Silicon Motion Technology Corporation (SIMO), an American-Taiwanese company, reported a significant increase in net profit for the second quarter, driven by higher revenue.
Wallace Kou, CEO of Silicon Motion, said, "Our business performed strongly in the second quarter of 2024, with revenue surpassing the high end of our guidance and gross margins meeting top expectations. Our SSD controller revenue rose for the fifth consecutive quarter, and we saw accelerated growth in our eMMC and UFS business as smartphone OEMs ramped up production in anticipation of a seasonally stronger second half and modest growth in the handset industry this year."
For the three-month period ending June 30, the company posted a net income of $30.821 million, or $0.91 per ADS, compared to $11.044 million, or $0.33 per ADS, for the same period the previous year.
Excluding certain items, the profit was $32.461 million, or $0.96 per ADS, compared to $12.585 million, or $0.38 per ADS, in the prior year.
Income before income tax totaled $37.022 million, up from $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 $140.361 million last year.
Looking ahead, Silicon Motion expects third-quarter revenue to be between $205 million and $216 million, while annual revenue is projected to range from $800 million to $830 million.
SIMO shares were up 3.27 percent, trading at $66.98 in pre-market trading on the Nasdaq.
