Financial Data and Key Metrics Changes - In Q4 2025, sales increased by 15% sequentially and over 45% year-on-year to $278.5 million, surpassing the $1 billion target run rate set at the start of the year [24][25] - Gross margins increased to 49.2%, benefiting from new product introductions and a shift towards client PC products [25] - Operating margin increased to 19.3%, driven by higher-than-expected revenue and gross margin [25] Business Line Data and Key Metrics Changes - The eMMC and UFS business grew by 25% for the full year, outperforming the smartphone and embedded market [11][12] - The client SSD business marked a turning point with the success of new PCIe 5 controllers, aiming to grow market share from 30% to 40% over the next few years [13] - The enterprise business is expanding, with expectations for data center and AI infrastructure investment to exceed $1 trillion by 2030 [16] Market Data and Key Metrics Changes - The rapid adoption of AI has led to significant demand across memory and storage technology, resulting in supply constraints and increasing pricing pressure [9][10] - The smartphone market is expected to decline due to higher DRAM and NAND component costs, but the company expects to continue gaining market share [12][45] - The automotive and industrial sectors are seeing strong demand for Ferri storage solutions, with customers relying on steady supply [21] Company Strategy and Development Direction - The company is focused on long-term growth while investing heavily in next-generation products and increasing engineering resources [6][8] - A diversification strategy is in place, with successful entry into the enterprise market through boot drive storage solutions [29] - The company aims to capitalize on multiple new products and execute a continuing diversification strategy to drive growth [8][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenging dynamics in the memory and storage industry but believes the company's resilient operational strategy will allow for strong growth [7][10] - The first quarter of 2026 is expected to be the lowest revenue quarter, with sequential growth anticipated throughout the year [8][27] - The company remains confident in delivering record revenue in 2026, supported by a strong backlog and market share gains [28][30] Other Important Information - The company plans to tape out its first 4-nanometer chip in 2026, targeting hyperscalers and other Tier One customers [18] - The boot drive storage business is evolving into a significant growth area, with volume shipments starting to leading AI GPU makers [20][72] Q&A Session Summary Question: How should the mix of eMMC and UFS revenue be expected to change? - The majority of UFS controller revenue comes from smartphones, while eMMC is primarily in IoT and automotive [33] Question: How will revenue contribution from BlueField play out? - Revenue from BlueField will require procuring NAND, which may impact gross margins, but costs can be passed to customers [34][35] Question: How is revenue from boot drive and MonTitan segmented? - Boot drive revenue is part of SSD solutions, while MonTitan is categorized under the controller business [39][41] Question: What is driving smartphone strength in Q1? - Market share gains from module makers using Silicon Motion controllers are driving strength in the smartphone segment [45] Question: What are the expectations for sequential growth through the year? - Growth is expected primarily from eMMC and UFS, with MonTitan products ramping in the back half of the year [48][51] Question: What is the potential size of the boot drive storage business? - Revenue from the boot drive business is expected to be around $50 million this year, with significant growth anticipated next year [72]

Core Insights - Silicon Motion Technology Corporation (SIMO) reported mixed fourth-quarter 2025 results, with revenues exceeding estimates while adjusted earnings fell short [1] Financial Performance - Net income on a GAAP basis improved to $47.7 million or $1.41 per American depositary share (ADS) from $21.6 million or 64 cents per ADS in the prior-year quarter, primarily due to higher net sales [3] - Non-GAAP net income was $42.7 million or $1.26 per ADS compared to $29.4 million or 87 cents per ADS in the year-ago quarter, missing the Zacks Consensus Estimate of $1.29 per ADS [3] - For 2025, GAAP net income was $122.6 million or $3.64 per ADS compared to $89.2 million or $2.65 per ADS in 2024 [4] - Non-GAAP net income for 2025 was $119.8 million or $3.55 per ADS compared to $114.5 million or $3.39 per ADS in 2024 [4] Revenue Growth - Quarterly revenues increased to $278.5 million from $191.2 million in the year-ago quarter, beating the Zacks Consensus Estimate of $261.2 million [5] - For 2025, revenues rose to $885.6 million from $803.6 million in 2024 [5] - Sales of SSD controllers increased by 35-40% year over year, while eMMC + UFS sales grew by 50-55%, and revenues in SSD solutions surged by 110-115% year over year [6] Profitability Metrics - Non-GAAP gross profit reached $137 million compared to $87.9 million in the year-ago quarter, with respective margins of 49.2% and 46% [7] - For 2025, non-GAAP gross profit increased to $427.9 million from $369.3 million in 2024, with margins of 48.3% and 46% [7] - Non-GAAP operating expenses rose to $83.2 million from $58.3 million in the prior year, but non-GAAP operating income increased to $53.8 million from $29.6 million, with margins of 19.3% and 15.5% respectively [8] Cash Flow and Liquidity - As of December 31, 2025, cash and cash equivalents were $201.8 million compared to $276.1 million a year ago [9] - The company generated $1.6 million in cash from operations during the reported quarter, down from $6.2 million in the prior-year quarter [10] - For 2025, cash generated from operating activities was $61.4 million compared to $77.1 million in 2024 [10] Future Guidance - For the first quarter of 2026, management estimates non-GAAP revenues in the range of $292-$306 million, with a gross margin expected to be between 46-47% [11]

