Silicon Motion Announces Results for the Period Ended September 30, 2024
Silicon Motion (NASDAQ: SIMO) reported Q3 2024 financial results with net sales of $212.4 million, up 1% Q/Q and 23% Y/Y. The company's SSD controller sales were flat Q/Q but increased 20-25% Y/Y, while eMMC+UFS controller sales grew 0-5% Q/Q and 40-45% Y/Y. GAAP net income was $20.8 million with EPS of $0.62, down from $30.8 million and $0.91 in Q2. Non-GAAP net income was $31.0 million with EPS of $0.92. Gross margin improved to 46.7% GAAP and 46.8% non-GAAP. For Q4 2024, the company expects revenue between $191-202 million, representing a 10-5% Q/Q decline.
Silicon Motion (NASDAQ: SIMO) ha riportato i risultati finanziari del terzo trimestre 2024 con vendite nette di 212,4 milioni di dollari, in aumento dell'1% rispetto al trimestre precedente e del 23% rispetto all'anno precedente. Le vendite dei controller SSD sono rimaste stabili rispetto al trimestre precedente, ma sono aumentate del 20-25% rispetto all'anno precedente, mentre le vendite dei controller eMMC+UFS sono cresciute del 0-5% Q/Q e del 40-45% Y/Y. L'utile netto GAAP è stato di 20,8 milioni di dollari con un utile per azione (EPS) di 0,62 dollari, in calo rispetto ai 30,8 milioni di dollari e 0,91 dollari registrati nel secondo trimestre. L'utile netto non-GAAP è stato di 31,0 milioni di dollari con un EPS di 0,92 dollari. Il margine lordo è migliorato al 46,7% per il GAAP e al 46,8% per il non-GAAP. Per il quarto trimestre 2024, l'azienda prevede ricavi compresi tra 191-202 milioni di dollari, corrispondente a un calo del 10-5% rispetto al trimestre precedente.
Silicon Motion (NASDAQ: SIMO) informó los resultados financieros del tercer trimestre de 2024 con ventas netas de 212,4 millones de dólares, un aumento del 1% respecto al trimestre anterior y del 23% en comparación con el año anterior. Las ventas de controladores SSD se mantuvieron estables en comparación con el trimestre anterior, pero aumentaron entre un 20-25% interanual, mientras que las ventas de controladores eMMC+UFS crecieron entre un 0-5% en comparación con el trimestre anterior y un 40-45% en comparación con el año anterior. La utilidad neta GAAP fue de 20,8 millones de dólares con un EPS de 0,62 dólares, una disminución respecto a los 30,8 millones de dólares y 0,91 dólares en el segundo trimestre. La utilidad neta no-GAAP fue de 31,0 millones de dólares con un EPS de 0,92 dólares. El margen bruto mejoró al 46,7% GAAP y al 46,8% no-GAAP. Para el cuarto trimestre de 2024, la empresa espera ingresos entre 191-202 millones de dólares, lo que representa una disminución del 10-5% en comparación con el trimestre anterior.
실리콘 모션 (NASDAQ: SIMO)은 2024년 3분기 재무 결과를 발표했으며, 순매출은 2억 1천 2백 40만 달러로, 전분기 대비 1% 증가하고 전년 대비 23% 증가했습니다. SSD 컨트롤러 판매는 전분기 대비 변동이 없었지만, 전년 대비 20-25% 증가했으며, eMMC+UFS 컨트롤러 판매는 전분기 대비 0-5% 성장하고 전년 대비 40-45% 성장했습니다. GAAP 순이익은 2천 80만 달러로 주당순이익(EPS)은 0.62달러로, 2분기의 3천 80만 달러와 0.91달러에서 감소했습니다. 비GAAP 순이익은 3천만 달러, 주당순이익(EPS)은 0.92달러였습니다. 총 마진은 GAAP 기준 46.7%, 비GAAP 기준 46.8%로 개선되었습니다. 2024년 4분기에는 1억 9천 10만에서 2억 2천만 달러 사이의 수익을 예상하며, 이는 전분기 대비 10-5% 감소를 나타냅니다.
