Company Information
Investor Information
Corporate Governance
Investor Events
Shareholder Service
IR Contacts


GSA 2016 Winner

Best IR by an Asia-Pacific Company in the US Market

Best IR by an Asia-Pacific Company in the US Market

Best Financially Managed Semiconductor Company

Home > Investor Relations > Press Release
Print this Page  | E-mail this Page  | View RSS Feeds  |

Share this page

| Subscribe to E-mail Alerts  | View Financial Tear Sheet 
Press Release
 
Printer Friendly Version View printer-friendly version
Back
Silicon Motion Announces Fourth Quarter Results for the Period Ended December 31, 2008


 Fourth Quarter 2008
 -------------------
 Financial Highlights
 *   Net sales decreased 28% quarter-over-quarter to US$32.3 million
 *   Gross margin excluding stock-based compensation was flat at 50.3%
     compared with 3Q08
 *   Operating expenses excluding stock-based compensation,
     acquisition-related charges, and one-time items decreased from
     US$14.1 million in 3Q08 to US$12.2 million
 *   Net income excluding stock-based compensation,
     acquisition-related charges, foreign exchange gain, and one-time
     items decreased 63% quarter-over-quarter to US$3.2 million. GAAP
     net income decreased from US$8.1 million in 3Q08 to a loss of
     US$0.9 million
 *   Diluted earnings per ADS excluding stock-based compensation,
     acquisition-related charges, foreign exchange gain, and one-time
     items were US$0.11, a 59% decrease from US$0.27 in 3Q08. GAAP
     diluted loss per ADS was US$0.03, a decrease from earnings of
     US$0.26 in 3Q08

 Business Highlights
 *   Reduced total unit shipments 5% year-over-year and 14%
     sequentially to approximately 92 million units. Full year total
     unit shipments increased 30%
 *   Reduced storage controller unit shipments 1% year-over-year and
     11% sequentially. Full year storage controller unit shipments
     increased 32%
 *   Received SSD controller design-win at Samsung for its flagship
     HMX series camcorders. HMX-106 is the world's first 64GB SSD
     camcorder
 *   Launched world's first Single Level Cell (SLC)/Multi Level Cell
     (MLC) hybrid SSD controller to provide OEMs with a cost effective
     SSD solution
 *   Launched world's first Turbo MLC controller solution for SSDs.
     Turbo MLC offers significantly higher durability than traditional
     MLC flash, with performance similar to SLC flash, and is more
     cost effective than SLC
 *   Developed one of the world's fastest 2 and 4 channel SATA and
     PATA SSD controllers with excellent random read/write performance
     and among the best sequential read/write in class
 *   Received a series of design-wins for T-DMB mobile TV tuner plus
     demodulator SoC at Samsung, LG, Pantech & Curitel, and other OEMs

TAIPEI, Taiwan, Feb. 6, 2009 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (Nasdaq:SIMO) (the "Company") today announced its fourth quarter 2008 financial results. Fourth quarter net sales decreased 28% quarter-over-quarter to US$32.3 million. Net income (GAAP) was a loss of $0.9 million or US$0.03 per diluted ADS, compared to earnings of US$8.1 million in the third quarter.

Non-GAAP net income, which excludes stock-based compensation, acquisition-related charges, foreign exchange gain, and one-time items, decreased 63% quarter-over-quarter to US$3.2 million, or US$0.11 per diluted ADS, compared to US$0.27 per diluted ADS in the third quarter of 2008.

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

"Although our fourth quarter sales performance was affected by the global economic slowdown, we believe we continue to execute well under this current environment. Consumer demand for memory cards and USB flash drives was weak in most markets around the world. Because of weak end demand, there were higher levels of finished card and UFD inventory in the food chain. Additionally, our bundled card controller business was affected by weak sales of handsets. Furthermore, output of NAND flash components from the major flash vendors, while still growing rapidly, began to decelerate as less productive fabs were retired. These factors contributed to weaker demand for our controllers. However, in spite of weak end-market conditions, for full year 2008, our total flash storage controller unit shipment increased a solid 32%. This growth rate is towards the higher end of the 18% to 39% originally range forecasted by Gartner and IDC. We continue leveraging our strong R&D and sales capabilities, as well as unparalleled relations with card makers and NAND flash business partners to aggressively support the current ramp of next generation NAND flash components with a portfolio of best-in-class controllers.

