Silicon Motion Technology (SIMO) Q4 2024 earnings summary

Executive summary

• Full-year 2024 revenue grew 26% year-over-year to $803.6 million, outpacing the broader semiconductor market.

• Q4 2024 revenue was $191.2 million, down 10% sequentially and 6% year-over-year.

• Gross margin improved to 46.2% for FY24 and 47% in Q4, with operating margin rising to 15.3% for FY24 and 16.5% in Q4.

• Successfully diversified into enterprise SSD, automotive, and industrial markets, with new product launches and customer wins.

• Announced an annual cash dividend of $2.00 per ADS.

Financial highlights

• Q4 2024 non-GAAP gross margin was 47.0%, and operating margin was 16.5%.

• Q4 2024 non-GAAP EPS was $0.91; GAAP EPS was $0.68.

• Cash and equivalents at year-end 2024 were $334.3 million; inventories decreased to $201.2 million.

• Q4 2024 capital expenditures totaled $10.8 million; $16.8 million in dividends paid in Q4.

• FY24 non-GAAP net income was $116.0 million, up 52% year-over-year.

Outlook and guidance

• Q1 2025 revenue expected at $158–$167 million, down 12.5%–17.5% sequentially, reflecting weak PC and smartphone demand.

• Q1 2025 gross margin guidance is 47%–47.5%; operating margin expected between 7.7% and 9.7%.

• Full-year 2025 revenue projected to grow mid-single digits, with significant second-half weighting and a $1 billion annualized run-rate targeted by Q4 2025.

• Gross margin expected to trend toward the higher end of the historical 48%–50% range by year-end.

• Management anticipates a rebound in 2H25 after weak demand in 1H25.