Financial Highlights
|
4Q 2017 GAAP |
4Q 2017 Non-GAAP |
|
$136.2 million (+7% Q/Q, -6% Y/Y) |
$136.2 million (+7% Q/Q, -6% Y/Y) |
|
46.5 % |
46.6 % |
|
10.0% |
24.1% |
|
$0.27 |
$0.79 |
|
|
|
|
|
|
|
Full Year
2017 GAAP |
Full Year
2017 Non-GAAP |
|
$523.4 million (-6%
Y/Y) |
$523.4 million (-6%
Y/Y) |
|
48.0 % |
48.0 % |
|
18.2% |
23.6% |
|
$2.09 |
$2.81 |
Business Highlights
- Embedded Storage1 sales increased approximately 10% Q/Q and accounted for about 80% of total sales, similar to the
previous quarter
- Client SSD controller sales increased over 15% Q/Q
- eMMC controller sales remained stable Q/Q
- SSD solutions sales increased over 15% Q/Q
- Began shipping our SATA3 SSD controller for Micron’s Crucial MX500 SSD and our 2nd generation PCIe NVMe controller
for Intel’s 760p SSD
- Delivered pre-production samples of our Open-Channel NVMe SSD controller to hyperscale data center customer
TAIPEI, Taiwan and MILPITAS, Calif., Feb. 07, 2018 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation
(NasdaqGS:SIMO) (“Silicon Motion” or the “Company”) today announced its financial results for the quarter ended December 31,
2017. For the fourth quarter, net sales increased 7% sequentially to $136.2 million from $127.2 million in the third quarter.
Net income (GAAP) decreased to $9.9 million or $0.27 per diluted ADS (GAAP) from a net income (GAAP) of $17.6 million or $0.49 per
diluted ADS (GAAP) in the third quarter.
For the fourth quarter, net income (non-GAAP) increased to $28.4 million or $0.79 per diluted ADS (non-GAAP)
from a net income (non-GAAP) of $20.3 million or $0.57 per diluted ADS (non-GAAP) in the third quarter.
1Embedded Storage comprises primarily eMMC and client SSD controllers and data center and industrial
SSD solutions.
Fourth Quarter 2017 Review
“This quarter, NAND flash industry supply continued to improve and prices continued to soften,” said Wallace Kou, President and CEO
of Silicon Motion. “Our SSD controller sales to our NAND flash partners rebounded, SSD solutions sales, specifically to our
diversified Ferri OEM customers exceeded expectations, and our eMMC controller sales were stable sequentially.”
Sales
(in millions, except percentages) |
4Q 2017 |
3Q 2017 |
4Q 2016 |
Sales |
Mix |
Sales |
Mix |
Sales |
Mix |
Mobile
Storage*
Q/Q
Y/Y |
$125.3
+7%
-4% |
92%
|
$117.3
-4%
-20% |
92%
|
$130.3
-11%
+49% |
90%
|
Mobile
Communications** |
$9.4 |
7% |
$8.7 |
7% |
$12.5 |
9% |
Others |
$1.5 |
1% |
$1.3 |
1% |
$1.4 |
1% |
Total
revenue
Q/Q
Y/Y |
$136.2
+7%
-6% |
100%
|
$127.2
-4%
-20% |
100
%
|
$144.2
-9%
+47% |
100%
|
* Mobile Storage products include Embedded Storage products (eMMC and client SSD controllers and data center and
industrial SSD solutions) and Expandable Storage products (SD and USB flash drive controllers)
** Mobile Communications products include mobile TV SoCs
Key Financial Results
(in millions, except percentages and per ADS amounts) |
GAAP |
Non-GAAP |
4Q 2017 |
3Q 2017 |
4Q 2016 |
4Q 2017 |
3Q 2017 |
4Q 2016 |
Revenue |
$136.2 |
$127.2 |
$144.2 |
$136.2 |
$127.2 |
$144.2 |
Gross
profit
Percent of revenue |
$63.3
46.5% |
$58.5
46.0% |
$72.1
50.0% |
$63.5
46.6% |
$58.5
46.0% |
$72.3
50.2% |
Operating expenses |
$49.7 |
$36.9 |
$37.3 |
$30.6 |
$33.1 |
$28.5 |
Operating income
Percent of revenue |
$13.6
10.0% |
$21.6
17.0% |
$34.9
24.2% |
$32.9
24.1% |
$25.4
20.0% |
$43.8
30.4% |
Earnings per diluted ADS |
$0.27 |
$0.49 |
$0.73 |
$0.79 |
$0.57 |
$0.95 |
Other Financial Information
(in millions) |
4Q 2017 |
3Q 2017 |
4Q 2016 |
Cash
and cash equivalents, and short-term investments |
$ |
366.4 |
$ |
332.8 |
$ |
277.8 |
Bank
loans |
$ |
25.0 |
|
-- |
$ |
25.0 |
Capital expenditures |
$ |
3.5 |
$ |
3.0 |
$ |
2.5 |
Dividend payments |
$ |
10.7 |
$ |
7.1 |
$ |
7.1 |
Loan
repayments |
|
-- |
$ |
25.0 |
$ |
10.0 |
During the fourth quarter, we had $3.2 million of capital expenditures for the routine purchase of software and
design tools.
