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

August 1, 2017

Commission File Number: 000-51380

 

 

Silicon Motion Technology Corporation

(Exact name of Registrant as specified in its charter)

 

 

Unit 04-05, 27/F, #909 Cheung Sha Wan Rd.

Cheung Sha Wan, Kowloon

Hong Kong

(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  ☒            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  ☒

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  ☒

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  ☒

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 August 1, 2017.

 

2


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: August 1, 2017     By:   LOGO
    Name: Riyadh Lai
    Title: Chief Financial Officer

 

3

EX-99.1

Exhibit 99.1

 

LOGO   

Silicon Motion Announces Results for the Period

Ended June 30, 2017

NEWS RELEASE

Financial Highlights

 

     2Q 2017 GAAP    2Q 2017 Non-GAAP
          •    Net sales    $132.7 million
(4% Q/Q, - 6% Y/Y)
   $132.7 million
(4% Q/Q, - 6% Y/Y)
          •    Gross margin    48.7%    48.7%
          •    Operating margin    22.8%    23.9%
          •    Earnings per diluted ADS    $0.67    $0.71

Business Highlights

 

    Embedded Storage1 sales increased approximately 5% Q/Q and accounted for about 80% of total sales, similar to the previous quarter

 

    Client SSD controller sales decreased almost 10% Q/Q

 

    eMMC controller sales increased almost 5% Q/Q

 

    SSD solutions sales increased over 50% Q/Q

 

    Began shipping our SATA3 SSD controller to Intel for the world’s first 64L 3D TLC NAND-based SSD, the Intel 545s

TAIPEI, Taiwan and MILPITAS, Calif., August 1, 2017 – Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion” or the “Company”) today announced its financial results for the quarter ended June 30, 2017. For the second quarter, net sales increased 4% sequentially to $132.7 million from $127.3 million in the first quarter. Net income (GAAP) increased to $24.0 million or $0.67 per diluted ADS (GAAP) from a net income (GAAP) of $23.5 million or $0.65 per diluted ADS (GAAP) in the first quarter.

For the second quarter, net income (non-GAAP) increased to $25.6 million or $0.71 per diluted ADS (non-GAAP) from a net income (non-GAAP) of $25.1 million or $0.70 per diluted ADS (non-GAAP) in the first quarter.

 

 

1  Embedded Storage comprises primarily eMMC and client SSD controllers and enterprise and industrial SSD solutions.

 

1


Second Quarter 2017 Review

“While NAND flash supply continued to improve modestly this quarter, supply remained very tight and was prioritized in favor of enterprise applications,” said Wallace Kou, President and CEO of Silicon Motion. “Separately, our eMMC NAND flash partner during the quarter was prebuilding inventory as part of their internal planning decisions. As a result, our SSD solutions and eMMC controllers grew this quarter, while our client SSD controllers declined.”

Sales

 

(in millions, except percentages)    2Q 2017     1Q 2017     2Q 2016  
   Sales     Mix     Sales     Mix     Sales     Mix  

Mobile Storage*

   $ 121.6       92   $ 116.5       92   $ 129.5       92

Q/Q

  

 

4

      -11       25  

Y/Y

     -6    

 

12

      83  

Mobile Communications**

   $ 10.0       7   $ 9.3       7   $ 9.7       7

Others

   $ 1.2       1   $ 1.5       1   $ 1.5       1

Total revenue

   $ 132.7       100   $ 127.3       100   $ 140.7       100

Q/Q

     4       -12       25  

Y/Y

     -6       13       61  

 

* Mobile Storage products include Embedded Storage products (eMMC and client SSD controllers and enterprise and industrial 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)    GAAP     Non-GAAP  
   2Q 2017     1Q 2017     2Q 2016     2Q 2017     1Q 2017     2Q 2016  

Revenue

   $ 132.7     $ 127.3     $ 140.7     $ 132.7     $ 127.3     $ 140.7  

Gross profit

   $ 64.6     $ 64.8     $ 68.1     $ 64.6     $ 64.9     $ 68.1  

Percent of revenue

     48.7     50.9     48.4     48.7     51.0     48.4

Operating expenses

   $ 34.3     $ 34.8     $ 31.9     $ 32.8     $ 31.2     $ 30.9  

Operating income

   $ 30.3     $ 30.0     $ 36.2     $ 31.8     $ 33.6     $ 37.2  

Percent of revenue

     22.8     23.6     25.7     23.9     26.4     26.5

Earnings per diluted ADS

   $ 0.67     $ 0.65     $ 0.82     $ 0.71     $ 0.70     $ 0.86  

 

2


Other Financial Information

 

(in millions)    2Q 2017      1Q 2017      2Q 2016  

Cash and cash equivalents, and short-term investments

   $ 306.0      $ 304.4      $ 219.1  

Bank loans

   $ 25.0      $ 25.0        —    

Capital expenditures

   $ 2.1      $ 3.1      $ 4.9  

Dividend payments

   $ 7.1      $ 7.1      $ 5.3  

Loan repayments

     —          —          —    

During the second quarter, we had $2.1 million of capital expenditures for the routine purchase of software and design tools.

