October 29, 2009 at 6:02 PM EDT
BACK
Silicon Motion Announces Third Quarter Results for the Period Ended September 30, 2009
Financial Highlights
-- Net sales increased 14% quarter-over-quarter to US$23.1 million
-- Gross margin excluding stock-based compensation was unchanged
at 48.5% compared with our 2Q09 gross margin
-- Operating expenses excluding stock-based compensation,
acquisition-related charges, and one-time items increased from
2Q09 of US$11.2 million to US$12.0 million in the third quarter
-- Net income excluding stock-based compensation, acquisition-
related charges, foreign exchange gain, and one-time items
decreased to US$0.8 million from US$1.0 million in 2Q09. GAAP
net loss decreased to US$4.7 million from a loss of US$6.2
million in 2Q09
-- Diluted earnings per ADS excluding stock-based compensation,
acquisition-related charges, foreign exchange gain (loss), and
one-time items were US$0.02, a decrease from our 2Q09 earnings
per ADS of US$0.03. GAAP diluted loss per ADS was US$0.16
Business Highlights
-- Increased total unit shipments 24% sequentially but decreased
37% year-over-year to approximately 67 million units
-- Increased storage controller unit shipments 21% sequentially
but decreased 39% year-over-year
-- Launched controllers that support SanDisk/Toshiba 43nm and 32nm
3-bits per cell MLC flash, SanDisk/Toshiba 32nm 2-bits per cell
MLC flash and Samsung 42nm and 32nm 3-bits per cell MLC flash
-- Designed in at two major card vendors for their ultra high
performance 133x Secure Digital (SD) cards
-- Began shipping world's fastest 600x Compact Flash (CF) card
controller, which enables 90MB per second data rate
-- Began shipping our ISDB-T SoC solution to Samsung for the
emerging Brazil mobile TV market
-- Received two additional CDMA transceiver design-ins for the
rapidly growing China market
TAIPEI, Taiwan, Oct. 30, 2009 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (Nasdaq:SIMO) (the "Company") today announced its third quarter 2009 financial results. For the third quarter of 2009, net sales increased 14% quarter-over-quarter to US$23.1 million. Net loss (GAAP) for the third quarter decreased to US$4.7 million or US$0.16 per diluted ADS compared to a GAAP net loss of US$6.2 million or US$0.22 per diluted ADS in the second quarter.
Net income excluding stock-based compensation, acquisition-related charges, foreign exchange gain, and one-time items decreased in the third quarter to US$0.8 million or US$0.02 per diluted ADS as compared to US$1.0 million or US$0.03 per diluted ADS in the second quarter of 2009.
Third Quarter 2009 Financial Review (1)
Commenting on the results of the third quarter, Silicon Motion's President and CEO, Wallace Kou, said:
"After many challenging quarters, we have finally delivered
revenue growth. Our markets remained challenging but we grew
our mobile storage controller volume 21% and our overall
revenue 14% sequentially. As we had expected, NAND flash
industry component volume started growing again this quarter as
a result of higher NAND flash industry utilization rates and
progress in migrating geometry to 40nm and 30nm. Our retail
and bundled businesses have both improved with the increased
availability of flash. However, we do not believe we are out
of the woods yet. NAND flash prices increased further in
October and these high costs are being passed down to consumers
in the form of higher retail prices for storage devices-and
this in turn affects the momentum of our recovery.
Nevertheless, we believe that we continue to be well
positioned with the technological changes taking place in the
dynamic NAND flash industry. We have launched new controllers
that support low cost 3-bits per cell MLC that Toshiba, SanDisk,
and others are beginning to release to market. We believe that
3-bits per cell MLC, supported by advanced controller
technologies, is well suited for meeting the cost and
performance requirements of consumer storage applications and
could in a few years time become the mainstream type of flash
for the consumer market. In addition to the release of our new
3-bits per cell MLC controllers, we have also launched other
new controllers: controllers that support 30nm NAND flash
produced by vendors in addition to IM Flash, controllers that
manage lower grade NAND flash, and controllers for card makers
that want superior performance.
