Silicon Motion 4Q24 Earnings Highlights NASDAQ: SIMO February 6, 2025 Safe Harbor Statement This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding trends in the consumer electronics and semiconductor industries, any future growth projections or expectations in such markets and our fu ...

Core Viewpoint - Silicon Motion Technology Corporation (SIMO) reported mixed fourth-quarter 2024 results, with adjusted earnings exceeding estimates while revenues fell short due to weak demand trends across multiple markets [1]. Financial Performance - GAAP net income for the fourth quarter was $23 million or 68 cents per American depositary share (ADS), an increase from $21.1 million or 63 cents per ADS in the prior year [3]. - Non-GAAP net income was $30.9 million or 91 cents per ADS, slightly down from $31.3 million or 93 cents per ADS year-over-year, but beat the Zacks Consensus Estimate by 7 cents [3]. - For the full year 2024, GAAP net income rose to $90.7 million or $2.69 per ADS from $52.9 million or $1.58 per ADS in 2023, while non-GAAP net income improved to $115.9 million ($3.43 per ADS) from $76.12 million ($2.27 per ADS) [4]. Revenue Analysis - Quarterly revenues were reported at $191.2 million, down from $202.4 million in the same quarter last year, and below the Zacks Consensus Estimate of $196 million [5]. - Sales of SSD controllers decreased by 5%-10% both sequentially and year-over-year, while eMMC+UFS sales fell by 10%-15% sequentially and remained flat year-over-year [5]. - For 2024, net sales improved to $803.6 million from $639.1 million in 2023, despite challenges such as inventory corrections and soft demand [6]. Profitability Metrics - Non-GAAP gross profit was $89.9 million with a margin of 47%, compared to $89.3 million and 44.1% in the previous year [7]. - Non-GAAP operating expenses decreased to $58.3 million from $61.5 million, leading to an increase in non-GAAP operating income from $27.8 million to $31.6 million, with margins of 13.8% and 16.5% respectively [7]. Cash Flow and Liquidity - In 2024, the company generated $77.2 million in cash from operating activities, down from $149.08 million the previous year [8]. - As of December 31, 2024, cash and cash equivalents totaled $276.1 million, down from $314.3 million a year earlier [8]. Future Outlook - For the first quarter of 2025, management estimates non-GAAP revenues to be between $158 million and $167 million, with non-GAAP gross margin expected to be in the range of 47%-47.5% [10].

Core Insights - Silicon Motion Technology Corporation has achieved ASPICE Capability Level 3 (CL3) for its PCIe Gen4 SSD controller, making it the first SSD controller vendor globally to reach this milestone [1][2] - This certification emphasizes the company's ability to manage projects effectively and establish standardized workflows at the organizational level [1] Group 1: Industry Context - The increasing importance of software quality control in the automotive sector is highlighted due to the rise of software-defined vehicles and advancements in autonomous vehicles [2] - Silicon Motion's commitment to meeting rigorous automotive industry standards is underscored by its CL3 achievement, reflecting its dedication to innovation and quality [2] Group 2: Product and Technology - The company specializes in developing automotive-grade SSD storage solutions, with proprietary firmware designed for durability, performance, and power efficiency [2] - Silicon Motion's automotive products comply with international standards such as AEC-Q100, IATF 16949, ISO 21434, and ISO 26262 ASIL B, exceeding safety and reliability requirements [2] Group 3: Market Position - Silicon Motion is recognized as the global leader in supplying NAND flash controllers for solid-state storage devices, serving a wide range of applications including servers, PCs, and mobile embedded storage [3] - The company holds a significant market share in SSD controllers and provides customized solutions for hyperscale data centers and specialized industrial and automotive applications [3]

Core Viewpoint - Silicon Motion Technology Corporation has announced a new share repurchase program authorizing the repurchase of up to $50 million of its American Depositary Shares over a six-month period, effective immediately [1][2]. Financial Performance - The company experienced significant growth in both top and bottom lines in fiscal year 2024, driven by strategies aimed at increasing market share and diversifying its product portfolio [2]. - As of December 31, 2024, Silicon Motion had approximately $334.3 million in cash, cash equivalents, restricted cash, and short-term investments, indicating a strong financial position to support the repurchase program [3]. Market Strategy - The company is entering the enterprise market with its new MonTitan platform and expanding its presence in automotive, IoT, gaming, wearables, and other emerging growth markets, reflecting confidence in long-term growth opportunities [2]. - Silicon Motion is committed to opportunistically repurchasing shares when it believes the current equity value does not accurately reflect the strength of its business [2]. Company Overview - Silicon Motion is a global leader in supplying NAND flash controllers for solid-state storage devices, providing more SSD controllers than any other company for servers, PCs, and other client devices [4]. - The company also supplies customized high-performance solutions for hyperscale data centers and specialized industrial and automotive SSDs, serving a wide range of customers including major NAND flash vendors and leading OEMs [4].

