Globenewswire·2025-10-30 22:00Core Insights - Silicon Motion Technology Corporation reported strong financial results for the third quarter of 2025, with net sales reaching $242.0 million, a 22% increase quarter-over-quarter and a 14% increase year-over-year [3][7] - The company experienced significant growth in its eMMC and UFS products, driven by a recovering smartphone market and market share gains, alongside a 45% increase in PCIe5 client SSD controller sales [5][10] Financial Highlights - Net income (GAAP) for Q3 2025 was $39.1 million, or $1.16 per diluted ADS, compared to $16.3 million, or $0.49 per diluted ADS in Q2 2025 [3][4] - Non-GAAP net income for Q3 2025 was $33.8 million, or $1.00 per diluted ADS, up from $23.0 million, or $0.69 per diluted ADS in Q2 2025 [4][8] - Gross margin for Q3 2025 was 48.6% (GAAP) and 48.7% (non-GAAP), while operating margin was 12.1% (GAAP) and 15.8% (non-GAAP) [2][8] Business Performance - The company reported a 20% to 25% increase in SSD controller sales quarter-over-quarter and a 35% to 40% increase in eMMC and UFS controller sales year-over-year [7] - The automotive segment continued to grow, supported by product diversification and new customer acquisitions [5] Future Outlook - Management anticipates continued revenue growth in Q4 2025, projecting revenue between $254 million and $266 million, representing a 5% to 10% increase quarter-over-quarter and a 33% to 39% increase year-over-year [11] - The company plans to introduce several new products in 2026, which are expected to drive higher market share and improved average selling prices [10]