Silicon Motion Technology (SIMO) Tops Q3 EPS by 3c

Silicon Motion Technology (NASDAQ: SIMO) reported Q3 EPS of $0.57, $0.03 better than the analyst estimate of $0.54. Revenue for the quarter came in at $86.6 million versus the consensus estimate of $81.4 million.

For the fourth quarter of 2014, management expects:

• Revenue to decrease 5% to 10% sequentially
• Gross margin (non-GAAP) to be in the 50% to 52% range
• Operating expenses (non-GAAP) of approximately US$21 to US$23 million

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

"In the third quarter, we grew our total sales by 25% sequentially to $86.6 million, the highest quarterly revenue in the Company's history. Our rapid growth was led by 25% sequential revenue growth from our largest product family, our embedded storage products, comprised primarily of eMMC, client SSD and industrial SSD controllers.

Our eMMC controller revenue continued to grow strongly this quarter as SK Hynix, our largest eMMC controller customer, further expanded its eMMC market share by increasing sales to Chinese OEMs that are expanding production of low-cost smartphones for emerging growth markets. Separately, our SATA 3 client SSD controllers are becoming increasingly significant in the retail aftermarket and we expect to scale our share within the PC OEM SSD market beginning early 2015. Our storage OEM customer is already shipping in limited volume cache SSDs using our controllers to three global PC OEMs and has full-size SSD design-wins with these PC OEMs, with sales to begin in early 2015. We also have SSD controller platform wins with three NAND flash vendors—one more than last quarter—for initial sales to begin in early 2015.

We are pleased by the rebound of our LTE transceiver business as Samsung began shipping to the Korean market a number of new smartphones and tablets using our LTE-Advanced transceiver, including the highly anticipated Galaxy Alpha, Galaxy Note 4 and Galaxy Note 4 Edge."

For earnings history and earnings-related data on Silicon Motion Technology (SIMO) click here.

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