Silicon Motion Technology Corporation (SIMO) - NASDAQ
  • Thu, Apr. 7, 9:14 AM
    | Thu, Apr. 7, 9:14 AM | 7 Comments
  • Thu, Jan. 21, 4:17 PM
    • Chip stocks fared well (SOXX +1.5%) on a day the Nasdaq was nearly flat. The gains came after FPGA maker Xilinx (XLNX +8.6%) beat calendar Q4 sales estimates, issued solid Q1 guidance, and published an 8-K filing that has fueled hopes the company will join the ranks of chip firms to be acquired during the industry's M&A wave.
    • Also: Microcontroller and SRAM/NOR flash memory maker Cypress Semi (CY +7.6%) affirmed its Q4 guidance against a backdrop of low expectations.
    • Seeing the biggest gains was AMD (AMD +16.1%), which is two days removed from providing weak Q1 guidance to go with a Q4 sales beat. In spite of the guidance and the largely downbeat analyst commentary that has followed, AMD is now up 7% since the Q4 report arrived. Short-covering is likely helping - 120.4M shares (19% of the float) were shorted as of Dec. 31.
    • Small-cap Xilinx rival Lattice Semi (LSCC +10.8%) was also a standout. Lattice (like Xilinx) has seen its share of M&A speculation, and CEO Darin Billerbeck has suggested he's open to a sale.
    • Other notable gainers include Cavium (CAVM +3.6%), Silicon Motion (SIMO +3.7%), and Knowles (KN +6.5%) - Cavium is exposed to some of the same end-markets as Xilinx. MagnaChip (MX +13.9%) jumped two days after making a positive Q4 pre-announcement. Beaten-down Micron (MU +8%) also rallied strongly, possibly aided by a bullish Morgan Stanley note.
    • On its earnings call (transcript), Xilinx mentioned the automotive market (a strong point for many chip companies, as chip content within cars steadily grows) is expected to see record sales in calendar Q1, and deliver 30% sales growth for FY16 (ends in March). Mobile infrastructure-related sales are expected to rise Q/Q, but deemed unlikely to reach a March 2014 peak anytime soon. CEO Moshe Gavrielov: "[E]verything until 2020 is likely to be of a smaller scale and the next big surge will be driven by 5G."
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Thu, Jan. 21, 4:17 PM | 8 Comments
  • Oct. 29, 2015, 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
    | Oct. 29, 2015, 1:43 PM
  • Oct. 5, 2015, 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.
    | Oct. 5, 2015, 2:28 PM
  • Sep. 8, 2015, 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.
    | Sep. 8, 2015, 12:10 PM | 5 Comments
  • Aug. 24, 2015, 5:36 PM
    • Top gainers, as of 5.25 p.m.: ACOR +25.0%. UVXY +13.0%. TVIX +13.0%. BCEI +10.0%. HL +10.0%.
    • Top losers, as of 5.25p.m.: FV -11.6%. SIMO -9.3%. XIV -9.3%. SVXY -9.2%. APC -7.6%.
    | Aug. 24, 2015, 5:36 PM | 2 Comments
  • Aug. 18, 2015, 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.
    | Aug. 18, 2015, 11:09 AM | 3 Comments
  • Aug. 17, 2015, 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
    | Aug. 17, 2015, 1:00 PM | 1 Comment
  • Jul. 22, 2015, 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
    | Jul. 22, 2015, 11:11 AM | 3 Comments
  • Jul. 8, 2015, 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
    | Jul. 8, 2015, 11:37 AM | 6 Comments
  • Jul. 7, 2015, 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.
    | Jul. 7, 2015, 12:01 PM
  • Jun. 26, 2015, 2:48 PM
    • Chip stocks are seeing outsized losses (SOXX -2.6%) amid a 0.8% drop for the Nasdaq following DRAM/NAND flash giant Micron's FQ3 miss and weak FQ4 guidance - the numbers were blamed on a mixture of soft PC demand, associated DRAM price pressure, and a manufacturing process transition. Some analysts have argued Micron's issues are at least partly company-specific and/or that PC and DRAM demand will improve in 2H15.
    • The Philadelphia Semi Index is now down 7% from a June 1 peak of $101.80. It's still up 2% YTD, and (thanks partly to an industry M&A wave) roughly 2x from its fall 2012 lows.
    • In addition to PC-exposed Intel and AMD, chip stocks sporting large declines include Qorvo (QRVO -4.9%), Sigma Designs (SIGM -5.7%), MoSys (MOSY -7.9%), Anadigics (ANAD -10.8%), Silicon Motion (SIMO -6.5%), Inphi (IPHI -5.3%), PMC-Sierra (PMCS -3.8%), ON Semi (ON -4.2%), AppliedMicro (AMCC -3.7%), and Vimicro (VIMC -5.3%).