Our fourth quarter cash flows were as follows:
3 months ended Dec. 31, 2017 |
|
(In $ millions) |
Net income (GAAP) |
|
9.9 |
Depreciation & amortization |
|
3.8 |
Impairment loss of goodwill |
|
10.3 |
Gain from disposal of other assets |
|
(1.9) |
Changes in operating assets and liabilities |
|
(9.8) |
Others |
|
7.4 |
Net cash provided by operating activities |
|
19.7 |
Acquisition of property and equipment |
|
(3.5) |
Net cash used in investing activities |
|
(3.5) |
Dividend |
|
(10.7) |
Loans |
|
25.0 |
Net cash provided in financing activities |
|
14.3 |
Effects of changes in foreign currency exchange rates on
cash |
|
1.3 |
Net increase in cash, cash equivalents and
restricted cash |
|
31.8 |
Returning Value to Shareholder
On October 24, 2017, the Board of Directors of the Company declared a $1.20 per ADS annual dividend to be paid in quarterly
installments of $0.30 per ADS. On November 23, 2017, we paid $10.7 million to shareholders as the first installment of our annual
dividend.
On August 1, 2017, the Company announced that its Board of Directors had authorized a new program for the
Company to repurchase up to $200 million of its ADS over a 12 month period. In the fourth quarter, the Company did not
repurchase any of its ADS.
Business Outlook
“This year, we believe that we will benefit from better industry dynamics. As NAND industry supply continues to increase, we
expect both NAND cost and prices will fall further,” said Wallace Kou, President and CEO of Silicon Motion. “Our NAND partners are
placing more emphasis on their client SSDs because of strong interest by PC and other OEMs in increasing adoption of SSDs, which is
highly dependent on how quickly NAND prices fall. We believe NAND prices will fall quickly, but do not have good visibility
on this, so our revenue guidance assumes SSD demand based solely on today’s NAND prices. We will revise our guidance when there is
better clarity on market trends. In Q1, we believe that growth of SSD and eMMC controller sales should be more than offset by
seasonal decline of our SSD solutions.”
For the first quarter of 2018, management expects:
|
GAAP |
Non-GAAP Adjustment |
Non-GAAP |
Revenue |
$127m to $132m
-7% to -3% Q/Q
-1% to +4% Y/Y |
-- |
$127m to $132m
-7% to -3% Q/Q
-1% to +4% Y/Y |
Gross
margin |
46.4% to 48.4% |
Approximately
$0.1m* |
46.5% to 48.5% |
Operating
margin |
17.8% to 20.0% |
Approximately $3.9m
to 4.0m** |
21.0% to 23.0% |
* Projected gross margin (non-GAAP) excludes $0.1 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $0.7 million of amortization of intangible assets, and $3.2 million to $3.3
million of stock-based compensation.
For the full-year 2018, management expects:
|
GAAP |
Non-GAAP Adjustment |
Non-GAAP |
Revenue |
$550m to $576m
+5% to +10% Y/Y |
-- |
$550m to $576m
+5% to +10% Y/Y |
Gross
margin |
46.9% to 48.9% |
Approximately
$0.5m* |
47.0% to 49.0% |
Operating margin |
19.4% to 21.9% |
Approximately
$17.8m to19.8m** |
23.0% to 25.0% |
* Projected gross margin (non-GAAP) excludes $0.5 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $2.8 million of amortization of intangible assets, and $15 million to $17 million
of stock-based compensation.
