Home > News Center > Press Release
Press Release
 
May 13, 2009
 

Silicon Motion Announces First Quarter Results for the Period Ended March 31, 2009 and Revisions to Fourth Quarter 2008 Results-Corrected Version

TAIPEI, Taiwan, May 13, 2009 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation's (Nasdaq:SIMO) (the "Company") press release dated May 12, 2009 contained certain incorrect, typographical errors in the "Financial Highlights" section. The financial tables in the press release remain unchanged. Below is the corrected version of the release.

 First Quarter 2009
 ------------------
 Financial Highlights

 * Net sales decreased 33% quarter-over-quarter to US$21.5 million
 * Gross margin excluding stock-based compensation improved to 44.1%
   compared with our revised 4Q08 gross margin of 38.5%
 * Operating expenses excluding stock-based compensation, acquisition-
   related charges, and one-time items decreased from our revised 4Q08
   of US$16.5 million to US$10.0 million
 * Net loss excluding stock-based compensation, acquisition-related
   charges, foreign exchange gain, and one-time items improved from a
   revised 4Q08 loss of US$3.9 million to a loss of US$0.8 million.
   GAAP net loss decreased from US$8.2 million in 4Q08 to US$1.4
   million
 * Diluted loss per ADS excluding stock-based compensation,
   acquisition-related charges, foreign exchange gain, and one-time
   items were US$0.03, an improvement from our revised 4Q08 loss per
   share of US$0.14.  GAAP diluted loss per ADS was US$0.05

 Business Highlights

 * Reduced total unit shipments 35% year-over-year and 20%
   sequentially to approximately 74 million units
 * Reduced storage controller unit shipments 35% year-over-year and
   21% sequentially
 * Received SSD controller design-win for new MSI netbook PC utilizing
   a dual SSD and HDD storage solution
 * Successfully introduced SSD controllers to new markets such as in-
   car navigation and other consumer electronics devices with our new
   Hybrid and TurboMLC SSD controllers
 * Received a design-win for our SSD controller from a global tier one
   hard drive vendor used in their new SSD product
 * Received a design-win from a tier one handset vendor for our ISDB-T
   solution for the Brazil market
 * Began shipping in volume since January our T-DMB SoC solution to
   leading handset vendors in Korea including Samsung, LG and Pantech
   & Curitel

Silicon Motion Technology Corporation (Nasdaq:SIMO)(the "Company") today announced its first quarter 2009 financial results together with revisions to previously announced results from the fourth quarter of 2008. For the first quarter of 2009, net sales decreased 33% to $21.5 million. Net loss for the first quarter (GAAP) was $1.4 million or US$0.05 per diluted ADS.

Net loss excluding stock-based compensation, acquisition-related charges, foreign exchange gain, and one-time items decreased in the first quarter to a loss of US$0.8 million or US$0.03 per diluted ADS.

Revised Fourth Quarter 2008 Financial Review

When we reported our fourth quarter results in February, we reported unaudited results. Following the report of our results, new material information regarding the deteriorating financial condition of certain customers and more limited growth prospects of several products, which are consequences of on-going weakness in the global economic outlook, came to management's knowledge. The majority of issues were largely related to our mobile communications business. After careful examination, we have revised our fourth quarter results to account for an increase in obsolete inventory reserves together with an increase in reserves for doubtful accounts, described below.

Sales

Fourth quarter 2008 net sales of US$32.3 million were unchanged compared with previously reported sales.

Gross and Operating Margins

Revised gross margins, excluding stock-based compensation, decreased from 50.3% to 38.5% due to US$3.8 million of additional reserves for end-of-life and obsolete inventory. Revised operating expenses increased by US$4.2 million because of additional reserves for doubtful accounts. Revised operating expenses for the fourth quarter, excluding stock-based compensation, acquisition-related charges and one-time items were US$16.5 million compared with previously reported total operating expenses of US$12.2 million.

