |
|
|
1,323 |
|
|
841 |
|
|
5,187 |
|
|
3,896 |
|
Gain on disposal of long-term investments |
38 |
|
|
- |
|
|
- |
|
|
12,941 |
|
|
- |
|
Foreign exchange gain (loss), net |
(362 |
) |
|
(142 |
) |
|
551 |
|
|
64 |
|
|
(72 |
) |
Others, net |
6 |
|
|
6 |
|
|
(6 |
) |
|
59 |
|
|
15 |
|
Subtotal |
1,433 |
|
|
1,187 |
|
|
1,386 |
|
|
18,251 |
|
|
3,839 |
|
Income before income tax |
5,990 |
|
|
31,326 |
|
|
27,229 |
|
|
43,077 |
|
|
83,914 |
|
Income tax expense |
1,777 |
|
|
3,115 |
|
|
2,962 |
|
|
4,108 |
|
|
5,522 |
|
Net income |
4,213 |
|
|
28,211 |
|
|
24,267 |
|
|
38,969 |
|
|
78,392 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per basic ADS |
0.12 |
|
|
0.80 |
|
|
0.70 |
|
|
1.10 |
|
|
2.24 |
|
Earnings per diluted ADS |
0.12 |
|
|
0.80 |
|
|
0.70 |
|
|
1.10 |
|
|
2.24 |
|
|
|
|
|
|
|
|
|
|
|
Margin
Analysis: |
|
|
|
|
|
|
|
|
|
Gross margin |
49.6 |
% |
|
50.0 |
% |
|
49.1 |
% |
|
48.9 |
% |
|
49.1 |
% |
Operating margin |
4.1 |
% |
|
22.0 |
% |
|
20.5 |
% |
|
8.2 |
% |
|
20.2 |
% |
Net margin |
3.8 |
% |
|
20.6 |
% |
|
19.3 |
% |
|
12.8 |
% |
|
19.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
Silicon Motion Technology Corporation |
Reconciliation of GAAP to Non-GAAP Operating Results |
(in thousands, except percentages and per ADS data, unaudited) |
|
|
For Three Months Ended |
|
For the Nine Months Ended |
|
Sep. 30, |
|
|
Jun. 30, |
|
|
Sep. 30, |
|
|
Sep. 30, |
|
|
Sep. 30, |
|
|
2019 |
|
|
|
2020 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
($) |
|
|
($) |
|
|
($) |
|
|
($) |
|
|
($) |
|
Gross profit (GAAP) |
|
54,791 |
|
|
|
68,394 |
|
|
|
61,826 |
|
|
|
148,539 |
|
|
|
194,112 |
|
Gross margin
(GAAP) |
|
49.6 |
% |
|
|
50.0 |
% |
|
|
49.1 |
% |
|
|
48.9 |
% |
|
|
49.1 |
% |
Stock-based compensation (A) |
|
50 |
|
|
|
3 |
|
|
|
55 |
|
|
|
164 |
|
|
|
96 |
|
SSD solutions restructuring |
|
1,572 |
|
|
|
- |
|
|
|
- |
|
|
|
6,557 |
|
|
|
- |
|
Gross profit
(non-GAAP) (B) |
|
56,413 |
|
|
|
68,397 |
|
|
|
61,881 |
|
|
|
155,260 |
|
|
|
194,208 |
|
Gross margin
(non-GAAP) (C) |
|
49.8 |
% |
|
|
50.0 |
% |
|
|
49.1 |
% |
|
|
50.6 |
% |
|
|
49.1 |
% |
|
|
|
|
|
|
|
|
|
|
Operating expenses
(GAAP) |
|
50,234 |
|
|
|
38,255 |
|
|
|
35,983 |
|
|
|
123,713 |
|
|
|
114,037 |
|
Stock-based compensation (A) |
|
(2,561 |
) |
|
|
(243 |
) |
|
|
(3,076 |
) |
|
|
(7,077 |
) |
|
|
(5,763 |
) |
Amortization of intangible assets |
|
(255 |
) |
|
|
- |
|
|
|
- |
|
|
|
(766 |
) |
|
|
- |
|
SSD solutions restructuring |
|
(15,970 |
) |
|
|
- |
|
|
|
- |
|
|
|
(15,970 |
) |
|
|
- |
|
Litigation expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
Operating expenses
(non-GAAP) (B) |
|
31,448 |
|
|
|
38,012 |
|
|
|
32,907 |
|
|
|
99,902 |
|
|
|
108,274 |
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(GAAP) |
|
4,557 |
|
|
|
30,139 |
|
|
|
25,843 |
