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Silicon Motion Announces Second Quarter Results for the Period Ended June 30, 2009



 Second Quarter 2009
 Financial Highlights
 * Net sales decreased 6% quarter-over-quarter to US$20.3 million
 * Gross margin excluding stock-based compensation improved to 48.5%
   compared with our 1Q09 gross margin of 44.1%
 * Operating expenses excluding stock-based compensation,
   acquisition-related charges, and one-time items increased from
   1Q09 of US$10.0 million to US$11.2 million in the second quarter
 * Net income (loss) excluding stock-based compensation,
   acquisition-related charges, foreign exchange gain (loss), and
   one-time items improved from a loss in 1Q09 of US$0.8 million to
   an income of US$1.0 million. GAAP net loss increased from US$1.4
   million in 1Q09 to US$6.2 million
 * Diluted earnings per ADS excluding stock-based compensation,
   acquisition-related charges, foreign exchange gain (loss), and
   one-time items were US$0.03, an improvement from our 1Q09 loss
   per ADS of US$0.03. GAAP diluted loss per ADS was US$0.22

 Business Highlights
 * Reduced total unit shipments 46% year-over-year and 26%
   sequentially to approximately 54 million units
 * Reduced storage controller unit shipments 48% year-over-year and
   29% sequentially
 * Received controller design win from Intel for its 34nm NAND flash
 * Received design win with global tier-one handset vendor for our
   ISDB-T solution for the Japan mobile TV market
 * Received design win for our CDMA transceiver with global tier-one
   handset vendor for the China mobile phone market

TAIPEI, Taiwan, July 30, 2009 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (Nasdaq:SIMO) (the "Company") today announced its second quarter 2009 financial results. For the second quarter of 2009, net sales decreased 6% quarter-over-quarter to US$20.3 million. Net loss (GAAP) for the second quarter was US$6.2 million or US$0.22 per diluted ADS.

Net income (loss) excluding stock-based compensation, acquisition-related charges, foreign exchange gain (loss), and one-time items improved in the second quarter to an income of US$1.0 million or US$0.03 per diluted ADS as compared to a loss of US$0.8 million in the first quarter of 2009.

Second Quarter 2009 Financial Review [1]

Commenting on the results of the second quarter, Silicon Motion's President and CEO, Wallace Kou, said:

"As we had indicated on our second quarter pre-announcement, our business in the second quarter continued to be negatively affected by the global economic slowdown and the shortage in NAND flash available to our customers. While we had originally anticipated the supply of NAND flash to improve steadily throughout the second quarter, the timing and availability of NAND flash to our customers was challenging. NAND flash vendors continued to limit availability of products to card and UFD device makers and this resulted in less procurement of our controllers. Additionally, consumer demand and unit growth was limited by high prices for flash memory.

While the first half of 2009 was challenging, we are beginning to see the potential for improvement in our operating environment for the second half of 2009. We are seeing an increasing supply of flash, especially 4x and 3x nm components. We continue to offer advanced, best-in-class controller technologies that help our NAND flash partners accelerate market adoption of next generation flash. We announced in July that our controllers have been validated by Micron for its 34nm flash and these controllers are already in mass production. Our controllers have also been selected by Intel for its 34nm USB products.

Sales of our mobile communications products this quarter were strong due to increasing sales of T-DMB SoC products for the Korea mobile TV market. We are also showing initial success with our expansion into other markets with our design wins at tier-one global handset OEMs for our ISDB-T SoCs for the Japan and Brazil mobile TV markets and for our CDMA transceiver for the ultra low-cost phone market. We believe that these new design wins will serve as a strong base for our continued mobile communications growth."

Sales

Net sales in the second quarter totaled US$20.3 million, a decrease of 6% compared with the previous quarter. This quarter, mobile storage products accounted for 54% of net sales, mobile communications 33% of net sales, and multimedia SoCs 12% of net sales.

Net sales of mobile storage products, which include flash memory card controllers, USB flash drive controllers, card reader controllers, SSD controllers, and embedded flash controllers, decreased 26% from the first quarter of 2009 to US$11.0 million this quarter.

Net sales of mobile communication products, which include mobile TV IC solutions, CDMA RF ICs, and electronic toll collection (ETC) RF ICs, increased 42% from the first quarter of 2009 to US$6.7 million in the second quarter.

