Seeking Alpha

Silicon Motion Technology Corporation (SIMO)

  • Mon, Jan. 26, 6:59 PM
    • Silicon Motion (NASDAQ:SIMO) expects Q1 revenue to be flat to down 5% Q/Q. That implies a range of $76.5M-$80.5M, mostly above a $76.9M consensus.
    • For the whole of 2015, SIMO expects revenue to grow 15%-25%; consensus is for 21.1% growth.
    • Q4 gross margin was 52.5%, down from 52.9% in Q3 but up from 48.8% a year ago. GM is expected to fall to 50%-52% in Q1, and be in a 49.5%-51.5% range for the whole of 2015 (down from 2014's 51.8%).
    • Embedded storage IC sales rose 70% Y/Y in Q4, driven by eMMC and client SSD controller demand. eMMC now makes up 40% of total revenue. Micron is an SSD controller client, and three tier-1 PC OEMs are using SSDs featuring SIMO's controllers.
    • Operating expenses rose 58% Y/Y to $21.4M. SIMO had $195.2M in cash/investments at quarter's end, and no debt.
    • Shares are at $25.60 in AH trading.
    • Q4 results, PR
  • Mon, Jan. 12, 12:55 PM
    • NAND flash giant SanDisk cut its Q4 revenue and gross margin guidance this morning. NAND controller IC vendor Silicon Motion (NASDAQ:SIMO) is slumping in response.
    • SanDisk's woes might have more to do with NAND pricing than demand; Micron mentioned last week it saw NAND prices/margins come under pressure after a rival (appears to be Samsung) boosted its supply to third parties.
    • SIMO is only four days removed from narrowing its Q4 revenue guidance, and hiking its gross margin guidance.
    | Comment!
  • Tue, Jan. 6, 1:36 PM
    • Up 30% in 2014, the Philadelphia Semi Index (SOXX -2.2%) has fallen over 4% thus far in 2015. Today's decline comes as the Nasdaq drops 1.6%.
    • Many names are posting 3%+ losses. SWKS -4.2%. QRVO -5.8%. AMAT -3.4%. KLAC -3.1%. SYNA -5.4%. IPHI -9%. ARMH -5.4%. SIMO -4.5%. MCRL -3.9%. AMCC -3.9%. CODE -5.1%. CY -4.6%. QUIK -7.9%.
    • This morning, Gartner estimated global chip sales rose 7.9% in 2014 to $339.8B, a little less than the 9.4% recently estimated by IHS. Sell-side firms have forecast industry growth will fall to the ~5% range in 2015.
    • Gartner thinks memory sales rose 16.9%, fueled by a 31.7% increase in DRAM sales. All other chip markets rose by 5.4%, a marked improvement from 2013's 0.8%. Intel (15% share) and Samsung (10.4%) claimed over a quarter of industry sales between them. Qualcomm (5.6%), Micron (4.9%), and SK Hynix (4.7%) rounded out the top-5.
  • Fri, Jan. 2, 3:33 PM
    • NAND flash controller/4G transceiver vendor Silicon Motion (NASDAQ:SIMO) is set to deliver its highest close since early October. Volume of 437K is close to a 3-month average of 454K.
    • SIMO, which has been benefiting from both smartphone and SSD market growth, currently goes for 12x 2015E EPS. The 2015 revenue growth consensus is at 21.3%.
    | 1 Comment
  • Oct. 29, 2014, 7:04 PM
    • Silicon Motion (NASDAQ:SIMO) expects revenue in seasonally weaker Q4 to be down 5%-10% Q/Q. That implies a range of $77.8M-$82.2M, mostly above a $77.9M consensus. Expectations had risen following SIMO's Oct. 7 guidance hike.
    • Gross margin rose to 52.9% in Q3 from 52.2% in Q2 and 48.8% a year ago. GM is expected to fall to the 50%-52% range in Q4.
    • GAAP opex rose 63% Y/Y to $26.7M; R&D spend accounted for $17.7M of the total.
    • The chipmaker says it's "well positioned for 2015 based on our growing pipeline of design wins" in the eMMC (NAND flash) and SSD controller markets.
    • Q3 results, PR
  • Oct. 10, 2014, 1:42 PM
    • Following Microchip's warning and related prediction of a chip industry correction, Goldman's James Covello thinks there's 15%-20% downside in industry names.
    • Covello, who lowered his industry view to Cautious in August: "The last time Microchip negatively preannounced was October 15, 2012 (3% sales miss). Between October 1 and December 31, Street 2013 sales estimates for the Semi group were revised down 6% on average."
    • He adds several datapoints suggest the industry has been overheating. Among them: Semi revenue growth has outpaced end-market growth, and supply chain inventory dollars rose 3% more than their 3-year average in Q2.