Our second quarter cash flows were as follows:

3 months ended Jun. 30, 2017

 

     (In $ millions)  

Net income (GAAP)

     24.0  

Depreciation & amortization

     3.0  

Changes in operating assets and liabilities

     (17.9

Others

     1.2  
  

 

 

 

Net cash provided by operating activities

     10.3  
  

 

 

 

Acquisition of property and equipment

     (2.1
  

 

 

 

Net cash used in investing activities

     (2.1
  

 

 

 

Dividend

     (7.1

Others

     —    
  

 

 

 

Net cash used in financing activities

     (7.1
  

 

 

 

Effects of changes in foreign currency exchange rates on cash

     (0.1
  

 

 

 

Net increase in cash, cash equivalents and restricted cash

     1.0  
  

 

 

 

Returning Value to Shareholders

On October 24, 2016, the Board of Directors of the Company declared a $0.80 per ADS annual dividend to be paid in quarterly installments of $0.20 per ADS. On May 18, 2017, we paid $7.1 million to shareholders as the third installment of our annual dividend.

 

3


In addition, today, the Company announced that its Board of Directors has authorized a new program for the Company to repurchase up to $200 million of its ADS over a 12 month period.

Business Outlook

“We are now seeing material amounts of new 64L 3D NAND flash coming to market, with most still being directed towards the enterprise SSD market, which we believe will benefit our SSD solutions business,” said Wallace Kou, President and CEO of Silicon Motion. “Since NAND availability remains very tight, NAND pricing continues to be high, which will temporarily affect our SSD solutions and overall gross margins. Separately, based on what we are seeing from our customers’ rolling forecasts, we anticipate that our client SSD controller sales will rebound meaningfully in the fourth quarter. We believe our business will improve as NAND supply improvements accelerate over the next few quarters.”

For the third quarter of 2017, management expects:

 

     GAAP    Non-GAAP Adjustment    Non-GAAP

Revenue

   $122m to $129m

-8% to -3% Q/Q

      $122m to 129m

-8% to -3% Q/Q

Gross margin

   44.9% to 46.9%    Approximately $0.1m*    45.0% to 47.0%

Operating margin

   14.9% to 17.1%    Approximately $4.9m to 5.0m**    19.0 to 21.0%

 

* Gross margin (non-GAAP) excludes $0.1 million of stock-based compensation.
** Operating margin (non-GAAP) excludes $0.5 million of amortization of intangible assets, and $4.4 million to $4.5 million of stock-based compensation.

For the full year 2017, management expects:

 

     GAAP    Non-GAAP Adjustment    Non-GAAP

Revenue

   $512m to $528m

-8% to -5% Y/Y

      $512m to $528m

-8% to -5% Y/Y

Gross margin

   47.4% to 48.9%    Approximately $0.3m*    47.5% to 49.0%

Operating margin

   18.6% to 20.7%    Approximately $16.8m to 17.8m**    22.0% to 24.0%

 

* Gross margin (non-GAAP) excludes $0.3 million of stock-based compensation.
** Operating margin (non-GAAP) excludes $2.1 million of amortization of intangible assets, $0.3 million of litigation expense, and $14.4 million to $15.4 million of stock-based compensation.

 

4


Conference Call & Webcast:

The Company’s management team will conduct a conference call at 8:00 am Eastern Time on August 1st, 2017.

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: 4923 5521

REPLAY NUMBERS (for 7 days):

USA (Toll Free): 1 855 452 5696

USA (Toll): 1 646 254 3697

Participant Passcode: 4923 5521

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

 

5


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 gross profit (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). 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.

 

 

6


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 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.

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.

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 and unplanned activity and therefore exclude this charge when presenting non-GAAP financial measures.

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.