Net sales of multimedia SoC products, which include embedded graphics processors, PMP and DAB SoCs, and PC camera SoCs, increased 28% from the first quarter of 2009 to US$2.5 million this quarter.

Gross and Operating Margins

Gross margin excluding stock-based compensation improved from 44.1% in the first quarter to 48.5% this quarter. GAAP gross margin increased from 43.8% to 48.0% in the second quarter.

Operating expenses excluding stock-based compensation, acquisition-related charges, and one-time items were US$11.2 million, which were higher than the US$10.0 million reported for the first quarter. Research and development expenditures, excluding stock-based compensation, were US$6.8 million, which were higher than US$5.6 million in the previous quarter. Selling and marketing expenses excluding stock-based compensation were US$2.4 million, which were higher than US$2.0 million in the previous quarter. General and administrative expenses excluding stock-based compensation and litigation expenses were US$2.1 million, which were lower than US$2.3 million in the previous quarter. Stock-based compensation was US$2.2 million, which was higher than US$1.7 million in the previous quarter. Acquisition-related charges were US$1.5 million, which was slightly higher compared to the US$1.4 million in the previous quarter. Litigation expenses were less than US$0.1 million in the second quarter, similar to the previous quarter.

Operating margin excluding stock-based compensation, acquisition-related charges, and one-time items was a negative 6.7%, which was lower compared with the negative 2.3% in the previous quarter. GAAP operating margin was a negative 24.7%, which was lower compared with the negative 16.7% in the previous quarter.

Other Income and Expenses

Net total other income excluding net foreign exchange gain or loss was US$0.1 million, which was slightly less than US$0.2 million in the previous quarter. GAAP net total other income was a loss of US$3.4 million, which was significantly lower than an income of US$2.7 million in the previous quarter due primarily to a foreign exchange loss of US$3.5 million in the second quarter compared to a foreign exchange gain of US$2.5 million in the first quarter.

Earnings

Net income excluding stock-based compensation, acquisition-related charges, net foreign exchange gain, and one-time items was US$1.0 million in this quarter, an improvement from a loss of US$0.8 million in the previous quarter due to a deferred tax benefit of US$2.2 million. Diluted income per ADS excluding stock-based compensation, acquisition-related charges, net foreign exchange gain (loss), and one-time items was US$0.03, an improvement from a loss per ADS of US$0.03 in the previous quarter.

GAAP net loss was US$6.2 million, which was higher than a net loss of US$1.4 million in the previous quarter. Diluted GAAP loss per ADS was US$0.22, a decrease compared to the loss per ADS of US$0.05 in the previous quarter.

Balance Sheet

Cash, cash equivalents, and short-term investments increased from US$57.5 million at the end of the first quarter of 2009 to US$60.7 million at the end of this quarter. The increase was partially due to the reduction of working capital.

Cash Flow

Our cash flows were as follows:



                         3 months ended June 30, 2009
                         ----------------------------
                                                     (In US$ millions)
 Net income (loss)                                               (6.2)
 Depreciation & amortization                                      2.7
 Changes in operating assets and liabilities                      3.3
 Others                                                           0.1
                                                                 ----
    Net cash provided by (used in) operating activities          (0.1)
                                                                 ====
 Acquisition of property and equipment                           (0.9)
 Others                                                            --
                                                                 ----
    Net cash provided by (used in) investing activities          (0.9)
                                                                 ====
 Others                                                            --
                                                                 ----
    Net cash provided by (used in) financing activities            --
                                                                 ====
 Effects of changes in foreign currency exchange rates on cash    2.5
                                                                 ----
    Net increase in cash and cash equivalents                     1.5
                                                                 ====
 Pro-forma adjustment for foreign exchange translation            1.9
                                                                 ----
    Pro-forma net increase in cash and
     cash equivalents                                             3.4
                                                                 ====

During the second quarter of 2009, we spent US$0.9 million in capital expenditures primarily relating to the purchase of software and equipment. There were no shares repurchased in the second quarter.

Business Outlook:

Silicon Motion's President and CEO, Wallace Kou, added:

"While we are seeing some signs of improving NAND flash supply, flash component sales volume remains constrained, flash prices remain high, and overall consumer demand continues to be lackluster. We are however encouraged by the continuing ramp of next-generation flash and our traction with our NAND flash business partners and customers. We are also encouraged by our recent mobile communications design wins and sales contributions from this product line."

