Silicon Motion Technology (SIMO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $210.7 million, up 11% sequentially and 50% year-over-year, driven by strong NAND flash maker demand and controller sales.

• Non-GAAP diluted EPS rose to $0.96 from $0.64 in Q1, reflecting improved profitability.

• Introduced new high-performance SSD, eMMC/UFS, and enterprise controllers, expanding the product portfolio and winning new sockets across multiple markets.

• Significant progress in MonTitan platform, with two Tier 1 customer wins and sampling with over a dozen customers; sales to begin late 2024.

• Gross margins reached the high end of guidance, supported by favorable product mix and pricing.

Financial highlights

• Q2 2024 revenue was $210.7 million, up 11% sequentially and 50% year-over-year.

• Non-GAAP gross margin improved to 46.0%; operating margin rose to 16.5%.

• Non-GAAP EPS was $0.96, up from $0.64 in Q1; GAAP EPS was $0.91.

• Cash and equivalents at quarter-end were $343.6 million; operating cash flow year-to-date was $29.3 million.

• Dividend payments in Q2 2024 were $16.8 million; capital expenditures totaled $10.4 million.

Outlook and guidance

• Q3 2024 revenue expected at $205–$216 million, flat ±2.5% sequentially and up 19–25% year-over-year.

• Q3 gross margin guidance: 46%–47%; operating margin (non-GAAP): 14.3%–15.3%.

• Full-year 2024 revenue expected at $800–$830 million, up 25%–30% year-over-year.

• Full-year gross margin expected at 46%–47% (non-GAAP); operating margin at 14.8%–16.8%.

• 2024 effective tax rate expected at ~18%.