Earnings

Revised net loss (GAAP) was US$8.2 million, or US$0.30 per diluted ADS, compared with previously reported net loss of US$0.9 million, or US$0.03 per diluted ADS. Revised net loss excluding stock-based compensation, acquisition-related charges, foreign exchange gain, and one-time items was US$3.9 million, or US$0.14 per diluted ADS, compared with previously reported net income of US$3.2 million, or US$0.11 per diluted ADS.

First Quarter 2009 Financial Review (1)

Commenting on the results of the first quarter, Silicon Motion's President and CEO, Wallace Kou, said:

"As noted in our first quarter pre-announcement, our business continues to be affected by the ongoing global economic slowdown, specifically weak end demand, reduced supply of NAND flash components by chipmakers, and more intense competition with other controller makers. Our revenue growth and profitability have been impacted by these unfavorable industry conditions. Such factors also contributed to the need to revise our previously released unaudited results from the fourth quarter.

"The NAND flash industry this year will grow at a historically unprecedented low growth rate. Because of weak consumer demand for NAND flash storage devices, NAND flash chipmakers have been limiting production output by retiring old fabs, operating their fabs at low utilization rates, and ramping more slowly new capacity for the production of next generation flash. While these industry actions have led to a rebound in NAND flash prices, they negatively affect the availability of flash components to our customers, their related procurement of controllers, and our revenues. Additionally, our gross margin was weaker than expected this quarter because of slower transition by the flash industry to next-generation, sub-50nm NAND products and a resulting sales mix with a larger proportion coming from lower margin legacy controllers. This issue was exacerbated by more competition among controller suppliers for a more limited addressable market. Despite challenging near-term market conditions, we remain optimistic about our long-term prospects, continue to execute well in bringing to market next-generation solutions, and expect to benefit from the sales of these next generation solutions in the near future. We continue to make progress towards developing and introducing new products for next generation products such as TLC NAND and controllers to utilize faster interfaces such as USB 3.0 and SD 3.0. We are confident that NAND flash growth will rebound as consumer confidence returns and device makers continue adopting NAND flash as the preferred media for digital data storage.

"Currently there are some bright spots in our business. Our mobile communications product line, primarily our mobile TV and transceiver solutions, has been executing according to plan and delivering on product roadmap and revenue targets. We are seeing early validation of our diversification strategy for our mobile communications business with our recent design-win at a tier one handset vendor for our ISDB-T product for the Brazil market as well as wins at various domestic Chinese handset vendors for our CDMA transceiver products. Sales to China handset customers have been relatively solid, compared to sales to customers in other regions."

 (1) Unless otherwise stated, all financial information used in this
 press release is unaudited, consolidated, prepared in accordance with US
 GAAP and denominated in New Taiwan dollars. US dollar amounts are
 translated for convenience only. Such financial information is generated
 internally and has not been subjected to the same review and scrutiny,
 including internal auditing procedures and audit by independent
 auditors, to which we subject our audited consolidated financial
 statements, and may vary materially from the audited consolidated
 financial information for the same period. Any evaluation of the
 financial information presented in this press release should also take
 into account our published audited consolidated financial statements and
 the notes to those statements. In addition, the financial information
 presented is not necessarily indicative of our results for any future
 period.

Sales

Net sales in the first quarter totaled US$21.5 million, a decrease of 33% compared with the previous quarter. This quarter, mobile storage products accounted for 69% of net sales, mobile communications 22% of net sales, and multimedia SoCs 9% of net sales.

Net sales of mobile storage products, which include flash memory card controllers, USB flash drive controllers, card reader controllers, SSD controllers, and embedded flash controllers, decreased 40% from the fourth quarter of 2008 to US$14.8 million this quarter.

Net sales of mobile communication products, which include mobile TV IC solutions, CDMA RF ICs, and electronic toll collection (ETC) RF ICs, increased 2% from the fourth quarter of 2008 to US$4.7 million in the first quarter.

Net sales of multimedia SoC products, which include embedded graphics processors, MP3 SoCs, and PC camera SoCs, decreased 28% from the fourth quarter of 2008 to US$1.9 million this quarter.

