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Silicon Motion Technology Corporation (SIMO)

  • 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.
    | Mon, Oct. 5, 2:28 PM | Comment!
  • 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.
    | Tue, Sep. 8, 12:10 PM | 5 Comments
  • Mon, Aug. 24, 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%.
    | Mon, Aug. 24, 5:36 PM | 3 Comments
  • 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.
    | Tue, Aug. 18, 11:09 AM | 3 Comments
  • 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, Aug. 17, 1:00 PM | 1 Comment
  • 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.
    | Wed, Jul. 22, 11:11 AM | 3 Comments
  • 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%).
    | Wed, Jul. 8, 11:37 AM | 6 Comments
  • 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.
    | Tue, Jul. 7, 12:01 PM | Comment!
  • Fri, Jun. 26, 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%).
    | Fri, Jun. 26, 2:48 PM | 15 Comments
  • Wed, May 27, 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%).
    | Wed, May 27, 3:00 PM | 41 Comments
  • Mon, May 18, 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%).
    | Mon, May 18, 2:10 PM | 1 Comment
  • Thu, Apr. 30, 3:35 PM
    | Thu, Apr. 30, 3:35 PM | Comment!
  • Mon, Apr. 27, 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.
    | Mon, Apr. 27, 7:03 PM | Comment!
  • Fri, Apr. 24, 5:37 PM
    • Top gainers, as of 5:15 p.m.: UEC +4.3%. SIMO +3.3%. EJ +3.2%. CDE +2.5%. WTW +2.4%.
    • Top losers, as of 5:15 p.m.: AKRX -13.1%. MRVL -5.6%. MXWL -1.7%. VRSN -1.5%. VALE -1.4%.
    | Fri, Apr. 24, 5:37 PM | Comment!
  • Fri, Apr. 24, 11:37 AM
    • Possibly weighing on Silicon Motion (SIMO -7.1%) today: Northland Securities observes memory giant SK Hynix (OTC:HXSCF - reported earnings on Wednesday) plans to launch its own NAND controllers for the new/high-speed UFS 2.0 standard in late 2015 or early 2016
    • Northland expects UFS 2.0 (used in Samsung's Galaxy S6 and expected to go into Xiaomi's next-gen flagship) to gain share against the widely-used eMMC standard on the high-end, and thinks Hynix's controllers "will likely impact SIMO's share" at the company. It notes Hynix accounts for ~90% of SIMO's eMMC controller business, or ~35% of total revenue.
    • SIMO is working on its own UFS 2.0 controllers, which are expected to ship late this year or early next. Northland: "I do not believe that all of the eMMC business is at risk, but this will not be received well by the Street. SIMO will have this as a headwind until they can show that they will not lose significant share at SK Hynix."
    • Earlier: SIMO buying Chinese SSD/storage vendor
    | Fri, Apr. 24, 11:37 AM | Comment!
  • Fri, Apr. 24, 9:51 AM
    • Silicon Motion (NASDAQ:SIMO) is buying Shannon Systems, a Chinese provider of PCIe flash modules/SSDs and storage arrays, for $57.5M in cash, stock, and earn-out payments. The deal is expected to close by the end of July.
    • The purchase represents an attempt to move downmarket by SIMO, currently a major NAND flash controller supplier for SSDs and embedded flash modules. The deal could occasionally put the company into competition with some of its NAND controller clients. However, Shannon's sales efforts have been focused specifically on the Chinese market.
    • SIMO asserts Shannon's customers include leading Chinese Internet companies, and notes it was co-founded by Marvell's SSD controller architect. The company is expected to grow sales to $14M-$18M in 2015; SIMO expects the acquisition to be slightly accretive in 2H15 EPS and "more accretive" in 2016.
    • Shares have sold off following the announcement, which comes ahead of SIMO's April 27 Q1 report.
    | Fri, Apr. 24, 9:51 AM | 1 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