Silicon Motion (NASDAQ: SIMO) a publié les résultats financiers du troisième trimestre 2024, avec des ventes nettes de 212,4 millions de dollars, en hausse de 1 % par rapport au trimestre précédent et de 23 % par rapport à l'année précédente. Les ventes des contrôleurs SSD sont restées stables par rapport au trimestre précédent, mais ont augmenté de 20-25 % par rapport à l'année précédente, tandis que les ventes des contrôleurs eMMC+UFS ont augmenté de 0-5 % par rapport au trimestre précédent et de 40-45 % par rapport à l'année précédente. Le bénéfice net selon les normes GAAP était de 20,8 millions de dollars, avec un BPA de 0,62 dollars, en baisse par rapport à 30,8 millions de dollars et 0,91 dollars au deuxième trimestre. Le bénéfice net hors GAAP était de 31,0 millions de dollars avec un BPA de 0,92 dollars. La marge brute s'est améliorée à 46,7 % GAAP et 46,8 % hors GAAP. Pour le quatrième trimestre 2024, l'entreprise prévoit des revenus compris entre 191 et 202 millions de dollars, représentant une baisse de 10-5 % par rapport au trimestre précédent.
Silicon Motion (NASDAQ: SIMO) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem Nettoumsatz von 212,4 Millionen US-Dollar, was einem Anstieg von 1 % im Vergleich zum vorherigen Quartal und 23 % im Jahresvergleich entspricht. Der Verkauf von SSD-Controllern blieb im Quartalsvergleich unverändert, stieg jedoch um 20-25 % im Jahresvergleich, während die Verkäufe von eMMC+UFS-Controllern um 0-5 % im Quartalsvergleich und um 40-45 % im Jahresvergleich zunahmen. Der GAAP-Nettoeinkommen betrug 20,8 Millionen US-Dollar mit einem EPS von 0,62 US-Dollar, ein Rückgang von 30,8 Millionen US-Dollar und 0,91 US-Dollar im 2. Quartal. Das Non-GAAP-Nettoeinkommen betrug 31,0 Millionen US-Dollar, mit einem EPS von 0,92 US-Dollar. Die Bruttomarge verbesserte sich auf 46,7 % GAAP und 46,8 % non-GAAP. Für das 4. Quartal 2024 erwartet das Unternehmen einen Umsatz zwischen 191 und 202 Millionen US-Dollar, was einem Rückgang von 10-5 % im Quartalsvergleich entspricht.
- Revenue increased 23% year-over-year to $212.4 million
- eMMC+UFS controller sales grew 40-45% year-over-year
- SSD controller sales increased 20-25% year-over-year
- Gross margin improved to 46.7% from 42.4% year-over-year
- Net income decreased from $30.8M in Q2 to $20.8M in Q3 2024
- Operating margin declined to 11.5% from 14.6% quarter-over-quarter
- Q4 2024 guidance projects revenue decline of 5-10% quarter-over-quarter
Insights
Business Highlights
- Third quarter of 2024 sales increased
1% Q/Q and increased23% Y/Y- SSD controller sales: 3Q of 2024 were flat Q/Q and increased
20% to25% Y/Y - eMMC+UFS controller sales: 3Q of 2024 increased
0% to5% Q/Q and increased40% to45% Y/Y - SSD solutions sales: 3Q of 2024 increased
5% to10% Q/Q and increased5% to10% Y/Y
- SSD controller sales: 3Q of 2024 were flat Q/Q and increased
Financial Highlights
| 3Q 2024 GAAP | 3Q 2024 Non-GAAP | |
| • Net sales | ||
| • Gross margin | ||
| • Operating margin | ||
| • Earnings per diluted ADS |
TAIPEI, Taiwan and MILPITAS, Calif., Oct. 31, 2024 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company” or “we”) today announced its financial results for the quarter ended September 30, 2024. For the third quarter of 2024, net sales (GAAP) increased sequentially to
For the third quarter of 2024, net income (non-GAAP) decreased to
All financial numbers are in U.S. dollars unless otherwise noted.