This quarter, our mobile communications business started
shipping our ISDB-T SoCs to Samsung for the Brazil market, a
design-in that we had announced last quarter. We also secured
two CDMA transceiver design-ins with leading handset OEMs for
the rapidly growing China market. These two design-ins, as
well as the CDMA design-in that we had previously announced,
should start shipping in the fourth quarter to early 2010 time
frame. We believe that these new design-ins will serve as a
strong base for long-term growth in our mobile communications
business."
(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.
Sales
Net sales in the third quarter were US$23.1 million, an increase of 14% compared with the previous quarter. This quarter, mobile storage products accounted for 60% of net sales, mobile communications 27% of net sales, and multimedia SoCs 13% 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, increased 27% from the second quarter of 2009 to US$14.0 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, decreased 8% from the second quarter of 2009 to US$6.2 million in the third quarter.
Net sales of multimedia SoC products, which include embedded graphics processors, PMP and DAB SoCs, and PC camera SoCs, increased 18% from the second quarter of 2009 to US$2.9 million this quarter.
Gross and Operating Margins
Gross margin excluding stock-based compensation was flat at 48.5% compared with the second quarter. GAAP gross margin increased slightly to 48.1% from 48.0% in the second quarter.
Operating expenses excluding stock-based compensation, acquisition-related charges, and one-time items were US$12.0 million, which were higher than the US$11.2 million reported for the second quarter. Research and development expenditures, excluding stock-based compensation, were US$7.3 million, which were higher than the US$6.8 million in the previous quarter. Selling and marketing expenses excluding stock-based compensation were US$2.4 million, which were unchanged from the previous quarter. General and administrative expenses excluding stock-based compensation and litigation expenses were US$2.2 million, a slight increase from the US$2.1 million reported in the previous quarter. Stock-based compensation was US$2.2 million in the third quarter, which was unchanged from the second quarter. Acquisition-related charges were US$1.5 million, which were also unchanged compared with the previous quarter. Litigation expenses were less than US$0.1 million in the third quarter, similar to the previous quarter.
Operating margin excluding stock-based compensation, acquisition-related charges, and one-time items was a negative 3.2%, an improvement from negative 6.7% in the previous quarter. GAAP operating margin also improved to a negative 19.3% compared with the negative 24.7% reported for the second quarter.
Other Income and Expenses
Net total other income excluding net foreign exchange gain or loss, and one-time items was US$0.1 million, which was unchanged from the previous quarter. GAAP net total other income was a loss of US$1.6 million, which was significantly lower than the loss of US$3.4 million in the previous quarter due primarily to lower foreign exchange loss in the third quarter.
Earnings
Net income excluding stock-based compensation, acquisition-related charges, net foreign exchange loss, and one-time items was US$0.8 million in this quarter, a decrease from US$1.0 million in the second quarter. The third quarter was positively impacted by a deferred tax benefit of US$1.4 million. Diluted earnings per ADS excluding stock-based compensation, acquisition-related charges, net foreign exchange gain (loss), and one-time items were US$0.02, a decrease from earnings per ADS of US$0.03 in the previous quarter.
GAAP net loss was US$4.7 million, which was an improvement from the net loss of US$6.2 million in the previous quarter. Diluted GAAP loss per ADS was US$0.16, an improvement compared to the loss per ADS of US$0.22 in the previous quarter.
Balance Sheet
Cash, cash equivalents, and short-term investments decreased slightly from US$60.7 million at the end of the second quarter of 2009 to US$60.6 million at the end of this quarter.
