Silicon Motion Technology Corporation, a leading provider of NAND flash controllers for solid-state storage devices, has announced its financial results for the second quarter of 2024, demonstrating robust growth and strong performance across its business segments.

The company reported a remarkable YoY revenue increase of 50%, amounting to USD 210.67 million, which is approximately CNY 1.511 billion. This growth was complemented by an 11% increase compared to the previous quarter. Silicon Motion's gross margin for the quarter stood at 46%, with a net profit after tax of USD 32.46 million, translating to approximately CNY 233 million, and an earnings per ADS (American Depositary Share) of USD 0.96.

A significant driver of this positive performance was the booming sales in mobile storage controllers, with eMMC/UFS controller chip revenues seeing a substantial YoY increase of 190-195% and a 25-30% increase quarter over quarter.

Commenting on the results, Silicon Motion's General Manager, Albert Gou, highlighted the company's expectations for continued growth, supported by the increasing market share with NAND manufacturers and an expanding product portfolio. He emphasized the company's solid-state drive (SSD) controller chip revenue growth for five consecutive quarters and the accelerated growth from the eMMC and UFS business due to OEM manufacturers' anticipation of a seasonal increase in the second half of the year.

Looking ahead, Gou expressed confidence in the company's ability to meet its annual outlook, despite the current softness in the retail SSD market and overall weak demand in the retail market for consumer electronics. He attributed this confidence to the continued strong growth in OEM business with NAND manufacturers and the company's highly differentiated control chips for PCs and smartphones, which offer higher performance, higher capacity, and more cost-effective storage solutions.

Silicon Motion has provided a revenue guidance for the third quarter of 2024, estimating it to be between USD 205 million and USD 216 million, with a gross margin projected to be between 46% and 47%. For the full year of 2024, the company anticipates a revenue of USD 800 million to USD 830 million, reflecting a 25-30% YoY growth, with a gross margin maintained within the 46-47% range.

The company's financial results reflect its commitment to innovation and its ability to adapt to market demands, positioning it for sustained growth and profitability in the dynamic storage technology industry.