Silicon Motion Technology Corp Stock Price, News & Analysis

MaxLinear reported record net revenue of $290.6 million for Q4 2022, a 2% sequential increase and a 17% rise year-over-year. Fiscal year revenue surpassed $1 billion for the first time, with significant contributions from connectivity revenue, particularly from Wi-Fi products, which reached $105 million in Q4, up 27% sequentially and 99% year-over-year. GAAP diluted earnings per share increased to $0.38. Operating cash flow for the year was $388.7 million. The company projects Q1 2023 revenue between $240 million and $260 million. Management expressed optimism about long-term growth and upcoming acquisition of Silicon Motion.

The PCI Express Market report forecasts a growth of USD 31,584.8 million from 2022 to 2027, with a CAGR of 22.26%. North America is expected to contribute 40% to market growth, driven by rising demand for high-speed processors. The report details growth opportunities across regions and highlights product innovation as a key factor. The storage segment dominated the market in 2022. However, challenges include difficulties in managing inventory amid fluctuating customer demand. Key players identified include Broadcom, Intel, and Anritsu Corp., among others.

Silicon Motion Technology Corporation (SIMO) will release its fourth-quarter 2022 financial results on February 7, 2023, after market close. The company will not conduct an earnings conference call due to restrictions related to its transaction with MaxLinear, limiting financial guidance to what will be detailed in the earnings press release. All further material information will be disclosed in subsequent press releases or SEC filings.

Silicon Motion Technology reported a 1% decline in net sales for Q3 2022, totaling $250.8 million. SSD controller sales dropped 15% to 20%, while eMMC and UFS controller sales rose 5% to 10%. The company demonstrated its MonTitan™ enterprise-class PCIe Gen5 SSD controller at the OCP Global Summit. Net income fell to $42.9 million or $1.29 per diluted ADS. The firm is awaiting regulatory approval from SAMR for its acquisition by MaxLinear. Gross margins decreased to 47.5% due to shifting product mix.

MaxLinear reported record net revenue of $285.7 million for Q3 2022, reflecting a 2% sequential increase and a 24% year-over-year rise. The company achieved a GAAP gross profit of $167.5 million, resulting in a GAAP gross margin of 58.6%. Connectivity revenue, primarily from Wi-Fi products, soared to $83 million, up 46% sequentially and 118% year-over-year. Despite a decrease in cash flow from operations to $61.8 million, MaxLinear anticipates Q4 2022 revenue between $285 million and $295 million.

Silicon Motion Technology Corporation (Nasdaq: SIMO) will release its Q3 2022 financial results on November 1, 2022. The company will not hold an earnings call due to the pending merger with MaxLinear and will provide no additional guidance beyond the press release. Silicon Motion is a leader in NAND flash controllers for solid-state storage, supplying more SSD controllers globally and serving major OEMs. Future material information related to the merger will be disclosed in subsequent filings or press releases.

Freshfields Bruckhaus Deringer has appointed Jamillia P. Ferris as a partner in its US antitrust, competition, and trade practice, based in Washington. Ferris brings extensive experience from the DOJ and FCC, focusing on merger control and civil conduct investigations, particularly in the tech and semiconductor sectors. She has advised on significant transactions, including MaxLinear's proposed acquisition of Silicon Motion. Her integration into Freshfields aims to enhance the firm's antitrust capabilities amid increasing regulatory scrutiny.

On August 31, 2022, Silicon Motion shareholders approved the merger agreement with MaxLinear, allowing MaxLinear to acquire Silicon Motion. This acquisition is set to enhance MaxLinear's offerings in the NAND flash controller market, which is vital for solid-state storage devices. The merger requires further customary closing conditions, including approval from China's State Administration for Market Regulation. The expiration of the Hart-Scott-Rodino waiting period signals progress towards finalizing the deal.

MaxLinear, Inc. and Silicon Motion Technology Corporation have announced the approval of their merger at Silicon Motion's Extraordinary General Meeting on August 31, 2022. The vote allows MaxLinear to acquire Silicon Motion, with the latter becoming a wholly-owned subsidiary. The merger agreement, dated May 5, 2022, is pending customary closing conditions, including necessary approvals from regulatory bodies. This merger is expected to enhance both companies' market positions, particularly in the NAND flash controller segment.