TapTechNews August 5th news, according to the 2024 Q2 financial report announced by Silicon Motion on the 2nd of this month, the company achieved revenue of 210.67 million US dollars (TapTechNews note: currently about 1.511 billion RMB) in the previous quarter, with a 50% year-on-year increase, and the sequential growth rate also reached 11%.
Silicon Motion achieved a 46% gross margin in the second quarter, and the after-tax net profit was 32.46 million US dollars (currently about 233 million RMB), and the diluted profit per American Depositary Receipt (ADR) was 0.96 US dollars.
From the perspective of various subdivided business categories, the strong sales of mobile storage master controllers is one of the main reasons for the good performance of Silicon Motion in the second quarter of 2024: The revenue of Silicon Motion's eMMC/UFS master controller chips in the previous quarter increased by 190-195% year-on-year and also increased by 25%-30% sequentially.
In addition, the revenue of Silicon Motion's solid-state drive master controller chips in the second quarter increased by 0%-5% sequentially and 25%-30% year-on-year; the revenue of solid-state drive solutions increased by 20%-25% sequentially, and there was a 5%-10% decline year-on-year.
Silicon Motion General Manager Kou Jiazhang said:
The second quarter's performance was outstanding, not only did the revenue exceed the high target of the financial forecast, but the gross margin also reached the high target of the expected.
Our solid-state drive controller chip revenue has grown continuously for five quarters, and the growth of the eMMC and UFS businesses has accelerated because smartphone OEM manufacturers expect a seasonal increase in the second half of the year.
The strong start in the first half of 2024 makes us firmly believe that our increasing market share among NAND major customers and the continuously expanding product portfolio will continue to drive the growth and profitability performance this year.
Looking forward to the future, Kou Jiazhang said:
Benefiting from the continuous increase in the outsourcing ratio of NAND major customers' controller chips, the new cases we cooperate with NAND customers will continue to increase in volume this year and become an important foundation for long-term revenue and profit growth.
Our controller chips specifically developed for PCs and smartphones are highly differentiated and can provide more efficient, high-capacity and more cost-effective storage solutions, leading customers to the most advanced markets, such as the application of AI in edge devices.
Although the current SSD products show weakness in the retail market and most consumer electronics have poor demand in the retail market, we are confident that with the continued strong growth of the OEM business of NAND major customers, the full-year outlook will still reach the previous expected level.
Silicon Motion estimates that the revenue in the third quarter of 2024 can reach 205-216 million US dollars (currently about 1.47-1.549 billion RMB), with a sequential -2.5% to +2.5% and a year-on-year +10% to +25%, and the gross margin can reach 46%-47%.
And the full-year revenue in 2024 can reach 800-830 million US dollars (currently about 5.736-5.952 billion RMB), achieving 25%-30% growth year-on-year, and the gross margin is in the 46%-47% range.