Cash Flow
Our cash flows were as follows:
3 months ended September 30, 2009
---------------------------------
(In US$ millions)
Net income (loss) (4.7)
Depreciation & amortization 2.7
Changes in operating assets and liabilities (2.1)
Others 1.3
-----
Net cash provided by (used in) operating activities (2.8)
=====
Acquisition of property and equipment (0.5)
Others 1.1
-----
Net cash provided by (used in) investing activities 0.6
=====
Others --
-----
Net cash provided by (used in) financing activities --
=====
Effects of changes in foreign currency exchange rates on cash 1.5
-----
Net decrease in cash and cash equivalents (0.7)
=====
Pro-forma adjustment for foreign exchange translation 1.0
-----
Pro-forma net increase in cash and cash equivalents 0.3
=====
During the third quarter of 2009, we spent US$0.5 million in capital expenditures primarily relating to the purchase of software and equipment. There were no shares repurchased in the third quarter.
Business Outlook:
Silicon Motion's President and CEO, Wallace Kou, added:
"While our business has improved, we remain vigilant against
unexpected changes in light of continued NAND flash volatility.
NAND flash prices have risen in October and this will affect
the near-term procurement of flash and controllers by our
customers. We are uncertain whether NAND flash prices will
remain at these level, rise further or fall. We do, however,
believe that progress on the ramp of 30nm and 40nm flash, 3-
bits per cell MLC, and lower grade flash will continue and
demand for higher performance memory cards and other solid
state storage device will increase. We believe we remain very
well positioned to capture opportunities in these growth
areas."
For the fourth 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 October 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=PF66URCAB
CONFERENCE CALL ACCESS NUMBERS: USA (Toll Free): 1 888 680 0860 USA (Toll): 1 617 213 4852 Taiwan (Toll Free): 0080 144 4360 Participant Passcode: 1505 3765 REPLAY NUMBERS (for 7 days): USA (Toll Free):1 888 286 8010 USA (Toll): 1 617 801 6888 Participant Passcode: 4872 6821
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 operating 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 or 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 our operating results.
Intangible amortization consists of non-cash charges that can be impacted by the timing and magnitude of our acquisitions. We consider our operating results without these charges when evaluating our ongoing performance and forecasting our earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. We believe the assessment of our operations excluding these costs is relevant to our assessment of internal operations and comparisons to the performance of our 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.
Impairment losses on long-term investment relates to the other-than-temporary, non-operating write down of the Company's minority stake investment in Vastview Technology Corp. The investment was written down after the Company determined that it was other-than-temporarily impaired.
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$.
Silicon Motion Technology Corporation
Consolidated Statements of Income
(in thousands, except percentages and per ADS data, unaudited)
For the Three Months Ended
------------------------------------------------------
Sep. Jun. Sep.
Sep. 30, Jun. 30, Sep. 30, 30, 30, 30,
2008 2009 2009 2008 2009 2009
(NT$) (NT$) (NT$) (US$) (US$) (US$)