    • "Nobody will be spared," predicts Hedgeye's Craig Berger. Benchmark's Gary Mobley observes 5 of the 6 chip stocks to have made Q3 pre-announcements have thus done so to the downside.
    • Worth noting: Mobile chipmaker Silicon Motion (SIMO -8.9%) is the one chipmaker to have positively pre-announced. It might not be a coincidence that Microchip has relatively low mobile exposure.
    • Observing U.S. macro data remains positive even as China and Europe soften, Longbow's JoAnne Feeney remains bullish long-term on select names. However, she has cut her short-term rating on Linear (LLTC -3.8%) to Sell, and removed IDT (IDTI -7.1%) from her trading long list.
    • In addition to the names previously mentioned, the following chip stocks are seeing steep losses: AMD -5.1%. FCS -13.6%. NXPI -11.2%. CODE -11%. LSCC -9.6%. SIMG -8.1%. IPHI -7.7%. ISIL -9.5%. CY -6.9%. RMBS -7.1%. QUIK -5.7%. SQNS -5.1%. IMOS -6.5%.
    • Foundries and contract manufacturers are also selling off: TSM -3.9%. UMC -2%. SMI -2.4%. SANM -11.7%. FLEX -6.8%. JBL -4%.
  • Oct. 7, 2014, 9:12 AM
    • Silicon Motion (NASDAQ:SIMO) now expects Q3 revenue to be up 23%-25% Q/Q, above prior guidance for 15%-20% growth.
    • Gross margin is expected to be in a 52%-53% range, above prior guidance of 50%-52%. Q2 GM was 52.2%.
    • Full Q3 results arrive on Oct. 29. SIMO has been seeing strong demand for its eMMC NAND flash controllers from Android OEMs, an has also been growing sales of SSD controllers and 4G RF transceivers.
    | Comment!
  • Jul. 28, 2014, 6:37 PM
    • Silicon Motion (NASDAQ:SIMO) expects Q3 revenue to be up 15%-20% Q/Q. That's well above a consensus for revenue to grow 3% Q/Q to $71.7M. The chipmaker also now expects 22%-27% full-year revenue growth, above a 16.7% consensus.
    • Q2 revenue was in-line with SIMO's revised guidance. SSD/embedded revenue grew over 55% Q/Q, and made up "well over 50%" of total revenue. Within the segment, eMMC controller revenue grew 65%. SIMO asserts its eMMC controllers are now used by all top-10 smartphone OEMs not named Apple.
    • The company has also begun shipping its LTE-Advanced RF transceiver to its Korean phone partner (Samsung?), and says it has scored two more LTE-Advanced design wins with the partner.
    • SSD controller revenue grew rapidly, and a new SSD platform win was scored with a PC OEM that will go into production in 1H15. The company also expects multiple program wins with SSD vendors to ramp in 1H15.
    • Q2 gross margin was 52.2%, up from 48.6% in Q1 and 48.4% a year ago. GM is expected be in a 50%-52% range in Q3, and a 49.5%-51.5% range for the whole of 2014.
    • Q2 results, PR
    | Comment!
  • Jul. 7, 2014, 9:43 AM
    • Silicon Motion (SIMO) now expects Q2 revenue to be up 30%-32% Q/Q, well above prior guidance for 10%-15% growth. The consensus is for revenue to grow 11.7% Q/Q to $59M.
    • Q2 gross margin guidance has been hiked to 51%-52% from 48%-50%. SIMO previously also guided for a full-year GM of 48%-50%.
    • Healthy industry-wide NAND flash demand likely gave a lift to SIMO's NAND controller sales.
    • Shares have made new 52-week highs. Full Q2 results are due on July 28.
    | Comment!
  • Jul. 7, 2014, 9:14 AM
    | 1 Comment
  • Apr. 29, 2014, 12:00 PM
    • Silicon Motion (SIMO -6.3%) expects Q2 revenue to be up 10%-15% Q/Q; that's largely favorable to a consensus for 10.7% growth. But in spite of the Q2 forecast and strong Q1 sales, the chipmaker is merely reiterating full-year guidance for 5%-15% Y/Y growth (consensus is at 10.4%).
    • As forecast in its April 7 pre-announcement, SIMO's Q1 revenue was near the high end of its guidance range, and its gross margin (48.8%, -20 bps Q/Q and +780 bps Y/Y) at the low end.
    • Both Q2 and full-year GM are expected to be in a range of 48%-50%. Opex guidance has been raised to $74M-$79M from a prior $70M-$75M.
    • SIMO says it has converted the majority of its eMMC NAND flash controller sales to the relatively advanced eMMC 4.5 standard, and has begun mass-producing controllers supporting the next-gen eMMC 5.0 standard.
    • The company also claims solid module/OEM design win activity for its SSD controllers, and says a Korean OEM (presumably Samsung or LG) has adopted SIMO's LTE-Advanced transceiver for a phone design.
