Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon
Motion”, the “Company” or “we”) today announced its financial
results for the quarter ended March 31, 2023. For the first quarter
of 2023, net sales (GAAP) decreased sequentially to $124.1 million
from $200.8 million in the fourth quarter of 2022. Net income
(GAAP) decreased to $10.2 million, or $0.30 per diluted American
Depositary Share (“ADS”) (GAAP), from net income (GAAP) of $23.5
million, or $0.71 per diluted ADS (GAAP), in the fourth quarter of
2022.
For the first quarter of 2023, net income
(non-GAAP) decreased to $11.2 million, or $0.33 per diluted ADS
(non-GAAP), from net income (non-GAAP) of $41.1 million, or $1.22
per diluted ADS (non-GAAP), in the fourth quarter of 2022.
Business Review Wallace Kou, President &
CEO of Silicon Motion commented:
“Market conditions are currently extremely
challenging, a view shared by all our NAND flash maker and other
key customers. End-markets for PCs and smartphones remain soft and
many suppliers into these products have focused on working down
inventory, including client SSD and eMMC/UFS embedded storage
devices, which has had a negative effect on our sales. Despite
this, we are encouraged to see some of our customers’ order
patterns improving in the second quarter, and combined with our
strong design win momentum, we are optimistic that this could lead
to a stronger market rebound towards the end of 2023.”
“We are actively taking steps to right size our
business and protect our profitability. We are also working on
reducing our manufacturing costs to improve gross margins in the
near-term. Regarding operating expenses, we have been taking steps
to reduce our compensation-related costs, the largest item in our
operating expense, as well as retiring certain unprofitable,
non-core product lines and pushing out certain R&D project
tape-outs and related expenses. Overall, we believe we are putting
the right actions in place to improve our overall profitability
throughout 2023.”
“Despite today’s difficult operating environment, we are working
hard with our customers and our manufacturing partners to continue
delivering cost effective, high-performance, differentiated
solutions that will enable us to maintain our leadership in the
storage controller market. We are confident that we have the right
customers, strong design win momentum and are taking necessary
steps to ensure the long-term growth of our revenue and
profitability.”
Key Financial Results
(in millions, except percentages and per ADS amounts) |
GAAP |
Non-GAAP |
1Q 2023 |
|
4Q 2022 |
|
1Q 2022 |
|
1Q 2023 |
|
4Q 2022 |
|
1Q 2022 |
|
Revenue |
$124.1 |
|
$200.8 |
|
$242.0 |
|
$124.1 |
|
$200.8 |
|
$242.0 |
|
Gross profit |
|
$52.3 |
|
|
$87.0 |
|
|
$126.1 |
|
|
$52.5 |
|
|
$95.1 |
|
|
$126.3 |
|
Percent of revenue |
|
42.2% |
|
|
43.3% |
|
|
52.1% |
|
|
42.3% |
|
|
47.4% |
|
|
52.2% |
|
Operating expenses |
$46.8 |
|
$61.9 |
|
$59.7 |
|
$39.6 |
|
$48.5 |
|
$54.3 |
|
Operating income |
|
$5.5 |
|
|
$25.1 |
|
|
$66.4 |
|
|
$12.9 |
|
|
$46.6 |
|
|
$72.0 |
|
Percent of revenue |
|
4.4% |
|
|
12.5% |
|
|
27.4% |
|
|
10.4% |
|
|
23.2% |
|
|
29.8% |
|
Earnings per diluted ADS |
$0.30 |
|
$0.71 |
|
$1.60 |
|
$0.33 |
|
$1.22 |
|
$1.72 |
|
Other Financial Information
(in millions) |
1Q 2023 |
|
4Q 2022 |
|
1Q 2022 |
|
Cash, cash equivalents, restricted cash and short-term
investments—end of period |
$280.3 |
|
$287.1 |
|
$281.7 |
|
Routine capital expenditures |
$7.2 |
|
$3.5 |
|
$5.7 |
|
Dividend payments |
-- |
|
-- |
|
$17.0 |
|
Share repurchases |
-- |
|
-- |
|
$103.0 |
|
During the first quarter of 2023, we had $13.6
million of capital expenditures, including $7.2 million for the
routine purchase of testing equipment, software, design tools and
other items, and $6.4 million for building construction in
Hsinchu.
