May 2, 2024 at 6:00 PM EDT

Silicon Motion Announces Results for the Period Ended March 31, 2024

Business Highlights

  • First quarter of 2024 sales decreased 6% Q/Q and increased 53% Y/Y
    • SSD controller sales: 1Q of 2024 increased 0% to 5% Q/Q and increased 35% to 40% Y/Y
    • eMMC+UFS controller sales: 1Q of 2024 decreased 10% to 15% Q/Q and increased 235% to 240% Y/Y
    • SSD solutions sales: 1Q of 2024 decreased 5% to 10% Q/Q and decreased 30% to 35% Y/Y

Financial Highlights

 1Q 2024 GAAP1Q 2024 Non-GAAP
 • Net sales$189.3 million (-6% Q/Q, +53% Y/Y)$189.3 million (-6% Q/Q, +53% Y/Y)
 • Gross margin45.0%45.0%
 • Operating margin9.5%12.0%
 • Earnings per diluted ADS$0.48  $0.64

TAIPEI, Taiwan and MILPITAS, Calif., May 03, 2024 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion”, the “Company” or “we”) today announced its financial results for the quarter ended March 31, 2024. For the first quarter of 2024, net sales (GAAP) decreased sequentially to $189.3 million from $202.4 million in the fourth quarter of 2023. Net income (GAAP) decreased to $16.0 million, or $0.48 per diluted American Depositary Share of the Company (“ADS”) (GAAP), from net income (GAAP) of $21.1 million, or $0.63 per diluted ADS (GAAP), in the fourth quarter of 2023.

For the first quarter of 2024, net income (non-GAAP) decreased to $21.6 million, or $0.64 per diluted ADS (non-GAAP), from net income (non-GAAP) of $31.3 million, or $0.93 per diluted ADS (non-GAAP), in the fourth quarter of 2023.

All financial numbers are in U.S. dollars unless otherwise noted.

First Quarter of 2024 Review

“Our business remained strong in the first quarter of 2024 as demand was stronger than expected and improving ASPs continued to drive better profitability,” said Wallace Kou, President and CEO of Silicon Motion. “Our client SSD revenue increased again for the fourth consecutive quarter as end-market demand stabilized and programs with our flash maker customers continue to scale. This was a strong start to 2024, and we are confident that we have the right products and the right customers to continue to grow our business and profitability throughout this year.”

Key Financial Results

(in millions, except percentages and per ADS amounts)
1Q 20244Q 20231Q 20231Q 20244Q 20231Q 2023
Revenue$189.3 $202.4 $124.1 $189.3 $202.4 $124.1 
Gross profit
  Percent of revenue
Operating expenses$67.2 $71.0 $46.8 $62.5 $61.5 $39.6 
Operating income
  Percent of revenue
Earnings per diluted ADS$0.48 $0.63 $0.30 $0.64 $0.93 $0.33 

Other Financial Information

(in millions)1Q 20244Q 20231Q 2023
Cash, cash equivalents, restricted cash and short-term investments—end of period$349.3$369.0$280.3
Routine capital expenditures$5.0$3.5$7.2
Dividend payments$16.8$16.7 --

During the first quarter of 2024, we had $10.7 million of capital expenditures, including $5.0 million for the routine purchase of testing equipment, software, design tools and other items, and $5.7 million for building construction in Hsinchu.

Business Outlook

“Our new programs with our flash maker customers are expected to continue to scale throughout this year as the move to increase outsourcing continues to build the foundation for long-term growth of our business,” said Wallace Kou, President and CEO of Silicon Motion. “Our highly differentiated controller solutions enable PC and smartphone OEMs to utilize high performance, higher density and lower cost solid state storage to enable cutting edge applications such as AI-at-the-edge. Based on our strong start to the year and our increasing backlog, we are increasing our full-year outlook. We expect our business will continue to improve steadily throughout 2024 as we continue to scale new SSD and eMMC+UFS controller programs that will also improve our ASPs and profitability steadily throughout this year.”

For the second quarter of 2024, management expects:

 GAAPNon-GAAP AdjustmentNon-GAAP
Revenue$199m to $208m
+5% to 10% Q/Q
+42% to 48% Y/Y
--$199m to $208m
+5% to 10% Q/Q
+42% to 48% Y/Y
Gross margin45.0% to 46.0%Approximately $0.1m*45.0% to 46.0%
Operating margin15.0% to 16.3%Approximately $2.5m to $3.0m**16.5% to 17.5%

* Projected gross margin (non-GAAP) excludes $0.1 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $2.5 million to $3.0 million of stock-based compensation and dispute related expenses.

