Thu, Oct. 29, 1:43 PM
- Silicon Motion (SIMO -2.7%) is lower after beating Q3 estimates and guiding for Q4 revenue to be flat to up 3% Q/Q - that implies revenue of $95.4M-$98.3M, in-line with a $97.6M consensus. A broader chip stock selloff (triggered by weak guidance from NXP and others) could be weighing.
- Mobile Storage sales (flash and SSD controllers, as well as storage systems) rose 12% Y/Y to $80.9M; Mobile Communications sales (4G transceivers and mobile TV ICs) fell by $100K to $12.5M; Other revenue totaled $2M. Client SSD controllers (up over 40% Q/Q, now 20% of total revenue) were a strong point, as were eMMC controllers (benefited from higher SK Hynix orders tied to smartphone design wins). Two more auto OEM design wins were landed for SIMO's Ferri embedded storage products.
- Lifting EPS: Gross margin (non-GAAP) rose to 52.9% from 51% in Q2 and 51.6% a year ago, and topped guidance of 50%-52%. Q4 GM guidance is also at 50%-52%.
- Q3 results, PR
Wed, Oct. 28, 6:01 PM
Tue, Oct. 27, 5:35 PM
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Fri, Oct. 23, 8:15 AM
Mon, Oct. 5, 2:28 PM
- Silicon Motion (SIMO -2.8%) is lower in spite of a 1.6% Nasdaq gain after Micron announced the purchase of SSD controller developer Tidal Systems. Tidal, which employs engineers previously at SIMO rival SandForce (now a Seagate subsidiary), claims to be working on controllers featuring superior compression and error-detection algorithms.
- SIMO is 4 months removed from announcing its SM2256 SATA SSD controller supports Micron's 16nm tri-level cell (TLC) NAND chips. Last year, the company announced its SM2246EN controller supports Micron's 16nm multi-level cell (MLC) NAND chips.
Tue, Sep. 8, 12:10 PM
- JPMorgan has upgraded SanDisk (SNDK +4.6%) and Microchip (MCHP +7.7%) to Overweight, Baird has upgraded ON Semi (ON +7.7%) to Outperform, and Susquehanna has launched coverage on Silicon Motion (SIMO +4.2%) at Positive. All four names are outperforming on a day the Nasdaq is up 1.8%, and the Philadelphia Semi Index 3.2%.
- JPMorgan thinks SanDisk has addressed the execution issues that have weighed on enterprise flash sales, and is poised to once more see positive enterprise and client/embedded growth. It forecasts the enterprise SSD market will see a ~20% CAGR over the next few years.
- Regarding Microchip, JPMorgan believes shipments will soon match end-market consumption, after having come in below consumption the last 3 quarters. It also expects Microchip's microcontroller (MCU) product line to drive above-market growth.
- Update: Microchip has favorably adjusted its FQ2 guidance today.
Mon, Aug. 24, 5:36 PM
Tue, Aug. 18, 11:09 AM
- A day after Pac Crest upgraded Silicon Motion (NASDAQ:SIMO) to Overweight, BofA/Merrill has issued a 2-notch downgrade to Underperform. BofA has issued a similar downgrade for NAND flash giant SanDisk.
- As with the SanDisk downgrade, BofA cites rising memory industry capex, and related fears of industry oversupply/weak pricing. A higher-than-expected FY16 capex budget from Micron is cited, as are remarks from major SIMO client SK Hynix about possibly spending $39B on new fabs.
- Of note: Outside of its Shannon Systems Chinese flash storage unit, SIMO is a NAND controller chip supplier, rather than a seller of NAND itself. In theory at least, the company shouldn't be hurt badly by NAND price swings, provided end-market consumption is healthy.
Mon, Aug. 17, 1:00 PM
- Pac Crest's Monika Garg, upgrading Silicon Motion (NASDAQ:SIMO) to Overweight and setting a $32 target: "After our Vail [technology] conference and the Flash Summit, we are bullish on Silicon Motion’s growth opportunities in client SSDs. The stock is down 38% over the last couple of months on weak demand in China, but increasing penetration of client SSDs and larger market share should benefit SIMO."
- She also thinks recently-acquired Shannon Systems could fare well selling to Chinese firms looking to buy local. Garg's target is equal to 11x her 2016 EPS estimate, after backing out $6/share in net cash.
- Previously: Silicon Motion's Q3 guidance cautious, full-year guidance stronger
Mon, Jul. 27, 7:14 PM
- Silicon Motion's (NASDAQ:SIMO) Q2 revenue (up 8% Q/Q) was in-line with the guidance provided in its July 7 pre-announcement (7%-9% Q/Q growth).
- Q3 guidance is for revenue to rise 5%-10% Q/Q. That implies a range of $91.6M-$95.9M, below a $95.6M consensus at the midpoint. On the other hand, full-year guidance is for 22%-27% sales growth, better than a 22.9% consensus at the midpoint.