Third Quarter of 2024 Review
“We continued to execute well in the third quarter of 2024, delivering revenue above the mid-point of our guided range and further expanding our gross margins,” said Wallace Kou, President and CEO of Silicon Motion. “Our eMMC and UFS controller revenue grew modestly, and our SSD controller revenue remained strong given continued growth in the OEM channel. We continue to outperform the market through new wins we secured this quarter with both NAND makers and module makers that we expect will ramp-up in 2025. We expect this trend to continue as we expand our product portfolio and deliver world-class controllers to the market.”
Key Financial Results
| (in millions, except percentages and per ADS amounts) | GAAP | Non-GAAP | ||||||||||||||||
| 3Q 2024 | 2Q 2024 | 3Q 2023 | 3Q 2024 | 2Q 2024 | 3Q 2023 | |||||||||||||
| Revenue | ||||||||||||||||||
| Gross profit | ||||||||||||||||||
| Percent of revenue | 46.7% | 45.9% | 42.4% | 46.8% | 46.0% | 42.5% | ||||||||||||
| Operating expenses | ||||||||||||||||||
| Operating income | ||||||||||||||||||
| Percent of revenue | 11.5% | 14.6% | 8.7% | 16.1% | 16.5% | 13.8% | ||||||||||||
| Earnings per diluted ADS | ||||||||||||||||||
Other Financial Information
| (in millions) | 3Q 2024 | 2Q 2024 | 3Q 2023 | ||||||
| Cash, cash equivalents, restricted cash and short-term investments—end of period | |||||||||
| Routine capital expenditures | |||||||||
| Dividend payments | -- | ||||||||
During the third quarter of 2024, we had
Business Outlook
“Looking ahead, we expect to experience gains from greater outsourcing by our NAND flash maker partners, which should continue to deliver revenue and profitability growth for the company,” said Wallace Kou, President and CEO of Silicon Motion. “In the current quarter, we are introducing two key new controllers, including our first AI/enterprise server MonTitan controller and our first PCIe Gen 5.0 client SSD controller, placing Silicon Motion in an exceptionally strong position entering calendar 2025. While the seasonal holiday demand is expected to be more muted than in past years, we are confident that our highly differentiated controller solutions for PCs, smartphones and now enterprise-class storage controllers will further strengthen our market leadership position and will build on our foundation for strong, sustainable long-term growth."
For the fourth quarter of 2024, management expects:
| ($ in millions) | GAAP | Non-GAAP Adjustment | Non-GAAP |
| Revenue | - - | -- | - - |
| Gross margin | Approximately | 46.5 % to | |
| Operating margin | Approximately |
* Projected gross margin (non-GAAP) excludes
** Projected operating margin (non-GAAP) excludes
Conference Call & Webcast:
The Company’s management team will conduct a conference call at 8:00 am Eastern Time on October 31, 2024.
Conference Call Details
Participants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration.
Participant Online Registration:
https://register.vevent.com/register/BI3e5d77077ee94ca9b9fd61325f52a0e9
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), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (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 similarly-titled 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.
Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.
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$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.
Unrealized holding loss (gain) on investments relates to the net change in fair value of long-term investments.