|
|
|
24,826 |
|
|
|
80,075 |
|
Operating
margin (GAAP) |
|
4.1 |
% |
|
|
22.0 |
% |
|
|
20.5 |
% |
|
|
8.2 |
% |
|
|
20.2 |
% |
Total adjustments to operating profit |
|
20,408 |
|
|
|
246 |
|
|
|
3,131 |
|
|
|
30,532 |
|
|
|
5,859 |
|
Operating profit
(non-GAAP) (B) |
|
24,965 |
|
|
|
30,385 |
|
|
|
28,974 |
|
|
|
55,358 |
|
|
|
85,934 |
|
Operating
margin (non-GAAP) (C) |
|
22.1 |
% |
|
|
22.2 |
% |
|
|
23.0 |
% |
|
|
18.1 |
% |
|
|
21.7 |
% |
|
|
|
|
|
|
|
|
|
|
Non-operating income
(expense) (GAAP) |
|
1,433 |
|
|
|
1,187 |
|
|
|
1,386 |
|
|
|
18,251 |
|
|
|
3,839 |
|
Foreign exchange loss (gain), net |
|
362 |
|
|
|
142 |
|
|
|
(551 |
) |
|
|
(64 |
) |
|
|
72 |
|
Gain on disposal of long-term investments |
|
(38 |
) |
|
|
- |
|
|
|
- |
|
|
|
(12,941 |
) |
|
|
- |
|
Non-operating income
(expense) (non-GAAP) (B) |
|
1,757 |
|
|
|
1,329 |
|
|
|
835 |
|
|
|
5,246 |
|
|
|
3,911 |
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP) |
|
4,213 |
|
|
|
28,211 |
|
|
|
24,267 |
|
|
|
38,969 |
|
|
|
78,392 |
|
Total pre-tax impact of non-GAAP adjustments (B) |
|
20,732 |
|
|
|
388 |
|
|
|
2,580 |
|
|
|
17,527 |
|
|
|
5,931 |
|
Income tax impact of non-GAAP adjustments (B) |
|
(521 |
) |
|
|
2 |
|
|
|
(171 |
) |
|
|
(1,279 |
) |
|
|
(693 |
) |
Net income
(non-GAAP) (B), (C) |
|
24,424 |
|
|
|
28,601 |
|
|
|
26,676 |
|
|
|
55,217 |
|
|
|
83,630 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted
ADS (GAAP) |
$0.12 |
|
|
$0.80 |
|
|
$0.70 |
|
|
$1.10 |
|
|
$2.24 |
|
Earnings per diluted
ADS (non-GAAP) (B), (C) |
$0.69 |
|
|
$0.81 |
|
|
$0.76 |
|
|
$1.56 |
|
|
$2.38 |
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing earnings per diluted ADS (GAAP) |
|
35,153 |
|
|
|
35,164 |
|
|
|
34,891 |
|
|
|
35,388 |
|
|
|
35,061 |
|
Non-GAAP Adjustments |
|
139 |
|
|
|
36 |
|
|
|
163 |
|
|
|
84 |
|
|
|
88 |
|
Shares used in
computing earnings per diluted ADS (non-GAAP) |
|
35,292 |
|
|
|
35,200 |
|
|
|
35,054 |
|
|
|
35,472 |
|
|
|
35,149 |
|
|
|
|
|
|
|
|
|
|
|
(A) Excludes
stock-based compensation as follows: |
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
50 |
|
|
|
3 |
|
|
|
55 |
|
|
|
164 |
|
|
|
96 |
|
Research & development |
|
1,811 |
|
|
|
118 |
|
|
|
2,163 |
|
|
|
4,750 |
|
|
|
3,937 |
|
Sales & marketing |
|
320 |
|
|
|
85 |
|
|
|
405 |
|
|
|
999 |
|
|
|
825 |
|
General & administrative |
|
430 |
|
|
|
40 |
|
|
|
508 |
|
|
|
1,328 |
|
|
|
1,001 |
|
|
|
|
|
|
|
|
|
|
|
(B) FCI divestiture
items previously excluded from non-GAAP: |
|
|
|
|
|
|
|
|
|
Revenue |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
10,359 |
|
|
|
- |
|
Gross Profit |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,687 |
|
|
|
- |
|
Operating Expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,542 |
|
|
|
- |
|
Operating Profit |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,855 |