Gross and Operating Margins

Gross margin excluding stock-based compensation improved from 38.5% in the fourth quarter to 44.1% this quarter. GAAP gross margin increased to 43.8% from 38.3% in the previous quarter.

Operating expenses excluding stock-based compensation, acquisition-related charges, and one-time items was US$10.0 million, which was lower than US$16.5 million in the previous quarter due to continued expense management as well as delayed R&D and other expenses. Research and development expenditures, excluding stock-based compensation, were US$5.6 million, which was lower than US$7.2 million in the previous quarter. Selling and marketing expenses excluding stock-based compensation were US$2.0 million, which was lower than US$2.5 million in the previous quarter. General and administrative expenses excluding stock-based compensation and litigation expenses were US$2.3 million, which was lower than US$6.8 million in the previous quarter. Stock-based compensation was US$1.7 million, which was less than US$2.1 million in the previous quarter. Acquisition-related charges were US$1.4 million, which was slightly lower compared to the US$1.5 million in the previous quarter. Litigation expenses decreased from US$0.5 million in the fourth quarter 2008 to less than US$0.1 million in the first quarter.

Operating margin excluding stock-based compensation, acquisition-related charges, and one-time items was a negative 2%, which was improved from the negative 12.5% in the previous quarter. GAAP operating margin was negative 16.7%, which was improved from the negative 25.5% in the previous quarter.

Other Income and Expenses

Net total other income excluding impairment on long-term investment and net foreign exchange gain was US$0.2 million, which was slightly less than US$0.3 million in the previous quarter. GAAP net total other income was US$2.7 million, which was significantly higher than US$0.2 million in the previous quarter due primarily to the impairment on long-term investment in the fourth quarter.

Earnings

Net loss excluding stock-based compensation, acquisition-related charges, net foreign exchange gain, and one-time items was US$0.8 million in this quarter, an improvement from a loss of US$3.9 million in the previous quarter. Diluted loss per ADS excluding stock-based compensation, acquisition-related charges, net foreign exchange gain, and one-time items was US$0.03, an improvement from a loss per ADS of US$0.14 in the previous quarter.

GAAP net loss was US$1.4 million, which was less than a loss of US$8.2 million in the previous quarter. Diluted GAAP loss per ADS was US$0.05, representing an improvement from the loss of US$0.30 in the previous quarter.

Balance Sheet

Cash, cash equivalents, and short-term investments increased from US$51.9 million at the end of the fourth quarter of 2008 to US$57.5 million at the end of this quarter. The increase was primarily due to the reduction of working capital. Other long term liabilities, which are comprised of loans from the Korean government for financing R&D activities, decreased from US$1.4 million at the end of the fourth quarter of 2008 to US$1.2 million at the end of this quarter.

Cash Flow

Our cash flows were as follows:

                     3 months ended March 31, 2009
                     -----------------------------
                                                      (In US$ millions)

 Net income (loss)                                                (1.4)
 Depreciation & amortization                                       2.6
 Changes in operating assets and liabilities                       7.7
 Others                                                            3.7
                                                                  ----
    Net cash provided by (used in) operating
     activities                                                   12.6
                                                                  ====
 Acquisition of property and equipment                            (0.6)
 Others                                                            0.1
    Net cash provided by (used in) investing activities           (0.5)
                                                                  ====
 Others                                                           (0.1)
                                                                  ----
    Net cash provided by (used in) financing activities           (0.1)
                                                                  ====
 Effects of changes in foreign currency exchange rates on cash    (2.6)
                                                                  ----
    Net increase in cash and cash equivalents                      9.4
                                                                  ====
 Pro-forma adjustment for foreign exchange translation            (1.9)
                                                                  ----
    Pro-forma net increase in cash and cash equivalents            7.5
                                                                  ====

During the first quarter of 2009, Silicon Motion spent US$0.6 million in capital expenditures primarily relating to the purchase of software and equipment. There were no shares repurchased in the first quarter.

