SIMO has an investor presentation today at 3:30pm EST. Maybe something interesting comes out.
I'd like more clarity on how the Mon Titan business is expected to develop. They announced two tier 1 design wins about 18 months ago, and then 4 more "normal" design wins about a year ago, and since then there has been not much in terms of pipeline growth information.
Why don't they have a few new design wins each quarter?
Why does it take more than a year between design wins and actual sales? Enterprise SSDs are more complex than client SSDs, but at the end of the day it's just a very fast SSD, right? What takes over a year to turn the design win into sales?
I sort of think all SIMO's segments (PC controllers, cell phone controllers, auto controllers, gadget controllers) are doing quite well, right now and into 2026. Mon Titan (enterpise SSD controllers) is the segment where it's hard to understand what's going on behind the scenes. It's a huge potential opportunity for years, but I'm curious how we know how SIMO is doing in this space?
I find it disappointing that the company doesn't says something like "We are more confident of Mon Titan sales growth today than we were 1-2 quarters ago, and the reason for our increased confidence is ......?". Based on the latest press release about Mon Titan products, it seems like they've got a reasonable suite of enterprise SSD segments covered for a company entering the space. But.....is anything selling? Or does it take another 18 months for customers to evaluate and then make decisions?
Ranting.... I just would like some clarity on this subject, and how we'll know (down the road) whether Mon Titan is doing well or poorly. I can say SIMO is spending R&D money like they expect it to do well!
Another bummer is there's no info about the new office building (is it open? Is there a sale and leaseback planned?), and no info about the expected timing of resolution of the MXL arbitration. MXL said something like if they have to pay settlement cash to SIMO, they'll pay around 2027 or 2028! My understanding was the Singapore arbitration is expected to resolve in Q4 this year......why would payment then take 2-3 years? |