"During the quarter our SSD business achieved key product, technology, and design-win goals -- although it is important to note that the timing of any material increase in our SSD revenue remains uncertain. Goals achieved include releasing the world's first SLC/MLC hybrid controller for SSDs, which provides OEMs with an effective solution to utilize lower cost MLC flash. We have also developed the world's first Turbo MLC controller technology for SSDs that offers OEMs the advantage of significantly increasing the durability of MLC NAND flash with performance similar to SLC flash and at lower cost than using SLC flash. We have also secured an important SSD design-win for an important consumer electronics application, which is a demonstration that SSDs are being designed into many applications other than notebook PCs. We received an SSD controller design-win at Samsung for its flagship HMX series of camcorders, of which the HMX-106 is the world's first 64GB SSD camcorder.

"Our mobile communications business, which remains focused on the Korean market, was affected by domestic macroeconomic issues. Our mobile communications sales volume as a result fell sharply from the previous quarter as domestic handset sales contracted about 30%. However, we have rolled-out our T-DMB mobile TV tuner plus demodulator SoC solution according to schedule, have secured a series of design-wins at Samsung, LG, Pantech & Curitel, and other OEMs, and have already started shipping our SoC."

Fourth Quarter 2008 Financial Review (1)

Sales

Net sales in the fourth quarter totaled US$32.3 million, a decrease of 28% compared with the previous quarter. This quarter, mobile storage products accounted for 76% of net sales, mobile communications 14% of net sales, and multimedia SoCs 8% 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 23% from the third quarter of 2008 to US$24.6 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 46% from the third quarter of 2008 to US$4.6 million in the fourth quarter.

Net sales of multimedia SoC products, which include embedded graphics processors, MP3 SoCs, and PC camera SoCs, decreased 35% from the third quarter of 2008 to US$2.7 million this quarter.

Gross and Operating Margins

Gross margin excluding stock-based compensation remained unchanged at 50.3% compared to our previous quarter. GAAP gross margin increased slightly to 50.2% from 50.0% in the previous quarter.

Operating expenses excluding stock-based compensation, acquisition-related charges, and one-time items was US$12.2 million, which was lower than US$14.1 million in the previous quarter largely due to reversal of accrued compensation expenses. Research and development expenditures, excluding stock-based compensation, were US$7.2 million, which was lower than US$7.7 million in the previous quarter. Selling and marketing expenses excluding stock-based compensation were US$2.5 million, which was lower than US$2.9 million in the previous quarter. General and administrative expenses excluding stock-based compensation and litigation expenses were US$2.6 million, which was lower than US$3.4 million in the previous quarter. Stock-based compensation was US$2.1 million, which was less than US$2.3 million in the previous quarter. Acquisition-related charges were US$1.5 million, which was slightly lower compared to the US$1.6 million in the previous quarter. Litigation expenses remained unchanged at US$0.5 million compared to the previous quarter.

Operating margin excluding stock-based compensation, acquisition-related charges, and one-time items was 12.4%, which was lower than 19% in the previous quarter. GAAP operating margin was negative 0.1%, which was lower than 9.1% in the previous quarter.

Other Income and Expenses

Net total other income excluding impairment on long-term investment and net foreign exchange gain was US$0.3 million, which was slightly less than US$0.4 million in the previous quarter. GAAP net total other income was US$0.2 million, which was significantly lower than US$4.2 million in the previous quarter due primarily to an impairment loss on investment and less foreign exchange gains.

Earnings

Net income excluding stock-based compensation, acquisition-related charges, net foreign exchange gain, and one-time items was US$3.2 million in this quarter, which was lower than US$8.7 million in the previous quarter. Diluted earnings per ADS excluding stock-based compensation, acquisition-related charges, net foreign exchange gain, and one-time items were US$0.11, down from US$0.27 in the previous quarter.

GAAP net loss was US$0.9 million, which was lower than a gain of US$8.1 million in the previous quarter. Diluted GAAP loss per ADS was US$0.03, down from a gain of US$0.26 in the previous quarter.

Balance Sheet

Cash, cash equivalents, and short-term investments decreased from US$59.5 million at the end of the third quarter of 2008 to US$51.9 million at the end of this quarter. The decrease was primarily due to capital expenditures, the repayment of short-term borrowings, and share repurchases. Repayment of short-term borrowings reduced external bank debt to zero. Other long term liabilities, which are comprised of loans from the Korean government for financing R&D activities, increased slightly from US$1.3 million at the end of the third quarter of 2008 to US$1.4 million at the end of this quarter.