For the full year 2024, management expects:

 GAAPNon-GAAP AdjustmentNon-GAAP
Revenue$800m to $830m
+25% to 30% Y/Y
--$800m to $830m
+25% to 30% Y/Y
Gross margin44.9% to 46.9%Approximately $0.5m*45.0% to 47.0%
Operating margin10.7 % to 13.1%Approximately $30.0m to $32.0m**14.7% to 16.7%

* Projected gross margin (non-GAAP) excludes $0.5 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $30.0 million to $32.0 million of stock-based compensation and dispute related expenses.

Conference Call & Webcast:

The Company’s management team will conduct a conference call at 8:00 am Eastern Time on May 3, 2024.

Conference Call Details
Participants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration.

Participant Online Registration:

A webcast of the call will be available on the Company's website at

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 and other items, including gross profit (non-GAAP), operating expenses (non-GAAP), operating income (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly-titled 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 they are 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 related to the fair value of 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 of share-based compensation on its operating results.

Restructuring charges relate to the restructuring of our underperforming product lines, principally the write-down of NAND flash, embedded DRAM and SSD inventory valuation and severance payments. 

M&A transaction expenses consist of legal, financial advisory and other fees related to the Transaction.

Dispute related expenses consist of legal, consultant and other fees.

Loss from settlement of litigation relates to an expense accrued in connection with a settlement of a lawsuit.

Foreign exchange loss (gain) consists of translation gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.

Unrealized holding loss (gain) on investments relates to the net change in fair value of long-term investments.

Silicon Motion Technology Corporation
Consolidated Statements of Income
(in thousands, except percentages and per ADS data, unaudited)
  For Three Months Ended
  Mar. 31,  Dec. 31,  Mar. 31,
  2023 2023 2024
   ($)  ($)  ($)
Net Sales 124,069  202,379  189,311 
Cost of sales 71,766  113,854  104,191 
Gross profit 52,303  88,525  85,120 
Operating expenses      
Research & development 34,850  56,432  54,392 
Sales & marketing 6,605  6,205  6,304 
General & administrative 5,363  7,600  6,474 
Loss from settlement of litigation -  720  - 
Operating income 5,485  17,568  17,950 
Non-operating income (expense)      
Interest income, net 1,810  4,221  3,066 
Foreign exchange gain (loss), net 238  (1,117) 588 
Unrealized holding gain(loss) on investments 4,746  (51) (1,608)
Others, net -  8  - 
Subtotal 6,794  3,061  2,046 
Income before income tax 12,279  20,629  19,996 
Income tax expense (benefit) 2,129  (464) 3,980 
Net income 10,150  21,093  16,016 
Earnings per basic ADS 0.31  0.63  0.48 
Earnings per diluted ADS 0.30  0.63  0.48 
Margin Analysis:      
Gross margin 42.2%  43.7%  45.0% 
Operating margin 4.4%  8.7%  9.5% 
Net margin 8.2%  10.4%  8.5% 
Additional Data:      
Weighted avg. ADS equivalents 33,176  33,416  33,508 
Diluted ADS equivalents 33,381  33,587  33,701 

