Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

July 21, 2016

Commission File Number: 000-51380

 

 

Silicon Motion Technology Corporation

(Exact name of Registrant as specified in its charter)

 

 

8F-1, No.36, Taiyuan St.

Jhubei City, Hsinchu County 302

Taiwan

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F   x             Form 40-F   ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes   ¨             No   x

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes   ¨             No   x

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes   ¨            No  x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

Not applicable

 

 

 


Exhibits

    
Exhibit 99.1    Press Release issued by the Company on July 21, 2016.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    SILICON MOTION TECHNOLOGY CORPORATION

Date: July 21, 2016

     
    By:   /s/ Riyadh Lai
    Name: Riyadh Lai
    Title: Chief Financial Officer

 

2

EX-99.1

Exhibit 99.1

 

LOGO   

Silicon Motion Announces Results for

the Period Ended June 30, 2016

 

NEWS RELEASE

Financial Highlights

 

    Net sales of $140.7 million (up 25% Q/Q and up 61% Y/Y)

 

    Gross margin (non-GAAP1) of 48.4% (compared to 50.6% in 1Q16 and 51.0% in 2Q15)

 

    Operating margin (non-GAAP) of 26.5% (compared to 26.8% in 1Q16 and 24.8% in 2Q15)

 

    Diluted earnings per ADS (non-GAAP) of $0.86 (compared to $0.68 in 1Q16 and $0.51 in 2Q15)

Business Highlights

 

    Highest quarterly revenue, net income (non-GAAP) and EPS (non-GAAP) in our corporate history

 

    Embedded Storage product sales increased approximately 25% Q/Q and accounted for almost 80% of total revenue

 

    Client SSD controller sales increased over 30% Q/Q

 

    eMMC controller sales increased over 5% Q/Q

 

    Specialized enterprise and industrial SSD Solutions sales increased over 50% Q/Q

 

    Started initial sales of client SSD and eMMC controllers for 3D NAND to flash partners

 

    Shipped over five billion NAND controllers in the past ten years

TAIPEI, Taiwan and MILPITAS, Calif., July 22, 2016 – Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion” or the “Company”) today announced its financial results for the quarter ended June 30, 2016. For the second quarter, net sales increased sequentially to $140.7 million from $112.7 million in the first quarter. Net income (non-GAAP) increased to $30.7 million or $0.86 per diluted ADS from a net income (non-GAAP) of $24.3 million or $0.68 per diluted ADS in the first quarter.

GAAP net income for the second quarter increased to $29.0 million or $0.82 per diluted ADS from a GAAP net income of $23.0 million or $0.65 per diluted ADS in the first quarter.

 

 

1  Non-GAAP measures represent GAAP measures excluding the impact of stock-based compensation, amortization of intangibles assets, foreign exchange gain (loss), and other non-recurring items. For reconciliation of non-GAAP to GAAP results and further discussion, see accompanying financial tables and the note “Discussion of Non-GAAP Financial Measures” at the end of this press release.

 

1


Second Quarter 2016 Review

“Second quarter sales exceeded our original plan with stronger than expected demand coming from all segments of our business,” said Wallace Kou, President and CEO of Silicon Motion. “Client SSDs were by far our biggest growth driver, led by sales to our three NAND flash partners. Sales to these three customers increased over 50% sequentially. Sales of our eMMC and Shannon and Ferri specialized SSD Solutions also exceeded expectations.”

Sales

 

(in millions, except percentages)

   2Q 2016      1Q 2016      2Q 2015  
   Sales      Mix      Sales      Mix      Sales      Mix  

Mobile Storage*

   $ 129.5         92%       $ 104.0         92%       $ 70.8         81%   

Q/Q

     25%            19%            11%      

Y/Y

     83%            63%            20%      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mobile Communications**

   $ 9.7         7%       $ 7.0         6%       $ 14.4         17%   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Others

   $ 1.5         1%       $ 1.7         2%       $ 2.0         2%   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenue

   $ 140.7         100%       $ 112.7         100%       $ 87.2         100%   

Q/Q

     25%            15%            8%      

Y/Y

     61%            40%            26%      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

