Quick Summary:
ADS equivalents33,416 33,687 33,690 33,353 33,642 Diluted ADS equivalents33,587 33,700 33,814 33,470 33,722 Silicon Motion Technology CorporationReconciliation of GAAP to Non-GAAP Operating Results(in thousands, except percentages and per ADS data, unaudited) For Three Months Ended For the Year Ended Dec.31, Sep.30, Dec.31, Dec.31, Dec.31, 2023 2024 2024 2023 2024 ($) ($) ($) ($) ($) Gross profit (GAAP)88,525 99,270 89,525 270,390 370,690 Gross margin (GAAP)43.7% 46.7% 46.8% 42.3% 46.1% Stock-based compensation (A)106 63 162 406 311 Restructuring charges648 - 164 3,996 209 Gross profit (non-GAAP) 89,279 99,333 89,851 274,792 371,210 Gross margin (non-GAAP)44.1% 46.8% 47.0% 43.0% 46.2% Operating expenses (GAAP)70,957 74,810 69,866 230,512 277,876 Stock-based compensation (A)(5,680) (3,595) (9,585) (17,141) (16,645)M&A transaction expenses288 - - (2,606) - Dispute related expenses(3,477) (6,076) (1,999) (6,973) (13,135)Restructuring charges(638) - - (5,217) - Operating expenses (non-GAAP) 61,450 65,139 58,282 198,575 248,096 Operating profit (GAAP)17,568 24,460 19,659 39,878 92,814 Operating margin (GAAP)8.7% 11.5% 10.3% 6.2% 11.6% Total adjustments to operating profit10,261 9,734 11,910 36,339 30,300 Operating profit (non-GAAP) 27,829 34,194 31,569 76,217 123,114 Operating margin (non-GAAP)13.8% 16.1% 16.5% 11.9% 15.3% Non-operating income (expense) (GAAP)3,061 2,428 5,770 21,170 16,520 Foreign exchange loss (gain), net1,117 488 (1,046) (914) (1,391)Realized/Unrealized holding loss (gain) on investments51 602 (956) (8,002) (601)Non-operating income (expense) (non-GAAP) 4,229 3,518 3,768 12,254 14,528 Net income (GAAP)21,093 20,843 23,040 52,873 90,720 Total pre-tax impact of non-GAAP adjustments11,429 10,824 9,908 27,423 28,308 Income tax impact of non-GAAP adjustments(1,202) (649) (2,049) (4,169) (3,064)Net income (non-GAAP) 31,320 31,018 30,899 76,127 115,964 Earnings per diluted ADS (GAAP)$0.63 $0.62 $0.68 $1.58 $2.69 Earnings per diluted ADS (non-GAAP) $0.93 $0.92 $0.91 $2.27 $3.43 Shares used in computing earnings per diluted ADS (GAAP)33,587 33,700 33,814 33,470 33,722 Non-GAAP adjustments110 109 181 129 84 Shares used in computing earnings per diluted ADS (non-GAAP)33,697 33,809 33,995 33,599 33,806 (A) Excludes stock-based compensation as follows: Cost of sales106 63 162 406 311 Research & development4,103 2,377 6,670 11,709 11,284 Sales & marketing361 455 978 1,858 1,954 General & administrative1,216 763 1,937 3,574 3,407 Silicon Motion Technology CorporationConsolidated Balance Sheet(In thousands, unaudited) Dec.31, Sep.30, Dec.31, 2023 2024 2024 ($) ($) ($)Cash and cash equivalents314,302 313,924 276,068Accounts receivable (net)194,701 202,726 233,744Inventories216,950 214,574 201,154Refundable deposits – current49,656 51,102 54,645Prepaid expenses and other current assetse17,636 38,246 31,187Total current assets793,245 820,572 796,798Long-term investments17,116 16,878 17,326Property and equipment (net)167,417 181,983 188,398Other assets30,183 29,304 30,354Total assets1,007,961 1,048,737 1,032,876 Accounts payable55,586 30,888 17,773Income tax payable7,544 14,444 13,176Accrued expenses and other current liabilities149,680 131,143 168,624Total current liabilities212,810 176,475 199,573Other liabilities60,455 62,673 59,548Total liabilities273,265 239,148 259,121Shareholders’ equity734,696 809,589 773,755Total liabilities & shareholders’ equity1,007,961 1,048,737 1,032,876 Silicon Motion Technology CorporationCondensed Consolidated Statements of Cash Flows(in thousands, unaudited) For Three Months Ended For the Year Ended Dec.31, Sep.30, Dec.31, Dec.31, Dec.31, 2023 2024 2024 2023 2024 ($) ($) ($) ($) ($) Net income 21,093 20,843 23,040 52,873 90,720 Depreciation & amortization 5,356 6,664 7,256 21,810 25,331 Stock-based compensation 5,786 3,658 9,747 17,547 16,956 Investment losses (gain) & disposals (432) 602 (956) (8,217) (601)Changes in operating assets and liabilities 11,582 22,280 (45,245) 65,070 (55,213)Net cash provided by (used in) operating activities 43,385 54,047 (6,158) 149,083 77,193 Purchase of property & equipment (10,758) (12,436) (10,836) (50,313) (44,449)Proceeds from disposal of properties 1,228 - 3 1,228 3 Purchase