TAIPEI, Taiwan, Jul 8, 2010 (GlobeNewswire via COMTEX) --
Silicon Motion Technology Corporation (Nasdaq:SIMO) (the "Company"), a leading fabless semiconductor company that designs, develops and markets semiconductor solutions for multimedia consumer electronics, today announced that expected revenue in the second quarter of 2010 will be stronger than the Company's previous outlook.
The Company expects revenue in the second quarter of 2010 to increase sequentially between 23% and 25%. This is a positive increase over the guidance previously provided by the Company in late April 2010 that revenue would be up 10% to 20% sequentially.
The Company expects second quarter 2010 gross margin excluding stock-based compensation to be in line with its previously communicated guidance of 46% to 48%.
"We are pleased that our Mobile Storage products continue to demonstrate better than expected strength as we leverage our leading-edge controller technology leadership and market share leadership in advanced NAND flash components to take advantage of increased NAND flash supply, specifically from the expanding availability of more advanced components. The first half of 2010 came in better than expected and we continue to believe that this is a year of gradual recovery for Silicon Motion," said Wallace Kou, President and CEO of Silicon Motion.
Silicon Motion is planning on releasing its unaudited second quarter 2010 results in the last week of July. Details on this as well as our earnings call will be provided in a separate announcement.
About Silicon Motion:
We are a fabless semiconductor company that designs, develops and markets high performance, low-power semiconductor solutions for the multimedia consumer electronics market. We have three major product lines: mobile storage, mobile communications, and multimedia SoCs. Our mobile storage business is composed of microcontrollers used in NAND flash memory storage products such as flash memory cards, USB flash drives, SSDs, and embedded flash applications. Our mobile communications business is composed of mobile TV IC solutions, CDMA RF ICs, and electronic toll collection RF ICs. Our multimedia SoCs business is composed of products that support notebook PC webcams and embedded graphics applications.
This press 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, including without limitation, statements about Silicon Motion's updated expected second quarter 2010 guidance, revenue and gross margin, all of which reflect management's estimates based on information available at the time of this press release. While Silicon Motion believes these estimates to be meaningful, these amounts could differ materially from actual reported amounts for the second quarter. Forward-looking statements also include, without limitation, statements regarding trends in the multimedia consumer electronics market and our future results of operations, financial condition and business prospects. 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 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 these customers; integration of our recently announced acquisitions; general economic conditions or conditions in the semiconductor or consumer electronics markets; 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; the availability, pricing, and timeliness of delivery of other components and raw materials used in our customers' products; our customers' sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions, including the general global economic slowdown as it affects us, our customers and consumers; our 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 Securities and Exchange Commission, including our Annual Report on Form 20-F filed on June 25, 2010. We assume no obligation to update any forward-looking statements, which apply only as of the date of this press release.
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SOURCE: Silicon Motion Technology Corporation
CONTACT: Silicon Motion Technology Corporation
Jason Tsai, Director of IR and Strategy
+1 408 519 7259
Fax: +1 408 519 7101
+886 3 552 6888 x2311
Fax: +886 3 560 0336
Sara Hsu, Project Manager
+886 2 2219 6688 x3509
Fax: +886 2 2219 6868