Conference Call & Webcast:
The Company’s management team will conduct a conference call at 8:00 am Eastern Time on February 7, 2018.
Speakers
Wallace Kou, President & CEO
Riyadh Lai, CFO
Jason Tsai, Senior Director of Investor Relations and Strategy
CONFERENCE CALL ACCESS NUMBERS:
USA (Toll Free): 1 866 519 4004
USA (Toll): 1 845 675 0437
Taiwan (Toll Free): 0080 112 6920
Participant Passcode: 5679806
REPLAY NUMBERS (for 7 days):
USA (Toll Free): 1 855 452 5696
USA (Toll): 1 646 254 3697
Participant Passcode: 5679806
A webcast of the call will be available on the Company's website at www.siliconmotion.com.
Discussion of Non-GAAP Financial Measures
To supplement the Company’s unaudited selected financial results calculated in accordance with U.S. Generally
Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude stock-based
compensation and other items, including gross profit (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), net
income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to
GAAP, and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have
limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in
accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction
with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in
isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP
financial measures by relying upon GAAP results to gain a complete picture of our performance.
Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current
financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to
both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not
indicative of our core operating results and because they are consistent with the financial models and estimates published by many
analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for
comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating
potential acquisitions, we exclude the items described below from our consideration of the target’s performance and
valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from
management’s perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in
conjunction with the Company’s GAAP financials, provide useful information to investors by offering:
- the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;
- the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
- a better understanding of how management plans and measures the Company’s underlying business; and
- an easier way to compare the Company’s operating results against analyst financial models and operating results of our
competitors that supplement their GAAP results with non-GAAP financial measures.
The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as
well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:
Stock-based compensation expense consists of non-cash charges related to the fair value of restricted
stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate
comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective
assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific
impact of share-based compensation on its operating results.
Amortization of intangibles assets consists of non-cash charges that can be impacted by the timing and
magnitude of our acquisitions. The Company considers its operating results without these charges when evaluating its ongoing
performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial
measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of
internal operations and comparisons to the performance of its competitors.
Litigation expenses consist of legal expenses relating to intellectual property disputes, commercial
claims and other types of litigation. While litigation may arise in the ordinary course of our business, we nevertheless consider
litigation to be an unusual and unplanned activity and therefore exclude this charge when presenting non-GAAP financial
measures.
Impairment of goodwill evaluates the recoverability of goodwill annually, or sooner if events or changes in
circumstances indicate that the carrying amount may not be recoverable.
Foreign exchange gains and losses consist of translation gains and/or losses of non-US$ denominated
current assets and current liabilities, as well as certain other balance sheet items which result from the appreciation or
depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations
from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we
therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.
Impairment of long-term investments relates to the other-than-temporary, non-operating write down of the Company's
minority stake investments. We do not consider these investments, which were made before 2007, to be strategic and exclude the
performance of these investments when evaluating our ongoing performance and forecasting our earnings trends, and therefore
excluding losses (and gains) from the investments when presenting non-GAAP financial measures.