of long-term investments - - (4,173) - (4,173)Disposal of long-term investments - - 4,432 - 4,432 Net cash used in investing activities (9,530) (12,436) (10,574) (49,085) (44,187) Dividend payments (16,676) (16,812) (16,814) (16,690) (67,254)Net cash used in financing activities (16,676) (16,812) (16,814) (16,690) (67,254) Net increase (decrease) in cash, cash equivalents & restricted cash 17,179 24,799 (33,546) 83,308 (34,248)Effect of foreign exchange changes 1,508 186 (717) (1,373) (409)Cash, cash equivalents & restricted cash—beginning of period 350,303 343,611 368,596 287,055 368,990 Cash, cash equivalents & restricted cash—end of period 368,990 368,596 334,333 368,990 334,333 Shareholder Litigation:On August 31, 2023, a Silicon Motion ADS holder (the "Plaintiff”) filed a putative class action complaint in the United States District Court for the Southern District of California, captioned Water Island Event-Driven Fund v.MaxLinear, Inc., No.23-cv-01607 (S.D.Cal.), asserting claims against MaxLinear, Inc.("MaxLinear”) and two of its officers (the "MaxLinear Defendants”) for alleged violations of (i) Section 10(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act”), and Rule 10b-5 promulgated thereunder and (ii) Section 20(a) of the Exchange Act, in connection with alleged false and misleading statements made by the MaxLinear Defendants between June 6, 2023 and July 26, 2023 concerning MaxLinear’s intent to consummate the merger agreement it had entered into with Silicon Motion.
While the consumer market remains challenging in the near-term, we remain focused on delivering strong, sustainable long-term growth by broadening our product portfolio, expanding into new markets and growing our market share in the consumer, enterprise, automotive, industrial and commercial storage markets.” Key Financial Results (in millions, except percentages and per ADS amounts)GAAPNon-GAAP4Q 20243Q 20244Q 20234Q 20243Q 20244Q 2023Revenue$191.2$212.4$202.4$191.2$212.4$202.4Gross profit$89.5$99.3$88.5$89.9$99.3$89.3Percent of revenue46.8%46.7%43.7%47.0%46.8%44.1%Operating expenses$69.9$74.8$71.0$58.3$65.1$61.5Operating profit$19.7$24.5$17.6$31.6$34.2$27.8Percent of revenue10.3%11.5%8.7%16.5%16.1%13.8%Earnings per diluted ADS$0.68$0.62$0.63$0.91$0.92$0.93 Other Financial Information (in millions)4Q 20243Q 20244Q 2023Cash, cash equivalents, restricted cash and short-term investments—end of period$334.3$368.6$369.0Routine capital expenditures$7.3$7.4$3.5Dividend payments$16.8$16.8$16.7 During the fourth quarter of 2024, we had $10.8 million of capital expenditures, including $7.3 million for the routine purchases of testing equipment, software, design tools and other items, and $3.5 million for building construction in Hsinchu.
Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments. Silicon Motion Technology CorporationConsolidated Statements of Income(in thousands, except percentages and per ADS data, unaudited) For Three Months Ended For the Year Ended Dec.31, Sep.30, Dec.31, Dec.31, Dec.31, 2023 2024 2024 2023 2024 ($) ($) ($) ($) ($) Net Sales202,379 212,412 191,160 639,142 803,552 Cost of sales113,854 113,142 101,635 368,752 432,862 Gross profit88,525 99,270 89,525 270,390 370,690 Operating expenses Research & development56,432 58,486 54,156 174,357 217,822 Sales & marketing6,205 7,009 7,360 26,920 27,450 General & administrative7,600 9,315 8,350 27,923 31,354 Loss from settlement of litigation720 - - 1,312 1,250 Operating income17,568 24,460 19,659 39,878 92,814 Non-operating income (expense) Interest income, net4,221 3,518 3,768 12,246 14,528 Foreign exchange gain (loss), net(1,117) (488) 1,046 914 1,391 Realized/Unrealized gain(loss) on investments(51) (602) 956 8,002 601 Others, net8 - - 8 - Subtotal3,061 2,428 5,770 21,170 16,520 Income before income tax20,629 26,888 25,429 61,048 109,334 Income tax expense (benefit)(464) 6,045 2,389 8,175 18,614 Net income21,093 20,843 23,040 52,873 90,720 Earnings per basic ADS0.63 0.62 0.68 1.59 2.70 Earnings per diluted ADS0.63 0.62 0.68 1.58 2.69 Margin Analysis: Gross margin43.7% 46.7% 46.8% 42.3% 46.1% Operating margin8.7% 11.5% 10.3% 6.2% 11.6% Net margin10.4% 9.8% 12.1% 8.3% 11.3% Additional Data: Weighted avg.