| Silicon Motion Technology Corporation Consolidated Statements of Income (in thousands, except percentages and per ADS data, unaudited) | |||||||||||||||
| For Three Months Ended | For the Nine Months Ended | ||||||||||||||
| Sep. 30, | Jun. 30, | Sep. 30, | Sep. 30, | Sep. 30, | |||||||||||
| 2023 | 2024 | 2024 | 2023 | 2024 | |||||||||||
| ($) | ($) | ($) | ($) | ($) | |||||||||||
| Net Sales | 172,333 | 210,670 | 212,412 | 436,763 | 612,392 | ||||||||||
| Cost of sales | 99,193 | 113,893 | 113,142 | 254,897 | 331,227 | ||||||||||
| Gross profit | 73,140 | 96,777 | 99,270 | 181,866 | 281,165 | ||||||||||
| Operating expenses | |||||||||||||||
| Research & development | 41,740 | 50,788 | 58,486 | 117,926 | 163,666 | ||||||||||
| Sales & marketing | 6,862 | 6,777 | 7,009 | 20,715 | 20,090 | ||||||||||
| General & administrative | 8,939 | 7,215 | 9,315 | 20,323 | 23,003 | ||||||||||
| Loss from settlement of litigation | 591 | 1,250 | - | 591 | 1,250 | ||||||||||
| Operating income | 15,008 | 30,747 | 24,460 | 22,311 | 73,156 | ||||||||||
| Non-operating income (expense) | |||||||||||||||
| Interest income, net | 3,480 | 4,175 | 3,518 | 8,026 | 10,760 | ||||||||||
| Foreign exchange gain (loss), net | 569 | 245 | (488 | ) | 2,030 | 345 | |||||||||
| Unrealized holding gain(loss) on investments | (2,828 | ) | 1,855 | (602 | ) | 8,053 | (355 | ) | |||||||
| Subtotal | 1,221 | 6,275 | 2,428 | 18,109 | 10,750 | ||||||||||
| Income before income tax | 16,229 | 37,022 | 26,888 | 40,420 | 83,906 | ||||||||||
| Income tax expense | 5,642 | 6,201 | 6,045 | 8,639 | 16,226 | ||||||||||
| Net income | 10,587 | 30,821 | 20,843 | 31,781 | 67,680 | ||||||||||
| Earnings per basic ADS | 0.32 | 0.92 | 0.62 | 0.95 | 2.01 | ||||||||||
| Earnings per diluted ADS | 0.32 | 0.91 | 0.62 | 0.95 | 2.01 | ||||||||||
| Margin Analysis: | |||||||||||||||
| Gross margin | 42.4 | % | 45.9 | % | 46.7 | % | 41.6 | % | 45.9 | % | |||||
| Operating margin | 8.7 | % | 14.6 | % | 11.5 | % | 5.1 | % | 11.9 | % | |||||
| Net margin | 6.1 | % | 14.6 | % | 9.8 | % | 7.3 | % | 11.1 | % | |||||
| Additional Data: | |||||||||||||||
| Weighted avg. ADS equivalents | 33,413 | 33,684 | 33,687 | 33,332 | 33,627 | ||||||||||
| Diluted ADS equivalents | 33,471 | 33,697 | 33,700 | 33,431 | 33,691 | ||||||||||
| 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, | |||||||||||
| 2023 | 2024 | 2024 | 2023 | 2024 | |||||||||||
| ($) | ($) | ($) | ($) | ($) | |||||||||||
| Gross profit (GAAP) | 73,140 | 96,777 | 99,270 | 181,866 | 281,165 | ||||||||||
| Gross margin (GAAP) | 42.4 | % | 45.9 | % | 46.7 | % | 41.6 | % | 45.9 | % | |||||
| Stock-based compensation (A) | 94 | 14 | 63 | 300 | 149 | ||||||||||
| Restructuring charges | 88 | 46 | - | 3,347 | 46 | ||||||||||
| Gross profit (non-GAAP) | 73,322 | 96,837 | 99,333 | 185,513 | 281,360 | ||||||||||
| Gross margin (non-GAAP) | 42.5 | % | 46.0 | % | 46.8 | % | 42.5 | % | 45.9 | % | |||||
| Operating expenses (GAAP) | 58,132 | 66,030 | 74,810 | 159,555 | 208,009 | ||||||||||
| Stock-based compensation (A) | (3,751 | ) | (371 | ) | (3,595 | ) | (11,460 | ) | (7,059 | ) | |||||
| M&A transaction expenses | (708 | ) | - | - | (2,893 | ) | - | ||||||||
| Dispute related expenses | (3,495 | ) | (3,527 | ) | (6,076 | ) | (3,495 | ) | (11,135 | ) | |||||
| Restructuring charges | (661 | ) | - | - | (4,581 | ) | - | ||||||||
| Operating expenses (non-GAAP) | 49,517 | 62,132 | 65,139 | 137,126 | 189,815 | ||||||||||
| Operating profit (GAAP) | 15,008 | 30,747 | 24,460 | 22,311 | 73,156 | ||||||||||
| Operating margin (GAAP) | 8.7 | % | 14.6 | % | 11.5 | % | 5.1 | % | 11.9 | % | |||||