For the third quarter of 2009, management expects:



    * Revenue to be flat to up 10% sequentially
    * Non-GAAP and GAAP gross margin to be in the 46% to 48%
      range
    * Operating expenses excluding stock-based compensation,
      acquisition-related charges, and one-time items of
      approximately US$14 to US$15 million

Conference Call & Webcast:

The Company's management team will conduct a conference call at 8:00am Eastern Time on July 30, 2009.



 (Speakers)
 Wallace Kou, President & CEO
 Riyadh Lai, CFO
 Jason Tsai, Director of Investor Relations and Strategy

 PRE-REGISTRATION:
 https://www.theconferencingservice.com/prereg/key.process?key=P9WEMMW9N

 CONFERENCE CALL ACCESS NUMBERS:
 USA (Toll Free): 1 888 680 0869
 USA (Toll): 1 617 213 4854
 Taiwan (Toll Free): 0080 144 4360
 Participant Passcode: 1347 1908

 REPLAY NUMBERS (for 7 days):
 USA (Toll Free):1 888 286 8010
 USA (Toll): 1 617 801 6888
 Participant Passcode: 8851 0796

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, acquisition-related charges and one-time items, including non-GAAP cost of sales, non-GAAP gross profit, non-GAAP selling, general, and administrative expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per diluted ADS. These non-GAAP measures are not in accordance with or an alternative for 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 it is 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 incurred as a result of the Company's adoption of SFAS 123R relating to the fair value of stock options and 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 the application of SFAS 123R has on its operating results.

Intangible amortization consists of non-cash charges that can be impacted by the timing and magnitude of our acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors.

Litigation expenses consist of the legal expenses relating to complaints SanDisk filed in the US International Trade Commission and the US District Court for the Western District of Wisconsin.

Foreign exchange gains and losses consists of translation gains and/or losses of non-NT$ denominated current assets and current liabilities, as well as certain other balance sheet items which result from the appreciation or depreciation of non-NT$ currencies against the NT$.



                  Silicon Motion Technology Corporation
                     Consolidated Statements of Income
     (in thousands, except percentages and per ADS data, unaudited)


                                        For the Three Months Ended
                                   ---------------------------------
                                    Jun. 30,     Mar. 31,   Jun. 30,
                                      2008         2009       2009
                                      (NT$)       (NT$)       (NT$)
                                   ---------   ---------   ---------
 Net Sales                         1,475,747     732,024     673,625
 Cost of sales                       780,523     411,162     350,159
                                   ---------   ---------   ---------
 Gross profit                        695,224     320,862     323,466

 Operating expenses
  Research & development             305,203     219,649     264,026
  Sales & marketing                   83,093      79,740      87,984
  General & administrative           136,720      95,948      89,528
  Amortization of intangibles
   assets                             48,467      47,877      48,081
                                   ---------   ---------   ---------
 Operating income (loss)             121,741    (122,352)   (166,153)

 Non-operating income (expense)

  Gain on sale of investments          5,816         157          44
  Interest income (net)               10,488       5,517       5,220
  Dividend income                      2,239          --          --
  Foreign exchange gain (loss)        (7,329)     86,433    (115,396)
  Others                                  24        (148)     (1,987)
                                   ---------   ---------   ---------
  Subtotal                            11,238      91,959    (112,119)
                                   ---------   ---------   ---------
 Income (loss) before tax            132,979     (30,393)   (278,272)
 Income tax expense (benefit)         73,161      17,436     (73,723)
                                   ---------   ---------   ---------
 Net income (loss)                    59,818     (47,829)   (204,549)
                                   =========   =========   =========

 Basic earnings (loss) per ADS         $1.83      ($1.75)     ($7.38)
 Diluted earnings (loss) per ADS       $1.79      ($1.72)     ($7.21)

 Margin Analysis:
 Gross margin                           47.1%       43.8%       48.0%
 Operating margin                        8.2%      (16.7%)     (24.7%)
 Net margin                              4.1%       (6.5%)     (30.4%)

 Weighted avg. ADS(2):
 Basic                                32,775      27,354      27,728
 Diluted                              33,377      27,783      28,375



