EX-99.1 2 d56272dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO   

Silicon Motion Announces Results for the Period

Ended June 30, 2025

NEWS RELEASE

Business Highlights

 

   

Second quarter of 2025 sales increased 19% Q/Q and decreased 6% Y/Y

 

   

SSD controller sales: 2Q of 2025 increased 0% to 5% Q/Q and decreased 15% to 20% Y/Y

 

   

eMMC+UFS controller sales: 2Q of 2025 increased 40% to 45% Q/Q and increased 10% to 15% Y/Y

 

   

SSD solutions sales: 2Q of 2025 increased 0% to 5% Q/Q and decreased 45% to 50% Y/Y

Financial Highlights

 

     2Q 2025 GAAP      2Q 2025 Non-GAAP*  

•  Net sales

     $198.7 million (+19% Q/Q, -6% Y/Y)        $198.7 million (+19% Q/Q, -6% Y/Y)  

•  Gross margin

     47.7%        47.7%  

•  Operating margin

     11.2%        12.8%  

•  Earnings per diluted ADS

     $0.49        $0.69  

 

*

Please see supplemental reconciliations of U.S. Generally Accepted Accounting Principles (“GAAP”) to all non-GAAP financial measures mentioned herein towards the end of this news release.

TAIPEI, Taiwan and MILPITAS, Calif., July 31, 2025 – Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company” or “we”) today announced its financial results for the quarter ended June 30, 2025. For the second quarter of 2025, net sales (GAAP) increased sequentially to $198.7 million from $166.5 million in the first quarter of 2025. Net income (GAAP) decreased to $16.3 million, or $0.49 per diluted American depositary share (“ADS”) (GAAP), from net income (GAAP) of $19.5 million, or $0.58 per diluted ADS (GAAP), in the first quarter of 2025.

For the second quarter of 2025, net income (non-GAAP) increased to $23.0 million, or $0.69 per diluted ADS (non-GAAP), from net income (non-GAAP) of $20.3 million, or $0.60 per diluted ADS (non-GAAP), in the first quarter of 2025.

All financial numbers are in U.S. dollars unless otherwise noted.

 

1


Second Quarter of 2025 Review

“We experienced a strong recovery in our business during the second quarter of 2025 and delivered revenue well above our previously provided range,” stated Wallace Kou, President and CEO of Silicon Motion. “Our industry leading PCIe5 client SSD controller sales grew more than 75% quarter-over-quarter as AI-at-the-edge PCs are beginning to gain market traction and as white box AI server makers continue to leverage mainstream hardware components. Our eMMC and UFS products experienced strong growth during the second quarter of 2025, primarily driven by better-than-anticipated smartphone sales and market share gains. We are benefiting from increased product and market diversification and we believe that we are better positioned to deliver long-term, sustainable growth due to our expanding portfolio of leading consumer, enterprise, automotive, industrial and storage solutions.”

Key Financial Results

 

(in millions, except percentages and per ADS amounts)

   GAAP     Non-GAAP  
   2Q 2025     1Q 2025     2Q 2024     2Q 2025     1Q 2025     2Q 2024  

Revenue

   $ 198.7     $ 166.5     $ 210.7     $ 198.7     $ 166.5     $ 210.7  

Gross profit

   $ 94.7     $ 78.4     $ 96.8     $ 94.7     $ 78.4     $ 96.8  

Percent of revenue

     47.7     47.1     45.9     47.7     47.1     46.0

Operating expenses

   $ 72.4     $ 68.6     $ 66.0     $ 69.3     $ 63.6     $ 62.1  

Operating income

   $ 22.3     $ 9.8     $ 30.7     $ 25.3     $ 14.9     $ 34.7  

Percent of revenue

     11.2     5.9     14.6     12.8     8.9     16.5

Earnings per diluted ADS

   $ 0.49     $ 0.58     $ 0.91     $ 0.69     $ 0.60     $ 0.96  

Other Financial Information

 

(in millions)

   2Q 2025      1Q 2025      2Q 2024  

Cash, cash equivalents and restricted cash—end of period

   $ 282.3      $ 331.7      $ 343.6  

Routine capital expenditures

   $ 7.4      $ 7.0      $ 6.3  

Dividend payments

   $ 16.7      $ 17.0      $ 16.8  

Share repurchases

     —       $ 24.3        —   

During the second quarter of 2025, we had $15.6 million of capital expenditures, including $7.4 million for the routine purchases of testing equipment, software, design tools and other items, and $8.2 million for building construction and improvements in Hsinchu, Taiwan.