 

7


Silicon Motion Technology Corporation

Consolidated Statements of Income

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

 

     For the Three Months Ended  
     Jun. 30, 2016
($)
    Mar. 31, 2017
($)
    Jun. 30, 2017
($)
 

Net Sales

     140,686       127,292       132,732  

Cost of sales

     72,565       62,466       68,121  
  

 

 

   

 

 

   

 

 

 

Gross profit

     68,121       64,826       64,611  

Operating expenses

      

Research & development

     21,234       24,338       24,476  

Sales & marketing

     6,351       5,758       5,588  

General & administrative

     3,797       4,220       3,750  

Amortization of intangibles assets

     526       526       526  
  

 

 

   

 

 

   

 

 

 

Operating income

     36,213       29,984       30,271  

Non-operating income (expense)

      

Interest income, net

     441       759       958  

Foreign exchange gain (loss), net

     (488     (347     (73

Others, net

     20       (11     1  
  

 

 

   

 

 

   

 

 

 

Subtotal

     (27     401       886  
  

 

 

   

 

 

   

 

 

 

Income before income tax

     36,186       30,385       31,157  

Income tax expense

     7,139       6,874       7,124  
  

 

 

   

 

 

   

 

 

 

Net income

     29,047       23,511       24,033  
  

 

 

   

 

 

   

 

 

 

Earnings per basic ADS

   $ 0.82     $ 0.66     $ 0.67  

Earnings per diluted ADS

   $ 0.82     $ 0.65     $ 0.67  

Margin Analysis:

      

Gross margin

     48.4     50.9     48.7

Operating margin

     25.7     23.6     22.8

Net margin

     20.6     18.5     18.1

Additional Data:

      

Weighted avg. ADS equivalents2

     35,273       35,446       35,741  

Diluted ADS equivalents

     35,476       35,972       35,801  

 

 

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

 

8


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,
2016

($)
    Mar. 31,
2017

($)
    Jun. 30,
2017

($)
 

Gross profit (GAAP)

     68,121       64,826       64,611  

Gross margin (GAAP)

     48.4     50.9     48.7

Stock-based compensation expense (A)

     2       67       2  

Gross profit (non-GAAP)

     68,123       64,893       64,613  

Gross margin (non-GAAP)

     48.4     51.0     48.7

Operating expenses (GAAP)

     31,908       34,842       34,340  

Stock-based compensation expense (A)

     (470     (3,068     (982

Amortization of intangible assets

     (526     (526     (526

Litigation expense

     (9     —         —    

Operating expenses (non-GAAP)

     30,903       31,248       32,832  

Operating profit (GAAP)

     36,213       29,984       30,271  

Operating margin (GAAP)

     25.7     23.6     22.8

Total adjustments to operating profit

     1,007       3,661       1,510  

Operating profit (non-GAAP)

     37,220       33,645       31,781  

Operating margin (non-GAAP)

     26.5     26.4     23.9

Non-operating income (expense) (GAAP)

     (27     401       886  

Foreign exchange loss (gain), net

     488       347       73  

Non-operating income (expense) (non-GAAP)

     461       748       959  

Net income (GAAP)

     29,047       23,511       24,033  

Total pre-tax impact of non-GAAP adjustments

     1,495       4,008       1,583  

Income tax impact of non-GAAP

adjustments

     162       (2,386     (33

Net income (non-GAAP)

     30,704       25,133       25,583  

Earnings per diluted ADS (GAAP)

   $ 0.82     $ 0.65     $ 0.67  

Earnings per diluted ADS (non-GAAP)

   $ 0.86     $ 0.70     $ 0.71  

Shares used in computing earnings per diluted ADS (GAAP)

     35,476       35,972       35,801  

Non-GAAP Adjustments

     63       79       51  

Shares used in computing earnings per diluted ADS (non-GAAP)

     35,539       36,051       35,852  

(A) Excludes stock-based compensation as follows:

      

Cost of Sales

     2       67       2  

Research & development

     278       1,850       315  

Sales & marketing

     159       609       596  

General & administrative

     33       609       71  

 

9


Silicon Motion Technology Corporation

Consolidated Statements of Income

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

 

     For the Six Months Ended  
     Jun. 30, 2016
($)
    Jun. 30, 2017
($)
 

Net Sales

     253,368       260,023  

Cost of sales

     128,286       130,586  
  

 

 

   

 

 

 

Gross profit

     125,082       129,437  

Operating expenses

    

Research & development

     40,432       48,814  

Sales & marketing

     12,566       11,346  

General & administrative

     7,146       7,970  

Amortization of intangibles assets

     1,052       1,052  
  

 

 

   

 

 

 

Operating income

     63,886       60,255  

Non-operating expense (income)

    

Interest income, net

     866       1,717  

Foreign exchange gain (loss), net

     (428     (420

Others, net

     20       (10
  

 

 

   

 

 

 

Subtotal

     458       1,287  
  

 

 

   

 

 

 

Income before income tax

     64,344       61,542  

Income tax expense

     12,283       13,998  
  

 

 

   

 

 

 

Net income

     52,061       47,544  
  

 

 

   

 

 

 