Silicon Motion 4Q25 Earnings Highlights NASDAQ: SIMO February 4, 2026 Safe Harbor Statement Agenda 4Q 2025 Operating Highlights Financial (Non-GAAP) Financial (GAAP) Business 3 • Revenue = $278.5m (+15% QoQ, +46% Y/Y) • Gross Margin = 49.2% (vs. 48.7% prior Qtr) • Operating Exp = $83.2m (vs. $79.5m prior Qtr) • Operating Margin = 19.3% (vs. 15.8% prior Qtr) • EPS (diluted) = $1.26 (vs. $1.00 prior Qtr) • Revenue = $278.5m (+15% QoQ, +46% Y/Y) • Gross Margin = 49.1% (vs. 48.6% prior Qtr) • Operating Exp = $1 ...

Core Insights - Silicon Motion Technology Corporation reported strong financial results for Q4 2025, with net sales reaching $278.5 million, a 15% increase quarter-over-quarter (Q/Q) and a 46% increase year-over-year (Y/Y) [2][5] - The company experienced significant growth across all business lines, particularly in SSD controllers and eMMC/UFS products, contributing to an overall positive outlook for 2026 [4][9] Financial Highlights - Q4 2025 GAAP net income was $47.7 million, or $1.41 per diluted ADS, up from $39.1 million, or $1.16 per diluted ADS in Q3 2025 [2][3] - For the full year 2025, net sales totaled $885.6 million, reflecting a 10% increase Y/Y [6] - Gross margin for Q4 2025 was 49.1% (GAAP) and 49.2% (Non-GAAP), while operating margin was 11.4% (GAAP) and 19.3% (Non-GAAP) [6] Business Performance - SSD controller sales grew by 25% to 30% Q/Q and 35% to 40% Y/Y in Q4 2025 [5] - eMMC and UFS controller sales increased by 0% to 5% Q/Q and 50% to 55% Y/Y [5] - SSD solutions sales surged by 125% to 130% Q/Q and 110% to 115% Y/Y [5] Shareholder Returns - The company announced an annual cash dividend of $2.00 per ADS, with the first installment of $16.7 million paid on November 26, 2025 [8][9] Future Outlook - Management anticipates a significantly stronger-than-seasonal start to 2026, with revenue and profitability growth expected to continue throughout the year [9][10]

Business Highlights - The company announced an annual cash dividend of $2.00 per American Depositary Share (ADS) [8] Financial Highlights - For Q4 2025, net sales reached $278.5 million, representing a 15% increase quarter-over-quarter (Q/Q) and a 46% increase year-over-year (Y/Y) [2][5] - Gross margin for Q4 2025 was 49.1% (GAAP) and 49.2% (Non-GAAP) [6] - Operating margin for Q4 2025 was 11.4% (GAAP) and 19.3% (Non-GAAP) [6] - Earnings per diluted ADS for Q4 2025 were $1.41 (GAAP) and $1.26 (Non-GAAP) [6] - For the full year 2025, net sales totaled $885.6 million, a 10% increase Y/Y [6] Q4 2025 Review - The company's performance in Q4 2025 was driven by strong sales across all business lines, particularly in client SSD controllers, which grew over 25% Q/Q [4] - The eMMC and UFS product lines also saw sequential growth, primarily due to market share gains [4] - The automotive segment experienced strong growth due to increased product diversification and new customer acquisitions [4] Sales Performance - SSD controller sales in Q4 2025 increased by 25% to 30% Q/Q and 35% to 40% Y/Y [5] - eMMC and UFS controller sales increased by 0% to 5% Q/Q and 50% to 55% Y/Y [5] - SSD solutions sales surged by 125% to 130% Q/Q and 110% to 115% Y/Y [5] Other Financial Information - Cash, cash equivalents, and restricted cash at the end of Q4 2025 were $277.1 million [7] - The company made routine capital expenditures of $6.2 million during Q4 2025 [7] Business Outlook - The company anticipates a significantly stronger-than-seasonal start to 2026, with sustained growth expected throughout the year [9] - Management expects revenue acceleration and profitability growth driven by new products and opportunities across all business lines [9] Shareholder Returns - The first installment of the annual cash dividend of $16.7 million was paid on November 26, 2025, with the second installment scheduled for February 26, 2026 [8]