                                        For the Three Months Ended
                                   ---------------------------------
                                     Jun. 30,    Mar. 31,   Jun. 30,
                                      2008         2009       2009
                                      (US$)       (US$)       (US$)
                                   ---------   ---------   ---------
 Net Sales                            48,481      21,543      20,314
 Cost of sales                        25,642      12,100      10,560
                                   ---------   ---------   ---------
 Gross profit                         22,839       9,443       9,754

 Operating expenses
  Research & development              10,027       6,464       7,962
  Sales & marketing                    2,730       2,346       2,653
  General & administrative             4,491       2,824       2,700
  Amortization of intangibles
   assets                              1,592       1,409       1,450
                                   ---------   ---------   ---------
 Operating income (loss)               3,999      (3,600)     (5,011)

 Non-operating income (expense)

  Gain on sale of investments            191           5           1
  Interest income (net)                  345         161         157
  Dividend income                         74          --          --
  Foreign exchange gain (loss)          (241)      2,544      (3,480)
  Others                                   1          (4)        (59)
                                   ---------   ---------   ---------
  Subtotal                               370       2,706      (3,381)
                                   ---------   ---------   ---------
 Income (loss) before tax              4,369        (894)     (8,392)
 Income tax expense (benefit)          2,403         513      (2,223)
                                   ---------   ---------   ---------
 Net income (loss)                     1,966      (1,407)     (6,169)
                                   =========   =========   =========

 Basic earnings (loss) per ADS         $0.06      ($0.05)     ($0.22)
 Diluted earnings (loss) per ADS       $0.06      ($0.05)     ($0.22)

 Margin Analysis:
 Gross margin                           47.1%       43.8%       48.0%
 Operating margin                        8.2%      (16.7%)     (24.7%)
 Net margin                              4.1%       (6.5%)     (30.4%)

 Weighted avg. ADS(2):
 Basic                                32,775      27,354      27,728
 Diluted                              33,377      27,783      28,375

 --------------------------------------------------------------------

 (2) Assumes all outstanding ordinary shares are represented by ADSs.
     Each ADS represents four ordinary shares.


                  Silicon Motion Technology Corporation
         Reconciliation of GAAP to Non-GAAP Operating Results
     (in thousands, except percentages and per ADS data, unaudited)

                                          For the Three Months Ended
                                        -----------------------------
                                        Jun. 30,  Mar. 31,   Jun. 30,
                                          2008      2009       2009
                                          (NT$)     (NT$)      (NT$)
                                        --------  --------   --------
 GAAP net income (loss)                   59,818   (47,829)  (204,549)
 Stock-based compensation:
  Cost of sales                            3,045     2,118      3,406
  Research and development                35,410    28,053     38,953
  Sales and marketing                     12,856    11,270      9,907
  General and administrative              16,274    15,105     19,134
                                        --------  --------   --------
         Total stock-based compensation   67,585    56,546     71,400
                                        --------  --------   --------

 Acquisition related charges:
  Amortization of intangible assets       48,467    47,877     48,081
 Litigation expenses                      20,405     1,290      1,538
 Foreign exchange loss (gain)              7,329   (86,433)   115,396
 FIN 48 tax charge                        64,328        --         --
                                        --------  --------   --------

 Non-GAAP net income (loss)              267,932   (28,549)    31,866
                                        ========  ========   ========

 Weighted avg. ADS (non-GAAP):
  Basic                                   32,775    27,354     27,728
                                        ========  ========   ========
  Diluted                                 34,386    28,853     30,710
                                        ========  ========   ========

 Non-GAAP basic earnings (loss)
  per ADS                                  $8.17    ($1.04)     $1.15
                                        ========  ========   ========
 Non-GAAP diluted earnings
  (loss) per ADS                           $7.79    ($0.99)     $1.04
                                        ========  ========   ========

 Non-GAAP gross margin                      47.3%     44.1%      48.5%
 Non-GAAP operating margin                  17.5%     (2.3%)      4.7%

                                          For the Three Months Ended
                                        -----------------------------
                                         Jun. 30,  Mar. 31,  Jun. 30,
                                           2008      2009      2009
                                          (US$)     (US$)      (US$)
                                         --------  --------  --------
 GAAP net income (loss)                    1,966    (1,407)    (6,169)
 Stock-based compensation:
  Cost of sales                              100        62        103
  Research and development                 1,163       826      1,175
  Sales and marketing                        422       332        299
  General and administrative                 535       445        577
                                        --------  --------   --------
         Total stock-based compensation    2,220     1,665      2,154
                                        --------  --------   --------

