Financial Highlights
| 3Q 2018 GAAP | 3Q 2018 Non-GAAP | |
| $138.6 million (+0% Q/Q, +9% Y/Y) | $138.6 million (+0% Q/Q, +9% Y/Y) |
| 50.9% | 51.0% |
| 23.3% | 27.1% |
| $0.81 | $0.95 |
Business Highlights
- Embedded Storage1 sales were stable and accounted for approximately 85% of total sales
- Client SSD controller sales increased about 35% Q/Q
- eMMC+UFS controller sales decreased over 5% Q/Q
- SSD solutions sales decreased about 40% Q/Q
- Began shipping our SSD controllers to two US NAND flash makers for world’s first two QLC-based PCIe NVMe client SSDs
TAIPEI, Taiwan and MILPITAS, Calif., Oct. 31, 2018 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion” or the “Company”) today announced its financial results for the quarter ended September 30, 2018. For the third quarter, net sales increased sequentially to $138.6 million from $138.1 million in the second quarter 2018. Net income (GAAP) decreased to $29.2 million or $0.81 per diluted ADS (GAAP) from a net income (GAAP) of $30.7 million or $0.85 per diluted ADS (GAAP) in the second quarter 2018.
For the third quarter, net income (non-GAAP) increased to $34.5 million or $0.95 per diluted ADS (non-GAAP) from a net income (non-GAAP) of $33.2 million or $0.92 per diluted ADS (non-GAAP) in the second quarter 2018.
Third Quarter 2018 Review
“Our third quarter client SSD controller sales grew strongly as declining NAND pricing reduced the cost of SSD, which accelerated SSD adoption in PCs,” said Wallace Kou, President and CEO of Silicon Motion. “In the quarter, two US NAND flash makers began shipping the world’s first client SSDs with their 4-bits per cell QLC 3D NAND using our controllers. We believe these lower cost, high performance PCIe NVMe SSDs will help drive further displacement of HDDs in PCs and other client devices. Separately and as expected, our SSD solutions declined in the third quarter due to timing of a technology transition at our major hyperscale customer. Our eMMC+UFS controller sales were soft primarily due to smartphone market weakness.”
Sales
| (in millions, except percentages) | 3Q 2018 | 2Q 2018 | 3Q 2017 | ||||||
| Sales | Mix | Sales | Mix | Sales | Mix | ||||
| Mobile Storage*
Q/Q Y/Y | $129.8
+0% +11% | 94%
| $129.4
+7% +6% | 94%
| $117.3
-4% -20% | 92%
| |||
| Mobile Communications** | $7.0 | 5% | $7.5 | 5% | $8.7 | 7% | |||
| Others | $1.7 | 1% | $1.1 | 1% | $1.3 | 1% | |||
| Total revenue
Q/Q Y/Y | $138.6
+0% +9% | 100%
| $138.1
+6% +4% | 100%
| $127.2
-4% -20% | 100%
| |||
* Mobile Storage products include Embedded Storage products (eMMC+UFS and SSD controllers and data center and industrial SSD solutions) and Expandable Storage products (SD memory cards and USB flash drive controllers)
** Mobile Communications products include mobile TV SoCs
Key Financial Results
| (in millions, except percentages and per ADS amounts) | GAAP | Non-GAAP | ||||
| 3Q 2018 | 2Q 2018 | 3Q 2017 | 3Q 2018 | 2Q 2018 | 3Q 2017 | |
| Revenue | $138.6 | $138.1 | $127.2 | $138.6 | $138.1 | $127.2 |
| Gross profit
Percent of revenue | $70.6
50.9% | $65.6
47.5% | $58.5
46.0% | $70.7
51.0 % | $65.6
47.5 % | $58.5
46.0 % |
| Operating expenses | $38.3 | $31.6 | $36.9 | $33.1 | $30.2 | $33.1 |
| Operating income
Percent of revenue | $32.2
23.3 % | $34.0
24.6 % | $21.6
17.0 % | $37.5
27.1 % | $35.4
25.7 % | $25.4
20.0 % |
| Earnings per diluted ADS | $0.81 | $0.85 | $0.49 | $0.95 | $0.92 | $0.57 |