Company Performance - Silicon Motion (SIMO) stock closed at $118.83, reflecting a +2.29% change from the previous day's closing price, outperforming the S&P 500 which fell by 0.43% [1] - The stock has increased by 25.32% over the past month, significantly surpassing the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 0.89% [1] Upcoming Earnings - The upcoming earnings report for Silicon Motion is scheduled for February 3, 2026, with an expected EPS of $1.29, indicating a 41.76% increase year-over-year [2] - Revenue is projected at $261.2 million, representing a 36.64% increase compared to the same quarter last year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates predict earnings of $3.58 per share and revenue of $864.54 million, reflecting changes of +4.37% and 0% respectively from the previous year [3] - Recent analyst estimate revisions indicate optimism regarding the company's business and profitability [3] Valuation Metrics - Silicon Motion is currently trading at a Forward P/E ratio of 23.8, which is lower than the industry average of 24.55, suggesting it is trading at a discount [6] - The company has a PEG ratio of 1.12, compared to the average PEG ratio of 0.98 for Computer - Integrated Systems stocks [7] Industry Context - The Computer - Integrated Systems industry is part of the broader Computer and Technology sector, holding a Zacks Industry Rank of 47, placing it in the top 20% of over 250 industries [8] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

本报讯 （记者李春莲）全球NAND闪存主控芯片领导厂商慧荣科技股份有限公司（以下简称"慧荣科 技"，NasdaqGS：SIMO）于2026年1月29日宣布成功入选了科睿唯安（Clarivate）发布的"2026全球百强 创新机构"榜单。 根据相关数据，全球百强创新机构在最有价值的创意中占据了超高比例，这表明创新领导力正由"精确 性"和"战略意图"来定义。今年的榜单不仅表彰了持久的创新力，更揭示了AI处于重塑竞争优势的最前 沿——全球百强创新机构在最具影响力的AI发明中贡献占比高达16%。据悉，此前获得该荣誉的企业包 括台积电、铠侠、美光、三星、SK海力士、高通、联发科、苹果、西门子、东芝、飞利浦、丰田等全 球科技巨头。 科睿唯安作为全球领先的专业信息服务提供商，在其发布的第15份年度报告中，对那些持续推动关键技 术突破、塑造跨行业创新未来的企业进行了权威认定。这一榜单旨在表彰那些能以清晰战略驾驭复杂挑 战，并在发明质量、独创性及全球影响力方面掌握发展主动权的企业。 对于此次获奖，慧荣科技总经理兼首席执行官苟嘉章表示："创新始终是我们公司发展的核心动力。作 为全球领先的NAND闪存主控芯片供应商，我们不断追求存 ...

Core Insights - Silicon Motion Technology Corporation has been recognized as a Top 100 Global Innovator for 2026, highlighting its leadership in NAND flash controller innovation [1][2] - The recognition emphasizes the company's commitment to innovation, particularly in AI storage technologies, and its robust intellectual property strategy [2][3] Company Overview - Silicon Motion is the global leader in supplying NAND flash controllers for solid-state storage devices, shipping more SSD controllers than any other supplier worldwide [7] - The company also leads in providing eMMC and UFS embedded storage controllers for smartphones, IoT products, and automotive applications [7] Innovation Metrics - Clarivate evaluates organizations based on metrics such as patent influence, success, globalization, and technical distinctiveness, with Silicon Motion showing strong performance in patent volume and 'Grant Rate' [2][3] - The Top 100 Global Innovators collectively contribute 16% of the world's highest-strength AI inventions, indicating a significant role in shaping future innovations [3] Market Position - Silicon Motion delivers customized, high-performance solutions for hyperscale data centers, industrial systems, and automotive SSDs, focusing on high performance, low power, and reliability [8] - The company's customer base includes major NAND flash vendors, data center providers, and leading OEMs, relying on its controller technologies for innovative storage solutions [9]