 Acquisition related charges:
  Amortization of intangible assets        1,592     1,409      1,450
 Litigation expenses                         670        38         46
 Foreign exchange loss (gain)                241    (2,544)     3,480
 FIN 48 tax charge                         2,113        --         --
                                        --------  --------   --------

 Non-GAAP net income (loss)                8,802      (839)       961
                                        ========  ========   ========
 Weighted avg. ADS (non-GAAP):
  Basic                                   32,775    27,354     27,728
                                        ========  ========   ========
  Diluted                                 34,386    28,853     30,710
                                        ========  ========   ========

 Non-GAAP basic earnings (loss)
  per ADS                                  $0.27    ($0.03)     $0.03
                                        ========  ========   ========
 Non-GAAP diluted earnings
  (loss) per ADS                           $0.26    ($0.03)     $0.03
                                        ========  ========   ========

 Non-GAAP gross margin                      47.3%     44.1%      48.5%
 Non-GAAP operating margin                  17.5%     (2.3%)      4.7%
 --------------------------------------------------------------------

                Silicon Motion Technology Corporation
                   Consolidated Statements of Income
         (in thousands, except percentages, and per ADS data)
                              (unaudited)

                                      For the Six Months Ended
                            ------------------------------------------
                              Jun. 30,    Jun. 30,   Jun. 30, Jun. 30,
                                2008        2009       2008     2009
                                (NT$)      (NT$)      (US$)    (US$)
                             ----------  ----------  -------  -------
 Net Sales                    3,061,821   1,405,649   98,832   41,872
 Cost of sales                1,557,468     761,321   50,273   22,679
                             ----------  ----------  -------  -------
 Gross profit                 1,504,353     644,328   48,559   19,193
 Operating expenses
  Research & development        531,410     483,675   17,153   14,408
  Sales & marketing             164,674     167,724    5,315    4,996
  General & administrative      273,229     185,476    8,820    5,525
  Amortization of
   intangible assets             97,273      95,959    3,140    2,858
                             ----------  ----------  -------  -------
 Operating income (loss)        437,767    (288,506)  14,131   (8,594)

 Non-operating expense
  (income)
  Gain on sale of
   investments                   15,065         201      486        6
  Unrealized holding gain
   (loss) on marketable
   securities                    (1,122)         --      (36)      --
  Interest income (net)          21,028      10,737      679      319
  Dividend income                 2,239          --       72       --
  Foreign exchange gain
   (loss)                       (89,274)    (28,963)  (2,882)    (863)
  Others                            181      (2,135)       6      (63)
                             ----------  ----------  -------  -------
  Subtotal                      (51,883)    (20,160)  (1,675)    (601)
                             ----------  ----------  -------  -------
 Income (loss) before tax       385,884    (308,666)  12,456   (9,195)
 Income tax expense
  (benefit)                      75,100     (56,288)   2,424   (1,677)
                             ----------  ----------  -------  -------
 Net income (loss)              310,784    (252,378)  10,032   (7,518)
                             ==========  ==========  =======  =======
 Basic earnings (loss)
  per ADS                         $9.41      ($9.16)   $0.30   ($0.27)
                             ==========  ==========  =======  =======
 Diluted earnings (loss)
  per ADS                         $9.27      ($8.99)   $0.30   ($0.27)
                             ==========  ==========  =======  =======
 Margin Analysis:
 Gross margin                      49.1%      45.8%     49.1%   45.8%
 Operating margin                  14.3%     (20.5%)    14.3%  (20.5%)

 Weighted average ADS:
 Basic                           33,031      27,541   33,031   27,541
 Diluted                         33,514      28,079   33,514   28,079

                 Silicon Motion Technology Corporation
         Reconciliation of GAAP to Non-GAAP Operating Results
    (in thousands, except percentages and per ADS data, unaudited)

                                       For the Six Months Ended
                                --------------------------------------
                                Jun. 30,  Jun. 30,   Jun. 30,  Jun. 30,
                                  2008      2009      2008       2009
                                  (NT$)     (NT$)     (US$)      (US$)
                                --------  --------   -------   -------
 GAAP net income (loss)          310,784  (252,378)   10,032    (7,518)
 Stock-based compensation:
    Cost of sales                  6,131     5,524       198       165
    Research and development      70,523    67,006     2,276     1,996
    Sales and marketing           25,599    21,177       826       631
    General and administrative    32,971    34,239     1,064     1,020
                                --------  --------   -------   -------
           Total stock-based
            compensation         135,224   127,946     4,364     3,812
                                --------  --------   -------   -------
 Acquisition related charges:
   Amortization of intangible
    assets                        97,273    95,959     3,140     2,858
 Litigation expenses              39,125     2,828     1,263        84