- Client (PC) SSD controller sales were a Q2 strong point, rising 40% Q/Q and accounting for 15% of revenue. SIMO: "We are scaling sales to two NAND flash partners, a storage OEM customer, and a large number of module makers, for both PC OEM and channel markets ... Based on the number of sockets that we are winning, we believe that we will be the worlds largest merchant supplier of client SSD controllers by the end of this year."
- eMMC NAND controller sales were pressured by "lackluster demand" for smartphones/tablets in China and other markets. However, SIMO add it secured a record 60+ eMMC wins, and expects eMMC sales to rise Q/Q the rest of the year. Overall, mobile storage sales rose 11% Q/Q to $70.8M, and mobile communications sales (4G transceivers, mobile TV ICs) fell 5% to $14.4M.
- Financials: Gross margin (non-GAAP) fell to 51% from 52% in Q1 and 52.2% a year ago. However, with revenue growth outpacing opex growth, op. margin rose to 24.8% from 24.1% and 23.5%. Q3 and full-year GM guidance are both at 50%-52%. SIMO ended Q2 with $201.6M in cash, and no debt (compares with a $942M market cap).
- Shares haven't yet moved AH. They fell 3.4% in regular trading ahead of the report.
- Q2 results, PR
Mon, Jul. 27, 6:10 PM
Mon, Jul. 27, 8:05 AM
Sun, Jul. 26, 5:35 PM
Wed, Jul. 22, 11:11 AM
- The Philadelphia Semi Index (SOXX -3.2%) has fallen to its lowest levels since February after Apple, ARM, and Linear Technology posted their calendar Q2 reports yesterday afternoon.
- Apple (down 4.8%) beat estimates, but offered soft guidance and reported slightly below-consensus iPhone sales. ARM (down 3.8%) reported roughly in-line Q2 results and a 26% Y/Y increase in ARM-based chip shipments, while stating it expects 2015 results to be in-line with expectations.
- Linear (down 7.8%) missed FQ4 estimates and provided weak FQ1 guidance. Notably, the analog/mixed-signal chipmaker added it saw bookings slow "considerably" towards the end of Q2, with industrial and PC demand particularly weak. Bookings have improved in July, but Linear is still "preparing for a difficult [Q3]." The company expresses optimism the downturn will be short.
- Apple suppliers are seeing big losses (previous). As are Linear peers Texas Instruments (TXN -3.7%), ON Semi (ON -5.1%), Maxim (MXIM -3.5%), IDT (IDTI -6.5%, Apple Watch supplier), InPhi (IPHI -4%), Exar (EXAR -4.2%), and Analog Devices (downgraded by Drexel Hamilton).
- Other decliners include Micron (MU -4.2%, also an Apple supplier), Synaptics (SYNA -6.4%, ditto), STMicroelectronics (STM -6.2%, downgraded by Citi), Freescale (FSL -4.8%, following merger partner/Apple supplier NXP lower), Microchip (MCHP -4.6%), Cypress (CY -4.3%), Lattice (LSCC -3.9%), and Silicon Motion (SIMO -4.4%).
- Qualcomm, TI, Cirrus Logic, SanDisk, and Xilinx report this afternoon.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Wed, Jul. 8, 11:37 AM
- Chip stocks are underperforming as the Nasdaq registers a 1.2% decline. The Philadelphia Semi Index (SOXX -2.6%) is now down 13% from a June 1 peak of $101.80, and 4% YTD; it's still up 87% from a Nov. 2012 low of $47.58.
- Plunging Chinese equity markets could be weighing on the group. With retail Chinese investors having set up brokerage accounts en masse over the last year, there are plenty of concerns about the reverse wealth effect of a crash. The Economist reccently downplayed those worries, noting a relatively modest 15% of Chinese household assets are invested in stocks.
- Major decliners among chip developers include Skyworks (SWKS -4.9%), Qorvo (QRVO -5.6%), InvenSense (INVN -5.6%), NXP (NXPI -4.7%), Freescale (FSL -4%), MoSys (MOSY -9.4%), AppliedMicro (AMCC -5.1%), Cavium (CAVM -3.8%), and Silicon Motion (SIMO -6.4%). SIMO also fell yesterday after favorably adjusting its Q2 sales guidance. Skyworks and Qorvo sold off yesterday morning before rebounding in afternoon trading.
- Other names tied to the industry that are seeing heavy selling pressure include ARM (ARMH -4%), TowerJazz (TSEM -5.1%), UMC (UMC -4.4%), Veeco (VECO -4.3%), and Axcelis (ACLS -4.6%).
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Tue, Jul. 7, 12:01 PM
- Silicon Motion (NASDAQ:SIMO) has sold off after pre-announcing it now expects 7%-9% Q/Q Q2 sales growth vs. prior guidance of 5%-10%. 793K shares have been traded, topping a 3-month daily average of 659K.
- The selloff comes amid a 1.2% drop for the Nasdaq, and a 2.2% drop for the Philadelphia Semi Index. Shares now go for 13x a 2016 EPS consensus of $2.36.
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