Silicon Motion Tech (SIMO) Tops Q3 EPS by 9c, Sees Q4 Sales Down Up to 12% QoQ

October 25, 2013 9:48 AM EDT
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After the close, Silicon Motion Tech (NASDAQ: SIMO) reported Q3 EPS of $0.32, $0.09 better than the analyst estimate of $0.23. Revenue for the quarter came in at $58.3 million versus the consensus estimate of $57.99 million.

For Q4, the company sees revenue down 6% to 12% sequentially.

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

"In the third quarter, our Mobile Storage sales grew further led by solid eMMC controllers sales growth and a modest rebound in our card controller sales. Mobile Communications sales, however, declined further as our previous LTE transceiver projects at Samsung are reaching end-of-life.

Our SSD+embedded sales, led by continued eMMC controller sales growth, increased approximately 10% sequentially this quarter and, for the first three quarters of this year, have increased approximately 110% compared to the same period a year ago. Our eMMC controller sales continue to strengthen with our high performance and cost competitive solutions targeting both global flagship devices as well as the low cost smartphone and tablet markets. These solutions support our NAND flash customers in winning global eMMC memory market share and we believe that with our eMMC design-win momentum, we are on track to achieve 15 to 20% of the global market for eMMC controllers this year.

We believe our card controller sales have stabilized as the smartphone card debundling risk has largely played out. Card bundled rates in the US and China have already fallen to roughly 10 to 20%. A growing part of our card controller sales are now related to the relatively stable high-performance, premium segment of the card market, and our UHS-I cards controllers, which serve this segment, already account for over a third of all our SD card sales.

Our LTE transceiver business remains in transition this year and revenue from this product declined in the third quarter as expected. Samsung recently began testing our next-generation LTE-Advanced transceiver with their new LTE-Advanced baseband. We look forward to sharing with you further progress on this at a later date."

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


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