| Total adjustments to operating profit | 8,797 | 3,958 | 9,734 | 26,076 | 18,389 | ||||||||||
| Operating profit (non-GAAP) | 23,805 | 34,705 | 34,194 | 48,387 | 91,545 | ||||||||||
| Operating margin (non-GAAP) | 13.8 | % | 16.5 | % | 16.1 | % | 11.1 | % | 14.9 | % | |||||
| Non-operating income (expense) (GAAP) | 1,221 | 6,275 | 2,428 | 18,109 | 10,750 | ||||||||||
| Foreign exchange loss (gain), net | (569 | ) | (245 | ) | 488 | (2,030 | ) | (345 | ) | ||||||
| Unrealized holding loss (gain) on investments | 2,828 | (1,855 | ) | 602 | (8,053 | ) | 355 | ||||||||
| Non-operating income (expense) (non-GAAP) | 3,480 | 4,175 | 3,518 | 8,026 | 10,760 | ||||||||||
| Net income (GAAP) | 10,587 | 30,821 | 20,843 | 31,781 | 67,680 | ||||||||||
| Total pre-tax impact of non-GAAP adjustments | 11,056 | 1,858 | 10,824 | 15,993 | 18,399 | ||||||||||
| Income tax impact of non-GAAP adjustments | (584 | ) | (218 | ) | (649 | ) | (2,968 | ) | (1,014 | ) | |||||
| Net income (non-GAAP) | 21,059 | 32,461 | 31,018 | 44,806 | 85,065 | ||||||||||
| Earnings per diluted ADS (GAAP) | |||||||||||||||
| Earnings per diluted ADS (non-GAAP) | |||||||||||||||
| Shares used in computing earnings per diluted ADS (GAAP) | 33,471 | 33,697 | 33,700 | 33,431 | 33,691 | ||||||||||
| Non-GAAP adjustments | 128 | 18 | 109 | 136 | 52 | ||||||||||
| Shares used in computing earnings per diluted ADS (non-GAAP) | 33,599 | 33,715 | 33,809 | 33,567 | 33,743 | ||||||||||
| (A) Excludes stock-based compensation as follows: | |||||||||||||||
| Cost of sales | 94 | 14 | 63 | 300 | 149 | ||||||||||
| Research & development | 2,422 | 94 | 2,377 | 7,605 | 4,614 | ||||||||||
| Sales & marketing | 521 | 173 | 455 | 1,496 | 975 | ||||||||||
| General & administrative | 808 | 104 | 763 | 2,359 | 1,470 | ||||||||||
| Silicon Motion Technology Corporation Consolidated Balance Sheet (In thousands, unaudited) | |||||||||
| Sep. 30, | Jun. 30, | Sep. 30, | |||||||
| 2023 | 2024 | 2024 | |||||||
| ($) | ($) | ($) | |||||||
| Cash and cash equivalents | 295,385 | 289,175 | 313,924 | ||||||
| Accounts receivable (net) | 193,389 | 191,692 | 202,726 | ||||||
| Inventories | 199,003 | 240,811 | 214,574 | ||||||
| Refundable deposits – current | 49,445 | 51,036 | 51,102 | ||||||
| Prepaid expenses and other current assets | 16,896 | 31,460 | 38,246 | ||||||
| Total current assets | 754,118 | 804,174 | 820,572 | ||||||
| Long-term investments | 17,023 | 17,301 | 16,878 | ||||||
| Property and equipment (net) | 162,107 | 179,550 | 181,983 | ||||||
| Other assets | 33,672 | 29,121 | 29,304 | ||||||
| Total assets | 966,920 | 1,030,146 | 1,048,737 | ||||||
| Accounts payable | 26,975 | 36,411 | 30,888 | ||||||
| Income tax payable | 26,279 | 14,103 | 14,444 | ||||||
| Accrued expenses and other current liabilities | 77,502 | 134,947 | 131,143 | ||||||
| Total current liabilities | 130,756 | 185,461 | 176,475 | ||||||
| Other liabilities | 62,112 | 60,182 | 62,673 | ||||||
| Total liabilities | 192,868 | 245,643 | 239,148 | ||||||
| Shareholders’ equity | 774,052 | 784,503 | 809,589 | ||||||
| Total liabilities & shareholders’ equity | 966,920 | 1,030,146 | 1,048,737 | ||||||
| Silicon Motion Technology Corporation Condensed Consolidated Statements of Cash Flows (in thousands, unaudited) | |||||||||||||||
| For Three Months Ended | For the Nine Months Ended | ||||||||||||||
| Sep. 30, | Jun. 30, | Sep. 30, | Sep. 30, | Sep. 30, | |||||||||||
| 2023 | 2024 | 2024 | 2023 | 2024 | |||||||||||
| ($) | ($) | ($) | ($) | ($) | |||||||||||
| Net income | 10,587 | 30,821 | 20,843 | 31,781 | 67,680 | ||||||||||
