From GlobeNewswire:

Silicon Motion Technology Corporation (NasdaqGS: SIMO) announced a 17% increase in net sales for the fourth quarter of 2023, reaching $202.4 million. Gross margin for Q4 was 43.7%, and earnings per diluted ADS (GAAP) were $0.63. For the full year 2023, net sales were $639.1 million, with a gross margin of 42.3%, and earnings per diluted ADS of $1.58.

The increase in net sales was driven by strong demand for both eMMC+UFS and SSD controllers. Wallace Kou, President and CEO of Silicon Motion, expressed excitement for the sustained growth expected in 2024, stating that strong backlog and project ramps will be the foundation for growth this year. The company’s first quarter revenue is expected to be $172m to $182m, with gross margin at 43.9% to 44.9%.

Silicon Motion also provided a full year 2024 outlook, expecting revenue of $765m to $800m with a gross margin of 44.9% to 46.9%. The company’s management team will host a conference call at 8:00 am Eastern Time on February 7, 2024, to discuss the financial results.

The company also addressed an acquisition update, noting that it had entered into a merger agreement with MaxLinear on May 5, 2022. The agreement was approved by shareholders but has since faced challenges, including an attempted termination by MaxLinear, which Silicon Motion is now pursuing through arbitration.

Silicon Motion also discussed a non-GAAP financial measures presentation and the use of these measures to supplement the Company’s GAAP results, providing useful information to investors for making more meaningful period-to-period comparisons and better internal and external financial model comparisons. It stated that non-GAAP measures compensate for the limitations of GAAP measures and provide useful information to investors by offering the ability to make more meaningful period-to-period comparisons and better evaluation for potential acquisitions.



Read more: Silicon Motion Announces Results for the Period Ended