--------- -------- --------- ------ ------ ------
Net Sales 1,402,544 673,625 759,427 44,953 20,314 23,132
Cost of sales 701,300 350,159 394,448 22,477 10,560 12,015
--------- -------- --------- ------ ------ ------
Gross profit 701,244 323,466 364,979 22,476 9,754 11,117
Operating
expenses
Research &
development 277,440 264,026 279,293 8,892 7,962 8,507
Sales &
marketing 106,347 87,984 94,200 3,409 2,653 2,869
General &
admini-
strative 141,246 89,528 89,926 4,527 2,700 2,739
Amortization
of intang-
ibles
assets 48,626 48,081 48,151 1,559 1,450 1,467
--------- -------- --------- ------ ------ ------
Operating
income (loss) 127,585 (166,153) (146,591) 4,089 (5,011) (4,465)
Non-operating
income
(expense)
Gain on
sale of
investments 1,774 44 22 57 1 1
Unrealized
holding
gain
(loss) on
marketable
securities 673 -- -- 22 -- --
Interest
income
(net) 9,419 5,220 4,328 302 157 132
Impairment
on long-
term
investment -- -- (6,472) -- -- (197)
Foreign
exchange
gain (loss) 120,190 (115,396) (49,402) 3,852 (3,480) (1,506)
Others 6 (1,987) 6 -- (59) --
--------- -------- --------- ------ ------ ------
Subtotal 132,062 (112,119) (51,518) 4,233 (3,381) (1,570)
--------- -------- --------- ------ ------ ------
Income (loss)
before tax 259,647 (278,272) (198,109) 8,322 (8,392) (6,035)
Income tax
expense
(benefit) 6,258 (73,723) (44,971) 201 (2,223) (1,370)
--------- -------- --------- ------ ------ ------
Net income
(loss) 253,389 (204,549) (153,138) 8,121 (6,169) (4,665)
========= ======== ========= ====== ====== ======
Basic
earnings
(loss)
per ADS $ 8.26 ($7.38) ($5.51) $ 0.26 ($0.22) ($0.17)
Diluted
earnings
(loss)
per ADS $ 8.22 ($7.21) ($5.31) $ 0.26 ($0.22) ($0.16)
Margin
Analysis:
Gross margin 50.0% 48.0% 48.1% 50.0% 48.0% 48.1%
Operating
margin 9.1% (24.7%) (19.3%) 9.1% (24.7%) (19.3%)
Net margin 18.1% (30.4%) (20.2%) 18.1% (30.4%) (20.2%)
Weighted
avg. ADS(2):
Basic 30,681 27,728 27,775 30,681 27,728 27,775
Diluted 30,825 28,375 28,843 30,825 28,375 28,843
---------------------------------------------------------------------
(2) Assumes all outstanding ordinary shares are represented by ADSs.
Each ADS represents four ordinary shares.
Silicon Motion Technology Corporation
Reconciliation of GAAP to Non-GAAP Operating Results
(in thousands, except percentages and per ADS data, unaudited)
For the Three Months Ended
------------------------------------------------------
Sep. Jun. Sep.
Sep. 30, Jun. 30, Sep. 30, 30, 30, 30,
2008 2009 2009 2008 2009 2009
(NT$) (NT$) (NT$) (US$) (US$) (US$)
--------- -------- --------- ------ ------ ------
GAAP net
income (loss) 253,389 (204,549) (153,138) 8,121 (6,169) (4,665)
Stock-based
compensation:
Cost of
sales 3,799 3,406 3,223 122 103 98
Research
and
development 37,057 38,953 39,265 1,188 1,175 1,196
Sales and
marketing 15,199 9,907 15,066 487 299 459
General and
admini-
strative 16,818 19,134 15,700 539 577 478
--------- -------- --------- ------ ------ ------
Total
stock-
based
compens-
ation 72,873 71,400 73,254 2,336 2,154 2,231
--------- -------- --------- ------ ------ ------
Acquisition
related
charges:
Amortiz-
ation of
intangible
assets 48,626 48,081 48,151 1,559 1,450 1,467
Litigation
expenses 16,975 1,538 1,073 544 46 32
Foreign
exchange
loss (gain) (120,190) 115,396 49,402 (3,852) 3,480 1,506
Impairment on
long-term
investment -- -- 6,472 -- -- 197
--------- -------- --------- ------ ------ ------
Non-GAAP
net income 271,673 31,866 25,214 8,708 961 768
========= ======== ========= ====== ====== ======
Weighted avg.
