Silicon Motion(US:SIMO) Globenewswire·2025-10-30 22:00Core Insights - Silicon Motion Technology Corporation reported strong financial results for Q3 2025, with net sales reaching $242.0 million, a 22% increase quarter-over-quarter and a 14% increase year-over-year [2][3][7] - The company experienced significant growth in its eMMC and UFS products, driven by a recovering smartphone market and market share gains [5][10] - The outlook for Q4 2025 remains positive, with expectations of continued revenue growth and the introduction of new products across various segments [10][11] Financial Highlights - Net Sales: $242.0 million, up from $198.7 million in Q2 2025 [3][6] - Net Income (GAAP): Increased to $39.1 million, or $1.16 per diluted ADS, from $16.3 million, or $0.49 per diluted ADS in Q2 2025 [3][4][8] - Gross Margin: 48.6% for GAAP and 48.7% for non-GAAP [2][6] - Operating Margin: 12.1% for GAAP and 15.8% for non-GAAP [2][8] - Earnings per Diluted ADS: $1.16 (GAAP) and $1.00 (non-GAAP) [4][8] Business Performance - Product Growth: SSD controller sales grew 45% quarter-over-quarter, with eMMC and UFS controller sales increasing by 20% to 25% quarter-over-quarter and 35% to 40% year-over-year [5][7] - Automotive Segment: Continued growth driven by product diversification and new customer acquisitions [5] - Market Position: The company is well-positioned for long-term growth due to its expanding product portfolio in consumer, enterprise, automotive, and industrial storage solutions [5][10] Shareholder Returns - The Board of Directors declared a $2.00 per ADS annual cash dividend, with quarterly installments of $0.50 per ADS [9][10] Future Outlook - The company anticipates revenue growth exceeding the previously announced full-year revenue run rate target of $1 billion [10][11] - New product introductions in 2025 are expected to ramp up in 2026, contributing to higher market share and improved margins [10][11]