 Foreign exchange loss (gain)     89,273    28,963     2,882       863
 FIN48 tax charges                64,328        --     2,076        --
                                --------  --------   -------   -------

 Non-GAAP net income (loss)      736,007     3,318    23,757        99
                                ========  ========   =======   =======
 Weighted avg. ADS (non-GAAP):
    Basic                         32,934    27,541    32,934    27,541
                                ========  ========   =======   =======
    Diluted                       34,513    29,781    34,513    29,781
                                ========  ========   =======   =======
 Non-GAAP basic earnings
  per ADS                         $22.35     $0.12     $0.72     $0.00
                                ========  ========   =======   =======
 Non-GAAP diluted earnings
  per ADS                         $21.33     $0.11     $0.69     $0.00
                                ========  ========   =======   =======

 Non-GAAP gross margin              49.3%     46.2%     49.3%     46.2%
 Non-GAAP operating margin          23.2%     (4.4%)    23.2%     (4.4%)
 ---------------------------------------------------------------------

                 Silicon Motion Technology Corporation
                      Consolidated Balance Sheet
                            (In thousands)
                              (unaudited)

                                     Dec. 31,    Mar. 31,    Jun. 30,
                                      2008         2009        2009
                                      (NT$)        (NT$)       (NT$)
                                    ----------  ----------  ----------
 Cash and cash equivalents           1,586,941   1,905,598   1,955,309
 Short-term investments                112,505      54,103      45,136
 Accounts receivable (net)             923,717     755,706     569,107
 Inventories                           638,566     503,343     473,453
 Refundable deposits - current          85,368      80,555      81,376
 Deferred income tax assets (net)       55,276      50,112      48,226
 Prepaid expenses and
  other current assets                 155,527      80,357     151,904
                                    ----------  ----------  ----------
 Total current assets                3,557,900   3,429,774   3,324,511

 Long-term investments                  50,369      50,616      50,371
 Property and equipment (net)          911,885     892,317     875,680
 Goodwill and intangible
  assets(net)                        2,641,504   2,590,064   2,544,420
 Other assets                          282,994     218,452     288,471
                                    ----------  ----------  ----------
 Total assets                       $7,444,652  $7,181,223  $7,083,453
                                    ==========  ==========  ==========

 Accounts payable                      378,624     340,037     276,453
 Income tax payable                    212,513     159,915     147,029
 Accrued expenses and other
  current liabilities                  456,710     355,073     372,025
                                    ----------  ----------  ----------
 Total current liabilities           1,047,847     855,025     795,507
 Long-term liabilities                  60,702      59,554      65,712
 Other liabilities                      46,511      40,216      41,602
                                    ----------  ----------  ----------
 Total liabilities                   1,155,060     954,795     902,821
 Shareholders' equity                6,289,592   6,226,428   6,180,632
                                    ----------  ----------  ----------
 Total liabilities &
  shareholders' equity              $7,444,652  $7,181,223  $7,083,453
                                    ==========  ==========  ==========

                                     Dec. 31,     Mar. 31,    Jun. 30,
                                       2008        2009        2009
                                      (US$)        (US$)       (US$)
                                    ----------  ----------  ----------
 Cash and cash equivalents              48,441      55,948      59,306
 Short-term investments                  3,434       1,588       1,369
 Accounts receivable (net)              28,196      22,188      17,261
 Inventories                            19,492      14,778      14,360
 Refundable deposits - current           2,606       2,365       2,468
 Deferred income tax assets (net)        1,688       1,471       1,463
 Prepaid expenses and other
  current assets                         4,748       2,360       4,607
                                    ----------  ----------  ----------
 Total current assets                  108,605     100,698     100,834

 Long-term investments                   1,538       1,486       1,528
 Property and equipment (net)           27,835      26,198      26,560
 Goodwill and intangible
  assets(net)                           80,632      76,044      77,174
 Other assets                            8,638       6,414       8,750
                                    ----------  ----------  ----------
 Total assets                         $227,248    $210,840    $214,846
                                    ==========  ==========  ==========