Core Insights - Silicon Motion Technology Corporation announced its financial results for Q4 2024, reporting a net sales decrease of 10% quarter-over-quarter (Q/Q) and 6% year-over-year (Y/Y) to $191.2 million, while net income (GAAP) increased to $23.0 million or $0.68 per diluted American Depositary Share (ADS) [2][3][4] Financial Highlights - For Q4 2024, net sales (GAAP) were $191.2 million, down from $212.4 million in Q3 2024, with a gross margin of 46.8% and an operating margin of 10.3% [2][7] - Full Year 2024 net sales reached $803.6 million, reflecting a 26% increase Y/Y, with a gross margin of 46.1% and an operating margin of 11.6% [2][4] - Non-GAAP earnings per diluted ADS for Q4 2024 were $0.91, slightly down from $0.92 in Q3 2024 [3][7] Business Performance - The company successfully launched industry-leading PCIe Gen 5 controllers in the second half of 2024, securing contracts with four out of six flash makers and multiple module maker customers [4] - Despite a challenging consumer market, the company aims for sustainable long-term growth by expanding its product portfolio and market share across various sectors including consumer, enterprise, automotive, industrial, and commercial storage [4][9] Sales Breakdown - SSD controller sales in Q4 2024 decreased by 5% to 10% Q/Q and Y/Y, while eMMC+UFS controller sales fell by 10% to 15% Q/Q but remained flat Y/Y [6] - SSD solutions sales saw a significant decline of 35% to 40% Q/Q and 25% to 30% Y/Y [6] Cash and Dividend Information - The company announced an annual cash dividend of $2.00 per ADS, with cash and cash equivalents at the end of Q4 2024 totaling $334.3 million [1][8] Future Outlook - Management expects to benefit from new product introductions in 2025, including an 8-channel PCIe Gen 5 controller and a new UFS 4.1 controller for the mobile market [9] - The company anticipates a strong revenue rebound in the second half of 2025, aiming for an annual revenue run-rate close to $1 billion by Q4 2025 [9]

Company Performance - Silicon Motion's stock closed at $54.61, with a daily increase of +1.94%, outperforming the S&P 500, which fell by 0.51% [1] - Over the past month, shares of Silicon Motion have decreased by 1.98%, underperforming the Computer and Technology sector's gain of 0.79% and the S&P 500's gain of 2.87% [1] Earnings Forecast - The upcoming earnings release for Silicon Motion is scheduled for February 5, 2025, with projected EPS of $0.84, indicating a 9.68% decline compared to the same quarter last year [2] - Revenue is estimated at $195.55 million, reflecting a 3.37% decrease from the equivalent quarter last year [2] Analyst Estimates - Recent changes to analyst estimates for Silicon Motion indicate short-term business trends, with positive revisions suggesting analysts' confidence in the company's performance [3] - The Zacks Rank system, which incorporates these estimate changes, provides actionable ratings for investors [4] Zacks Rank and Valuation - Silicon Motion currently holds a Zacks Rank of 4 (Sell), with the consensus EPS estimate moving 1.25% lower over the past month [5] - The company has a Forward P/E ratio of 13.53, aligning with the industry average, and a PEG ratio of 0.95, compared to the industry average PEG ratio of 1.73 [6] Industry Context - The Computer - Integrated Systems industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 165, placing it in the bottom 35% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Silicon Motion (SIMO) closed at $52.63, reflecting a +1.29% change from the previous day, outperforming the S&P 500's gain of 0.88% [1] - Over the past month, shares of Silicon Motion have depreciated by 7.33%, underperforming the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 1.17% [1] Upcoming Earnings - The upcoming earnings release for Silicon Motion is scheduled for February 5, 2025, with an expected EPS of $0.84, indicating a 9.68% decrease from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projecting net sales of $195.55 million, down 3.37% from the year-ago period [2] Analyst Estimates - Recent adjustments to analyst estimates for Silicon Motion may indicate changing near-term business trends, with positive revisions suggesting optimism about the company's outlook [3] - The Zacks Rank system, which incorporates estimate changes, provides actionable ratings, with a current Zacks Rank of 4 (Sell) for Silicon Motion [4][5] Valuation Metrics - Silicon Motion has a Forward P/E ratio of 13.12, compared to the industry average of 18.3, suggesting it is trading at a discount [6] - The company holds a PEG ratio of 0.92, while the Computer - Integrated Systems industry has an average PEG ratio of 1.89, indicating favorable valuation relative to growth expectations [7] Industry Context - The Computer - Integrated Systems industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 151, placing it in the bottom 40% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Silicon Motion (SIMO) .Silicon Motion currently has an average brokerage r ...

Company Performance - Silicon Motion's stock closed at $50.53, reflecting a slight increase of +0.2% from the previous day, but underperformed compared to the S&P 500's gain of 1.83% [1] - Over the past month, Silicon Motion's shares have decreased by 16.16%, significantly lagging behind the Computer and Technology sector's loss of 3.84% and the S&P 500's loss of 3.31% [1] Upcoming Earnings - The upcoming earnings report for Silicon Motion is scheduled for February 5, 2025, with analysts expecting earnings of $0.73 per share, indicating a year-over-year decline of 21.51% [2] - Revenue is anticipated to be $195.55 million, representing a 3.37% decrease compared to the same quarter last year [2] Analyst Projections - Recent shifts in analyst projections for Silicon Motion should be monitored, as positive estimate revisions can indicate optimism regarding the company's business outlook [3] Valuation Metrics - Silicon Motion currently has a Forward P/E ratio of 12.73, which is lower than the industry's Forward P/E of 17.36, suggesting a valuation discount [6] - The company has a PEG ratio of 0.9, compared to the average PEG ratio of 1.84 for the Computer - Integrated Systems industry [6] Industry Ranking - The Computer - Integrated Systems industry, which includes Silicon Motion, has a Zacks Industry Rank of 147, placing it in the bottom 42% of over 250 industries [7] - Research indicates that industries in the top 50% of the Zacks Industry Rank tend to outperform those in the bottom half by a factor of 2 to 1 [7]

TAIPEI, Taiwan and MILPITAS, Calif., Jan. 07, 2025 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion” or the “Company”), a global leader in NAND flash controllers for solid state storage devices, announces that based on its preliminary fourth quarter financial results, revenue is expected to be at the low end of its original guidance range of $191 million to $202 million, which the Company issued on October 31, 2024. Gross margin (non-GAAP) is expected to be near th ...