Acquisition UpdateOn May 5, 2022, Silicon Motion
agreed to be acquired by MaxLinear, Inc. (“MaxLinear”) with (a)
holders of Silicon Motion ordinary shares, par value $0.01 (each, a
“Share”), to receive $23.385 in cash and 0.097 shares of common
stock, par value $0.0001, of MaxLinear (“MaxLinear Common Stock”)
for each Share that they hold (other than certain customary
excluded Shares), and (b) ADS holders to receive $93.54 in cash and
0.388 shares of MaxLinear Common Stock for each ADS that they hold
(other than ADSs representing certain customary excluded Shares),
in each case, with cash in lieu of any fractional shares of
MaxLinear Common Stock as set forth in the merger agreement
(collectively, the “Transaction”). On August 31, 2022, shareholders
at Silicon Motion’s Extraordinary General Meeting of shareholders
approved the Transaction.
The Transaction is not subject to any financing
condition but is pending satisfaction of customary closing
conditions, including antitrust approval from China’s State
Administration for Market Regulation (“SAMR”). MaxLinear and
Silicon Motion cannot predict with certainty the length of SAMR’s
review but expect a final determination by SAMR in the second or
third quarter of 2023, or even later. On June 27, 2022, the waiting
period under the United States Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended (the “HSR Act”), expired with
respect to the Transaction. If the Transaction has not closed by
June 27, 2023, the parties will need to re-file under the HSR
Act.
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 income (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.
Restructuring charges relate to the restructuring of our
underperforming product lines, principally the write-down of NAND
flash, embedded DRAM and SSD inventory valuation and severance
payments.
M&A transaction expenses consist of legal, financial
advisory and other fees related to the Transaction.
Loss from settlement of litigation relates to an expense accrued
in connection with a settlement of a lawsuit.
Foreign exchange loss (gain) consists 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$. We do not use financial
instruments to manage the impact on our operations from changes in
foreign exchange rates, and because our operations are subject to
fluctuations in foreign exchange rates, we therefore exclude
foreign exchange gains and losses when presenting non-GAAP
financial measures.
Unrealized holding loss (gain) on investments relates to the
difference between market value and cost of long-term
investments.
Silicon Motion Technology Corporation |
Consolidated Statements of Income |
(in thousands, except percentages and per ADS data, unaudited) |
|
|
|
For Three Months Ended |
|
|
Mar. 31, |
|
Dec. 31, |
|
Mar. 31, |
|
|
2022 |
|
2022 |
|
2023 |
|
|
($) |
|
($) |
|
($) |
Net Sales |
|
241,978 |
|
|
200,759 |
|
|
124,069 |
|
Cost of sales |
|
115,871 |
|
|
113,786 |
|
|
71,766 |
|
Gross profit |
|
126,107 |
|
|
86,973 |
|
|
52,303 |
|
Operating expenses |
|
|
|
|
|
|
Research & development |
|
45,623 |
|
|
51,926 |
|
|
34,850 |
|
Sales & marketing |
|
7,602 |
|
|
5,629 |
|
|
6,605 |
|
General & administrative |
|
6,520 |
|
|
4,349 |
|
|
5,363 |
|
Loss from settlement of litigation |
|
- |
|
|
(10 |
) |
|
- |
|
Operating income |
|
66,362 |
|
|
25,079 |
|
|
5,485 |
|
Non-operating income
(expense) |
|
|
|
|
|
|
Interest income, net |
|
260 |
|
|
1,261 |
|
|