ADS (non-
GAAP):
Basic 30,681 27,728 27,775 30,681 27,728 27,775
========= ======== ========= ====== ====== ======
Diluted 31,805 30,710 31,641 31,805 30,710 31,641
========= ======== ========= ====== ====== ======
Non-GAAP
basic
earnings
(loss)
per ADS $ 8.85 $ 1.15 $ 0.91 $ 0.28 $ 0.03 $ 0.03
========= ======== ========= ====== ====== ======
Non-GAAP
diluted
earnings
(loss)
per ADS $ 8.54 $ 1.04 $ 0.80 $ 0.27 $ 0.03 $ 0.02
========= ======== ========= ====== ====== ======
Non-GAAP
gross margin 50.3% 48.5% 48.5% 50.3% 48.5% 48.5%
Non-GAAP
operating
margin 19.0% (6.7%) (3.2%) 19.0% (6.7%) (3.2%)
---------------------------------------------------------------------
Silicon Motion Technology Corporation
Consolidated Statements of Income
(in thousands, except percentages, and per ADS data)
(unaudited)
For the Nine Months Ended
--------------------------------------
Sep. 30, Sep. 30, Sep. 30, Sep. 30,
2008 2009 2008 2009
(NT$) (NT$) (US$) (US$)
--------- --------- ------- -------
Net Sales 4,464,364 2,165,076 143,805 64,972
Cost of sales 2,258,767 1,155,769 72,759 34,683
--------- --------- ------- -------
Gross profit 2,205,597 1,009,307 71,046 30,289
Operating expenses
Research & development 808,850 762,968 26,054 22,896
Sales & marketing 271,021 261,924 8,730 7,860
General & administrative 414,475 275,401 13,351 8,265
Amortization of intangible
assets 145,899 144,109 4,700 4,325
--------- --------- ------- -------
Operating income (loss) 565,352 (435,095) 18,211 (13,057)
Non-operating income (expense)
Gain on sale of investments 16,839 223 542 7
Unrealized holding gain
(loss) on marketable
securities (449) -- (14) --
Interest income (net) 30,448 15,066 980 452
Dividend income 2,239 -- 72 --
Impairment losses on
long-term
investment -- (6,472) -- (194)
Foreign exchange gain (loss) 30,916 (78,365) 996 (2,352)
Others 186 (2,132) 7 (64)
--------- --------- ------- -------
Subtotal 80,179 (71,680) 2,583 (2,151)
--------- --------- ------- -------
Income (loss) before tax 645,531 (506,775) 20,794 (15,208)
Income tax expense (benefit) 81,358 (101,259) 2,621 (3,039)
--------- --------- ------- -------
Net income (loss) 564,173 (405,516) 18,173 (12,169)
========= ========= ======= =======
Basic earnings (loss)
per ADS $ 17.53 ($14.68) $ 0.56 ($0.44)
========= ========= ======= =======
Diluted earnings (loss)
per ADS $ 17.32 ($14.31) $ 0.56 ($0.43)
========= ========= ======= =======
Margin Analysis:
Gross margin 49.4% 46.6% 49.4% 46.6%
Operating margin 12.7% (20.1%) 12.7% (20.1%)
Weighted average ADS:
Basic 32,183 27,619 32,183 27,619
Diluted 32,583 28,334 32,583 28,334
Silicon Motion Technology Corporation
Reconciliation of GAAP to Non-GAAP Operating Results
(in thousands, except percentages and per ADS data, unaudited)
For the Nine Months Ended
--------------------------------------
Sep. 30, Sep. 30, Sep. 30, Sep. 30,
2008 2009 2008 2009
(NT$) (NT$) (US$) (US$)
--------- --------- ------- -------
GAAP net income (loss) 564,173 (405,516) 18,173 (12,169)
Stock-based compensation:
Cost of sales 9,930 8,746 320 262
Research and development 107,581 106,271 3,466 3,189
Sales and marketing 40,799 36,242 1,314 1,088
General and administrative 49,788 49,940 1,604 1,499
--------- --------- ------- -------
Total stock-based
compensation 208,098 201,199 6,704 6,038
--------- --------- ------- -------
Acquisition related charges:
Amortization of intangible
assets 145,899 144,109 4,700 4,325
Litigation expenses 56,100 3,902 1,807 117
Impairment losses on
long-term investment -- 6,472 -- 194
Foreign exchange loss (gain) (30,916) 78,365 (996) 2,352
FIN 48 tax charge 64,328 -- 2,072 --
--------- --------- ------- -------
Non-GAAP net income 1,007,682 28,531 32,460 857
