Silicon Motion Announces New $200 Million Share Repurchase Program and Reiterates Guidance
December 06 2021 - 6:00PM
Silicon Motion Technology Corporation (NasdaqGS: SIMO)
(“Silicon Motion” or the “Company”) today announced that its Board
of Directors has authorized a new share repurchase program and
approved related cash disbursement for the Company to repurchase up
to $200 million of its American Depositary Shares (ADSs)
over a 6-month period, effective immediately.
“With less than a month to go, 2021 is turning out to be a
stellar year for us and we are excited about our prospects next
year,” said Wallace Kou, Silicon Motion’s President and CEO.
“We have a long track record of returning excess capital to
shareholders, primarily through dividends, but also though share
repurchases. On October 25, we announced our annual dividend that
is 43% higher than the previous one. We are now following up
with a program to purchase up to $200 million of our ADSs over the
next six months.”
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 program
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.
The Company also reaffirms its fourth quarter financial guidance
as originally provided on its third quarter earnings release and
filed on Form 6-K on October 28, 2021. Silicon Motion’s policy is
to not reiterate or adjust financial guidance unless it is also
done through a public disclosure such as a press release or Form
6-K, as done here.
As of September 30, 2021, the Company had
approximately $419.5 million of cash, cash equivalents,
restricted cash and short-term investments.
About Silicon Motion:
We are the global leader in supplying NAND flash controllers for
solid state storage devices. We supply more SSD controllers
than any other company in the world for servers, PCs and other
client devices and are the leading merchant supplier of eMMC and
UFS embedded storage controllers used in smartphones, IoT devices
and other applications. We also supply customized
high-performance hyperscale data center and specialized industrial
and automotive 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 one or
more 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 the
uncertainties associated with the ongoing global outbreak of
COVID-19; the recent increases in tensions between Taiwan and China
including enhanced military activities; 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 the products we sell given the
current raw material supply shortages being experienced in our
industry; 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 12,
2021. 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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