Silicon Motion Announces Second Quarter Results for the Period Ended June 30, 2010
Press Release Source: Silicon Motion Technology Corporation On Thursday July 29, 2010, 6:00 pm EDT
Second Quarter 2010
Financial Highlights
Net sales increased 25% quarter-over-quarter to US$32.5 million from US$26.0 million in 1Q10
Gross margin excluding stock-based compensation increased to 47.7% from 47.1% in 1Q10
Operating expenses excluding stock-based compensation, acquisition-related charges, and other items increased to US$13.0 million from US$12.0 million in 1Q10
Operating margin excluding stock-based compensation, acquisition-related charges, and other items increased to 7.6% from 0.9% in 1Q10
Diluted earnings per ADS excluding stock-based compensation, acquisition-related charges, net foreign exchange gain (loss), and other items improved to US$0.09 compared to a loss per ADS of US$0.01 in 1Q10
Business Highlights
Increased total unit shipments 12% sequentially and 72% year-over-year to approximately 94 million units
Increased storage controller unit shipments 16% sequentially and 71% year-over-year
Increased our SSD and embedded controller shipments 25% sequentially and almost 350% compared with 2Q09 to account for nearly 10% of our total revenue
Increased our shipment of 3-bits per cell controllers by almost 130% sequentially to account for approximately 30% of our controller shipments
Significant design win with Samsung for OEM SD and microSD card business
Became sole supplier to a leading Japanese OEM for Memory Stick and UFD products
Several new design wins for our T-DMB mobile TV solution for Android smartphones
TAIPEI, Taiwan, July 29, 2010 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (Nasdaq:SIMO - News) (the "Company") today announced its second quarter of 2010 financial results. For the second quarter of 2010, net sales increased 25% quarter-over-quarter to US$32.5 million. Net income (GAAP) for the second quarter improved quarter-over-quarter to US$2.2 million or US$0.07 per diluted ADS from a GAAP net loss of US$2.2 million or US$0.08 per diluted ADS in the first quarter of 2010.
Net income excluding stock-based compensation, acquisition-related charges, foreign exchange gain, and other items increased in the second quarter to US$2.9 million or US$0.09 per diluted ADS compared with a net loss in the first quarter of US$0.2 million or US$0.01 per diluted ADS in the first quarter of 2010.
Second Quarter 2010 Financial Review
Commenting on the results of the second quarter, Silicon Motion's President and CEO, Wallace Kou, said:
"We are delighted to report another stellar quarter for Silicon Motion with revenue growing 25% sequentially and 60% compared with the second quarter 2009. We are proud that the strong revenue growth combined with a higher gross margin resulted in our first quarter of both non-GAAP and GAAP net income since 2008. The increasing availability of NAND flash in the second quarter drove strong sequential revenue growth for our business.
Our mobile storage business posted its fourth consecutive quarter of growth with revenues increasing 31% sequentially and over 100% compared to the second quarter 2009. This was driven by strong sequential unit growth of 16% and sequential average selling price (ASP) increase of 13%. ASPs increased primarily because of increased shipments of high value-added 3-bits per cell TLC controllers, as well as SSD and embedded flash controllers. Our TLC controllers are now shipping for 40nm and 30nm NAND flash, supporting primarily Samsung, SanDisk, and Toshiba products. In the third quarter, we will begin shipping our TLC and 2-bits per cell MLC controllers for 20nm NAND flash. TLC controllers now account for 25% of our total controller sales, up over 160% sequentially. We believe that the investments we have made in developing industry-leading controller technology have allowed us to capture a large share of the TLC controller market as it ramped and position us well for the upcoming 20nm NAND flash market. Our SSD and embedded controllers shipments continue to deliver strong results by growing 25% sequentially and nearly 350% compared with the second quarter 2009, and again account for nearly 10% of our total revenue.
Our mobile communications business was weaker than expected in the second quarter due to decreased shipments of CDMA transceivers. In contrast, our mobile TV products continued to grow, led by a three fold increase in T-DMB sales to the Korea market. Sales of CMMB to China and ISDB-T to Brazil once again exceed T-DMB sales to Korea, as mobile TV continues its expansion in new markets." |