* Mobile Storage products include Embedded Storage products (eMMC and SSD controllers and SSD Solutions) and Expandable Storage products (SD and USB flash drive controllers)
** Mobile Communications products include mobile TV SoCs and handset transceivers

Key Financial Results

 

(in millions, except percentages and per ADS amounts)

   Non-GAAP      GAAP  
   2Q 2016      1Q 2016      2Q 2015      2Q 2016      1Q 2016      2Q 2015  

Revenue

   $ 140.7       $ 112.7       $ 87.2       $ 140.7       $ 112.7       $ 87.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

   $ 68.1       $ 57.0       $ 44.5       $ 68.1       $ 57.0       $ 44.5   

Percent of revenue

     48.4%         50.6%         51.0%         48.4%         50.6%         51.0%   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Operating expenses

   $ 30.9       $ 26.8       $ 22.9       $ 31.9       $ 29.3       $ 23.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

   $ 37.2       $ 30.2       $ 21.6       $ 36.2       $ 27.7       $ 21.1   

Percent of revenue

     26.5%         26.8%         24.8%         25.7%         24.6%         24.2%   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per ADS (diluted)

   $ 0.86       $ 0.68       $ 0.51       $ 0.82       $ 0.65       $ 0.53   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

2


Other Financial Information

 

(in millions)

   2Q 2016      1Q 2016      2Q 2015  

Cash and cash equivalents, and short-term investments

   $ 219.1       $ 191.0       $ 201.6   
  

 

 

    

 

 

    

 

 

 

Capital Expenditures

   $ 4.9       $ 2.0       $ 2.9   
  

 

 

    

 

 

    

 

 

 

Dividend payments

   $ 5.3       $ 5.3       $ 5.1   
  

 

 

    

 

 

    

 

 

 

During the second quarter, we had $4.9 million of capital expenditures, with $2.0 million spent on the purchase of additional operating facilities and $2.9 million for the routine purchase of software and design tools.

Our second quarter cash flows were as follows:

3 months ended June 30, 2016

 

     (In $ millions)  

Net income

     29.0   

Depreciation & amortization

     2.7   

Changes in operating assets and liabilities

     (4.7

Others

     0.2   
  

 

 

 

Net cash provided by operating activities

     27.2   
  

 

 

 

Acquisition of property and equipment

     (4.9

Others

     0.2   
  

 

 

 

Net cash used in investing activities

     (4.7
  

 

 

 

Dividend

     (5.3

Others

     —     
  

 

 

 

Net cash used in financing activities

     (5.3
  

 

 

 

Effects of changes in foreign currency exchange rates on cash

     —     
  

 

 

 

Net increase in cash and cash equivalents

     17.2   
  

 

 

 

Returning Value to Shareholders

On November 2, 2015, the Board of Directors of the Company declared a $0.60 per ADS annual dividend to be paid in quarterly installments of $0.15 per ADS. On May 9, 2016, the third installment was paid and we recorded $5.3 million as dividend payments to our shareholders.

 

3


Business Outlook

“We expect our strong sales momentum to continue into the third quarter,” said Wallace Kou, President and CEO of Silicon Motion. “This year, our client SSD controller sales are expected to increase by up to 150% and eMMC controller market share is expected to increase meaningfully. Our one-time SSD Solutions project in the second quarter was recently enlarged and we now expect it will expand further in the third quarter, which will temporarily decrease our overall gross margin for another quarter. This year, as a result of stronger sales, we anticipate better operating leverage and expect our operating margin to expand meaningfully.”

For the third quarter of 2016, management expects:

 

    Revenue to increase 0% to 5% sequentially

 

    Gross margin (non-GAAP) to be in the 46% to 48% range

 

    Operating margin (non-GAAP) to be in the 26% to 28% range

For the full-year 2016, management expects:

 

    Revenue to increase 44% to 46% as compared to full-year 2015

 

    Gross margin (non-GAAP) to be in the 47.5% to 49.5% range

 

    Operating margin (non-GAAP) to be in the 25.5% to 27.5% range

Conference Call & Webcast:

The Company’s management team will conduct a conference call at 8:00 am Eastern Time on July 22, 2016.