) |
|
|
- |
|
Non-Operating Income |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
9 |
|
|
|
- |
|
Taxes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8 |
|
|
|
- |
|
Net income |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,854 |
) |
|
|
- |
|
EPS |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.08 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
(C) Reconciliation
with previous non-GAAP disclosures: |
|
|
|
|
|
|
|
|
|
|
Revenue (GAAP) |
|
110,518 |
|
|
|
136,811 |
|
|
|
126,043 |
|
|
|
304,058 |
|
|
|
395,624 |
|
SSD solutions restructuring |
|
2,656 |
|
|
|
- |
|
|
|
- |
|
|
|
2,656 |
|
|
|
- |
|
Revenue (non-GAAP) |
|
113,174 |
|
|
|
136,811 |
|
|
|
126,043 |
|
|
|
306,714 |
|
|
|
395,624 |
|
FCI |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(10,359 |
) |
|
|
- |
|
Revenue (non-GAAP) less FCI |
|
113,174 |
|
|
|
136,811 |
|
|
|
126,043 |
|
|
|
296,355 |
|
|
|
395,624 |
|
Gross Margin (non-GAAP) less FCI |
|
49.8 |
% |
|
|
50.0 |
% |
|
|
49.1 |
% |
|
|
50.5 |
% |
|
|
49.1 |
% |
Operating Margin (non-GAAP) less FCI |
|
22.1 |
% |
|
|
22.2 |
% |
|
|
23.0 |
% |
|
|
19.7 |
% |
|
|
21.7 |
% |
EPS (non-GAAP) less FCI |
$0.69 |
|
|
$0.81 |
|
|
$0.76 |
|
|
US$1.64 |
|
|
$2.38 |
|
|
Silicon Motion Technology Corporation |
Consolidated Balance Sheet |
(In thousands, unaudited) |
|
|
Sep. 30 |
|
Jun. 30, |
|
Sep. 30, |
|
2019 |
|
2020 |
|
2020 |
|
($) |
|
($) |
|
($) |
Cash and cash equivalents |
308,191 |
|
350,790 |
|
341,281 |
Short-term investments |
4,664 |
|
3,876 |
|
1,951 |
Accounts receivable (net) |
90,332 |
|
93,825 |
|
95,519 |
Inventories |
87,840 |
|
103,835 |
|
107,426 |
Refundable deposits –
current |
24,078 |
|
24,089 |
|
24,094 |
Prepaid expenses and other current assets |
17,903 |
|
23,778 |
|
24,643 |
Total current assets |
533,008 |
|
600,193 |
|
594,914 |
Long-term investments |
3,000 |
|
5,000 |
|
5,000 |
Property and equipment
(net) |
98,749 |
|
102,156 |
|
102,046 |
Goodwill and intangible assets
(net) |
17,489 |
|
17,489 |
|
17,489 |
Other assets |
14,002 |
|
11,556 |
|
10,984 |
Total assets |
666,248 |
|
736,394 |
|
730,433 |
|
|
|
|
|
|
Accounts payable |
32,457 |
|
34,209 |
|
37,148 |
Income tax payable |
1,293 |
|
3,642 |
|
5,870 |
Accrued expenses and other
current liabilities |
48,200 |
|
78,244 |
|
65,500 |
Total current liabilities |
81,950 |
|
116,095 |
|
108,518 |
Other liabilities |
31,810 |
|
27,202 |
|
26,207 |
Total liabilities |
113,760 |
|
143,297 |
|
134,725 |
Shareholders’ equity |
552,488 |
|
593,097 |
|
595,708 |
Total liabilities & shareholders’ equity |
666,248 |
|
736,394 |
|
730,433 |
|
|
|
|
|
|
|
Silicon Motion Technology Corporation |
Condensed Consolidated Statements of Cash Flows |
(in thousands, unaudited) |
|
|
For Three Months Ended |
|
For Nine Months Ended |