Business Outlook:

Silicon Motion's President and CEO, Wallace Kou, added:

"We believe the supply of NAND flash components by chipmakers will continue to be constrained in the second quarter and do not expect significant improvement until the second half of this year. Even so, given the low utilization rate of the NAND flash industry, any improvement in utilization rates could result in significant increase in the availability of NAND flash components to our customers and increase their procurement of companion controller ICs. We do not believe current high price of flash and related constrained supply are sustainable."

For the second quarter of 2009, management expects:

 * Revenue to be up 5% to 15% sequentially
 * Non-GAAP and GAAP gross margin to be in the 44% to 46% range
 * Operating expenses excluding stock-based compensation, acquisition-
   related charges, and one-time items of approximately US$12 to US$13
   million

Conference Call & Webcast:

The Company's management team will conduct a conference call at 8:00am Eastern Time on May 12, 2009.

 (Speakers)
 Wallace Kou, President & CEO
 Riyadh Lai, CFO
 Jason Tsai, Director of Investor Relations and Strategy

 PRE-REGISTRATION:
 https://www.theconferencingservice.com/prereg/key.process?key=P3WGBWU68

 CONFERENCE CALL ACCESS NUMBERS:
 USA (Toll Free): 1 888 679 8035
 USA (Toll): 1 617 213 4848
 Taiwan (Toll Free): 0080 144 4360
 Participant Passcode: 7516 1629

 REPLAY NUMBERS (for 7 days):
 USA (Toll Free): 1 888 286 8010
 USA (Toll): 1 617 801 6888
 Participant Passcode: 8355 6666

A webcast of the call will be available on the Company's website at www.siliconmotion.com.

Discussion of Non-GAAP Financial Measures

To supplement the Company's unaudited selected financial results calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company discloses certain non-GAAP financial measures that exclude stock-based compensation, acquisition-related charges and one-time items, including non-GAAP cost of sales, non-GAAP gross profit, non-GAAP selling, general, and administrative expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per diluted ADS. These non-GAAP measures are not in accordance with or an alternative for GAAP, and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

Our non-GAAP financial measures are provided to enhance the user's overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because it is consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target's performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management's perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company's GAAP financials, provide useful information to investors by offering:

 -- the ability to make more meaningful period-to-period comparisons
    of the Company's on-going operating results;
 -- the ability to better identify trends in the Company's underlying
    business and perform related trend analysis;
 -- a better understanding of how management plans and measures the
    Company's underlying business; and
 -- an easier way to compare the Company's operating results against
    analyst financial models and operating results of our competitors
    that supplement their GAAP results with non-GAAP financial
    measures.

The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each or these individual items in our reconciliation of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges incurred as a result of the Company's adoption of SFAS 123R relating to the fair value of stock options and restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact the application of SFAS 123R has on its operating results.

Intangible amortization consists of non-cash charges that can be impacted by the timing and magnitude of our acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors.

Litigation expenses consist of the legal expenses relating to complaints SanDisk filed in the US International Trade Commission and the US District Court for the Western District of Wisconsin.

Impairment of long-term investment relates to the other-than-temporary, non-operating write down of the Company's minority stake investments in Spright Co., Ltd and Vastview Technology Corp. These investments were written down after the Company determined that these shares have been other-than-temporarily impaired.

Foreign exchange gains and losses consists of translation gains and/or losses of non-NT$ denominated current assets and current liabilities, as well as certain other balance sheet items which result from the appreciation or depreciation of non-NT$ currencies against the NT$.