Speakers

Wallace Kou, President & CEO

Riyadh Lai, CFO

Jason Tsai, Senior Director of Investor Relations and Strategy

CONFERENCE CALL ACCESS NUMBERS:

USA (Toll Free): 1 866 519 4004

USA (Toll): 1 845 675 0437

Taiwan (Toll Free): 0080 112 6920

Participant Passcode: 4531 8340

REPLAY NUMBERS (for 7 days):

USA (Toll Free): 1 855 452 5696

USA (Toll): 1 646 254 3697

Participant Passcode: 4531 8340

A webcast of the call will be available on the Company’s website at www.siliconmotion.com.

 

4


Discussion of Non-GAAP Financial Measures

To supplement the Company’s unaudited selected financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including non-GAAP cost of sales, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per diluted ADS. These non-GAAP measures are not in accordance with or an alternative to GAAP, and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because it is consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management’s perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

 

  the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;

 

  the ability to better identify trends in the Company’s underlying business and perform related trend analysis;

 

  a better understanding of how management plans and measures the Company’s underlying business; and

 

  an easier way to compare the Company’s operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures.

 

5


The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges related to the fair value of stock options and restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.

Foreign exchange gains and losses consist of translation gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.

Amortization of intangibles assets consists of non-cash charges that can be impacted by the timing and magnitude of our acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors.

Other non-recurring items:

 

  Litigation expenses consist of legal expenses relating to intellectual property disputes, commercial claims and other types of litigation. While litigation may arise in the ordinary course of our business, we nevertheless consider litigation to be an unusual, non-recurring and unplanned activity and therefore exclude this charge when presenting non-GAAP financial measures.

 

  Acquisition costs consist of direct costs of acquisitions, such as transaction fees, which vary significantly and are unique to each acquisition. The Company does not acquire businesses on a predictable cycle, so we have excluded the effect of these costs in calculating our non-GAAP operating expenses and net income.

 

6


Silicon Motion Technology Corporation

Consolidated Statements of Income

(in thousands, except percentages and per ADS data, unaudited)

 

     For the Three Months Ended  
     Jun. 30, 2015
($)
     Mar. 31, 2016
($)
     Jun. 30, 2016
($)
 

Net Sales

     87,213         112,682         140,686   

Cost of sales

     42,729         55,721         72,565   
  

 

 

    

 

 

    

 

 

 

Gross profit

     44,484         56,961         68,121   

Operating expenses

        

Research & development

     15,893         19,198         21,234   

Sales & marketing

     4,183         6,215         6,351   

General & administrative

     3,276         3,349         3,797   

Amortization of intangibles assets

     —           526         526   
  

 

 

    

 

 

    

 

 

 

Operating income

     21,132         27,673         36,213   

Non-operating income (expense)

        

Gain on sale of investments

     1         —           1   

Interest income, net

     503         425         441   

Foreign exchange gain (loss), net

     229         60         (488

Others, net

     8         —           19   
  

 

 

    

 

 

    

 

 

 

Subtotal

     741         485         (27
  

 

 

    

 

 

    

 

 

 

Income before income tax

     21,873         28,158         36,186   

Income tax expense

     3,648         5,144         7,139   
  

 

 

    

 

 

    

 

 

 

Net income

     18,225         23,014         29,047   
  

 

 

    

 

 

    

 

 

 

Basic earnings per ADS

   $ 0.53       $ 0.66       $ 0.82   

Diluted earnings per ADS

   $ 0.53       $ 0.65       $ 0.82   

Margin Analysis:

        

Gross margin

     51.0%         50.6%         48.4%   

Operating margin

     24.2%         24.6%         25.7%   

Net margin

     20.9%         20.4%         20.6%   

Additional Data:

        

Weighted avg. ADS equivalents2

     34,431         35,014         35,273   

Diluted ADS equivalents

     34,654         35,412         35,476   

 

