What are you looking for ?
Infinidat
Articles_top

Silicon Motion: Fiscal 4Q15 Financial Results

Client SSD controller sales increased 20%, accounted for 25% of total revenue.

(in $ million) 4Q14 4Q15 FY14 FY15
Revenue 80.5 98.0 289.3 361.3
Growth   22%   25%
Net income (loss) 12.1 13.4 44.5 60.3

Silicon Motion Technology Corporation announced its financial results for the quarter ended December 31, 2015.

Financial Highlights

  • Net sales increased 3% quarter-over-quarter to $98.0 million from $95.4 million in 3Q15
  • Gross margin (non-GAAP1) decreased to 50.1% from 51.6% in 3Q15
  • Operating expenses (non-GAAP) decreased to $25.3 million from $25.8 million in 3Q15
  • Operating margin (non-GAAP) decreased to 24.4% from 24.5% in 3Q15
  • Diluted earnings per ADS (non-GAAP) decreased to $0.55 from $0.57 in 3Q15

Business Highlights

Highest quarterly and full-year revenue in corporate history

  • Client SSD controller sales increased nearly 20% sequentially and accounted for almost 25% of total revenue
  • Began initial shipments of client SSD controller to third NAND flash partner
  • Introduced the world’s first turnkey SATA3 SSD controller solution specifically designed to support 3D NAND
  • Sales of Shannon enterprise-grade PCIe SSDs nearly doubled in the quarter led by growing shipments to leading e-commerce companies in China

For the fourth quarter, net sales increased sequentially to $98.0 million from $95.4 million in the third quarter. Net income (non-GAAP) decreased to $19.7 million or $0.55 per diluted ADS from a net income (non-GAAP) of $20.0 million or $0.57 per diluted ADS in the third quarter.

GAAP net income for the fourth quarter increased to $13.4 million or $0.38 per diluted ADS from a GAAP net income of $13.2 million or $0.38 per diluted ADS in the third quarter.

Fourth Quarter 2015 Review
Our fourth quarter sales grew by 3% sequentially to achieve record quarterly sales and record full-year results,” said Wallace Kou, president and CEO. “Our client SSD controller sales in the fourth quarter grew by nearly 20% and according to recently released market research data, we are now the world’s largest merchant supplier of SSD controllers. Sales of our Shannon enterprise SSDs nearly doubled in the quarter and together with stable demand for our eMMC controllers, our overall Embedded Storage sales increased to account for two-thirds of our total revenue.”

Sales of mobile storage in $ million
Mobile Storage products include embedded storage products (eMMC and SSD controllers and Ferri and Shannon storage solutions) and expandable storage products (SD and USB flash drive controllers).

Period Sales Mix
4Q 2014 65.5 81%
4Q 2014 80.9 85%
4Q 2015 87.5  89%

On October 23, 2015 the board of directors of the company declared a $0.15 per ADS quarterly dividend. On November 20, we recorded $5.2 million as dividend payments to our shareholders.

Business Outlook
We expect to continue strong growth in 2016 led again by our Embedded Storage products, specifically client SSD controllers, eMMC controllers and enterprise SSDs,” said Kou. “We are upbeat about our first quarter as we expect our embedded storage sales growth to largely offset anticipated expandable storage seasonal weakness.

For the first quarter of 2016, management expects:

  • Revenue to decrease 2.5% to increase 2.5% sequentially
  • Gross margin (non-GAAP) to be in the 49% to 51% range
  • Operating margin (non-GAAP) to be in the 23% to 24% range

For the full-year 2016, management expects:

  • Revenue to increase 12% to 20% as compared to full-year 2015
  • Gross margin (non-GAAP) to be in the 49% to 51% range
  • Operating margin (non-GAAP) to be in the 23% to 25% range

To read the earnings call transcript

Articles_bottom
AIC
ATTO
OPEN-E