|
Silicon Motion Technology Corporation
Consolidated Statements of Income
(in thousands, except percentages and per ADS data, unaudited) |
|
|
|
For the Three Months Ended |
|
|
|
Dec. 31, 2016
($) |
|
|
Sep. 30, 2017
($) |
|
|
Dec. 31, 2017
($) |
|
Net Sales |
|
144,198 |
|
|
127,216 |
|
|
136,165 |
|
Cost of sales |
|
72,080 |
|
|
68,746 |
|
|
72,878 |
|
Gross profit |
|
72,118 |
|
|
58,470 |
|
|
63,287 |
|
Operating expenses |
|
|
|
Research & development |
|
26,038 |
|
|
25,293 |
|
|
27,946 |
|
Sales & marketing |
|
5,651 |
|
|
7,157 |
|
|
7,364 |
|
General & administrative |
|
5,048 |
|
|
3,917 |
|
|
5,046 |
|
Amortization of intangibles assets |
|
526 |
|
|
526 |
|
|
878 |
|
Impairment loss of goodwill |
|
- |
|
|
- |
|
|
10,337 |
|
Gain from disposal of other assets |
|
- |
|
|
- |
|
|
(1,880 |
) |
Operating income |
|
34,855 |
|
|
21,577 |
|
|
13,596 |
|
Non-operating income (expense) |
|
|
|
Interest income, net |
|
623 |
|
|
993 |
|
|
1,135 |
|
Foreign exchange gain (loss), net |
|
112 |
|
|
701 |
|
|
(447 |
) |
Impairment of long-term investments |
|
(13 |
) |
|
- |
|
|
(120 |
) |
Others, net |
|
(4 |
) |
|
32 |
|
|
70 |
|
Subtotal |
|
718 |
|
|
1,726 |
|
|
638 |
|
Income before income tax |
|
35,573 |
|
|
23,303 |
|
|
14,234 |
|
Income tax expense |
|
9,416 |
|
|
5,709 |
|
|
4,338 |
|
Net income |
|
26,157 |
|
|
17,594 |
|
|
9,896 |
|
|
|
|
|
Earnings per basic ADS |
$ |
0.74 |
|
$ |
0.49 |
|
$ |
0.28 |
|
Earnings per diluted ADS |
$ |
0.73 |
|
$ |
0.49 |
|
$ |
0.27 |
|
|
|
|
|
Margin Analysis: |
|
|
|
Gross margin |
|
50.0 |
% |
|
46.0 |
% |
|
46.5 |
% |
Operating margin |
|
24.2 |
% |
|
17.0 |
% |
|
10.0 |
% |
Net margin |
|
18.1 |
% |
|
13.8 |
% |
|
7.3 |
% |
|
|
|
|
Additional Data: |
|
|
|
Weighted avg. ADS equivalents2 |
|
35,324 |
|
|
35,766 |
|
|
35,785 |
|
Diluted ADS equivalents |
|
35,623 |
|
|
35,828 |
|
|
36,005 |
|
_____________________________________________________
2Assumes all outstanding ordinary shares are represented by ADSs. Each ADS represents four
ordinary shares.
|
Silicon Motion Technology Corporation
Reconciliation of GAAP to Non-GAAP Operating Results
(in thousands, except percentages and per ADS data, unaudited) |
|
|
|
For the
Three Months Ended |
|
|
|
Dec.
31,
2016
($)
|
|
Sep.
30,
2017
($)
|
|
Dec.
31,
2017
($)
|
Gross profit (GAAP) |
|
|
72,118 |
|
|
58,470 |
|
|
63,287 |
|
Gross margin (GAAP) |
|
|
50.0 |
% |
|
46.0 |
% |
|
46.5 |
% |
Stock-based compensation expense (A) |
|
|
199 |
|
|
58 |
|
|
167 |
|
Gross profit (non-GAAP) |
|
|
72,317 |
|
|
58,528 |
|
|
63,454 |
|
Gross margin
(non-GAAP) |
|
|
50.2 |
% |
|
46.0 |
% |
|
46.6 |
% |
|
|
|
|
|
Operating expenses (GAAP) |
|
|
37,263 |
|
|
36,893 |
|
|
49,691 |
|
Stock-based compensation expense (A) |
|
|
(8,228 |
) |
|
(3,263 |
) |
|
(7,887 |
) |
Amortization of intangible assets |
|
|
(526 |
) |
|
(526 |
) |
|
(878 |
) |
Impairment loss of goodwill |
|
|
- |
|
|
- |
|
|
(10,337 |
) |
Litigation expense |
|
|
(2 |
) |
|
- |
|
|
- |
|
Operating expenses (non-GAAP) |
|
|
28,507 |
|
|
33,104 |
|
|
30,589 |
|
|
|
|
|
|
Operating profit (GAAP) |
|
|
34,855 |
|
|
21,577 |
|
|
13,596 |
|
Operating margin (GAAP) |
|
|
24.2 |
% |
|
17.0 |
% |
|
10.0 |
% |
Total adjustments to operating profit |
|
|
8,955 |
|
|
3,847 |
|
|
19,269 |
|
Operating profit (non-GAAP) |
|
|
43,810 |
|
|
25,424 |
|
|
32,865 |
|
Operating margin
(non-GAAP) |
|
|
30.4 |
% |
|
20.0 |
% |
|
24.1 |
% |
|
|
|
|
|
Non-operating income (expense) (GAAP) |
|
|
