Silicon Motion Technology Corporation Raises Guidance for First Quarter 2007
TAIPEI, Taiwan, March 20 /Xinhua-PRNewswire-FirstCall/ -- Silicon Motion Technology Corporation (Nasdaq: SIMO; "the Company"), a leading fabless semiconductor company that designs, develops, and markets universally compatible, high-performance, low-power semiconductor solutions for the multimedia consumer electronics market, today raised its top-line guidance for the first quarter of 2007.
In the fourth quarter 2006 earnings release dated February 1, 2007, the Company anticipated sales for the first quarter of 2007 to decrease 15% - 20% sequentially. Due to some unexpected strength in a few different areas, Management has revised its revenue forecast for the first quarter to US$33.1M - US$34.5M, which would be a sequential decline of only 3% - 7%. This compares to sequential declines of 32% and 35% in the first quarters of 2005 and 2006, respectively.
The revised guidance is largely the result of three factors: 1) Samsung beginning volume production of flash memory cards with Silicon Motion's controllers, 2) For the first time, China has become a strong end market for SD and micro SD controllers, and 3) Silicon Motion has a much broader product offering in Q1 '07 than it has had in past years and the new product lines are starting to gain market share.
About Silicon Motion:
Silicon Motion Technology Corporation is a leading fabless semiconductor company that designs, develops, and markets universally compatible, high- performance, low-power semiconductor solutions for the multimedia consumer electronics market. The Company's semiconductor solutions include controllers used in mobile storage media, such as flash memory cards and USB flash drives, and multimedia systems on a chip, or SoCs, used in digital media devices such as MP3 players, PC cameras, PC notebooks and broadband multimedia phones.
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. Such forward-looking statements 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 our claim against one of our subcontractors for the inventory loss that we sustained during a fire at the subcontractor's factory; 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; general economic conditions or conditions in the semiconductor or multimedia 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; 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 June 30, 2006. We assume no obligation to update any forward-looking statements, which apply only as of the date of this press release.
Investor Contact: Selina Hsieh Investor Relations Tel: +886-3-552-6888 x2311 Fax: +886-3-552-6988 Email: firstname.lastname@example.org Tip Fleming Vice President Christensen Tel: +1-917-412-3333 Email: tfleming@ChristensenIR.com Media Contact: Sara Hsu Project Manager Tel: +886-2-2219-6688 x3509 Fax: +886-2-2219-6868 Email: email@example.com
SOURCE Silicon Motion Technology Corporation -0- 03/20/2007 /CONTACT: Selina Hsieh, +886-3-552-6888 x2311, or firstname.lastname@example.org; Sara Hsu, +886-2-2219-6688 x3509, email@example.com, both of Silicon Motion; Tip Fleming, +1-917-412-3333 or tfleming@ChristensenIR.com , of Christensen for Silicon Motion/ (SIMO) CO: Silicon Motion Technology Corporation ST: California, Taiwan IN: CPR ECP SEM SU: ERP LL -- HKTU005 -- 9629 03/20/2007 08:00 EDT http://www.prnewswire.com