2  Assumes all outstanding ordinary shares are represented by ADSs. Each ADS represents four ordinary shares.

 

7


Silicon Motion Technology Corporation

Reconciliation of GAAP to Non-GAAP Operating Results

(in thousands, except percentages and per ADS data, unaudited)

 

     For the Three Months Ended  
     Jun. 30, 2015
($)
    Mar. 31, 2016
($)
    Jun. 30, 2016
($)
 

GAAP net income

     18,225        23, 014        29,047   

Stock-based compensation:

      

Cost of sales

     2        43        2   

Research and development

     176        1,174        279   

Sales and marketing

     78        454        159   

General and administrative

     24        334        33   
  

 

 

   

 

 

   

 

 

 

Total stock-based compensation

     280        2,005        473   
  

 

 

   

 

 

   

 

 

 

Non-recurring items:

      

Litigation expenses

     44        30        8   

Acquisition costs

     192        —          —     

Amortization of intangibles assets

     —          526        526   

Foreign exchange loss (gain), net

     (972     (1,270     650   
  

 

 

   

 

 

   

 

 

 

Non-GAAP net income

     17,769        24,305        30,704   
  

 

 

   

 

 

   

 

 

 

Shares used in computing non-GAAP diluted earnings per ADS

     34,686        35,527        35,539   

Non-GAAP diluted earnings per ADS

   $ 0.51      $ 0.68      $ 0.86   

Non-GAAP gross margin

     51.0%        50.6%        48.4%   

Non-GAAP operating margin

     24.8%        26.8%        26.5%   

 

8


Silicon Motion Technology Corporation

Consolidated Statements of Income

(in thousands, except percentages, and per ADS data, unaudited)

 

     For the Six Months Ended  
     Jun. 30, 2015
($)
     Jun. 30, 2016
($)
 

Net Sales

     167,859         253,368   

Cost of sales

     81,452         128,286   
  

 

 

    

 

 

 

Gross profit

     86,407         125,082   

Operating expenses

     

Research & development

     32,248         40,432   

Sales & marketing

     8,492         12,566   

General & administrative

     6,716         7,146   

Amortization of intangibles assets

     —           1,052   
  

 

 

    

 

 

 

Operating income

     38,951         63,886   

Non-operating expense (income)

     

Gain on sale of investments

     2         1   

Interest income, net

     1,017         866   

Foreign exchange gain (loss), net

     379         (428

Others, net

     4         19   
  

 

 

    

 

 

 

Subtotal

     1,402         458   
  

 

 

    

 

 

 

Income before income tax

     40,353         64,344   

Income tax expense

     6,666         12,283   
  

 

 

    

 

 

 

Net income

     33,687         52,061   
  

 

 

    

 

 

 

Basic earnings per ADS

   $ 0.98       $ 1.48   
  

 

 

    

 

 

 

Diluted earnings per ADS

   $ 0.97       $ 1.47   
  

 

 

    

 

 

 

Margin Analysis:

     

Gross margin

     51.5%         49.4%   

Operating margin

     23.2%         25.2%   

Net margin

     20.1%         20.6%   

Additional Data:

     

Weighted avg. ADS equivalents

     34,249         35,143   

Diluted ADS equivalents

     34,703         35,444   

 

9


Silicon Motion Technology Corporation

Reconciliation of GAAP to Non-GAAP Operating Results

(in thousands, except percentages and per ADS data, unaudited)

 

     For the Six Months Ended  
     Jun. 30, 2015
($)
    Jun. 30, 2016
($)
 

GAAP net income

     33,687        52,061   

Stock-based compensation:

    

Cost of sales

     40        45   

Research and development

     1,154        1,453   

Sales and marketing

     341        613   

General and administrative

     283        367   
  

 

 

   

 

 

 

Total stock-based compensation

     1,818        2,478   
  

 

 

   

 

 

 

Non-recurring items:

    

Litigation expenses

     52        38   

Acquisition costs

     326        —     

Amortization of intangibles assets

     —          1,052   

Foreign exchange loss (gain), net

     (1,545     (620
  

 

 

   

 

 

 