718 |
|
|
1,726 |
|
|
638 |
|
Foreign exchange loss (gain), net |
|
|
(112 |
) |
|
(701 |
) |
|
447 |
|
Impairment of long-term investments |
|
|
13 |
|
|
- |
|
|
120 |
|
Non-operating income (expense) (non-GAAP) |
|
|
619 |
|
|
1,025 |
|
|
1,205 |
|
|
|
|
|
|
Net income (GAAP) |
|
|
26,157 |
|
|
17,594 |
|
|
9,896 |
|
Total pre-tax impact of non-GAAP adjustments |
|
|
8,856 |
|
|
3,146 |
|
|
19,836 |
|
Income tax impact of non-GAAP
adjustments |
|
|
(1,147 |
) |
|
(393 |
) |
|
(1,320 |
) |
Net income (non-GAAP) |
|
|
33,866 |
|
|
20,347 |
|
|
28,412 |
|
|
|
|
|
|
Earnings per diluted ADS
(GAAP) |
|
$ |
0.73 |
|
$ |
0.49 |
|
$ |
0.27 |
|
Earnings per diluted ADS
(non-GAAP) |
|
$ |
0.95 |
|
$ |
0.57 |
|
$ |
0.79 |
|
|
|
|
|
|
Shares used in computing earnings per diluted ADS
(GAAP) |
|
|
35,623 |
|
|
35,828 |
|
|
36,005 |
|
Non-GAAP Adjustments |
|
|
201 |
|
|
129 |
|
|
169 |
|
Shares used in computing earnings per
diluted ADS (non-GAAP) |
|
|
35,824 |
|
|
35,957 |
|
|
36,174 |
|
(A) Excludes stock-based compensation as
follows: |
|
|
|
|
Cost of Sales |
|
|
199 |
|
|
58 |
|
|
167 |
|
Research & development |
|
|
5,076 |
|
|
1,960 |
|
|
5,131 |
|
Sales & marketing |
|
|
1,476 |
|
|
767 |
|
|
1,194 |
|
General &
administrative |
|
|
1,676 |
|
|
536 |
|
|
1,562 |
|
|
Silicon Motion Technology Corporation
Consolidated Statements of Income
(in thousands, except percentages, and per ADS data, unaudited) |
|
|
For the
Year Ended |
|
|
Dec. 31, 2016
($) |
|
|
Dec. 31, 2017
($) |
|
|
Net Sales |
|
556,146 |
|
|
523,404 |
|
|
Cost of sales |
|
281,541 |
|
|
272,210 |
|
|
Gross profit |
|
274,605 |
|
|
251,194 |
|
|
Operating expenses |
|
|
|
Research & development |
|
92,405 |
|
|
102,053 |
|
|
Sales & marketing |
|
25,765 |
|
|
25,868 |
|
|
General & administrative |
|
17,072 |
|
|
16,933 |
|
|
Amortization of intangibles
assets |
|
2,103 |
|
|
2,456 |
|
|
Impairment loss of goodwill |
|
- |
|
|
10,337 |
|
|
Gain from disposal of other assets |
|
- |
|
|
(1,880 |
) |
|
Operating income |
|
137,260 |
|
|
95,427 |
|
|
|
|
|
|
Non-operating expense (income) |
|
|
|
Interest income, net |
|
2,031 |
|
|
3,845 |
|
|
Foreign exchange gain (loss), net |
|
(692 |
) |
|
(157 |
) |
|
Impairment of long-term investments |
|
(13 |
) |
|
(120 |
) |
|
Others, net |
|
44 |
|
|
84 |
|
|
Subtotal |
|
1,370 |
|
|
3,652 |
|
|
Income before income tax |
|
138,630 |
|
|
99,079 |
|
|
Income tax expense |
|
27,690 |
|
|
24,046 |
|
|
Net income |
|
110,940 |
|
|
75,033 |
|
|
|
|
|
|
Earnings per basic ADS |
$ |
3.15 |
|
$ |
2.10 |
|
|
Earnings per diluted ADS |
$ |
3.12 |
|
$ |
2.09 |
|
|
|
|
|
|
Margin Analysis: |
|
|
|
Gross margin |
|
49.4 |
% |
|
48.0 |
% |
|
Operating margin |
|
24.7 |
% |
|
18.2 |
% |
|
Net margin |
|
20.0 |
% |
|
14.3 |
% |
|
|
|
|
|
Additional Data: |
|
|
|
Weighted avg. ADS equivalents |
|
35,230 |
|
|
35,684 |
|
|
Diluted ADS equivalents |
|
35,513 |
|
|
35,902 |
|
|
|
|
|
|
|
Silicon Motion Technology Corporation
Reconciliation of GAAP to Non-GAAP Operating Results
(in thousands, except percentages and per ADS data, unaudited) |
|
|
|
|
For the
Year Ended |
|
|
|
Dec. 31, 2016
($) |
|
|
Dec. 31, 2017
($) |
|
Gross profit (GAAP) |
|
|
274,605 |
|
|
251,194 |
|
Gross margin (GAAP) |
|
|
49.4 |
% |
|
48.0 |
% |
Stock-based compensation expense(A) |
|
|
400 |
|
|
293 |
|
Gross profit (non-GAAP) |
|
|
275,005 |
|
|
251,487 |
|
Gross margin
(non-GAAP) |
|
|
49.4 |
% |
|
48.0 |
% |
|
|
|
|
Operating expenses (GAAP) |
|
|