| Depreciation & amortization | 8,043 | 5,802 | 6,664 | 19,032 | 18,075 | ||||||||||
| Stock-based compensation | 3,845 | 385 | 3,658 | 11,760 | 7,208 | ||||||||||
| Investment losses (gain) & disposals | 3,135 | (1,855 | ) | 602 | (7,556 | ) | 355 | ||||||||
| Changes in operating assets and liabilities | 39,302 | (13,660 | ) | 22,280 | 52,910 | (9,967 | ) | ||||||||
| Net cash provided by (used in) operating activities | 64,912 | 21,493 | 54,047 | 107,927 | 83,351 | ||||||||||
| Purchase of property & equipment | (17,052 | ) | (10,427 | ) | (12,436 | ) | (40,687 | ) | (33,612 | ) | |||||
| Net cash provided by (used in) investing activities | (17,052 | ) | (10,427 | ) | (12,436 | ) | (40,687 | ) | (33,612 | ) | |||||
| Dividend payments | - | (16,820 | ) | (16,812 | ) | (15 | ) | (50,441 | ) | ||||||
| Net cash used in financing activities | - | (16,820 | ) | (16,812 | ) | (15 | ) | (50,441 | ) | ||||||
| Net increase (decrease) in cash, cash equivalents & restricted cash | 47,860 | (5,754 | ) | 24,799 | 67,225 | (702 | ) | ||||||||
| Effect of foreign exchange changes | (2,528 | ) | 86 | 186 | (3,977 | ) | 308 | ||||||||
| Cash, cash equivalents & restricted cash—beginning of period | 304,971 | 349,279 | 343,611 | 287,055 | 368,990 | ||||||||||
| Cash, cash equivalents & restricted cash—end of period | 350,303 | 343,611 | 368,596 | 350,303 | 368,596 | ||||||||||
Shareholder Litigation
On August 31, 2023, a Silicon Motion ADS holder (the “Plaintiff”) filed a putative class action complaint in the United States District Court for the Southern District of California, captioned Water Island Event-Driven Fund v. MaxLinear, Inc., No. 23-cv-01607 (S.D. Cal.), asserting claims against MaxLinear and two of its officers (the “MaxLinear Defendants”) for alleged violations of (i) Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder and (ii) Section 20(a) of the Exchange Act, in connection with alleged false and misleading statements made by the MaxLinear Defendants between June 6, 2023 and July 26, 2023 concerning MaxLinear’s intent to consummate the merger agreement it had entered into with Silicon Motion. On August 28, 2024, the Court dismissed the complaint against the MaxLinear Defendants without prejudice for lack of standing. On September 18, 2024, the Plaintiff filed an amended complaint against the MaxLinear Defendants, and also added Silicon Motion and two of its officers (the “Silicon Motion Defendants”), asserting substantially similar claims under the Exchange Act. The complaint seeks compensatory damages, including interest, costs and expenses, and such other equitable or injunctive relief that the court deems appropriate. Motions to dismiss the amended complaint are expected to be fully briefed by February 2025. The Silicon Motion Defendants believe that the claims asserted against them are without merit and intend to defend themselves vigorously.
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 impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing 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; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; 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 U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2024. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this press release.
| Silicon Motion Investor Contacts: | |
| Tom Sepenzis | Selina Hsieh |
| Senior Director of IR & Strategy | Investor Relations |
| tsepenzis@siliconmotion.com | ir@siliconmotion.com |
| Media Contact: | |
| Dan Scorpio, H/Advisors Abernathy | |
| Dan.scorpio@h-advisors.global |
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