(1) Unless otherwise stated, all financial information used in this press release is unaudited, consolidated, prepared in accordance with U.S. GAAP and denominated in New Taiwan dollars. U.S. 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.

Cash Flow

Our cash flows were as follows:



                   3 months ended December 31, 2008
                   --------------------------------
                                                     (In US$ millions)
                                                     =================
 Net income (loss)                                               (0.9)
 Depreciation & amortization                                       2.9
 Changes in operating assets and liabilities                       1.0
 Others                                                            4.3
                                                     -----------------
   Net cash provided by (used in)
    operating activities                                           7.3
                                                     =================
 Acquisition of property and equipment                           (2.7)
 Others                                                          (0.6)
                                                     -----------------
   Net cash provided by (used in)
    investing activities                                         (3.3)
                                                     =================
 Share repurchase                                                (4.8)
 Others                                                          (3.4)
                                                     -----------------
   Net cash provided by (used in)
    financing activities                                         (8.2)
                                                     =================
 Effects of changes in foreign currency
  exchange rates on cash                                           0.6
                                                     -----------------
   Net decrease in cash and cash
    equivalents                                                  (3.6)
                                                     =================
 Pro-forma adjustment for foreign
  exchange translation                                           (2.7)
                                                     -----------------
   Pro-forma net decrease in cash and
    cash equivalents                                             (6.3)
                                                     =================

During the fourth quarter of 2008, Silicon Motion spent US$4.8 million to repurchase ADSs, eliminated its short-term debt of US$3.3 million, and spent US$2.7 million in capital expenditures primarily relating to the implementation of a new SAP ERP system, as well as for design tools.

Share Repurchase Program:

The Company temporarily suspended its share repurchase program early in the fourth quarter in order to conserve cash as business conditions deteriorated. Prior to the repurchase suspension, in the fourth quarter of 2008 the Company repurchased 1.3 million ADSs for a total cost of US$4.5 million. The weighted average price per ADS repurchased was US$3.58.

Business Outlook:

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

"Although we believe we are executing well, whether on next generation flash controllers, SSD controllers, or mobile TV IC solutions, and are optimistic about the longer term growth potential of our business, we continue to see a difficult environment over the next few quarters for companies involved in the NAND flash and mobile communications food chains and therefore believe that we must be prudent in the near term and focus on reducing unnecessary expenses and maximizing cash flow."

For the first quarter of 2009, management expects:



  --    Revenue to be down 20% to 30% sequentially
  --    Non-GAAP and GAAP gross margin to be in the 48 to 50% range
  --    Operating expenses excluding stock-based compensation,
        acquisition-related charges, and one-time items of
        approximately US$12 to 13 million

Conference Call & Webcast:

The Company's management team will conduct a conference call at 8:00am Eastern Time on February 6, 2009.



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

 PRE-REGISTRATION:
 https://www.theconferencingservice.com/prerekey.process?key=PERB9M3BW

 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: 5959 9933

 REPLAY NUMBERS (for 7 days):
 USA (Toll Free): 1 888 286 8010
 USA (Toll): 1 617 801 6888
 Participant Passcode: 9973 0417

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.

In-process research and development consists of one-time charges incurred in connection with the acquisition of FCI in the second quarter of 2007 and the acquisition of Centronix in the fourth quarter of 2007 that otherwise would not have been incurred and therefore we have excluded the effects of these charges from our non-GAAP operating income and non-GAAP net income. In-process research and development consists of technology projects which, as of acquisition date, had not yet reached technological feasibility and there are no future alternative uses that exist. We believe it is useful for investors to understand the effect of this expense on our statement of operations. This non-GAAP adjustment is intended to reflect acquisition-related expense incurred that is not directly associated with our continuing operations.

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

Impairment of long-term marketable securities relates to the other-than-temporary, non-operating write down of the Company's minority stake investments in Spright Co., Ltd and Vastview Technology Corp. These investments were written down after the Company determined that these shares have been 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$.

FIN48 tax charge relates to uncertainties about income tax liabilities that had resulted from an arbitrary change in interpretation of tax codes by the Taiwan tax authorities following a routine review of our tax filings.