137,345 |
|
|
155,767 |
|
Stock-based compensation expense (A) |
|
|
(16,964 |
) |
|
(15,200 |
) |
Amortization of intangible assets |
|
|
(2,103 |
) |
|
(2,456 |
) |
Impairment loss of goodwill |
|
|
- |
|
|
(10,337 |
) |
Litigation expense |
|
|
(52 |
) |
|
- |
|
Operating expenses (non-GAAP) |
|
|
118,226 |
|
|
127,774 |
|
|
|
|
|
Operating profit (GAAP) |
|
|
137,260 |
|
|
95,427 |
|
Operating margin (GAAP) |
|
|
24.7 |
% |
|
18.2 |
% |
Total adjustments to operating profit |
|
|
19,519 |
|
|
28,286 |
|
Operating profit (non-GAAP) |
|
|
156,779 |
|
|
123,713 |
|
Operating margin
(non-GAAP) |
|
|
28.2 |
% |
|
23.6 |
% |
|
|
|
|
Non-operating income (expense) (GAAP) |
|
|
1,370 |
|
|
3,652 |
|
Foreign exchange loss (gain), net |
|
|
692 |
|
|
157 |
|
Impairment of long-term investments |
|
|
13 |
|
|
120 |
|
Non-operating income (expense) (non-GAAP) |
|
|
2,075 |
|
|
3,929 |
|
|
|
|
|
Net income (GAAP) |
|
|
110,940 |
|
|
75,033 |
|
Total pre-tax impact of non-GAAP
adjustments |
|
|
20,224 |
|
|
28,563 |
|
Income tax impact of non-GAAP
adjustments |
|
|
(1,171 |
) |
|
(2,306 |
) |
Net income (non-GAAP) |
|
|
129,993 |
|
|
101,290 |
|
|
|
|
|
Earnings per diluted ADS
(GAAP) |
|
$ |
3.12 |
|
$ |
2.09 |
|
Earnings per diluted ADS
(non-GAAP) |
|
$ |
3.64 |
|
$ |
2.81 |
|
|
|
|
|
Shares used in computing earnings per
diluted ADS (GAAP) |
|
|
35,513 |
|
|
35,902 |
|
Non-GAAP Adjustments |
|
|
155 |
|
|
107 |
|
Shares used in computing earnings per
diluted ADS (non-GAAP) |
|
|
35,668 |
|
|
36,009 |
|
|
|
|
|
(A) Excludes
stock-based compensation as follows: |
|
|
|
Cost of Sales |
|
|
400 |
|
|
293 |
|
Research & development |
|
|
10,529 |
|
|
9,255 |
|
Sales & marketing |
|
|
3,122 |
|
|
3,166 |
|
General & administrative |
|
|
3,313 |
|
|
2,779 |
|
|
|
|
|
|
|
|
|
|
Silicon Motion Technology Corporation
Consolidated Balance Sheet
(In thousands, unaudited) |
|
|
Dec. 31,
2016
($) |
|
Sep. 30,
2017
($) |
|
Dec. 31,
2017
($) |
Cash and cash equivalents |
274,483 |
|
327,811 |
|
359,453 |
Short-term investments |
3,302 |
|
4,984 |
|
6,941 |
Accounts receivable (net) |
73,599 |
|
68,652 |
|
79,135 |
Inventories |
71,887 |
|
78,594 |
|
94,186 |
Refundable deposits – current |
44,393 |
|
19,542 |
|
19,515 |
Prepaid expenses and other current
assets |
9,236 |
|
11,204 |
|
9,567 |
Total current assets |
476,900 |
|
510,787 |
|
568,797 |
Long-term investments |
120 |
|
120 |
|
- |
Property and equipment (net) |
47,892 |
|
48,552 |
|
51,370 |
Goodwill and intangible assets (net) |
73,883 |
|
77,691 |
|
66,471 |
Other assets |
7,231 |
|
5,914 |
|
7,172 |
Total assets |
606,026 |
|
643,064 |
|
693,810 |
|
|
|
|
|
|
Accounts payable |
31,739 |
|
36,518 |
|
56,423 |
Loans |
25,000 |
|
- |
|
25,000 |
Income tax payable |
20,271 |
|
22,360 |
|
11,492 |
Accrued expenses and other current liabilities |
68,976 |
|
44,637 |
|
84,329 |
Total current liabilities |
145,986 |
|
103,515 |
|
177,244 |
Other liabilities |
17,277 |
|
22,313 |
|
22,436 |
Total liabilities |
163,263 |
|
125,828 |
|
199,680 |
Shareholders’ equity |
442,763 |
|
517,236 |
|
494,130 |
Total liabilities & shareholders’ equity |
606,026 |
|
643,064 |
|
693,810 |
About Silicon Motion:
We are the global leader in supplying NAND flash controllers for solid state storage devices and the merchant
leader in supplying SSD controllers. We have the broadest portfolio of controller technologies and solutions and ship over
