Business Highlights
- Third quarter sales increased 23% Q/Q and decreased 31% Y/Y
- SSD controller sales: 3Q increased 5% to 10% Q/Q and decreased 10% to 15% Y/Y
- eMMC+UFS controller sales: 3Q increased 100% to 105% Q/Q and decreased 40% to 45% Y/Y
- SSD solutions sales: 3Q decreased 5% to 10% Q/Q and decreased 30% to 35% Y/Y
Financial Highlights
| 3Q 2023 GAAP | 3Q 2023 Non-GAAP | |
| • Net sales | $172.3 million (+23% Q/Q, -31% Y/Y) | $172.3 million (+23% Q/Q, -31% Y/Y) |
| • Gross margin | 42.4% | 42.5% |
| • Operating margin | 8.7% | 13.8% |
| • Earnings per diluted ADS | $0.32 | $0.63 |
TAIPEI, Taiwan and MILPITAS, Calif., Nov. 02, 2023 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion”, the “Company” or “we”) today announced its financial results for the quarter ended September 30, 2023. For the third quarter of 2023, net sales (GAAP) increased sequentially to $172.3 million from $140.4 million in the second quarter of 2023. Net income (GAAP) decreased to $10.6 million, or $0.32 per diluted American Depositary Share of the Company (“ADS”) (GAAP), from net income (GAAP) of $11.0 million, or $0.33 per diluted ADS (GAAP), in the second quarter of 2023.
For the third quarter of 2023, net income (non-GAAP) increased to $21.1 million, or $0.63 per diluted ADS (non-GAAP), from net income (non-GAAP) of $12.6 million, or $0.38 per diluted ADS (non-GAAP), in the second quarter of 2023.
Third Quarter 2023 Review
“We’re pleased with our strong performance in the third quarter as we began to see inventory levels in the channel normalize and OEM order patterns accelerate ahead of the anticipated holiday season demand,” said Wallace Kou, President and CEO of Silicon Motion. “eMMC+UFS sales rebounded while our SSD controller sales again saw sequential growth. Our continuing investment in technology leadership in storage controllers has expanded our customer base for SSD and eMMC+UFS controllers and diversified our end-markets, leading to more stable and sustainable long-term growth.”
Key Financial Results
| (in millions, except percentages and per ADS amounts)
| GAAP | Non-GAAP | ||||||||||
| 3Q 2023 | 2Q 2023 | 3Q 2022 | 3Q 2023 | 2Q 2023 | 3Q 2022 | |||||||
| Revenue | $172.3 | $140.4 | $250.8 | $172.3 | $140.4 | $250.8 | ||||||
| Gross profit | $73.1 | $56.4 | $119.1 | $73.3 | $59.7 | $119.3 | ||||||
| Percent of revenue | 42.4 % | 40.2 % | 47.5 % | 42.5 % | 42.5 % | 47.6 % | ||||||
| Operating expenses | $58.1 | $54.6 | $63.8 | $49.5 | $48.0 | $56.6 | ||||||
| Operating income | $15.0 | $1.8 | $55.4 | $23.8 | $11.7 | $62.7 | ||||||
| Percent of revenue | 8.7 % | 1.3 % | 22.1 % | 13.8 % | 8.3 % | 25.0 % | ||||||
| Earnings per diluted ADS | $0.32 | $0.33 | $1.29 | $0.63 | $0.38 | $1.53 | ||||||