========= ========= ======= =======
Weighted avg. ADS (non-GAAP):
Basic 32,183 27,619 32,183 27,619
========= ========= ======= =======
Diluted 33,610 30,401 33,610 30,401
========= ========= ======= =======
Non-GAAP basic earnings
per ADS $ 31.31 $ 1.03 $ 1.01 $ 0.03
========= ========= ======= =======
Non-GAAP diluted earnings
per ADS $ 29.98 $ 0.94 $ 0.97 $ 0.03
========= ========= ======= =======
Non-GAAP gross margin 49.6% 47.0% 49.6% 47.0%
Non-GAAP operating margin 21.9% (4.0%) 21.9% (4.0%)
Silicon Motion Technology Corporation
Consolidated Balance Sheet
(In thousands)
(unaudited)
Sep. 30, Jun. 30, Sep. 30, Sep. 30, Jun. 30, Sep. 30,
2008 2009 2009 2008 2009 2009
(NT$) (NT$) (NT$) (US$) (US$) (US$)
---------- ---------- ---------- -------- -------- --------
Cash and
cash
equival-
ents 1,761,752 1,955,309 1,932,867 54,662 59,306 59,601
Short-term
invest-
ments 154,438 45,136 33,143 4,792 1,369 1,022
Accounts
receiv-
able
(net) 1,241,724 569,107 610,342 38,527 17,261 18,820
Inventories 715,509 473,453 517,689 22,200 14,360 15,963
Refundable
deposits
- current 69,966 81,376 66,167 2,171 2,468 2,040
Deferred
income
tax
assets
(net) 100,555 48,226 80,298 3,120 1,463 2,476
Prepaid
expenses
and other
current
assets 154,006 151,904 102,925 4,778 4,607 3,175
---------- ---------- ---------- -------- -------- --------
Total
current
assets 4,197,950 3,324,511 3,343,431 130,250 100,834 103,097
Long-term
invest-
ments 119,475 50,371 17,908 3,707 1,528 552
Property
and
equipment
(net) 875,421 875,680 858,085 27,162 26,560 26,460
Goodwill
and
intang-
ible
assets
(net) 2,691,141 2,544,420 2,499,051 83,498 77,174 77,061
Other
assets 208,760 288,471 312,997 6,477 8,750 9,650
---------- ---------- ---------- -------- -------- --------
Total
assets $8,092,747 $7,083,453 $7,031,472 $251,094 $214,846 $216,820
========== ========== ========== ======== ======== ========
Short-term
borrowing 105,071 -- -- 3,260 -- --
Accounts
payable 487,000 276,453 299,688 15,110 8,385 9,241
Income
tax
payable 187,745 147,029 38,713 5,825 4,459 1,194
Accrued
expenses
and other
current
liabil-
ities 514,035 372,025 426,336 15,949 11,284 13,146
---------- ---------- ---------- -------- -------- --------
Total
current
liabil-
ities 1,293,851 795,507 764,737 40,144 24,128 23,581
Long-
term
liabil-
ities 42,276 65,712 61,287 1,312 1,993 1,890
Other
liabil-
ities 55,884 41,602 45,572 1,734 1,263 1,405
---------- ---------- ---------- -------- -------- --------
Total
liabil-
ities 1,392,011 902,821 871,596 43,190 27,384 26,876
Share-
holders'
equity 6,700,736 6,180,632 6,159,876 207,904 187,462 189,944
---------- ---------- ---------- -------- -------- --------
Total
liabil-
ities &
share-
holders'
equity $8,092,747 $7,083,453 $7,031,472 $251,094 $214,846 $216,820
========== ========== ========== ======== ======== ========
---------------------------------------------------------------------
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$31.20 to US$1
for 3Q08, NT$33.16 to US$1 for 2Q09, and NT$32.83 to US$1 for 3Q09
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$32.23 to US$1 at the end of 3Q08, NT$32.97 to US$1 at the end of
2Q09, and NT$32.43 to US$1 at the end of 3Q09.
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 third quarter 2009 revenue, gross margin and operating expenses, all of which reflect management's estimates based on information available at this 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 third 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 effects 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.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Silicon Motion Technology Corporation
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