    • Q1 results, PR
    | Comment!
  • Feb. 26, 2014, 11:24 AM
    • Chip stocks are outperforming (SOXX +1.1%) after Avago (AVGO +5.1%) posted an FQ1 beat and strong margin numbers (albeit while guiding light, as many expected), and STMicroelectronics (STM +3.9%) exec Paul Grimme states his company's European sales are stabilizing, with Germany leading the way.
    • Notable winners: AMBA +5.4%. AMCC +5.2%. CRUS +3.3%. SWKS +3%. QUIK +4.1%. INVN +2.7%. RFMD +3.5%. TQNT +3%. SIMO +2.7%. CAVM +3.6%. Nearly all of the aforementioned names have strong mobile and/or telecom equipment exposure.
    • RBC has hiked its Avago PT to $66 from $64, and says the chipmaker remains its "top play on China and global LTE deployments." With LSI in tow, the firm thinks FY15 (ends Oct. '15) EPS will top $5.
    • Morgan Stanley ($68 PT) is confident Avago can raise LSI's op. margin to 30% from 17% over the next few years, much as the company has doubled its own op. margin to 30% post-LBO.
    | Comment!
  • Jan. 27, 2014, 7:05 PM
    • Silicon Motion (SIMO) expects Q1 revenue to be flat to down 10% Q/Q vs.a consensus for a 2% decline. However, the company also expects 2014 revenue to be up 5%-15% Y/Y vs. a consensus for 5% growth. Shares +4.8% AH. (Q4 results, PR)
    • STMicroelectronics (STM) expects Q1 revenue to decline 9.5% Q/Q (+/- 3.5%); that's worse than a consensus for a 7% drop. Shares unchanged AH for now. (Q4 results, PR)
    • Sanmina (SANM) expects FQ2 revenue of $1.425B-$1.475B and EPS of $0.36-$0.42 vs. a consensus of $1.45B and $0.37. Shares +7.1% AH. (FQ1 results, PR)
    | Comment!
  • Jan. 22, 2014, 10:04 AM
    • Intel (INTC -1.6%) has been cut to Hold by Drexel Hamilton following last week's Q4 numbers. Drexel had only upgraded shares on Dec. 6.
    • Verizon (VZ -0.7%) has been cut to Sector Perform by Pac Crest following yesterday's Q4 results (I, II).
    • Red Hat (RHT +0.7%) has been upgraded to Outperform by Oppenheimer. Morgan Stanley upgraded shares last week.
    • Qlik (QLIK +0.4%) has been upgraded to Hold by Drexel Hamilton. Q4 results are due on Feb. 20.
    • Silicon Motion (SIMO +5.3%) has been upgraded to Buy by Needham ahead of its Jan. 28 Q4 report.
    • Callidus Software (CALD +3.1%) has been started at Outperform by Credit Suisse. Q4 results arrive on Feb. 5.
    • Electronics for Imaging (EFII +4.3%) has been started at Overweight by Barclays ahead of its Jan. 28 Q4 report.
    | 1 Comment
  • Nov. 22, 2013, 9:49 AM
    • Rackspace (RAX -2.6%) has been started at Neutral by D.A. Davidson.
    • Take-Two (TTWO -3.8%) has been cut to Market Perform by Cowen.
    • Gogo (GOGO -1.9%) has been cut to Neutral by JPMorgan due to concerns about a Dec. 17 lockup expiration (67% of shares will be made available for sale).
    • ServiceSource (SREV +3.5%) has been upgraded to Buy by Credit Agricole.
    • Silicon Motion (SIMO +3.4%) has been started at Buy by BofA/Merrill.
    • Qiwi (QIWI +4.4%) has been started at Buy by Goldman shortly after beating Q3 estimates and upping its full-year guidance.
  • Nov. 19, 2013, 12:57 PM
    • Digitimes reports inventories for eMMC NAND flash products have been rising amid weaker-than-expected demand (high-end smartphone and Chinese tablet weakness are blamed). As a result, eMMC prices have slumped and vendors have begun aggressively unloading inventory.
    • SanDisk (SNDK -0.8%), a major seller of eMMC NAND modules, is off modestly. But eMMC controller supplier Silicon Motion (SIMO +6.3%), whose sales have been pressured this year by tight NAND supplies, is up sharply.
    • Following a strong start to the year, NAND pricing has come under pressure in 2H. Slowing tablet shipment growth and moderating increases in average NAND consumption per smartphone (caused in part by a mix shift towards cheaper smartphones).
    | Comment!
SIMO vs. ETF Alternatives
Company Description
Silicon Motion Technology Corp is a fabless semiconductor company that designs, develops and markets, high-performance, low-power semiconductor solutions for the multimedia consumer electronics market.
Sector: Technology
Country: Taiwan