1,810 |
|
Foreign exchange gain (loss), net |
|
165 |
|
|
(562 |
) |
|
238 |
|
Unrealized holding gain on investments |
|
- |
|
|
896 |
|
|
4,746 |
|
Others, net |
|
1 |
|
|
- |
|
|
- |
|
Subtotal |
|
426 |
|
|
1,595 |
|
|
6,794 |
|
Income before income tax |
|
66,788 |
|
|
26,674 |
|
|
12,279 |
|
Income tax expense |
|
12,286 |
|
|
3,138 |
|
|
2,129 |
|
Net income |
|
54,502 |
|
|
23,536 |
|
|
10,150 |
|
|
|
|
|
|
|
|
Earnings per basic ADS |
|
1.61 |
|
|
0.71 |
|
|
0.31 |
|
Earnings per diluted ADS |
|
1.60 |
|
|
0.71 |
|
|
0.30 |
|
|
|
|
|
|
|
|
Margin
Analysis: |
|
|
|
|
|
|
Gross margin |
|
52.1% |
|
|
43.3% |
|
|
42.2% |
|
Operating margin |
|
27.4% |
|
|
12.5% |
|
|
4.4% |
|
Net margin |
|
22.5% |
|
|
11.7% |
|
|
8.2% |
|
|
|
|
|
|
|
|
Additional
Data: |
|
|
|
|
|
|
Weighted avg. ADS
equivalents |
|
33,807 |
|
|
33,054 |
|
|
33,176 |
|
Diluted ADS equivalents |
|
34,010 |
|
|
33,209 |
|
|
33,381 |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
Mar. 31, |
|
Dec. 31, |
|
Mar. 31, |
|
2022 |
|
2022 |
|
2023 |
|
($) |
|
($) |
|
($) |
Gross profit (GAAP) |
|
126,107 |
|
|
86,973 |
|
|
52,303 |
|
Gross margin (GAAP) |
|
52.1% |
|
|
43.3% |
|
|
42.2% |
|
Stock-based compensation (A) |
|
138 |
|
|
228 |
|
|
135 |
|
Restructuring charges |
|
102 |
|
|
7,918 |
|
|
37 |
|
Gross profit
(non-GAAP) |
|
126,347 |
|
|
95,119 |
|
|
52,475 |
|
Gross margin (non-GAAP) |
|
52.2% |
|
|
47.4% |
|
|
42.3% |
|
|
|
|
|
|
|
|
Operating expenses
(GAAP) |
|
59,745 |
|
|
61,894 |
|
|
46,818 |
|
Stock-based compensation (A) |
|
(5,430) |
|
|
(12,613) |
|
|
(5,350) |
|
M&A transaction expenses |
|
- |
|
|
(787) |
|
|
(637) |
|
Restructuring charges |
|
- |
|
|
- |
|
|
(1,256) |
|
Loss from settlement of litigation |
|
- |
|
|
10 |
|
|
- |
|
Operating expenses
(non-GAAP) |
|
54,315 |
|
|
48,504 |
|
|
39,575 |
|
|
|
|
|
|
|
|
Operating profit
(GAAP) |
|
66,362 |
|
|
25,079 |
|
|
5,485 |
|
Operating margin (GAAP) |
|
27.4% |
|
|
12.5% |
|
|
4.4% |
|
Total adjustments to operating profit |
|
5,670 |
|
|
21,536 |
|
|
7,415 |
|
Operating profit
(non-GAAP) |
|
72,032 |
|
|
46,615 |
|
|
12,900 |
|
Operating margin (non-GAAP) |
|
29.8% |
|
|
23.2% |
|
|
10.4% |
|
|
|
|
|
|
|
|
Non-operating income
(expense) (GAAP) |
|
426 |
|
|
1,595 |
|
|
6,794 |
|
Foreign exchange loss (gain), net |
|
(165) |
|
|
562 |
|
|
(238) |
|
Unrealized holding gain on investments |
|
- |
|
|
(896) |
|
|
(4,746) |
|
Non-operating income
(expense) (non-GAAP) |
|
261 |
|
|
1,261 |
|
|
1,810 |
|
|
|
|
|
|
|
|
Net income
(GAAP) |
|
54,502 |
|
|
23,536 |
|
|
10,150 |
|
Total pre-tax impact of non-GAAP
adjustments |
|
5,505 |
|
|
21,202 |
|
|
2,431 |
|
Income tax impact of non-GAAP adjustments |
|
(1,062) |
|
|
(3,687) |
|
|
(1,418) |
|
Net income
(non-GAAP) |
|
58,945 |
|
|
41,051 |
|
|
11,163 |
|
|
|
|
|
|
|
|
Earnings per diluted
ADS (GAAP) |
|
$1.60 |
|
|
$0.71 |
|
|
$0.30 |
|
Earnings per diluted
ADS (non-GAAP) |
|
$1.72 |
|
|
$1.22 |
|
|
$0.33 |
|
|
|
|
|
|
|
|
Shares used in
computing earnings per diluted ADS (GAAP) |
|
34,010 |
|
|
33,209 |
|
|
33,381 |
|
Non-GAAP adjustments |
|
273 |
|
|
341 |
|
|
167 |
|
Shares used in
computing earnings per diluted ADS (non-GAAP) |
|
34,283 |
|
|
33,550 |
|
|
33,548 |
|
|
|
|
|
|
|
|
(A) Excludes
stock-based compensation as follows: |
|
|
|
|
|
|
Cost of sales |
|
138 |
|
|
228 |
|
|
135 |
|
Research & development |
|
3,707 |
|
|
9,670 |
|
|
3,868 |
|
Sales & marketing |
|
630 |
|
|
1,053 |
|
|
