Silicon Motion Q2 Revenue Hits $451 Million Record High, Full-Year Revenue Expected to More Than Double

Silicon Motion (SIMO-US) today (30) released its second-quarter financial results, with revenue reaching $451 million, a record high, up 32% quarter-over-quarter and 127% year-over-year. Gross margin was 50.2%, net income was $83.14 million, operating margin was 23.1%, and diluted earnings per American Depositary Share (ADS) were $2.43 (approximately NT$79).

Silicon Motion forecasts third-quarter revenue to be between $519 million and $541 million, representing 15%-20% growth from the previous quarter and 114%-124% year-over-year growth. Gross margin is expected to be between 50% and 51%, while operating margin is projected to rise to between 27.5% and 28.5%.

CEO Jason Chen stated, "Based on current order visibility and customer demand forecasts, we expect strong revenue growth to continue through the second half of this year. Although current NAND pricing and supply conditions pose challenges for several of our consumer businesses, our overall competitive strength and outlook have never been stronger. We are on track to achieve the highest annual revenue in company history, expecting full-year revenue growth to exceed 100%. Additionally, our newly launched enterprise/AI infrastructure products are still in the early adoption phase, offering significant growth potential in the future."

Silicon Motion reported that despite ongoing severe shortages of NAND and DRAM, all three major product lines achieved substantial growth. Edge and enterprise SSD controllers grew 5%-10% quarter-over-quarter and 50%-55% year-over-year. Embedded eMMC and UFS controllers grew 15%-20% quarter-over-quarter and 95%-100% year-over-year. Ferri and enterprise boot drive storage solutions showed the highest growth, increasing 110%-115% in the quarter and a staggering 1,690%-1,695% year-over-year.

Chen added, "Silicon Motion is rapidly transforming from a supplier of consumer NAND Flash controllers into a leader in controllers and storage solutions spanning AI infrastructure to edge computing. Our Q2 financial results delivered strong performance, with significant growth in revenue, gross margin, and operating margin, driven by revenue contributions from embedded eMMC and UFS controllers, enterprise and edge SSD controllers, and the rapidly growing Ferri automotive and enterprise boot drive storage solutions."

Looking ahead, Chen expressed optimism, stating, "Silicon Motion, leveraging its industry-leading NAND Flash controller technology and deep industry partnerships, is actively expanding its product portfolio and market reach from AI infrastructure to edge computing. Over the past few years, we have continuously invested to lay a solid foundation for this strategy, including industry-leading embedded eMMC and UFS controllers, a high-performance 6nm PCIe Gen5 edge SSD controller portfolio, new PCIe Gen5 and in-development PCIe Gen6 MonTitan enterprise/AI SSD controllers, and rapidly growing Ferri and enterprise boot drive storage solutions. Today, we have established a highly advantageous and comprehensive positioning across major AI markets, including AI data centers, AI servers, edge AI, and physical AI."