Silicon Motion Technology Corporation today provided an update to its first quarter 2020 guidance due to potential impacts from the COVID-19 outbreak.
For first quarter 2020, management now expects non-GAAP revenue towards the low-end and non-GAAP gross margin towards the upper-end of the original guidance ranges issued on February 7, 2020. Management originally expected non-GAAP revenue to be in the range of $130 million to $138 million and non-GAAP gross margin to be in the range of 44% to 46%.
“Sales to OEMs continue largely uninterrupted, while channel markets have been more fluid and dynamic,” said Wallace Kou, President and CEO of Silicon Motion. “We did see some customers in China experience slower than expected restart of operations following the extended Lunar New Year Holiday, and it is critical we continue to actively monitor supply chain and end demand conditions as the outbreak evolves further. Current indications suggest solid sequential growth in the second quarter. May our employees, their families and our business partners around the world remain safe and healthy.”