Silicon Motion Technology Corporation today announced its financial results for the quarter ending September 30, 2019. 

For the third quarter, net sales (GAAP) increased to $110.5 million from $98.8 million in second quarter 2019. Net income (GAAP) decreased to $4.2 million or $0.12 per diluted ADS (GAAP) from $26.5 million or $0.75 per diluted ADS (GAAP) in second quarter 2019.

For the third quarter, net sales (non-GAAP) increased to $113.2 million from $94.3 million in second quarter 2019. Net income (non-GAAP) increased to $24.4 million or $0.69 per diluted ADS (non-GAAP) from $18.6 million or $0.52 per diluted ADS (non-GAAP) in second quarter 2019.

Third Quarter 2019 Review

“Third quarter sales were stronger than expected, with total revenue growing 20%,” said Wallace Kou, President and CEO of Silicon Motion.  “We achieved corporate record high SSD controller sales as SSD adoption in client devices grew further, especially at PC OEMs.  Our eMMC+UFS controller sales rebounded further as smartphone adoption of UFS mobile embedded memory accelerated and our module makers’ eMMC projects continued to grow.  Sales of our SSD solutions, specifically our Ferri and Shannon products, started to recover this quarter.”

Business Highlights

  • SSD controller sales increased about 15% Q/Q to record high

  • eMMC+UFS controller sales increased about 40% Q/Q

  • SSD solutions1 sales increased about 45% Q/Q

  • Repurchased $25.0 million of shares

  • Announced on Oct. 25 annual cash dividend of $1.40 per ADS, an increase from $1.20 last year

Business Outlook

“We are expecting a strong finish to this year, with revenue growing further in the fourth quarter,” said Wallace Kou, President and CEO of Silicon Motion.  “In the fourth quarter, we expect sales of both our SSD controllers and eMMC+UFS controllers to strengthen, and our SSD solutions sales to continue recovering.  Sales visibility has improved considerably since earlier this year, and based on what we are seeing from our customers’ procurement plans, our SSD controllers, eMMC+UFS controllers and SSD solutions are all expected to deliver solid growth next year.”