Silicon Motion Technology has announced net sales for the second quarter of 2013 increased 2% sequentially with net profits rising 53% on quarter. The company credited the growth to its "new growth products," which posted a revenue increase of about 30% sequentially.

　　Silicon Motion identifies its SSD and embedded flash controllers as new growth products. "In the second quarter, due to strong SSD+embedded growth, revenue from SSD+embedded products was larger than our combined card and USB flash drive revenue and accounted for over half of our total controller sales," said company president and CEO Wallace Kou.

　　Sales of Silicon Motion's eMMC controllers, in particular, were strong, buoyed by growing sales of smartphones and tablets in China and global markets, Kou noted. The company is shipping eMMC controllers to Samsung Electronics and SK Hynix. "We believe we have about half of the fast growing China eMMC market," Kou continued.

　　"While our SSD+embedded sales exceeded expectations, limited flash availability affected the sales of our card and USB flash drive controllers, especially to module maker customers. Our LTE transceiver business also declined in the second quarter as we are transitioning to next-generation LTE-Advanced transceivers for Samsung smartphones and tablets," Kou indicated.

　　Silicon Motion announced net sales of US$58.3 million for the second quarter of 2013, with net profits (non-GAAP) rising to US$9.2 million or US$0.27 per diluted ADS.

　　Looking forward, Silicon Motion expects its third-quarter revenues to increase or decrease in the range of 2.5% sequentially. If excluding sales of its LTE transceivers, third-quarter revenues would increase 2-7% on quarter, the company said. Gross margin (non-GAAP) for the quarter is estimated at between 47% and 49%.

　　"The continuing growth of our SSD+embedded controllers and the transition away from our card and USB flash drive controllers is improving our long-term prospects," Kou said. "We expect sales of our SSD+embedded products to continue growing in the third quarter, offsetting weakness caused by ongoing flash tightness and more limited consumer demand for cards and USB flash drives."