                 Silicon Motion Technology Corporation
                   Consolidated Statements of Income
   (in thousands, except percentages and per share data, unaudited)

                                          For the Three Months Ended
                                       -------------------------------
                                        Mar. 31,   Dec. 31,   Mar. 31,
                                          2008       2008       2009
                                          (NT$)      (NT$)      (NT$)
                                       ---------  ---------  ---------

 Net Sales                             1,586,074  1,063,687    732,024

 Cost of sales                           776,945    655,820    411,162
                                       ---------  ---------  ---------
 Gross profit                            809,129    407,867    320,862
 Operating expenses
   Research & development                226,207    267,215    219,762
   Sales & marketing                      81,581     97,842     79,688
   General & administrative              136,509    260,811     95,887
   Loss on impairment of property and
   equipment                                  --      4,852         --
   Amortization of intangibles assets     48,806     47,901     47,877
                                       ---------  ---------  ---------
 Operating income (loss)                 316,026   (270,754)  (122,352)

 Non-operating income (expense)

   Gain on sale of investments             9,249        738        157
   Unrealized holding gain (loss) on
   marketable securities                  (1,122)      (673)        --
   Interest income (net)                  10,541      8,698      5,517
   Impairment on long-term investment         --    (69,253)        --
   Foreign exchange gain (loss)          (81,944)    65,464     86,433
   Others                                    155        279       (148)
                                       ---------  ---------  ---------
   Subtotal                              (63,121)     5,253     91,959
                                       ---------  ---------  ---------
 Income before tax                       252,905   (265,501)   (30,393)
 Income tax expense                        1,939      5,251     17,436
                                       ---------  ---------  ---------
 Net income (loss)                       250,966   (270,752)   (47,829)
                                       =========  =========  =========
 Basic earnings (loss) per ADS             $7.58     ($9.83)    ($1.75)
 Diluted earnings (loss) per ADS           $7.48     ($9.83)    ($1.72)

 Margin Analysis:
 Gross margin                              51.0%      38.3%     43.83%
 Operating margin                          19.9%     (25.5%)    (16.7%)
 Net margin                                15.8%     (25.5%)     (6.5%)

 Additional Data:
 Weighted avg. ADS equivalents(2)         33,093     27,531     27,354
 Diluted ADS equivalents                  33,546     27,556     27,783


                                          For the Three Months Ended
                                       -------------------------------
                                        Mar. 31,   Dec. 31,   Mar. 31,
                                          2008       2008       2009
                                          (US$)      (US$)      (US$)
                                       ---------  ---------  ---------

 Net Sales                                50,329     32,272     21,543

 Cost of sales                            24,654     19,897     12,100
                                       ---------  ---------  ---------
 Gross profit                             25,675     12,375      9,443
 Operating expenses
   Research & development                  7,177      8,107      6,467
   Sales & marketing                       2,589      2,969      2,345
   General & administrative                4,332      7,913      2,822
   Loss on impairment of property and
   equipment                                  --        147         --
   Amortization of intangibles assets      1,549      1,453      1,409
                                       ---------  ---------  ---------
 Operating income (loss)                  10,028     (8,214)    (3,600)

 Non-operating income (expense)
   Gain on sale of investments               293         22          5
   Unrealized holding gain (loss) on
   marketable securities                     (36)       (20)        --
   Interest income (net)                     335        264        161
   Impairment on long-term investment         --     (2,101)        --
   Foreign exchange gain (loss)           (2,600)     1,986      2,544
   Others                                      5          8         (4)
                                       ---------  ---------  ---------
   Subtotal                               (2,003)       159      2,706
                                       ---------  ---------  ---------
 Income before tax                         8,025     (8,055)      (894)
 Income tax expense                           62        159        513
                                       ---------  ---------  ---------
 Net income (loss)                         7,963     (8,214)    (1,407)
                                       =========  =========  =========

 Basic earnings (loss) per ADS             $0.24     ($0.30)    ($0.05)
 Diluted earnings (loss) per ADS           $0.24     ($0.30)    ($0.05)

 Margin Analysis:
 Gross margin                              51.0%      38.3%     43.83%
 Operating margin                          19.9%     (25.5%)    (16.7%)
 Net margin                                15.8%     (25.5%)     (6.5%)

 Additional Data:
 Weighted avg. ADS equivalents(2)         33,093     27,531     27,354
 Diluted ADS equivalents                  33,546     27,556     27,783

 ---------------------------------------------------------------------
 (2) Assumes all outstanding ordinary shares are represented by ADSs.
     Each ADS represents four ordinary shares.