 

2


Returning Value to Shareholders

On October 28, 2024, our Board of Directors declared a $2.00 per ADS annual cash dividend to be paid in quarterly installments of $0.50 per ADS. On May 22, 2025, we paid $16.7 million to Silicon Motion shareholders as the third installment of the annual cash dividend.

On February 6, 2025, we announced that our Board of Directors had authorized a new program for the Company to repurchase up to $50 million of our ADSs over a six-month period. In the second quarter of 2025, we did not repurchase any of our ADSs.

Business Outlook

“Our diversification strategy is expanding our market opportunities as we continue to invest in new products and markets. In 2025, we are benefitting from the introduction of several new products including our leading 6nm, 8-channel PCIe5 client SSD controller, our new eMMC and UFS controllers, and our MicroSD controller that is selling alongside the Nintendo Switch 2. In the second half of the year, we expect to further benefit from the initial ramp of our new 6nm, 4-channel PCIe5 client SSD controller targeting the mass market in late 2025, our first MonTitan enterprise/AI-class product, and our boot drive storage products for DPU network accelerators for the greater SSD data storage ecosystem. We expect to ramp each of these products to scale in 2026 with our customers. Additionally, we continue to experience significant design win activity and demand for our leading automotive portfolio, and we expect to benefit from a mix shift to higher ASP products moving forward as customers shift to our growing portfolio of full solutions. We expect a stronger second half of the year, and we continue to target a revenue run rate of $1 billion for 2025 as we exit the year,” stated Mr. Kou.

For the third quarter of 2025, management expects:

 

($ in millions, except percentages)

   GAAP    Non-GAAP Adjustment    Non-GAAP

Revenue

   $219 to $228

+10% to 15% Q/Q

   —     $219 to $228

+10% to 15% Q/Q

Gross margin

   48.0% to 49.0%    Approximately $0.1*    48.0% to 49.0%

Operating margin

   8.9% to 11.5%    Approximately $6.5 to $7.5**    12.3% to 14.3%

 

*

Projected gross margin (non-GAAP) excludes $0.1 million of stock-based compensation.

**

Projected operating margin (non-GAAP) excludes $6.5 million to $7.5 million of stock-based compensation and dispute related expenses.

 

3


Conference Call & Webcast:

The Company’s management team will conduct a conference call at 8:00 am Eastern Time on July 31, 2025.

Conference Call Details

Participants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration.

Participant Online Registration:

https://register-conf.media-server.com/register/BI9e8eb8a4d35743cfa957757c6a1207e2

A webcast of the call will be available on the Company’s website at www.siliconmotion.com.

 

4


Discussion of Non-GAAP Financial Measures

To supplement the Company’s unaudited consolidated 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), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (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 similarly-titled 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.

 

5


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.

Restructuring charges relate to the restructuring of our underperforming product lines, principally the write-down of NAND flash, embedded DRAM and SSD inventory valuation and severance payments.

Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.

Foreign exchange loss (gain) consists 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.

Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments.

 

6


Silicon Motion Technology Corporation

Consolidated Statements of Income

(in thousands, except percentages and per ADS data, unaudited)

 

     For Three Months Ended     For the Six Months Ended  
     Jun. 30,     Mar. 31,     Jun. 30,     Jun. 30,     Jun. 30,  
     2024     2025     2025     2024     2025  
     ($)     ($)     ($)     ($)     ($)  

Net sales

     210,670       166,492       198,675       399,981       365,167  

Cost of sales

     113,893       88,125       103,988       218,084       192,113  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     96,777       78,367       94,687       181,897       173,054  

Operating expenses

          