Silicon Motion Technology Corporation
Reconciliation of GAAP to Non-GAAP Operating Results
(in thousands, except percentages and per ADS data, unaudited)
  For Three Months Ended
  Mar. 31,  Dec. 31,  Mar. 31,
  2023   2023   2024 
  ($)  ($)  ($)
Gross profit (GAAP)  52,303   88,525   85,120 
Gross margin (GAAP)  42.2%   43.7%   45.0% 
Stock-based compensation (A)  135   106   72 
Restructuring charges  37   648   - 
Gross profit (non-GAAP)   52,475   89,279   85,192 
Gross margin (non-GAAP)  42.3%   44.1%   45.0% 
Operating expenses (GAAP)  46,818   70,957   67,170 
Stock-based compensation (A)  (5,350)  (5,680)  (3,093)
M&A transaction expenses  (637)  288   - 
Dispute related expenses    (2,757)  (1,532)
Restructuring charges  (1,256)  (638)  - 
Loss from settlement of litigation  -   (720)  - 
Operating expenses (non-GAAP)   39,575   61,450   62,545 
Operating profit (GAAP)  5,485   17,568   17,950 
Operating margin (GAAP)  4.4%   8.7%   9.5% 
Total adjustments to operating profit  7,415   10,261   4,697 
Operating profit (non-GAAP)   12,900   27,829   22,647 
Operating margin (non-GAAP)  10.4%   13.8%   12.0% 
Non-operating income (expense) (GAAP)  6,794   3,061   2,046 
Foreign exchange loss (gain), net  (238)  1,117   (588)
Unrealized holding loss (gain) on investments  (4,746)  51   1,608 
Non-operating income (expense) (non-GAAP)   1,810   4,229   3,066 
Net income (GAAP)  10,150   21,093   16,016 
Total pre-tax impact of non-GAAP adjustments  2,431   11,429   5,717 
Income tax impact of non-GAAP adjustments  (1,418)  (1,202)  (147)
Net income (non-GAAP)   11,163   31,320   21,586 
Earnings per diluted ADS (GAAP) $0.30  $0.63  $0.48 
Earnings per diluted ADS (non-GAAP)  $0.33  $0.93  $0.64 
Shares used in computing earnings per diluted ADS (GAAP)  33,381   33,587   33,701 
Non-GAAP adjustments  167   110   26 
Shares used in computing earnings per diluted ADS (non-GAAP)  33,548   33,697   33,727 
(A) Excludes stock-based compensation as follows:      
Cost of sales  135   106   72 
Research & development  3,868   4,103   2,143 
Sales & marketing  541   361   347 
General & administrative  941   1,216   603 

Silicon Motion Technology Corporation
Consolidated Balance Sheet
(In thousands, unaudited)
  Mar. 31,  Dec. 31, Mar. 31,
  2023 2023 2024
   ($)  ($)  ($)
Cash and cash equivalents 225,382 314,302 294,814
Accounts receivable (net) 145,772 194,701 186,154
Inventories 307,662 216,950 253,316
Refundable deposits – current 49,492 49,656 49,610
Prepaid expenses and other current assets 14,115 17,636 17,944
Total current assets 742,423 793,245 801,838
Long-term investments 14,068 17,116 15,489
Property and equipment (net) 147,115 167,417 174,420
Other assets 24,592 30,183 32,529
Total assets 928,198 1,007,961 1,024,276
Accounts payable 35,373 55,586 64,810
Income tax payable 43,685 7,544 10,702
Accrued expenses and other current liabilities 55,644 149,680 135,425
Total current liabilities 134,702 212,810 210,937
Other liabilities 45,223 60,455 59,883
Total liabilities 179,925 273,265 270,820
Shareholders’ equity 748,273 734,696 753,456
Total liabilities & shareholders’ equity 928,198 1,007,961 1,024,276

Silicon Motion Technology Corporation
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
  For Three Months Ended
  Mar. 31,   Dec. 31, Mar. 31,
  2023  2023 2024
   ($)   ($)  ($)
Net income 10,150   21,093  16,016 
Depreciation & amortization 5,608   5,356  5,608 
Stock-based compensation 5,485   5,786  3,165 
Investment losses (gain) & disposals (4,746)  (432) 1,608 
Changes in operating assets and liabilities (9,525)  11,582  (18,586)
Net cash provided by operating activities 6,972   43,385  7,811 
Purchase of property & equipment (13,550)  (9,530) (10,749)
Net cash used in investing activities (13,550)  (9,530) (10,749)
Dividend payments -   (16,676) (16,808)
Net cash used in financing activities -   (16,676) (16,808)
Net increase (decrease) in cash, cash equivalents & restricted cash (6,578)  17,179  (19,746)
Effect of foreign exchange changes (177)  1,508  35 
Cash, cash equivalents & restricted cash—beginning of period 287,055   350,303  368,990 
Cash, cash equivalents & restricted cash—end of period 280,300   368,990  349,279 

About Silicon Motion:

We are the global leader in supplying NAND flash controllers for solid state storage devices.  We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications.  We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions.  Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs.  For further information on Silicon Motion, visit us at

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. 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 the 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 one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the effects on our business and our customer’s business taking into account the ongoing US-China tariffs and trade disputes the uncertainties associated with any future outbreaks of COVID-19, including, but not limited to, the emergence of variants to the original COVID-19 strain or other similar global or regional pandemic; the continuing tensions between Taiwan and China including enhanced military activities; 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; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our board of directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; 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 U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2024. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this press release.

Silicon Motion Investor Contacts:
Jason Tsai Selina Hsieh
Interim Chief Financial OfficerInvestor Relations 
Media Contact: 
Dan Scorpio, H/Advisors Abernathy  

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