Investment Rating - The report indicates a positive outlook for the storage industry, driven by strong demand from AI and cloud computing sectors, leading to an overall bullish investment rating for the sector [6][7]. Core Insights - The global storage giants, including Samsung and SK Hynix, reported record earnings in Q3 2025, with significant growth in sales and profits attributed to increased demand for high-bandwidth memory (HBM) and server memory [7][29]. - The report highlights a structural shortage in the supply of DRAM and NAND flash memory, with prices expected to continue rising due to strong demand from AI servers and high-end mobile devices [7][30]. - The domestic storage industry in China is accelerating, with companies like Yangtze Memory Technologies and ChangXin Memory Technologies preparing for IPOs and ramping up production of HBM and LPDDR5X [7][42]. Summary by Sections Macroeconomic Overview - In October 2025, the global manufacturing PMI showed mixed signals, with the Eurozone returning to expansion while the US and Japan continued to contract, indicating a fragile recovery in manufacturing [7][8][20]. - China's manufacturing PMI fell to 49.0, reflecting a slowdown in production and demand, although the electronic information industry showed signs of recovery with strong export growth [7][20][26]. Supply Chain Dynamics - The storage and testing industry is experiencing a significant uptick, with companies like Powertech and Nanya increasing production capacity in response to rising orders for HBM and DDR5 products driven by AI server demand [7][29][46]. - The report notes that the supply of T-Glass, a critical material for advanced packaging, is expected to remain tight until 2027, impacting the PCB market [7][49]. Market Trends - The report indicates that the storage market is heating up, with DRAM and NAND prices rising across the board due to strong demand from AI servers and high-end mobile devices, leading to supply constraints [7][30][58]. - Companies are adopting aggressive pricing strategies, with Samsung and SK Hynix increasing prices by up to 30% for DRAM and NAND products in response to supply shortages [7][36][38]. Company Performance - Samsung Electronics reported a record Q3 2025 revenue of 86.1 trillion KRW, with a 15% quarter-over-quarter increase, driven by strong sales in HBM and server SSDs [7][29][30]. - SK Hynix also achieved record sales of 24.4489 trillion KRW in Q3 2025, with a significant increase in DRAM and NAND prices due to high demand [7][32][33]. Domestic Industry Developments - Yangtze Memory Technologies is planning an IPO with an estimated valuation of 200-300 billion RMB, aiming to enhance its production capabilities in HBM technology [7][42]. - ChangXin Memory Technologies is also preparing for an IPO, focusing on increasing its production of high-bandwidth memory chips [7][42].

Summary of Silicon Motion Technology FY Conference Call Company Overview - **Company**: Silicon Motion Technology (NasdaqGS: SIMO) - **Industry**: Semiconductor, specifically NAND flash controllers for solid-state storage devices - **Market Position**: Global leader in supplying NAND flash controllers for SSDs, eMMC, and UFS embedded storage controllers used in smartphones and IoT devices [1][3] Key Points and Arguments Revenue Growth and Market Expansion - Silicon Motion has evolved over 30 years, reaching a $1 billion annual revenue run rate, primarily through expanding its product offerings from cards and flash drives to enterprise SSDs [4][6] - The company anticipates continued growth beyond the billion-dollar run rate, driven by increased market share across various sectors, including automotive and enterprise [6] Product Developments and Opportunities - The company has secured a win with NVIDIA's BlueField 3 DPU, providing boot drives that are expected to scale in volume and density with the upcoming BlueField 4 [7][10] - ASPs for the boot drives are projected to be in the $20-$30 range, with opportunities for higher density solutions (512GB to 1TB) in the future [9][10] - NAND flash prices have risen sharply due to AI demand, but Silicon Motion is positioned to grow by gaining market share in client SSDs, eMMC, and UFS [13][16] Market Dynamics and Competitive Position - The company is seeing increased outsourcing from NAND makers as they focus their R&D on other technologies, allowing Silicon Motion to capture more market share [23][25] - The shift towards QLC NAND is seen as beneficial for Silicon Motion, as they have extensive experience managing QLC across various applications [18][22] PC Market Insights - Silicon Motion is making significant inroads into the high-end PC segment with its eight-channel Gen 5 controller, which has seen a 45% revenue growth quarter-over-quarter [27][30] - The company expects to capture over 50% market share in the high-end PCIe 5 segment and increase overall SSD market share from 30% to 40% in the coming years [31][33] eMMC and UFS Market - Silicon Motion is capitalizing on NAND vendors stepping back from the eMMC and UFS controller market, with expectations to increase market share from 20%-25% to over 30% [39] - The company has a long history of experience in this market, which positions it well as module makers become more relevant [38] MonTitan Platform for Enterprise SSDs - The MonTitan platform is designed to bridge the gap between high-performance SSDs and high-capacity hard drives, leveraging QLC technology for enterprise applications [42][45] - The company anticipates MonTitan contributing 5%-10% of total revenue by late 2026 or 2027, contingent on broader availability of QLC technology [48][49] R&D and Future Investments - Silicon Motion plans to continue investing heavily in R&D, with multiple tapeouts scheduled for 2026 and 2027, including new generations of UFS and PCIe controllers [51][53] - The company aims to achieve operating margins greater than 25% as new products begin to scale [56] Legal Situation - The company is involved in arbitration regarding the termination of a merger with MaxLinear, seeking $160 million plus damages, with a decision expected in the second half of the year [57][58] Additional Important Insights - The company is focused on gaining market share and controlling its growth trajectory despite external market pressures, such as rising NAND prices and demand fluctuations [14][33] - Silicon Motion's customer base primarily consists of OEMs, which are better positioned to weather price increases, providing a stable revenue stream [16]