Research & development

     50,788       55,026       58,147       105,180       113,173  

Sales & marketing

     6,777       7,115       7,093       13,081       14,208  

General & administrative

     7,215       6,460       7,118       13,689       13,578  

Loss from settlement of litigation

     1,250       —        —        1,250       —   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     30,747       9,766       22,329       48,697       32,095  

Non-operating income (expense)

          

Interest income, net

     4,175       2,929       2,706       7,241       5,635  

Foreign exchange gain (loss), net

     245       373       (3,302     833       (2,929

Realized/Unrealized gain(loss) on investments

     1,855       3,296       (1,051     247       2,245  

Others, net

     —        —        1       —        1  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

     6,275       6,598       (1,646     8,321       4,952  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income tax

     37,022       16,364       20,683       57,018       37,047  

Income tax expense (benefit)

     6,201       (3,099     4,372       10,181       1,273  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     30,821       19,463       16,311       46,837       35,774  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per basic ADS

     0.92       0.58       0.49       1.39       1.06  

Earnings per diluted ADS

     0.91       0.58       0.49       1.39       1.06  

Margin Analysis:

          

Gross margin

     45.9     47.1     47.7     45.5     47.4

Operating margin

     14.6     5.9     11.2     12.2     8.8

Net margin

     14.6     11.7     8.2     11.7     9.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Additional Data:

          

Weighted avg. ADS equivalents

     33,684       33,634       33,557       33,596       33,596  

Diluted ADS equivalents

     33,697       33,827       33,562       33,687       33,681  

 

7


Silicon Motion Technology Corporation

Reconciliation of GAAP to Non-GAAP Operating Results

(in thousands, except percentages and per ADS data, unaudited)

 

     For Three Months Ended     For the Six Months Ended  
     Jun. 30,     Mar. 31,     Jun. 30,     Jun. 30,     Jun. 30,  
   2024     2025     2025     2024     2025  
   ($)     ($)     ($)     ($)     ($)  

Gross profit (GAAP)

     96,777       78,367       94,687       181,897       173,054  

Gross margin (GAAP)

     45.9     47.1     47.7     45.5     47.4

Stock-based compensation (A)

     14       73       —        86       73  

Restructuring charges

     46       —        —        46       —   

Gross profit (non-GAAP)

     96,837       78,440       94,687       182,029       173,127  

Gross margin (non-GAAP)

     46.0     47.1     47.7     45.5     47.4

Operating expenses (GAAP)

     66,030       68,601       72,358       133,200       140,959  

Stock-based compensation (A)

     (371     (4,738     (175     (3,464     (4,913

Dispute related expenses

     (3,527     (277     (2,841     (5,059     (3,118

Operating expenses (non-GAAP)

     62,132       63,586       69,342       124,677       132,928  

Operating profit (GAAP)

     30,747       9,766       22,329       48,697       32,095  

Operating margin (GAAP)

     14.6     5.9     11.2     12.2     8.8

Total adjustments to operating profit

     3,958       5,088       3,016       8,655       8,104  

Operating profit (non-GAAP)

     34,705       14,854       25,345       57,352       40,199  

Operating margin (non-GAAP)

     16.5     8.9     12.8     14.3     11.0

Non-operating income (expense) (GAAP)

     6,275       6,598       (1,646     8,321       4,952  

Foreign exchange loss (gain), net

     (245     (373     3,302       (833     2,929  

Unrealized holding loss (gain) on investments

     (1,855     (3,296     1,051       (247     (2,245

Non-operating income (expense) (non-GAAP)

     4,175       2,929       2,707       7,241       5,636  

Net income (GAAP)

     30,821       19,463       16,311       46,837       35,774  

Total pre-tax impact of non-GAAP adjustments

     1,858       1,419       7,369       7,575       8,788  

Income tax impact of non-GAAP adjustments

     (218     (610     (670     (365     (1,280

Net income (non-GAAP)

     32,461       20,272       23,010       54,047       43,282  

Earnings per diluted ADS (GAAP)

   $ 0.91     $ 0.58     $ 0.49     $ 1.39     $ 1.06  

Earnings per diluted ADS (non-GAAP)

   $ 0.96     $ 0.60     $ 0.69     $ 1.60     $ 1.28  

 

8


Shares used in computing earnings per diluted ADS (GAAP)