541 |
|
General & administrative |
|
1,093 |
|
|
1,890 |
|
|
941 |
|
Silicon Motion Technology Corporation |
Consolidated Balance Sheet |
(In thousands, unaudited) |
|
|
|
Mar. 31, |
|
Dec. 31 |
|
Mar. 31, |
|
|
2022 |
|
2022 |
|
2023 |
|
|
($) |
|
($) |
|
($) |
Cash and cash equivalents |
|
226,396 |
|
232,179 |
|
225,382 |
Accounts receivable (net) |
|
208,413 |
|
206,105 |
|
145,772 |
Inventories |
|
218,763 |
|
287,964 |
|
307,662 |
Refundable deposits –
current |
|
48,500 |
|
49,490 |
|
49,492 |
Prepaid expenses and other current assets |
|
37,847 |
|
12,184 |
|
14,115 |
Total current assets |
|
739,919 |
|
787,922 |
|
742,423 |
Long-term investments |
|
8,550 |
|
9,267 |
|
14,068 |
Property and equipment
(net) |
|
131,317 |
|
139,434 |
|
147,115 |
Other assets |
|
17,696 |
|
24,627 |
|
24,592 |
Total assets |
|
897,482 |
|
961,250 |
|
928,198 |
|
|
|
|
|
|
|
Accounts payable |
|
81,028 |
|
36,023 |
|
35,373 |
Income tax payable |
|
55,557 |
|
42,114 |
|
43,685 |
Accrued expenses and other
current liabilities |
|
110,961 |
|
105,731 |
|
55,644 |
Total current liabilities |
|
247,546 |
|
183,868 |
|
134,702 |
Other liabilities |
|
31,210 |
|
44,781 |
|
45,223 |
Total liabilities |
|
278,756 |
|
228,649 |
|
179,925 |
Shareholders’ equity |
|
618,726 |
|
732,601 |
|
748,273 |
Total liabilities & shareholders’ equity |
|
897,482 |
|
961,250 |
|
928,198 |
|
|
|
|
|
|
|
Silicon Motion Technology Corporation |
Condensed Consolidated Statements of Cash Flows |
(in thousands, unaudited) |
|
|
|
For Three Months Ended |
|
|
Mar. 31, |
|
Dec. 31 |
|
Mar. 31, |
|
|
2022 |
|
2022 |
|
2023 |
|
|
($) |
|
($) |
|
($) |
Net income |
|
54,502 |
|
|
23,536 |
|
|
10,150 |
|
Depreciation &
amortization |
|
4,454 |
|
|
4,936 |
|
|
5,608 |
|
Stock-based compensation |
|
5,568 |
|
|
12,841 |
|
|
5,485 |
|
Investment losses (gain) &
disposals |
|
1 |
|
|
(894 |
) |
|
(4,746 |
) |
Changes in operating assets
and liabilities |
|
(66,652 |
) |
|
(409 |
) |
|
(9,525 |
) |
Net cash provided by
(used in) operating activities |
|
(2,127 |
) |
|
40,010 |
|
|
6,972 |
|
|
|
|
|
|
|
|
Purchase of property &
equipment |
|
(11,662 |
) |
|
(7,794 |
) |
|
(13,550 |
) |
Net cash used in
investing activities |
|
(11,662 |
) |
|
(7,794 |
) |
|
(13,550 |
) |
|
|
|
|
|
|
|
Dividend payments |
|
(16,953 |
) |
|
- |
|
|
- |
|
Share repurchases |
|
(103,045 |
) |
|
- |
|
|
- |
|
Net cash used in
financing activities |
|
(119,998 |
) |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash, cash equivalents & restricted cash |
|
(133,787 |
) |
|
32,216 |
|
|
(6,578 |
) |
Effect of foreign exchange
changes |
|
(84 |
) |
|
954 |
|
|
(177 |
) |
Cash, cash equivalents &
restricted cash—beginning of period |
|
415,523 |
|
|
253,885 |
|
|
287,055 |
|
Cash, cash equivalents &
restricted cash—end of period |
|
281,652 |
|
|
287,055 |
|
|
280,300 |
|
|
|
|
|
|
|
|
|
|
|
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:
Information provided in 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. These forward-looking statements are based on
Silicon Motion’s and MaxLinear’s current expectations, estimates
and projections about the expected date of closing of the
Transaction and the potential benefits thereof, their businesses
and industry, management’s beliefs and certain assumptions made by
Silicon Motion and MaxLinear, all of which are subject to change.
The forward-looking statements include, but are not limited to,
