tiprankstipranks
Silicon Motion Reports Strong Q3 2024 Performance
Company Announcements

Silicon Motion Reports Strong Q3 2024 Performance

Silicon Motion ( (SIMO) ) has released its Q3 earnings. Here is a breakdown of the information Silicon Motion presented to its investors.

Don't Miss our Black Friday Offers:

Silicon Motion Technology Corporation is a leading provider of NAND flash controllers for solid state storage devices, serving industries such as servers, PCs, and smartphones with a strong presence in the global market.

In the third quarter of 2024, Silicon Motion reported a 1% quarter-over-quarter (Q/Q) and 23% year-over-year (Y/Y) increase in sales, reaching $212.4 million. The company saw significant growth in its eMMC and UFS controller sales, with a 40% to 45% increase Y/Y, and managed to maintain robust SSD controller sales. However, net income experienced a decline compared to the previous quarter.

Silicon Motion’s financial highlights for Q3 2024 include a gross margin of 46.7% and an operating margin of 11.5%. Earnings per diluted American Depositary Share (ADS) were reported at $0.62 on a GAAP basis. The company continues to leverage its strong positioning in the market, with strategic wins in the NAND and module maker sectors, and is anticipating further expansion of its product portfolio.

Looking ahead, Silicon Motion is poised to benefit from increased outsourcing by its NAND flash maker partners, driving revenue and profitability growth. With the introduction of new controllers, including AI/enterprise server and PCIe Gen 5.0 client SSD controllers, the company is set to enhance its market leadership entering 2025, despite expectations of muted holiday demand.

Related Articles
Michael MarcusDown More Than 30%: 2 ‘Strong Buy’ Stocks at Steep Discounts
TheFlySilicon Motion management to meet with B. Riley
Howard KimSilicon Motion (SIMO) Reveals Q4 Dividend: Here’s the Essential Information
Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App