Silicon Motion Technology (SIMO) Tops Q4 EPS by 2c

January 26, 2015 6:04 PM EST
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Silicon Motion Technology (NASDAQ: SIMO) reported Q4 EPS of $0.48, $0.02 better than the analyst estimate of $0.46. Revenue for the quarter came in at $80.5 million versus the consensus estimate of $80.6 million.

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

"As expected, our fourth quarter revenue was seasonally soft, largely due to the seasonality of eMMC sales. Our fourth quarter revenue increased 53% as compared to the fourth quarter of 2013, led by a strong 70% year-over-year increase of our embedded storage sales, with strong growth by our eMMC and client SSD controllers.

For full-year 2014, we achieved the highest level of revenue in our corporate history. We are extremely pleased with the stellar growth of our eMMC sales, which are now about 40% of total corporate sales, and with the solid position that our client SSD controllers have established with our NAND flash, storage OEM and module maker partners. Our overall embedded storage product sales, consisting primarily of our eMMC, client SSD and industrial SSD controllers have grown to account for over half of our total corporate sales.

In the first quarter-to-date, our client SSD controllers have already achieved a number of important milestones. Micron and another NAND flash vendor announced that they will start shipping SSDs with our controllers. Our storage OEM partner has already started shipping SSDs with our controllers to three global tier-1 PC OEMs. Our turnkey TLC SATA 3 client SSD controller, the world's first merchant solution, which began commercial sampling in August last year, began initial commercial sales to a module maker customer. Additionally, we secured an SSD platform win at another NAND flash OEM, which brings the total number of NAND flash partners that will enter production in 2015 with our client SSD controllers to four."

Business Outlook:

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

"2014 was an outstanding year for Silicon Motion. We believe our strong 2014 sets the stage for continuing growth in 2015. We are confident that our SK Hynix eMMC business will continue to grow and our client SSD controller sales will scale as our OEM projects enter production. We expect our first quarter to be seasonally soft due to removable storage seasonality which should offset the initial ramp of our OEM client SSD sales. We expect our eMMC sales to be relatively flat sequentially, but represent an increase of over 50% as compared to the first quarter of 2014."

For the first quarter of 2015, management expects:

  • Revenue to decrease 5% to 0% sequentially
  • Gross margin (non-GAAP) to be in the 50% to 52% range
  • Operating expenses (non-GAAP) of approximately US$22 to $23 million

For full-year 2015, management expects:

  • Revenue to increase 15 % 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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