statements about the expected timing of the transaction that will
result in the merger of Shark Merger Sub (a wholly owned subsidiary
of MaxLinear) with and into the Company, with the Company
continuing as the surviving company and a wholly-owned subsidiary
of MaxLinear, the satisfaction or waiver of any conditions to the
Transaction, anticipated benefits, growth opportunities and other
events relating to the Transaction, and projections about Silicon
Motion’s business and its future revenues, expenses and
profitability, and, in some cases, you can identify forward-looking
statements by terminology such as “may,” “will,” “should,”
“expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,”
“predict,” “potential,” “potentially,” “continue,” “could,” “seek,”
“see,” “would,” “might,” “continue,” “target” or the negatives of
these terms or other comparable terminology that convey uncertainty
of future events or outcomes. All forward-looking statements by
their nature address matters that involve risks and uncertainties,
many of which are beyond our control, and are not guarantees of
future results, such as statements about the consummation of the
Transaction and the anticipated benefits thereof. These and other
forward-looking statements are not guarantees of future results and
are subject to risks, uncertainties and assumptions that could
cause actual results to differ materially from those expressed in
any forward-looking statements. Although such statements are based
on Silicon Motion’s own information and information from other
sources Silicon Motion believes to be reliable, you should not
place undue reliance on them and caution must be exercised in
relying on forward-looking statements. These statements involve
risks and uncertainties, and actual results 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 risk that the Transaction may
not be completed on the anticipated terms and timing, in a timely
manner or at all, which may adversely affect Silicon Motion’s or
MaxLinear’s respective business and the price of our ADSs and
shares of MaxLinear Common Stock; uncertainties as to the timing of
the consummation of the Transaction and the potential failure to
satisfy the conditions to the consummation of the Transaction,
including the receipt of certain governmental and regulatory
approvals, anticipated tax treatment, unforeseen liabilities,
future capital expenditures, revenues, expenses, earnings,
synergies, economic performance, indebtedness, financial condition,
losses, future prospects, business and management strategies for
the management, expansion and growth of the parties’ businesses and
other conditions to the completion of the Transaction; the
occurrence of any event, change or other circumstances that could
give rise to the termination of the merger agreement; the effect of
the announcement or pendency of the Transaction on the Company’s or
MaxLinear’s respective business relationships, operating results,
and business generally; expected benefits, including financial
benefits, of the Transaction may not be realized; integration of
the acquisition post-closing may not occur as anticipated, and the
combined company’s ability to achieve the growth prospects and
synergies expected from the Transaction, as well as delays,
challenges and expenses associated with integrating the combined
company’s existing businesses, may occur; litigation related to the
