Silicon Motion Announces Results for the Period Ended December 31, 2024

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]