Exhibit 99.1
Silicon Motion Announces Results for the Period Ended December 31, 2017 |
NEWS RELEASE
Financial Highlights
4Q 2017 GAAP | 4Q 2017 Non-GAAP | |||
• Net sales | $136.2 million (+7% Q/Q, -6% Y/Y) | $136.2 million (+7% Q/Q, -6% Y/Y) | ||
• Gross margin | 46.5% | 46.6% | ||
• Operating margin | 10.0% | 24.1% | ||
• Earnings per diluted ADS | $0.27 | $0.79 |
Full Year 2017 GAAP | Full Year 2017 Non-GAAP | |||
• Net sales | $523.4 million (-6% Y/Y) | $523.4 million (-6% Y/Y) | ||
• Gross margin | 48.0% | 48.0% | ||
• Operating margin | 18.2% | 23.6% | ||
• Earnings per diluted ADS | $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 |
• | Deliveredpre-production samples of our Open-Channel NVMe SSD controller to hyperscale data center customer |
TAIPEI, Taiwan and MILPITAS, Calif., February 7, 2018 – 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
1 | Embedded Storage comprises primarily eMMC and client SSD controllers and data center and industrial SSD solutions. |
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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.
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 diversifiedFerriOEM 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* | $ | 125.3 | 92 | % | $ | 117.3 | 92 | % | $ | 130.3 | 90 | % | ||||||||||||
Q/Q | +7 | % | -4 | % | -11 | % | ||||||||||||||||||
Y/Y | -4 | % | -20 | % | +49 | % | ||||||||||||||||||
Mobile Communications** | $ | 9.4 | 7 | % | $ | 8.7 | 7 | % | $ | 12.5 | 9 | % | ||||||||||||
Others | $ | 1.5 | 1 | % | $ | 1.3 | 1 | % | $ | 1.4 | 1 | % | ||||||||||||
Total revenue | $ | 136.2 | 100 | % | $ | 127.2 | 100 | % | $ | 144.2 | 100 | % | ||||||||||||
Q/Q | +7 | % | -4 | % | -9 | % | ||||||||||||||||||
Y/Y | -6 | % | -20 | % | +47 | % |
* | 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 | $ | 63.3 | $ | 58.5 | $ | 72.1 | $ | 63.5 | $ | 58.5 | $ | 72.3 | ||||||||||||
Percent of revenue | 46.5 | % | 46.0 | % | 50.0 | % | 46.6 | % | 46.0 | % | 50.2 | % | ||||||||||||
Operating expenses | $ | 49.7 | $ | 36.9 | $ | 37.3 | $ | 30.6 | $ | 33.1 | $ | 28.5 | ||||||||||||
Operating income | $ | 13.6 | $ | 21.6 | $ | 34.9 | $ | 32.9 | $ | 25.4 | $ | 43.8 | ||||||||||||
Percent of revenue | 10.0 | % | 17.0 | % | 24.2 | % | 24.1 | % | 20.0 | % | 30.4 | % | ||||||||||||
Earnings per diluted ADS | $ | 0.27 | $ | 0.49 | $ | 0.73 | $ | 0.79 | $ | 0.57 | $ | 0.95 |
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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 | |||
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Net cash provided by operating activities | 19.7 | |||
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Acquisition of property and equipment | (3.5 | ) | ||
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Net cash used in investing activities | (3.5 | ) | ||
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Dividend | (10.7 | ) | ||
Loans | 25.0 | |||
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Net cash provided in financing activities | 14.3 | |||
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Effects of changes in foreign currency exchange rates on cash | 1.3 | |||
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Net increase in cash, cash equivalents and restricted cash | 31.8 | |||
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Returning Value to Shareholders
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. |
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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.
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Discussion ofNon-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 certainnon-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). Thesenon-GAAP measures are not in accordance with or an alternative to GAAP, and may be different fromnon-GAAP measures used by other companies. We believe that thesenon-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 ournon-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.
Ournon-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 thenon-GAAP results provide useful information to both management and investors as thesenon-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 usenon-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 thesenon-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:
• | the ability to make more meaningfulperiod-to-period comparisons of the Company’son-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 withnon-GAAP financial measures. |
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The following are explanations of each of the adjustments that we incorporate into ournon-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of thesenon-GAAP financial measures:
Stock-based compensation expenseconsists ofnon-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of thesenon-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 assetsconsists ofnon-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 presentingnon-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 presentingnon-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 ofnon-US$ denominated current assets and current liabilities, as well as certain other balance sheet items which result from the appreciation or depreciation ofnon-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presentingnon-GAAP financial measures.
Impairment of long-term investments relates to the other-than-temporary,non-operating write down of the Company’s minority stake investments. We do not consider these investments, which were made before 2007, to be strategic and exclude the performance of these investments when evaluating our ongoing performance and forecasting our earnings trends, and therefore excluding losses (and gains) from the investments when presentingnon-GAAP financial measures.
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Silicon Motion Technology Corporation
Consolidated Statements of Income
(in thousands, except percentages and per ADS data, unaudited)
For the Three Months Ended | ||||||||||||
Dec. 31, 2016 ($) | Sep. 30, 2017 ($) | Dec. 31, 2017 ($) | ||||||||||
Net Sales | 144,198 | 127,216 | 136,165 | |||||||||
Cost of sales | 72,080 | 68,746 | 72,878 | |||||||||
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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 | ) | ||||||||
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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 | ||||||||
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Subtotal | 718 | 1,726 | 638 | |||||||||
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Income before income tax | 35,573 | 23,303 | 14,234 | |||||||||
Income tax expense | 9,416 | 5,709 | 4,338 | |||||||||
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Net income | 26,157 | 17,594 | 9,896 | |||||||||
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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 |
2 | Assumes all outstanding ordinary shares are represented by ADSs. Each ADS represents four ordinary shares. |
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Silicon Motion Technology Corporation
Reconciliation of GAAP toNon-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 | |||||||||
Totalpre-tax impact ofnon-GAAP adjustments | 8,856 | 3,146 | 19,836 | |||||||||
Income tax impact ofnon-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 |
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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 | ||||||
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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 | ) | |||||
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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 | ||||||
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Subtotal | 1,370 | 3,652 | ||||||
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Income before income tax | 138,630 | 99,079 | ||||||
Income tax expense | 27,690 | 24,046 | ||||||
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Net income | 110,940 | 75,033 | ||||||
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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 |
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Silicon Motion Technology Corporation
Reconciliation of GAAP toNon-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 | ||||||
Totalpre-tax impact ofnon-GAAP adjustments | 20,224 | 28,563 | ||||||
Income tax impact ofnon-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 |
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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 | |||||||||
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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 | |||||||||
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Total assets | 606,026 | 643,064 | 693,810 | |||||||||
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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 | |||||||||
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Total current liabilities | 145,986 | 103,515 | 177,244 | |||||||||
Other liabilities | 17,277 | 22,313 | 22,436 | |||||||||
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Total liabilities | 163,263 | 125,828 | 199,680 | |||||||||
Shareholders’ equity | 442,763 | 517,236 | 494,130 | |||||||||
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|
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Total liabilities & shareholders’ equity | 606,026 | 643,064 | 693,810 | |||||||||
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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, ornon-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,
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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 Form20-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: | Investor Contact: | |
Jason Tsai | Selina Hsieh | |
Senior Director of IR and Strategy | Investor Relations | |
E-mail: jtsai@siliconmotion.com | E-mail: ir@siliconmotion.com |
Media Contact:
Sara Hsu
Project Manager
E-mail:sara.hsu@siliconmotion.com
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