Non-GAAP net income

     34,338        55,009   
  

 

 

   

 

 

 

Shares used in computing non-GAAP diluted earnings per ADS

     34,752        35,533   

Non-GAAP diluted earnings per ADS

   $ 0.99      $ 1.55   

Non-GAAP gross margin

     51.5%        49.4%   

Non-GAAP operating margin

     24.5%        26.6%   

 

10


Silicon Motion Technology Corporation

Consolidated Balance Sheet

(In thousands, unaudited)

 

     Jun. 30, 2015
($)
     Mar. 31, 2016
($)
     Jun. 30, 2016
($)
 

Cash and cash equivalents

     200,910         186,189         203,420   

Short-term investments

     723         4,818         15,691   

Accounts receivable (net)

     49,992         77,277         71,931   

Inventories

     50,299         72,774         81,542   

Refundable deposits – current

     19,275         19,302         19,149   

Prepaid expenses and other current assets

     10,784         4,587         5,417   
  

 

 

    

 

 

    

 

 

 

Total current assets

     331,983         364,947         397,150   

Long-term investments

     133         133         133   

Property and equipment (net)

     36,640         49,598         48,336   

Goodwill and intangible assets (net)

     35,463         75,469         74,942   

Other assets

     5,573         4,743         8,501   
  

 

 

    

 

 

    

 

 

 

Total assets

     409,792         494,890         529,062   
  

 

 

    

 

 

    

 

 

 

Accounts payable

     26,373         46,851         48,315   

Income tax payable

     17,215         16,728         16,362   

Accrued expenses and other current liabilities

     28,479         48,240         49,359   
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     72,067         111,819         114,036   

Other liabilities

     8,581         13,314         16,264   
  

 

 

    

 

 

    

 

 

 

Total liabilities

     80,648         125,133         130,300   

Shareholders’ equity

     329,144         369,757         398,762   
  

 

 

    

 

 

    

 

 

 

Total liabilities & shareholders’ equity

     409,792         494,890         529,062   
  

 

 

    

 

 

    

 

 

 

 

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About Silicon Motion:

We are the global leader in supplying NAND flash controllers for solid state storage devices and the merchant leader in supplying SSD controllers. We have the broadest portfolio of controller technologies and solutions and have shipped over five billion NAND controllers, more than any other company in the world. Our controllers are widely used in embedded storage products such as SSDs and eMMCs which are found in smartphones, PCs and industrial and commercial applications. We also supply specialized high-performance enterprise and industrial SSD solutions. Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs. For further information on Silicon Motion, visit us at www.siliconmotion.com.

Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation, statements about Silicon Motion’s currently expected third quarter of 2016 and full year 2016 revenue, gross margin and operating expenses, all of which reflect management’s estimates based on information available at this time of this press release. While Silicon Motion believes these estimates to be meaningful, these amounts could differ materially from actual reported amounts for the second quarter of 2016 and full year 2016. Forward-looking statements also include, without limitation, statements regarding trends in the multimedia consumer electronics market and our future results of operations, financial condition and business prospects. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from these customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; our ability to continue to successfully integrate our 2015 acquisition of Shannon Systems; changes in our cost of finished goods; the payment, or non-payment, of cash dividends in the future at the discretion of our board of directors; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in our customers’ products; our

 

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customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions, its customers and consumers; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including our Annual Report on Form 20-F filed on April 29, 2016. We assume no obligation to update any forward-looking statements, which apply only as of the date of this press release.

 

Investor Contact:

   Investor Contact:

Jason Tsai

   Selina Hsieh

Senior Director of IR and Strategy

   Investor Relations

Tel: +1 408 519 7259

   Tel: +886 3 552 6888 x2311

Fax: +1 408 519 7101

   Fax: +886 3 560 0336

E-mail: jtsai@siliconmotion.com

   E-mail: ir@siliconmotion.com

Media Contact:

  

Sara Hsu

  

Project Manager

  

Tel: +886 2 2219 6688 x3509

  

Fax: +886 2 2219 6868

  

E-mail: sara.hsu@siliconmotion.com

  

 

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