Silicon Motion Q2 Net Profit Surges; Stock Up In Pre-Market

(RTTNews) - Silicon Motion Technology Corporation (SIMO), American-Taiwanese company, on Thursday reported a jump in net profit for the second-quarter, helped by higher revenue.

Wallace Kou, CEO of Silicon Motion, said: "Our business was strong in the second quarter of 2024, with revenue above the high-end of our guided range and gross margins at the high-end of expectations. Our SSD controller revenue increased for the fifth consecutive quarter and strength from our eMMC and UFS business accelerated as smartphone OEMs build in anticipation for a seasonally stronger second half and modest handset industry growth this year."

For the three-month period to June 30, the firm posted a net income of $30.821 million or $0.91 per ADS, higher than $11.044 million or $0.33 per ADS, recorded for the same period of previous year.

Excluding items profit was $32.461 or $0.96 per ADS as against $12.585 million or $0.38 per ADS.

Income before income tax stood at $37.022 million, compared with $11.912 million a year ago.

Operating income surged to $30.747 million from $1.818 million in 2023.

Sales increased to $210.670 million from last year's $140.361 million.

Looking ahead, for the third-quarter, Silicon Motion expects revenue of $205 million to $216 million, while annual revenue is projected to be in the range of $800 million to $830 million.

SIMO was trading up by 3.27 percent at $66.98 in the pre-market trade on the Nasdaq.