     33,697        33,827        33,562        33,687        33,681  

Non-GAAP adjustments

     18        20        18        23        33  

Shares used in computing earnings per diluted ADS (non-GAAP)

     33,715        33,847        33,580        33,710        33,714  

(A) Excludes stock-based compensation as follows:

              

Cost of sales

     14        73        —         86        73  

Research & development

     94        3,003        55        2,237        3,058  

Sales & marketing

     173        862        79        520        941  

General & administrative

     104        873        41        707        914  

 

9


Silicon Motion Technology Corporation

Consolidated Balance Sheets

(In thousands, unaudited)

 

     Jun. 30,      Mar. 31,      Jun. 30,  
     2024      2025      2025  
     ($)      ($)      ($)  

Cash and cash equivalents

     289,175        275,140        208,043  

Accounts receivable (net)

     191,692        206,693        220,924  

Inventories

     240,811        180,903        208,005  

Refundable deposits – current

     51,036        53,015        70,308  

Prepaid expenses and other current assets

     31,460        32,102        68,040  
  

 

 

    

 

 

    

 

 

 

Total current assets

     804,174        747,853        775,320  

Long-term investments

     17,301        20,636        19,620  

Property and equipment (net)

     179,550        193,603        208,826  

Other assets

     29,121        29,310        29,997  
  

 

 

    

 

 

    

 

 

 

Total assets

     1,030,146        991,402        1,033,763  
  

 

 

    

 

 

    

 

 

 

Accounts payable

     36,411        23,048        37,455  

Income tax payable

     14,103        14,782        17,370  

Accrued expenses and other current liabilities

     134,947        130,277        134,377  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     185,461        168,107        189,202  

Other liabilities

     60,182        50,968        55,620  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     245,643        219,075        244,822  

Shareholders’ equity

     784,503        772,327        788,941  
  

 

 

    

 

 

    

 

 

 

Total liabilities & shareholders’ equity

     1,030,146        991,402        1,033,763  
  

 

 

    

 

 

    

 

 

 

 

10


Silicon Motion Technology Corporation

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

     For Three Months Ended     For the Six Months
Ended
 
     Jun. 30,     Mar. 31,     Jun. 30,     Jun. 30,     Jun. 30,  
     2024     2025     2025     2024     2025  
     ($)     ($)     ($)     ($)     ($)  

Net income

     30,821       19,463       16,311       46,837       35,774  

Depreciation & amortization

     5,802       7,225       7,445       11,411       14,670  

Stock-based compensation

     385       4,811       175       3,550       4,986  

Investment losses (gain) & disposals

     (1,855     (3,309     1,053       (247     (2,256

Changes in operating assets and liabilities

     (13,660     22,082       (42,258     (32,246     (20,176
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     21,493       50,272       (17,274     29,305       32,998  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Purchase of property & equipment

     (10,427     (11,661     (15,551     (21,176     (27,212

Proceeds from disposal of properties

     —        13       —        —        13  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (10,427     (11,648     (15,551     (21,176     (27,199
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Dividend payments

     (16,820     (16,956     (16,746     (33,629     (33,702

Share repurchases

     —        (24,291     (21     —        (24,312
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (16,820     (41,247     (16,767     (33,629     (58,014
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash, cash equivalents & restricted cash

     (5,754     (2,623     (49,592     (25,500     (52,215

Effect of foreign exchange changes

     86       37       124       121       161  

Cash, cash equivalents & restricted cash—beginning of period

     349,279       334,333       331,747       368,990       334,333  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalents & restricted cash—end of period

     343,611       331,747       282,279       343,611       282,279  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

11


About Silicon Motion:

We are the global leader in supplying NAND flash controllers for solid state storage devices. We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications. We also supply customized high-performance hyperscale data center and specialized industrial and automotive 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 news 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. 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 one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing tensions between Taiwan and China, including enhanced military activities; 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; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; 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; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; our

 

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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 U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2025. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this news release.

 

Silicon Motion Investor Contacts:   
Tom Sepenzis    Selina Hsieh
Senior Director of IR & Strategy    Investor Relations
tsepenzis@siliconmotion.com    ir@siliconmotion.com

 

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