Transaction or otherwise; unanticipated restructuring costs may be
incurred or undisclosed liabilities assumed; attempts to retain key
personnel and customers may not succeed; risks related to diverting
attention from the parties’ ongoing businesses, including current
plans and operations; changes in tax regimes, legislation or
government regulations affecting the acquisition or the parties or
their businesses; economic, social or political conditions that
could adversely affect the Transaction or the parties, including
trade and national security policies and export controls and
executive orders relating thereto, and worldwide government
economic policies, including trade relations between the United
States and China and the military conflict in Ukraine and related
sanctions against Russia and Belarus; unpredictability and severity
of catastrophic events, including, but not limited to, acts of
terrorism or outbreak of war or hostilities, as well as the
parties’ responses to any of the aforementioned factors; exposure
to inflation, currency rate and interest rate fluctuations and
risks associated with doing business locally and internationally,
as well as fluctuations in the market prices of the parties’ traded
securities; potential business uncertainty or adverse reactions or
changes to business relationships resulting from the announcement
or completion of the Transaction; potential negative changes in
general economic conditions and market developments in the regions
or the industries in which the parties’ operate; the loss of one or
more key customers or the significant reduction, postponement,
rescheduling or cancellation of orders from one or more customers
as a result or in anticipation of the Transaction or otherwise; the
parties’ respective customers’ sales outlook, purchasing patterns,
and inventory adjustments based on consumer demands and general
economic conditions; risks associated with the ongoing global
outbreak of COVID-19, including, but not limited to, the
emergence of variants to the original COVID-19 strain, such as the
Delta and Omicron variants, and related private and public sector
measures; Silicon Motion’s ability to provide a safe working
environment for employees during the COVID-19 pandemic or
any other public health crises, including pandemics or epidemics;
Silicon Motion’s and MaxLinear’s abilities to implement their
business strategies; pricing trends, including Silicon Motion’s and
MaxLinear’s abilities to achieve economies of scale; uncertainty as
to the long-term value of MaxLinear Common Stock; restrictions
during the pendency of the Transaction that may impact the
Company’s or MaxLinear’s ability to pursue certain business
opportunities or strategic transactions; and the other risk factors
discussed from time to time by Silicon Motion in the most recent
Annual Report on Form 20-F and in any subsequent reports
on Form 6-K, each of which is on file with or furnished
to the Securities and Exchange Commission (the “SEC”) and available
at the SEC’s website at www.sec.gov. SEC filings for Silicon Motion
are also available on Silicon Motion’s website at
https://www.siliconmotion.com/investor. We assume no obligation to
update any forward-looking statements, which apply only as of the
date of this press release.
Silicon Motion Investor Contacts: |
|
Jason Tsai |
Selina Hsieh |
jason.tsai@siliconmotion.com |
ir@siliconmotion.com |
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