750 million NAND controllers annually and have shipped over five billion NAND controllers in the last ten years, more than any
other company in the world. Our controllers are widely used in embedded storage products such as SSDs and eMMCs which are
found in smartphones, PCs and industrial and commercial applications. We also supply specialized high-performance hyperscale
data center and industrial SSD solutions. Our customers include most of the NAND flash vendors, storage device module makers
and leading OEMs. For further information on Silicon Motion, visit us at www.siliconmotion.com.
Forward-Looking Statements:
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation, statements about Silicon
Motion’s currently expected first quarter of 2018 and full year 2018 expectations of revenue, gross margin and operating expenses,
all of which reflect management’s estimates based on information available at this time of this press release. While Silicon Motion
believes these estimates to be meaningful, these amounts could differ materially from actual reported amounts for the first quarter
of 2018 and full year 2018. Forward-looking statements also include, without limitation, statements regarding trends in the
semiconductor or consumer electronics markets and our future results of operations, financial condition and business
prospects. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,”
“expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms
or other comparable terminology. Although such statements are based on our own information and information from other sources
we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and
actual market trends or our actual results of operations, financial condition or business prospects may differ materially from
those expressed or implied in these forward looking statements for a variety of reasons. Potential risks and uncertainties
include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on
a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or
cancellation of orders from these customers; general economic conditions or conditions in the semiconductor or consumer electronics
markets; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products;
changes in our cost of finished goods; the payment, or non-payment, of cash dividends in the future at the discretion of our board
of directors and any announced planned increases in such dividends; the effect, if any, on the price of our ADS as a result of the
implementation of the announced share repurchase program; changes in our cost of finished goods; the availability, pricing, and
timeliness of delivery of other components and raw materials used in our customers’ products; our customers’ sales outlook,
purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment
of acquired businesses; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and
the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and
uncertainties and other factors, please see the documents we file from time to time with the Securities and Exchange Commission,
including our Annual Report on Form 20-F filed on April 28, 2017, as amended on May 2, 2017. We assume no obligation to
update any forward-looking statements, which apply only as of the date of this press release.
Investor Contact:
Jason Tsai
Senior Director of IR and Strategy
E-mail: jtsai@siliconmotion.com
Investor Contact:
Selina Hsieh
Investor Relations
E-mail: ir@siliconmotion.com
Media Contact:
Sara Hsu
Project Manager
E-mail: sara.hsu@siliconmotion.com