|
Sep. 30, |
|
|
Jun. 30, |
|
|
Sep. 30, |
|
|
Sep. 30, |
|
|
Sep. 30, |
|
|
2019 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
($) |
|
|
($) |
|
|
($) |
|
|
($) |
|
|
($) |
|
Net income |
4,213 |
|
|
28,211 |
|
|
24,267 |
|
|
38,969 |
|
|
78,392 |
|
Depreciation &
amortization |
3,244 |
|
|
3,363 |
|
|
3,322 |
|
|
9,865 |
|
|
9,922 |
|
Stock-based compensation |
2,611 |
|
|
246 |
|
|
3,131 |
|
|
7,241 |
|
|
5,859 |
|
Goodwill & intangible
assets impairment |
15,970 |
|
|
- |
|
|
- |
|
|
15,970 |
|
|
- |
|
Investment impairment, losses
& disposals |
(44 |
) |
|
33 |
|
|
1 |
|
|
(12,989 |
) |
|
7 |
|
Changes in operating assets
and liabilities |
(21,925 |
) |
|
(6,151 |
) |
|
(552 |
) |
|
(12,694 |
) |
|
1,287 |
|
Others |
11 |
|
|
(1 |
) |
|
22 |
|
|
19 |
|
|
35 |
|
Net cash provided by
operating activities |
4,080 |
|
|
25,701 |
|
|
30,191 |
|
|
46,381 |
|
|
95,502 |
|
|
|
|
|
|
|
|
|
|
|
Purchase of property &
equipment |
(3,925 |
) |
|
(4,134 |
) |
|
(2,618 |
) |
|
(8,049 |
) |
|
(13,148 |
) |
Purchase of long-term
investments |
- |
|
|
(2,000 |
) |
|
- |
|
|
- |
|
|
(2,000 |
) |
Disposal of long-term
investments |
38 |
|
|
- |
|
|
- |
|
|
45,742 |
|
|
0 |
|
Net cash provided by
(used in) investing activities |
(3,887 |
) |
|
(6,134 |
) |
|
(2,618 |
) |
|
37,693 |
|
|
(15,148 |
) |
|
|
|
|
|
|
|
|
|
|
Dividend payments |
(10,009 |
) |
|
(12,278 |
) |
|
(12,280 |
) |
|
(31,882 |
) |
|
(36,835 |
) |
Share repurchases |
(25,015 |
) |
|
- |
|
|
(25,013 |
) |
|
(25,015 |
) |
|
(25,013 |
) |
Net cash used in
financing activities |
(35,024 |
) |
|
(12,278 |
) |
|
(37,293 |
) |
|
(56,897 |
) |
|
(61,848 |
) |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash, cash equivalents & restricted cash |
(34,831 |
) |
|
7,289 |
|
|
(9,720 |
) |
|
27,177 |
|
|
18,506 |
|
Effect of foreign exchange
changes |
(24 |
) |
|
(550 |
) |
|
323 |
|
|
(1,024 |
) |
|
(342 |
) |
Cash, cash equivalents &
restricted cash—beginning of period |
368,135 |
|
|
369,075 |
|
|
375,814 |
|
|
307,127 |
|
|
348,253 |
|
Cash, cash equivalents &
restricted cash—end of period |
333,280 |
|
|
375,814 |
|
|
366,417 |
|
|
333,280 |
|
|
366,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 storage products such as SSDs and
eMMC+UFS devices, which are found in data centers, PCs,
smartphones, 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 fourth quarter of 2020 and full year 2020
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 fourth
quarter of 2020 and full year 2020. 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 together
with any uncertainties associated with the ongoing global outbreak
of COVID-19; 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 June 12, 2020. 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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