                 Silicon Motion Technology Corporation
         Reconciliation of GAAP to Non-GAAP Operating Results
   (in thousands, except percentages and per share data, unaudited)


                                          For the Three Months Ended
                                       -------------------------------
                                        Mar. 31,   Dec. 31,   Mar. 31,
                                          2008       2008       2009
                                          (NT$)      (NT$)      (NT$)
                                       ---------  ---------  ---------
 GAAP net income (loss)                  250,966   (270,752)   (47,829)
 Stock-based compensation:
   Cost of sales                           3,086      1,552      2,118
   Research and development               35,113     31,321     28,053
   Sales and marketing                    12,743     14,536     11,270
   General and administrative             16,697     20,544     15,105
                                       ---------  ---------  ---------
     Total stock-based compensation       67,639     67,953     56,546
                                       ---------  ---------  ---------
 Acquisition related charges:
  Amortization of intangible assets       48,806     47,901     47,877
 Litigation expenses                      18,720     16,882      1,290
 Loss on impairment of property and
  equipment                                   --      4,852         --
 Foreign exchange loss (gain)             81,944    (65,464)   (86,433)
 Impairment on long-term investment           --     69,253         --
                                       ---------  ---------  ---------

 Non-GAAP net income (loss)              468,075   (129,375)   (28,549)
                                       =========  =========  =========
 Shares used in computing non-GAAP
  basic earnings per ADS                  33,093     27,531     27,354
                                       =========  =========  =========
 Shares used in computing non-GAAP
  diluted earnings per ADS                34,640     28,583     28,853
                                       =========  =========  =========
 Non-GAAP basic earnings (loss)
  per ADS                                 $14.14     ($4.70)    ($1.04)
                                       =========  =========  =========
 Non-GAAP diluted earnings (loss)
  per ADS                                 $13.51     ($4.53)    ($0.99)
                                       =========  =========  =========

 Non-GAAP gross margin                     51.2%      38.5%      44.1%
 Non-GAAP operating margin                 28.4%     (12.5%)     (2.3%)


                                          For the Three Months Ended
                                       -------------------------------
                                        Mar. 31,   Dec. 31,   Mar. 31,
                                          2008       2008       2009
                                          (US$)      (US$)      (US$)
                                       ---------  ---------  ---------
 GAAP net income (loss)                    7,963    (8,214)     (1,407)
 Stock-based compensation:
   Cost of sales                              98         47         62
   Research and development                1,114        950        826
   Sales and marketing                       404        441        332
   General and administrative                530        624        445
                                       ---------  ---------  ---------
     Total stock-based compensation        2,146      2,062      1,665
                                       ---------  ---------  ---------
 Acquisition related charges:
  Amortization of intangible assets        1,549      1,453      1,409
 Litigation expenses                         594        512         38
 Loss on impairment of property and
  equipment                                   --        147         --
 Foreign exchange loss (gain)              2,600    (1,986)     (2,544)
 Impairment on long-term investment           --      2,101         --
                                       ---------  ---------  ---------
 Non-GAAP net income (loss)               14,852     (3,925)      (839)
                                       =========  =========  =========
 Shares used in computing non-GAAP
  basic earnings per ADS                  33,093     27,531     27,354
                                       =========  =========  =========
 Shares used in computing non-GAAP
  diluted earnings per ADS                34,640     28,583     28,853
                                       =========  =========  =========

 Non-GAAP basic earnings (loss)
  per ADS                                  $0.45     ($0.14)    ($0.03)
                                       =========  =========  =========
 Non-GAAP diluted earnings (loss)
  per ADS                                  $0.43     ($0.14)    ($0.03)
                                       =========  =========  =========