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Jun. 26, 2015, 2:48 PM | 15 Comments
  • May 27, 2015, 3:00 PM
    • Chip stocks are posting outsized gains (SOXX +4%) amid a 1.3% increase for the Nasdaq after the WSJ reported Avago and Broadcom are in advanced merger talks, sparking hopes for further M&A.
    • A Broadcom/Avago deal would be worth ~$67B at current valuations, easily making it the largest in the chip industry's breathless consolidation wave. It would also touch markets ranging from smartphones to set-tops to servers to switches/routers.
    • Notable gainers include Avago RF chip peers Skyworks (SWKS +4.3%), Qorvo (QRVO +3.2%), and Anadigics (ANAD +4.9%). Others include Micron (MU +3.8%), SanDisk (SNDK +4.3%), NXP (NXPI +3.5%), Silicon Motion (SIMO +8.3%), Cirrus Logic (CRUS +4.8%), STMicroelectronics, (STM +3.4%), Synaptics (SYNA +3.4%), Atmel (ATML +2.8%), Cavium (CAVM +4.5%), Intersil (ISIL +4.6%), Semtech (SMTC +3.9%), ON Semi (ON +3.8%), Microsemi (MSCC +4.4%), and IDT (IDTI +4.2%).
    • Non-chipmakers tied to the industry are also doing well. Standouts include ARM (ARMH +4.4%), Amkor (AMKR +4.6%), ASML (ASML +3.1%), and Rambus (RMBS +3.3%).
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | May 27, 2015, 3:00 PM | 41 Comments
  • May 18, 2015, 2:10 PM
    • Many chip stocks are turning in healthy gains amid a 0.7% gain for the Nasdaq after the NY Post reported Altera (up 6.2%) has resumed buyout talks with Intel.
    • Also possibly helping: China's big-3 carriers have announced major data tariff cuts. Brean has argued the cuts are a positive for RF chipmakers Skyworks (SWKS +5.7%), Qorvo (QRVO +4.2%), and Avago (AVGO +1.9%); the companies benefit from rising 4G phone sales.
    • Aside from the aforementioned companies, today's gainers include Synaptics (SYNA +4.8%), Himax (HIMX +2.3%), and Silicon Motion (SIMO +2.3%), each of whom also has Chinese mobile exposure. Other winners include Atmel (ATML +3.7%), Microsemi (MSCC +2.6%), InPhi (IPHI +2%), Intersil (ISIL +2.5%), Silicon Labs (SLAB +2.5%), IDT (IDTI +2.3%), and MaxLinear (MXL +3.5%).
    • Chip ETFs: SOXX, SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | May 18, 2015, 2:10 PM | 1 Comment
  • Apr. 30, 2015, 3:35 PM
    | Apr. 30, 2015, 3:35 PM
  • Apr. 27, 2015, 7:03 PM
    • Silicon Motion (NASDAQ:SIMO) expects Q2 revenue to be up 5%-10% Q/Q. That implies a range of $84.6M-$88.7M vs. an $85.7M consensus. Full-year revenue is expected to be up 17%-25% Y/Y; consensus is for 22.5% growth.
    • Though officially beating consensus, Q1 revenue of $80.6M matched guidance (provided in SIMO's April 8 pre-announcement) for sales to be roughly flat from a Q4 level of $80.5M.
    • SIMO: "Our first quarter revenue benefited from strong client SATA 3 SSD controller sales momentum and stable eMMC controller sales. Client SSD controller sales doubled sequentially ... we expect a new major SSD program with our controllers, again for both channel and OEM markets, to begin shipping in the second quarter. Our storage OEM partner began shipping SSDs to three global tier-1 PC OEMs in the first quarter and recently started shipping to two additional OEMs."
    • Mobile storage (flash controller) sales rose 41% Y/Y to $63.6M. Mobile communications (4G transceiver and TV IC) sales rose 176% to $15.2M. Gross margin (non-GAAP) was 52% vs. 52.5% in Q4 and 48.6% a year ago. Op. margin was 24.1% vs. 26% in Q4 and 16.7% a year ago. Q2 GM guidance is at 50%-52%; full-year GM guidance is still at 49.5%-51.5%.
    • Shares have risen to $31.70 AH. They fell hard on Friday after SIMO announced it's buying Chinese SSD/storage array vendor Shannon Systems and (perhaps more importantly) Northland Securities reported SK Hynix is planning to launch its own UFS 2.0 flash controllers.
    | Apr. 27, 2015, 7:03 PM
Company Description
Silicon Motion Technology Corp. engages in developing microcontroller for flash storage and mobile devices. It involves in designing and developing semiconductor solutions. The company was founded in November 2005 and is headquartered in Jhubei City, Taiwan.
Sector: Technology
Industry: Diversified Electronics
Country: Taiwan