Silicon Motion Technology expects its revenues to be up 10-20% sequentially in the second quarter of 2010, with gross margin excluding stock-based compensation to be in the 46-48% range, according to a company press release. Operating expenses excluding stock-based compensation, acquisition-related charges, and other items will total approximately US$12 to US$14 million in the second quarter, the company projected.
For the first quarter of 2010, net sales increased 15% on quarter to US$26 million. Net loss (GAAP) for the first quarter improved sequentially to US$2.2 million or US$0.08 per diluted ADS from a GAAP net loss of US$58.9 million or US$2.12 per diluted ADS in the fourth quarter of 2009. Net income excluding stock-based compensation, acquisition-related charges, foreign exchange gain, and other items decreased in the first quarter to a loss of US$0.2 million or US$0.01 per diluted ADS as compared to a net loss of US$11.1 million or US$0.40 per diluted ADS in the fourth quarter of 2009.
"With increased availability of flash to customers, our mobile storage controller shipments increased 14% sequentially. Memory card and USB flash drive controller shipments both increased solidly. SSD controller shipments growth was flat sequentially, but grew almost 300% compared to a year ago, and revenue from these products continues to account for almost 10% of our overall corporate revenue," said company president and CEO Wallace Kou.
"Our mobile communications revenue in the first quarter increased 67% sequentially as our shipments of mobile TV ICs tripled compared to the previous quarter. Revenues from our ISDB-T solutions for Latin America and Japan and from CMMB solutions for China now exceed sales of our T-DMB solutions in Korea," Kou added.
In the first quarter, mobile storage products accounted for 65% of net sales, followed by mobile communications at 23%, and multimedia SoCs at 12%.
Net sales of mobile storage products, which primarily include flash memory card controllers, USB flash drive controllers, SSD controllers, and embedded flash controllers, increased 15% from the fourth quarter of 2009 to US$17 million in the first quarter, the company said.
Net sales of multimedia SoC products, which primarily include embedded graphics processors and notebook PC webcam SoCs, decreased 7% on quarter to US$3.1 million in the first three months of this year.
For the first quarter, gross margin excluding stock-based compensation was 47.1% compared with 27.0% in the fourth quarter of 2009. GAAP gross margin increased to 47.0% from 24.9% during the same period.