 Non-GAAP gross margin                     51.2%      38.5%      44.1%
 Non-GAAP operating margin                 28.4%     (12.5%)     (2.3%)
 ---------------------------------------------------------------------
 Note: The Company maintains its accounts and expresses its financial
 statements in New Taiwan dollars. For convenience only, U.S. dollar
 amounts presented  in the income statement have been translated from
 New Taiwan dollars, using an average exchange rate of NT$31.51 to
 US$1 for 1Q08, NT$32.96 to US$1 for 4Q08, and NT$33.98 to US$1 for
 1Q09 based on the average of the historical exchange rate of the
 Oanda Corporation. Amounts from the balance sheet have been
 translated using the ending exchange rate for the period. The
 exchange rate was NT$32.76 to US$1 at the end of 4Q08 and NT$34.06
 to US$1 at the end of 1Q09.



                 Silicon Motion Technology Corporation
                      Consolidated Balance Sheet
                            (In thousands)
                              (Unaudited)


                            Dec. 31,   Mar. 31,   Dec. 31,   Mar. 31,
                              2008       2009       2008       2009
                             (NT$)      (NT$)      (US$)      (US$)
                           ---------- ---------- ---------- ----------
 Cash and cash equivalents  1,586,941  1,905,598     48,441     55,948
 Short-term investments       112,505     54,103      3,434      1,588
 Accounts receivable
  (net)                       923,717    755,706     28,196     22,188
 Inventories                  638,566    503,343     19,492     14,778
 Refundable deposits --
  current                      85,368     80,555      2,606      2,365
 Deferred income tax
  assets (net)                 55,276     50,112      1,688      1,471
 Prepaid expenses and
  other current assets        155,527     80,357      4,748      2,360
                           ---------- ---------- ---------- ----------
 Total current assets       3,557,900  3,429,774    108,605    100,698

 Long-term investments         50,369     50,616      1,538      1,486
 Property and equipment
  (net)                       911,885    892,317     27,835     26,198
 Goodwill and intangible
  assets (net)              2,641,504  2,590,064     80,632     76,044
 Other assets                 282,994    218,452      8,638      6,414
                           ---------- ---------- ---------- ----------
 Total assets              $7,444,652 $7,181,223 $  227,248 $  210,840
                           ========== ========== ========== ==========

 Accounts payable             378,624    340,037     11,558      9,983
 Income tax payable           212,513    159,915      6,487      4,695
 Accrued expenses and
  other current liabilities   456,710    355,073     13,940     10,425
                           ---------- ---------- ---------- ----------
 Total current liabilities  1,047,847    855,025     31,985     25,103
 Long-term liabilities         60,702     59,554      1,853      1,748
 Other liabilities             46,511     40,216      1,420      1,181
                           ---------- ---------- ---------- ----------
 Total liabilities          1,155,060    954,795     35,258     28,032
 Shareholders' equity       6,289,592  6,226,428    191,990    182,808
                           ---------- ---------- ---------- ----------
 Total liabilities &
  shareholders' equity     $7,444,652 $7,181,223 $  227,248 $  210,840
                           ========== ========== ========== ==========

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, embedded flash applications, and card readers. 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 portable multimedia players, DAB systems, PC cameras, and embedded graphics applications.

Forward-Looking Statements:

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 expected second quarter 2009 revenue, gross margin and operating expenses, all of which reflect management's estimates based on information available at this 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, our belief in the outcome of any claim or lawsuit, including those uncertainties relating to litigation filed against the Company relating to whether its products are covered by patents not owned by the Company; 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 effects the Company, its 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 May 12, 2008. We assume no obligation to update any forward-looking statements, which apply only as of the date of this press release.

CONTACT:  Silicon Motion
          Investor Contact:
          Jason Tsai, Director of IR and Strategy
            +1 408 519 7259
            Fax: +1 408 519 7101
            jtsai@siliconmotion.com
          Selina Hsieh
            +886 3 552 6888 x2311
            Fax: +886 3 560 0336
            ir@siliconmotion.com
          Media Contact:
          Sara Hsu, Project Manager
            +886 2 2219 6688 x3509
            Fax: +886 2 2219 6868
            sara.hsu@siliconmotion.com

Back