Silicon Motion Technology has announced that its net sales increased 25% on quarter to US$32.5 million in the second quarter of 2010. Net income (GAAP) for the second quarter improved on quarter to US$2.2 million or US$0.07 per diluted ADS from a GAAP net loss of US$2.2 million or US$0.08 per diluted ADS in the first quarter of 2010.
Net income excluding stock-based compensation, acquisition-related charges, foreign exchange gains, and other items increased in the second quarter to US$2.9 million or US$0.09 per diluted ADS compared with a net loss in the first quarter of US$0.2 million or US$0.01 per diluted ADS in the first quarter of 2010.
The increasing availability of NAND flash in the second quarter drove strong sequential revenue growth, said president and CEO Wallace Kou.
"Our mobile storage business posted its fourth consecutive quarter of growth with revenues increasing 31% sequentially and over 100% compared to the second quarter 2009. This was driven by strong sequential unit growth of 16% and sequential ASP increase of 13%. ASPs increased primarily because of increased shipments of high value-added 3-bits per cell (TLC) controllers, as well as SSD and embedded flash controllers," said Kou. "Our TLC controllers are now shipping for 40nm and 30nm NAND flash, supporting primarily Samsung, SanDisk, and Toshiba products. In the third quarter, we will begin shipping our TLC and 2-bits per cell (MLC) controllers for 20nm NAND flash. TLC controllers now account for 25% of our total controller sales, up over 160% sequentially."
SSD and embedded controller shipments continued to deliver strong results by growing 25% sequentially and nearly 350% compared with the second quarter 2009, and again accounted for nearly 10% of the company's total revenues, Kou added.
"Our mobile communications business was weaker than expected in the second quarter due to decreased shipments of CDMA transceivers. In contrast, our mobile TV products continued to grow, led by a three fold increase in T-DMB sales to the Korea market. Sales of CMMB to China and ISDB-T to Brazil once again exceed T-DMB sales to Korea, as mobile TV continues its expansion in new markets," said Kou.
Gross margin excluding stock-based compensation was 47.7% compared with 47.1% in the first quarter. GAAP gross margin increased to 47.5% from 47% in the first quarter.
For the third quarter, the company expects its revenues to be up 5-10% sequentially with gross margin excluding stock-based compensation to be in the 46-48% range.