 Accounts payable                       11,558       9,983       8,385
 Income tax payable                      6,487       4,695       4,459
 Accrued expenses and other
  current liabilities                   13,940      10,425      11,284
                                    ----------  ----------  ----------
 Total current liabilities              31,985      25,103      24,128
 Long-term liabilities                   1,853       1,748       1,993
 Other liabilities                       1,420       1,181       1,263
                                    ----------  ----------  ----------
 Total liabilities                      35,258      28,032      27,384
 Shareholders' equity                  191,990     182,808     187,462
                                    ----------  ----------  ----------
 Total liabilities &
  shareholders' equity                $227,248    $210,840    $214,846
                                    ==========  ==========  ==========
 ---------------------------------------------------------------------

Note: The Company maintains its accounts and expresses its financial statements in New Taiwan dollars. For convenience only, U.S. dollar amounts presented in the income statement have been translated from New Taiwan dollars, using an average exchange rate of NT$30.44 to US$1 for 2Q08, NT$33.98 to US$1 for 1Q09, and NT$33.16 to US$1 for2Q09 based on the average of the historical exchange rate of the Oanda Corporation. Amounts from the balance sheet have been translated using the ending exchange rate for the period. The exchange rate was NT$32.76 to US$1 at the end of 4Q08, NT$34.06 to US$1 at the end of 1Q09, and NT$32.97 to US$1 at the end of 2Q09.

About Silicon Motion:

We are a fabless semiconductor company that designs, develops and markets high performance, low-power semiconductor solutions for the multimedia consumer electronics market. We have three major product lines: mobile storage, mobile communications, and multimedia SoCs. Our mobile storage business is composed of microcontrollers used in NAND flash memory storage products such as flash memory cards, USB flash drives, SSDs, embedded flash applications, and card readers. Our mobile communications business is composed of mobile TV IC solutions, CDMA RF ICs, and electronic toll collection RF ICs. Our multimedia SoCs business is composed of products that support portable multimedia players, DAB systems, PC cameras, and embedded graphics applications.

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, including without limitation, statements about Silicon Motion's expected second quarter 2009 revenue, gross margin and operating expenses, all of which reflect management's estimates based on information available at the time of this press release. While Silicon Motion believes these estimates to be meaningful, these amounts could differ materially from actual reported amounts for the second quarter. Forward-looking statements also include, without limitation, statements regarding trends in the multimedia consumer electronics market and our future results of operations, financial condition and business prospects. 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, our belief in the outcome of any claim or lawsuit, including those uncertainties relating to litigation filed against the Company relating to whether its products are covered by patents not owned by the Company; 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 these customers; integration of our recently announced acquisitions; general economic conditions or conditions in the semiconductor or consumer electronics markets; 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; the availability, pricing, and timeliness of delivery of other components and raw materials used in our customers' products; our customers' sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions, including the general global economic slowdown as it affects the Company, its customers and consumers; 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 Securities and Exchange Commission, including our Annual Report on Form 20-F filed on July 14, 2009. We assume no obligation to update any forward-looking statements, which apply only as of the date of this press release.

(1) Unless otherwise stated, all financial information used in this press release is unaudited, consolidated, prepared in accordance with US GAAP and denominated in New Taiwan dollars. US dollar amounts are translated for convenience only. Such financial information is generated internally and has not been subjected to the same review and scrutiny, including internal auditing procedures and audit by independent auditors, to which we subject our audited consolidated financial statements, and may vary materially from the audited consolidated financial information for the same period. Any evaluation of the financial information presented in this press release should also take into account our published audited consolidated financial statements and the notes to those statements. In addition, the financial information presented is not necessarily indicative of our results for any future period.

CONTACT:  Silicon Motion Technology Corporation
          Investor Contact:
          Jason Tsai, Director of IR and Strategy
            +1 408 519 7259
            Fax: +1 408 519 7101
            jtsai@siliconmotion.com
          Investor Relations
          Selina Hsieh
            +886 3 552 6888 x2311
            Fax: +886 3 560 0336
            ir@siliconmotion.com
          Media Contact:
          Sara Hsu, Project Manager
            +886 2 2219 6688 x3509
            Fax: +886 2 2219 6868
            sara.hsu@siliconmotion.com