Earnings per basic ADS

   $ 1.48     $ 1.34  
  

 

 

   

 

 

 

Earnings per diluted ADS

   $ 1.47     $ 1.32  
  

 

 

   

 

 

 

Margin Analysis:

    

Gross margin

     49.4     49.8

Operating margin

     25.2     23.2

Net margin

     20.6     18.3

Additional Data:

    

Weighted avg. ADS equivalents

     35,143       35,594  

Diluted ADS equivalents

     35,444       35,887  

 

10


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, 2016
($)
    Jun. 30, 2017
($)
 

Gross profit (GAAP)

     125,082       129,437  

Gross margin (GAAP)

     49.4     49.8

Stock-based compensation expense(A)

     45       69  

Gross profit (non-GAAP)

     125,127       129,506  

Gross margin (non-GAAP)

     49.4     49.8

Operating expenses (GAAP)

     61,196       69,182  

Stock-based compensation expense (A)

     (2,416     (4,050

Amortization of intangible assets

     (1,052     (1,052

Litigation expense

     (49     —    

Operating expenses (non-GAAP)

     57,679       64,080  

Operating profit (GAAP)

     63,886       60,255  

Operating margin (GAAP)

     25.2     23.2

Total adjustments to operating profit

     3,562       5,171  

Operating profit (non-GAAP)

     67,448       65,426  

Operating margin (non-GAAP)

     26.6     25.2

Non-operating income (expense) (GAAP)

     458       1,287  

Foreign exchange loss (gain), net

     428       420  

Non-operating income (expense) (non-GAAP)

     886       1,707  

Net income (GAAP)

     52,061       47,544  

Total pre-tax impact of non-GAAP

adjustments

     3,990       5,591  

Income tax impact of non-GAAP

adjustments

     (1,042     (2,419

Net income (non-GAAP)

     55,009       50,716  

Earnings per diluted ADS (GAAP)

   $ 1.47     $ 1.32  

Earnings per diluted ADS (non-GAAP)

   $ 1.55     $ 1.41  

Shares used in computing earnings per diluted ADS (GAAP)

     35,444       35,887  

Non-GAAP Adjustments

     89       65  

Shares used in computing earnings per diluted ADS (non-GAAP)

     35,533       35,952  

(A) Excludes stock-based compensation as follows:

    

Cost of Sales

     45       69  

Research & development

     1,443       2,165  

Sales & marketing

     609       1,205  

General & administrative

     364       680  

 

11


Silicon Motion Technology Corporation

Consolidated Balance Sheet

(In thousands, unaudited)

 

     Jun. 30,
2016
($)
     Mar. 31,
2017
($)
     Jun. 30,
2017
($)
 

Cash and cash equivalents

     203,420        302,462        303,612  

Short-term investments

     15,691        1,900        2,354  

Accounts receivable (net)

     71,931        60,456        76,644  

Inventories

     81,542        75,934        81,767  

Refundable deposits – current

     19,149        44,269        44,119  

Prepaid expenses and other current assets

     5,417        10,279        11,278  
  

 

 

    

 

 

    

 

 

 

Total current assets

     397,150        495,300        519,774  

Long-term investments

     133        120        120  

Property and equipment (net)

     48,336        48,292        48,910  

Goodwill and intangible assets (net)

     74,942        73,369        72,840  

Other assets

     8,501        5,708        5,593  
  

 

 

    

 

 

    

 

 

 

Total assets

     529,062        622,789        647,237  
  

 

 

    

 

 

    

 

 

 

Accounts payable

     48,315        30,860        32,949  

Loans

     —          25,000        25,000  

Income tax payable

     16,362        24,909        21,355  

Accrued expenses and other current liabilities

     49,359        52,937        50,750  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     114,036        133,706        130,054  

Other liabilities

     16,264        18,187        21,354  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     130,300        151,893        151,408  

Shareholders’ equity

     398,762        470,896        495,829  
  

 

 

    

 

 

    

 

 

 

Total liabilities & shareholders’ equity

     529,062        622,789        647,237  
  

 

 

    

 

 

    

 

 

 

 

12


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 ship over 750 million NAND controllers annually, 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 hyperscale datacenter 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 2017 and full year 2017 expectations of 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 third quarter of 2017 and full year 2017. 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; the effect, if any, on the price of our ADS as a result of the implementation of the announced share repurchase program; changes in our

 

13


cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in our customers’ products; our 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 28, 2017, as amended on May 2, 2017. 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
E-mail: jtsai@siliconmotion.com    E-mail: ir@siliconmotion.com
Media Contact:   
Sara Hsu   
Project Manager   
E-mail: sara.hsu@siliconmotion.com   

 

14