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

                                     For the Three Months Ended
                                  ----------------------------------
                                   Dec. 31,    Sep. 30,    Dec. 31,
                                     2007        2008        2008
                                     (NT$)       (NT$)       (NT$)
                                  ----------  ----------  ----------
 Net Sales                         1,732,115   1,402,544   1,063,687
 Cost of sales                       822,623     701,300     530,083
                                  ----------  ----------  ----------
 Gross profit                        909,492     701,244     533,604
 Operating expenses
   Research & development            239,991     277,440     267,215
   Sales & marketing                  82,365     106,347      97,842
   General & administrative          112,324     141,246     121,306
   In-process research
    and development                    7,188          --          --
   Amortization of
    intangibles assets                53,237      48,626      47,901
                                  ----------  ----------  ----------
 Operating income (loss)             414,387     127,585       (660)

 Non-operating income (expense)
   Gain on sale of investments         6,108       1,774         738
   Unrealized holding gain
    (loss) on
    marketable securities              1,122         673       (673)
   Interest income (net)               9,333       9,419       8,698
   Impairment on long-term
    investment                      (14,447)          --    (69,253)
   Foreign exchange gain (loss)      (5,164)     120,190      65,464
   Others                              (347)           6         279
                                  ----------  ----------  ----------
   Subtotal                          (3,395)     132,062       5,253
                                  ----------  ----------  ----------
 Income before tax                   410,992     259,647       4,593
 Income tax expense                   24,603       6,258      35,160
                                  ----------  ----------  ----------
 Net income (loss)                   386,389     253,389    (30,567)
                                  ==========  ==========  ==========

 Basic earnings (loss) per ADS    $    11.73  $     8.26  ($   1.11)
 Diluted earnings (loss) per ADS  $    11.39  $     8.22  ($   1.11)

 Margin Analysis:
 Gross margin                         52.5%       50.0%       50.2%
 Operating margin                     23.9%        9.1%       (0.1%)
 Net margin                           22.3%       18.1%       (2.9%)

 Additional Data:
 Weighted avg. ADS equivalents1       32,934      30,681      27,531
 Diluted ADS equivalents              33,927      30,825      27,556


                                     For the Three Months Ended
                                  ----------------------------------
                                   Dec. 31,     Sep. 3,    Dec. 31,
                                     2007        2008        2008
                                     (US$)       (US$)       (US$)
                                  ----------  ----------  ----------
 Net Sales                            53,411      44,953      32,272
 Cost of sales                        25,366      22,477      16,083
                                  ----------  ----------  ----------
 Gross profit                         28,045      22,476      16,189
 Operating expenses
   Research & development              7,400       8,892       8,107
   Sales & marketing                   2,540       3,409       2,969
   General & administrative            3,464       4,527       3,680
   In-process research
    and development                      222          --          --
   Amortization of
    intangibles assets                 1,642       1,559       1,453
                                  ----------  ----------  ----------
 Operating income (loss)              12,777       4,089        (20)

 Non-operating income (expense)
   Gain on sale of investments           188          57          22
   Unrealized holding gain
    (loss) on
    marketable securities                 35          22        (20)
   Interest income (net)                 288         302         264
   Impairment on long-term
    investment                         (445)          --     (2,101)
   Foreign exchange gain (loss)        (159)       3,852       1,986
   Others                               (11)          --           8
                                  ----------  ----------  ----------
   Subtotal                            (104)       4,233         159
                                  ----------  ----------  ----------
 Income before tax                    12,673       8,322         139
 Income tax expense                      759         201       1,066
                                  ----------  ----------  ----------
 Net income (loss)                    11,914       8,121       (927)
                                  ==========  ==========  ==========

 Basic earnings (loss) per ADS    $     0.36  $     0.26  ($   0.03)
 Diluted earnings (loss) per ADS  $     0.35  $     0.26  ($   0.03)

 Margin Analysis:
 Gross margin                          52.5%       50.0%       50.2%
 Operating margin                      23.9%        9.1%      (0.1%)
 Net margin                           22.3%       18.1%       (2.9%)

 Additional Data:
 Weighted avg. ADS equivalents1       32,934      30,681      27,531
 Diluted ADS equivalents              33,927      30,825      27,556

 (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 share data, unaudited)

