Core Insights - Silicon Motion Technology Corporation has achieved ASPICE Capability Level 3 (CL3) for its PCIe Gen4 SSD controller, making it the first SSD controller vendor globally to reach this milestone [1][2] - This certification emphasizes the company's ability to manage projects effectively and establish standardized workflows at the organizational level [1] Group 1: Industry Context - The increasing importance of software quality control in the automotive sector is highlighted due to the rise of software-defined vehicles and advancements in autonomous vehicles [2] - Silicon Motion's commitment to meeting rigorous automotive industry standards is underscored by its CL3 achievement, reflecting its dedication to innovation and quality [2] Group 2: Product and Technology - The company specializes in developing automotive-grade SSD storage solutions, with proprietary firmware designed for durability, performance, and power efficiency [2] - Silicon Motion's automotive products comply with international standards such as AEC-Q100, IATF 16949, ISO 21434, and ISO 26262 ASIL B, exceeding safety and reliability requirements [2] Group 3: Market Position - Silicon Motion is recognized as the global leader in supplying NAND flash controllers for solid-state storage devices, serving a wide range of applications including servers, PCs, and mobile embedded storage [3] - The company holds a significant market share in SSD controllers and provides customized solutions for hyperscale data centers and specialized industrial and automotive applications [3]

Core Viewpoint - Silicon Motion Technology Corporation has announced a new share repurchase program authorizing the repurchase of up to $50 million of its American Depositary Shares over a six-month period, effective immediately [1][2]. Financial Performance - The company experienced significant growth in both top and bottom lines in fiscal year 2024, driven by strategies aimed at increasing market share and diversifying its product portfolio [2]. - As of December 31, 2024, Silicon Motion had approximately $334.3 million in cash, cash equivalents, restricted cash, and short-term investments, indicating a strong financial position to support the repurchase program [3]. Market Strategy - The company is entering the enterprise market with its new MonTitan platform and expanding its presence in automotive, IoT, gaming, wearables, and other emerging growth markets, reflecting confidence in long-term growth opportunities [2]. - Silicon Motion is committed to opportunistically repurchasing shares when it believes the current equity value does not accurately reflect the strength of its business [2]. Company Overview - Silicon Motion is a global leader in supplying NAND flash controllers for solid-state storage devices, providing more SSD controllers than any other company for servers, PCs, and other client devices [4]. - The company also supplies customized high-performance solutions for hyperscale data centers and specialized industrial and automotive SSDs, serving a wide range of customers including major NAND flash vendors and leading OEMs [4].

Business Highlights Fourth quarter of 2024 sales decreased 10% Q/Q and decreased 6% Y/Y SSD controller sales: 4Q of 2024 decreased 5% to 10% Q/Q and decreased 5% to 10% Y/YeMMC+UFS controller sales: 4Q of 2024 decreased 10% to 15% Q/Q and were flat Y/YSSD solutions sales: 4Q of 2024 decreased 35% to 40% Q/Q and decreased 25% to 30% Y/Y Announced annual cash dividend of $2.00 per American Depositary Share (“ADS”) Financial Highlights 4Q 2024 GAAP4Q 2024 Non-GAAP* • Net sales$191.2 million (-10% Q/Q, -6% Y/Y ...

Company Performance - Silicon Motion's stock closed at $54.61, with a daily increase of +1.94%, outperforming the S&P 500, which fell by 0.51% [1] - Over the past month, shares of Silicon Motion have decreased by 1.98%, underperforming the Computer and Technology sector's gain of 0.79% and the S&P 500's gain of 2.87% [1] Earnings Forecast - The upcoming earnings release for Silicon Motion is scheduled for February 5, 2025, with projected EPS of $0.84, indicating a 9.68% decline compared to the same quarter last year [2] - Revenue is estimated at $195.55 million, reflecting a 3.37% decrease from the equivalent quarter last year [2] Analyst Estimates - Recent changes to analyst estimates for Silicon Motion indicate short-term business trends, with positive revisions suggesting analysts' confidence in the company's performance [3] - The Zacks Rank system, which incorporates these estimate changes, provides actionable ratings for investors [4] Zacks Rank and Valuation - Silicon Motion currently holds a Zacks Rank of 4 (Sell), with the consensus EPS estimate moving 1.25% lower over the past month [5] - The company has a Forward P/E ratio of 13.53, aligning with the industry average, and a PEG ratio of 0.95, compared to the industry average PEG ratio of 1.73 [6] Industry Context - The Computer - Integrated Systems industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 165, placing it in the bottom 35% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Silicon Motion (SIMO) closed at $52.63, reflecting a +1.29% change from the previous day, outperforming the S&P 500's gain of 0.88% [1] - Over the past month, shares of Silicon Motion have depreciated by 7.33%, underperforming the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 1.17% [1] Upcoming Earnings - The upcoming earnings release for Silicon Motion is scheduled for February 5, 2025, with an expected EPS of $0.84, indicating a 9.68% decrease from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projecting net sales of $195.55 million, down 3.37% from the year-ago period [2] Analyst Estimates - Recent adjustments to analyst estimates for Silicon Motion may indicate changing near-term business trends, with positive revisions suggesting optimism about the company's outlook [3] - The Zacks Rank system, which incorporates estimate changes, provides actionable ratings, with a current Zacks Rank of 4 (Sell) for Silicon Motion [4][5] Valuation Metrics - Silicon Motion has a Forward P/E ratio of 13.12, compared to the industry average of 18.3, suggesting it is trading at a discount [6] - The company holds a PEG ratio of 0.92, while the Computer - Integrated Systems industry has an average PEG ratio of 1.89, indicating favorable valuation relative to growth expectations [7] Industry Context - The Computer - Integrated Systems industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 151, placing it in the bottom 40% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Silicon Motion (SIMO) .Silicon Motion currently has an average brokerage r ...

The latest trading session saw Silicon Motion (SIMO) ending at $50.53, denoting a +0.2% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 1.83%. Meanwhile, the Dow gained 1.65%, and the Nasdaq, a tech-heavy index, added 2.45%.The chip company's shares have seen a decrease of 16.16% over the last month, not keeping up with the Computer and Technology sector's loss of 3.84% and the S&P 500's loss of 3.31%.Investors will be eagerly watching for the performance of Silicon Motion ...

TAIPEI, Taiwan and MILPITAS, Calif., Jan. 07, 2025 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion” or the “Company”), a global leader in NAND flash controllers for solid state storage devices, announces that based on its preliminary fourth quarter financial results, revenue is expected to be at the low end of its original guidance range of $191 million to $202 million, which the Company issued on October 31, 2024. Gross margin (non-GAAP) is expected to be near th ...

In the latest market close, Silicon Motion (SIMO) reached $56.49, with a +0.74% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 1.1% for the day. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.Shares of the chip company have appreciated by 0.47% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.09% and outperforming the S&P 500's gain of 0.22%.The investment community will ...

In the latest trading session, Silicon Motion (SIMO) closed at $56.15, marking a +0.05% move from the previous day. This change lagged the S&P 500's 0.82% gain on the day. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq appreciated by 1.77%.Coming into today, shares of the chip company had gained 9.76% in the past month. In that same time, the Computer and Technology sector gained 1.43%, while the S&P 500 gained 0.8%.Market participants will be closely following the financial result ...