Silicon Motion Tech (SIMO) Tops Q2 EPS by 1c

July 30, 2013 8:00 AM EDT
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Silicon Motion Tech (NASDAQ: SIMO) reported Q2 EPS of $0.27, $0.01 better than the analyst estimate of $0.26. Revenue for the quarter came in at $58.3 million versus the consensus estimate of $58.46 million.

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

"In the second quarter, revenue from New Growth Products increased by approximately 30% sequentially as a result of stronger than expected sales of SSD+embedded controllers, in particular, sales of our eMMC controllers. Strong sales of smartphones and tablets, both global flagships and low-cost models, in both global markets and in China, have been driving strong demand for our eMMC controllers from our flash partners Samsung and SK Hynix. We believe we have about half of the fast growing China eMMC market. In the second quarter, due to strong SSD+embedded growth, revenue from SSD+embedded products was larger than our combined card and USB flash drive revenue and accounted for over half of our total controller sales.

While our SSD+embedded sales exceeded expectations, limited flash availability affected the sales of our card and USB flash drive controllers, especially to module maker customers. Our LTE transceiver business also declined in the second quarter as we are transitioning to next-generation LTE-Advanced transceivers for Samsung smartphones and tablets."

Business Outlook:

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

"The continuing growth of our SSD+embedded controllers and the transition away from our card and USB flash drive controllers is improving our long-term prospects. The markets for our SSD+embedded products are growing rapidly and we are expanding our product portfolio and customer base to address these market opportunities. We expect sales of our SSD+embedded products to continue growing in the third quarter, offsetting weakness caused by ongoing flash tightness and more limited consumer demand for cards and USB flash drives."

For the third quarter of 2013, management expects:

  • Revenue to decrease 2.5% to increase 2.5% sequentially
  • Revenue (excluding LTE transceiver revenue) to increase 2% to 7% sequentially
  • Gross margin (non-GAAP) to be in the 47% to 49% range
  • Operating expenses (non-GAAP) of approximately US$17.5 to US$19.5 million

    For the full year 2013, management expects:

  • Revenue (excluding LTE transceiver revenue) to decrease 5% to 10% compared with full year 2012 (excluding LTE transceiver revenue)
  • Gross margin (non-GAAP) to be in the 46% to 48% range
  • Operating expenses (non-GAAP) of approximately US$70 to US$73 million

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

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