Silicon Motion Inc. (SIMO) Message Board

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Technology Stocks : Silicon Motion Inc. (SIMO)

SIMO 90.94

+2.6%

Dec 3 3:59 PM EST

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To: franklin1 who wrote (2608)	11/2/2022 12:19:32 AM
From: Elroy	Read Replies (1) of 2978

The big negative (for me) in SIMO's Q3 results was the gross margin decline from 53% in Q2 to 47.5% in Q3. That's 5% profit loss on each dollar of sales compared to last Q. They said it was due to mix and discounts. They're probably clearing out old legacy inventory at any price so it doesn't become obsolete as the SSD markets move to gen4. Hopefully it bounces back up in a quarter or two when things stabilize. But honestly, with a $105 value buyout offer on the table, and a share price of about $56, all that matters at this point is the MXL deal going through. I was surprised that SIMO didn't announce a share repurchase. I'm sure SIMO would like to buy stock at $56, and MXL would rather buy it at $56 than $105 equivalent, so .... come on guys, buy some stock!

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