                                      For the Three Months Ended
                                  ----------------------------------
                                   Dec. 31,    Sep. 30,    Dec. 31,
                                     2007        2008        2008
                                     (NT$)       (NT$)       (NT$)
                                  ----------  ----------  ----------
 GAAP net income (loss)              386,389     253,389    (30,567)
 Stock-based compensation:
   Cost of sales                       3,530       3,799       1,552
   Research and development           34,900      37,057      31,321
   Sales and marketing                13,540      15,199      14,536
   General and administrative         19,314      16,818      20,544
                                  ----------  ----------  ----------
     Total stock-based
      compensation                    71,284      72,873      67,953
                                  ----------  ----------  ----------

 Acquisition related charges:
   Amortization of
    intangible assets                 53,237      48,626      47,901
   In-process research
    & development                      7,188          --          --

 Litigation expenses                   2,368      16,975      16,882
 Foreign exchange loss (gain)          5,164   (120,190)    (65,464)
 Impairment on
  long-term investment                14,447          --      69,253
                                  ----------  ----------  ----------

 Non-GAAP net income                 540,077     271,673     105,958
                                  ==========  ==========  ==========

 Shares  used  in  computing
 non-GAAP  basic
 earnings per ADS                     32,934      30,681      27,531
                                  ==========  ==========  ==========
 Shares  used in  computing
  non-GAAP  diluted earnings
  per ADS                             34,865      31,805      28,583
                                  ==========  ==========  ==========

 Non-GAAP basic earnings
  per ADS                         $    16.40  $     8.85  $     3.85
                                  ==========  ==========  ==========
 Non-GAAP diluted earnings
  per ADS                         $    15.49  $     8.54  $     3.71
                                  ==========  ==========  ==========

 Non-GAAP gross margin                 52.7%       50.3%       50.3%
 Non-GAAP operating margin             31.7%       19.0%       12.4%


                                     For the Three Months Ended
                                  ----------------------------------
                                   Dec. 31,     Sep. 3,    Dec. 31,
                                     2007        2008        2008
                                     (US$)       (US$)       (US$)
                                  ----------  ----------  ----------
 GAAP net income (loss)               11,914       8,121        (927)
 Stock-based compensation:
   Cost of sales                         109         122          47
   Research and development            1,076       1,188         950
   Sales and marketing                   418         487         441
   General and administrative            596         539         624
                                  ----------  ----------  ----------
     Total stock-based
      compensation                     2,199       2,336       2,062
                                  ----------  ----------  ----------

 Acquisition related charges:
   Amortization of
    intangible assets                  1,642       1,559       1,453
   In-process research
    & development                        222          --          --

 Litigation expenses                      73         544         512
 Foreign exchange loss (gain)            159      (3,852)     (1,986)
 Impairment on
  long-term investment                   445          --       2,101
                                  ----------  ----------  ----------

 Non-GAAP net income                  16,654       8,708       3,215
                                  ==========  ==========  ==========

 Shares  used  in  computing
 non-GAAP  basic
 earnings per ADS                     32,934      30,681      27,531
                                  ==========  ==========  ==========
 Shares  used in  computing
  non-GAAP  diluted earnings
  per ADS                             34,865      31,805      28,583
                                  ==========  ==========  ==========

 Non-GAAP basic earnings
  per ADS                         $     0.51  $     0.28  $     0.12
                                  ==========  ==========  ==========
 Non-GAAP diluted earnings
  per ADS                         $     0.48  $     0.27  $     0.11
                                  ==========  ==========  ==========

 Non-GAAP gross margin                 52.7%       50.3%       50.3%
 Non-GAAP operating margin             31.7%       19.0%       12.4%


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

                                       For the Year Ended
                        ----------------------------------------------
                         Dec. 31,    Dec. 31,    Dec. 31,    Dec. 31,
                           2007        2008        2007        2008
                           (NT$)       (NT$)       (US$)       (US$)
                        ----------  ----------  ----------  ----------
 Net Sales               5,847,329   5,528,051     178,001     175,382
 Cost of sales           2,757,101   2,788,850      83,930      88,479
                        ----------  ----------  ----------  ----------
 Gross profit            3,090,228   2,739,201      94,071      86,903
 Operating expenses
   Research &
    development            822,746   1,076,066      25,046      34,139
   Sales & marketing       298,199     368,863       9,078      11,702
   General &
    administrative         381,749     535,780      11,621      16,998

