Silicon Motion Technology (SIMO) Tops Q1 EPS by 4c

April 27, 2015 6:02 PM EDT
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Silicon Motion Technology (NASDAQ: SIMO) reported Q1 EPS of $0.48, $0.04 better than the analyst estimate of $0.44. Revenue for the quarter came in at $80.6 million versus the consensus estimate of $79.7 million.

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

"We are off to a solid start in 2015. Our first quarter revenue benefited from strong client SATA 3 SSD controller sales momentum and stable eMMC controller sales. Client SSD controller sales doubled sequentially, now account for over 10% of our corporate revenue and shipments increased to over a million units a month in March. This quarter, our module maker customers aggressively built SSDs for channel markets. Micron and another NAND flash partner ramped sales of their SSDs with our controllers to both channel and OEM markets, and we expect a new major SSD program with our controllers, again for both channel and OEM markets, to begin shipping in the second quarter. Our storage OEM partner began shipping SSDs to three global tier-1 PC OEMs in the first quarter and recently started shipping to two additional OEMs. Our overall embedded products sales rebounded to well over half of total sales.

Separately, I am excited to announce that we have entered into an agreement to acquire Shannon Systems, a leading supplier of innovative enterprise-class PCIe SSD and storage array solutions to China's e-commerce, cloud computing and other industries. With this acquisition, which we anticipate closing in the next few months, we will supply enterprise-grade SSDs to the internet companies that operate in the world's largest internet market."

Business Outlook:

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

"The fundamentals of our business have never been stronger and we are excited about starting the next chapter of our growth. We believe that we are gaining share in the client SSD controller market and rapidly winning sockets and new designs with a broad range of OEMs. We remain on track to grow our market leading eMMC business as previously communicated. And with the proposed addition of Shannon Systems, we will be entering the world's largest internet market and will become one of the leading suppliers of enterprise SSDs to leading Chinese internet companies."

For the second quarter of 2015, management expects:

  • Revenue to increase 5% to 10% sequentially
  • Gross margin (non-GAAP) to be in the 50% to 52% range
  • Operating expenses (non-GAAP) of approximately US$23 to $24 million

For the full-year 2015, management expects:

  • Revenue to increase 17% to 25% as compared to full-year 2014
  • Gross margin (non-GAAP) to be in the 49.5% to 51.5% range
  • Operating expenses (non-GAAP) of approximately US$91 to $97 million

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

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