   In-process research
    and development         76,378          --       2,325          --
   Amortization of
    intangible assets      163,704     193,800       4,983       6,148
                        ----------  ----------  ----------  ----------
   Subtotal              1,742,776   2,174,509      53,053      68,987
                        ----------  ----------  ----------  ----------
 Operating income        1,347,452     564,692      41,018      17,916

 Non-operating
  expense (income)
   Gain on sale
    of investments          26,886      17,577         818         558
   Unrealized holding
    gain (loss) on           1,119      (1,122)         34         (36)
   marketable securities
   Interest income (net)    51,320      39,146       1,562       1,242
   Investments income          772       2,480          24          79
   Foreign exchange
    gain (loss)            (18,702)     96,380        (569)      3,058
   Impairment on
    long-term investment   (14,448)    (69,253)       (440)     (2,197)
   Others                     (316)        223         (10)          6
                        ----------  ----------  ----------  ----------
   Subtotal                 46,631      85,431       1,419       2,710
                        ----------  ----------  ----------  ----------
 Income before tax       1,394,083     650,123      42,437      20,626
 Income tax expense         81,578     116,517       2,483       3,697
                        ----------  ----------  ----------  ----------
 Net income              1,312,505     533,606      39,954      16,929
                        ==========  ==========  ==========  ==========

 Basic earnings
  per ADS                 NT$40.67    NT$17.20     US$1.24     US$0.55
 Diluted earnings
  per ADS                 NT$39.38    NT$17.03     US$1.20     US$0.54

 Margin Analysis:
 Gross margin                52.9%       49.6%       52.9%       49.6%
 Operating margin            23.0%       10.2%       23.0%       10.2%

 Additional Data:
 Weighted average
  ADS equivalents           32,260      31,020      32,260      31,020
 Diluted ADS equivalents    33,323      31,326      33,323      31,326


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

                                      For the Year Ended
                        ----------------------------------------------
                           2007        2008        2007        2008
                           (NT$)       (NT$)       (US$)       (US$)
                        ----------  ----------  ----------  ----------
 GAAP net income         1,312,505     533,606      39,954      16,929
 Stock-based
  compensation:
   Cost of sales            12,858      11,481         391         364
   Research and
    development            129,750     138,907       3,950       4,407
   Sales and marketing      48,703      55,334       1,483       1,756
   General and
    administrative          70,039      70,333       2,132       2,231
                        ----------  ----------  ----------  ----------
     Total stock-based
      compensation         261,350     276,055       7,956       8,758
                        ----------  ----------  ----------  ----------

 Acquisition related
  charges:
   Amortization of
    intangible assets      163,704     193,800       4,983       6,148
   In-process research &
    development             76,378          --       2,325          --

 Litigation expenses         2,368      72,982          73       2,315
 Foreign exchange
  loss (gain)               18,702     (96,380)        569      (3,058)
 Impairment on
  long-term investment      14,448      69,253         440       2,197
 FIN48 tax charges              --      64,328          --       2,041
                        ----------  ----------  ----------  ----------

 Non-GAAP net income     1,849,455   1,113,644      56,300      35,330
                        ==========  ==========  ==========  ==========

 Shares used in
  computing non-GAAP
  basic earnings per ADS    32,260      31,020      32,260      31,020
                        ==========  ==========  ==========  ==========
 Shares used in
  computing non-GAAP
  diluted earnings
  per ADS                   34,276      32,354      34,276      32,354
                        ==========  ==========  ==========  ==========

 Non-GAAP basic
  earnings per ADS      $    57.33  $    35.90  $     1.75  $     1.14
                        ==========  ==========  ==========  ==========
 Non-GAAP diluted
  earnings per ADS      $    53.96  $    34.42  $     1.64  $     1.09
                        ==========  ==========  ==========  ==========

 Non-GAAP gross margin       53.1%       49.8%       53.1%       49.8%
 Non-GAAP operating
  margin                     31.7%       20.0%       31.7%       20.0%


 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$32.43 to US$1 for 4Q07, NT$32.85 to US$1 for 2007,
       NT$31.20 to US$1 for 3Q08, NT$32.96 to US$1 for 4Q08, and
       NT$31.52 to US$1 for 2008 based on the average of the noon buying
       rate for cable transfers of the NT dollar as certified for
       customs purposes by the Federal Reserve Bank of New York. Amounts
       from the balance sheet have been translated using the ending
       exchange rate for the period. The exchange rate was NT$32.43 to
       US$1 at the end of 4Q07, NT$32.23 to US$1 at the end of 3Q08, and
       NT$32.76 to US$1 at the end of 4Q08.


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

                                   Dec. 31,    Sep. 30,    Dec. 31,
                                     2007        2008        2008
                                     (NT$)       (NT$)       (NT$)
                                  ----------  ----------  ----------
 Cash and cash equivalents         1,608,272   1,761,752   1,586,941
 Short-term investments            1,751,113     154,438     112,505
 Accounts receivable (net)         1,007,384   1,241,724   1,072,995
 Inventories                         547,400     715,509     766,847
 Refundable deposits -
  current                            127,466      69,966      85,368
 Deferred income tax
  assets (net)                        83,526     100,555      97,129
 Prepaid expenses and
  other current assets               227,044     154,006     155,527
                                  ----------  ----------  ----------
 Total current assets              5,352,205   4,197,950   3,877,312

 Long-term investments               119,535     119,475      50,369
 Property and
  equipment (net)                    519,189     875,421     920,117
 Goodwill and intangible
  assets (net)                     2,849,437   2,691,141   2,641,504
 Other assets                        279,865     208,760     207,164
                                  ----------  ----------  ----------
 Total assets                     $9,120,231  $8,092,747  $7,696,466
                                  ==========  ==========  ==========

 Short-term borrowing                     --     105,071          --
 Accounts payable                    444,440     487,000     378,624
 Income tax payable                  227,356     187,745     216,523
 Accrued expenses and
  other current liabilities          785,717     514,035     456,710
                                  ----------  ----------  ----------
 Total current liabilities         1,457,513   1,293,851   1,051,857
 Accrued pension cost                     --         145          --
 Long-term liabilities                47,919      42,276      57,260
 Other liabilities                    30,692      55,739      46,512
                                  ----------  ----------  ----------
 Total liabilities                 1,536,124   1,392,011   1,155,629
 Shareholders' equity              7,584,107   6,700,736   6,540,837
                                  ----------  ----------  ----------
 Total liabilities &
  shareholders' equity            $9,120,231  $8,092,747  $7,696,466
                                  ==========  ==========  ==========


                                   Dec. 31,    Sep. 30,    Dec. 31,
                                     2007        2008        2008
                                     (US$)       (US$)       (US$)
                                  ----------  ----------  ----------
 Cash and cash equivalents            49,592      54,662      48,441
 Short-term investments               53,997       4,792       3,434
 Accounts receivable (net)            31,063      38,527      32,753
 Inventories                          16,879      22,200      23,408
 Refundable deposits -
  current                              3,931       2,171       2,606
 Deferred income tax
  assets (net)                         2,576       3,120       2,965
 Prepaid expenses and
  other current assets                 7,001       4,778       4,747
                                  ----------  ----------  ----------
 Total current assets                165,039     130,250     118,354

 Long-term investments                 3,686       3,707       1,538
 Property and
  equipment (net)                     16,010      27,162      28,087
 Goodwill and intangible
  assets (net)                        87,864      83,498      80,632
 Other assets                          8,629       6,477       6,324
                                  ----------  ----------  ----------
 Total assets                     $  281,228  $  251,094  $  234,935
                                  ==========  ==========  ==========

 Short-term borrowing                     --       3,260          --
 Accounts payable                     13,705      15,110      11,558
 Income tax payable                    7,011       5,825       6,609
 Accrued expenses and
  other current liabilities           24,227      15,949      13,941
                                  ----------  ----------  ----------
 Total current liabilities            44,943      40,144      32,108
 Accrued pension cost                     --           4          --
 Long-term liabilities                 1,478       1,312       1,748
 Other liabilities                       946       1,730       1,420
                                  ----------  ----------  ----------
 Total liabilities                    47,367      43,190      35,276
 Shareholders' equity                233,861     207,904     199,659
                                  ----------  ----------  ----------
 Total liabilities &
  shareholders' equity            $  281,228  $  251,094  $  234,935
                                  ==========  ==========  ==========

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 first 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 first 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 May 12, 2008. We assume no obligation to update any forward-looking statements, which apply only as of the date of this press release.

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 Contact:
          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.tw