Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of October 2024

Commission File Number: 000-51380

 

 

Silicon Motion Technology Corporation

(Exact name of Registrant as specified in its charter)

 

 

Flat C, 19/F, Wing Cheong Commercial Building

Nos 19-25 Jervois Street

Hong Kong

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒   Form 40-F ☐

 

 

 

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Exhibit No.		Description
99.1		Earnings Release issued by the Company on October 31, 2024
99.2		Press Release issued by the Company on October 31, 2024

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

				SILICON MOTION TECHNOLOGY CORPORATION
Date: October 31, 2024
				By:		/s/ Jason Tsai
				Name:		Jason Tsai
				Title:		Chief Financial Officer

 

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Exhibit 99.1

 

		Silicon Motion Announces Results for the Period Ended September 30, 2024

NEWS RELEASE

Business Highlights

 

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Third quarter of 2024 sales increased 1% Q/Q and increased 23% Y/Y

 

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SSD controller sales: 3Q of 2024 were flat Q/Q and increased 20% to 25% Y/Y

 

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eMMC+UFS controller sales: 3Q of 2024 increased 0% to 5% Q/Q and increased 40% to 45% Y/Y

 

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SSD solutions sales: 3Q of 2024 increased 5% to 10% Q/Q and increased 5% to 10% Y/Y

Financial Highlights

 

		3Q 2024 GAAP		3Q 2024 Non-GAAP
•  Net sales		$212.4 million (+1% Q/Q, +23% Y/Y)		$212.4 million (+1% Q/Q, +23% Y/Y)
•  Gross margin		46.7%		46.8%
•  Operating margin		11.5%		16.1%
•  Earnings per diluted ADS		$0.62		$0.92

TAIPEI, Taiwan and MILPITAS, Calif., October 31, 2024 – Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company” or “we”) today announced its financial results for the quarter ended September 30, 2024. For the third quarter of 2024, net sales (GAAP) increased sequentially to $212.4 million from $210.7 million in the second quarter of 2024. Net income (GAAP) decreased to $20.8 million, or $0.62 per diluted American Depositary Share of the Company (“ADS”) (GAAP), from net income (GAAP) of $30.8 million, or $0.91 per diluted ADS (GAAP), in the second quarter of 2024.

For the third quarter of 2024, net income (non-GAAP) decreased to $31.0 million, or $0.92 per diluted ADS (non-GAAP), from net income (non-GAAP) of $32.5 million, or $0.96 per diluted ADS (non-GAAP), in the second quarter of 2024.

All financial numbers are in U.S. dollars unless otherwise noted.

 

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Third Quarter of 2024 Review

“We continued to execute well in the third quarter of 2024, delivering revenue above the mid-point of our guided range and further expanding our gross margins,” said Wallace Kou, President and CEO of Silicon Motion. “Our eMMC and UFS controller revenue grew modestly, and our SSD controller revenue remained strong given continued growth in the OEM channel. We continue to outperform the market through new wins we secured this quarter with both NAND makers and module makers that we expect will ramp-up in 2025. We expect this trend to continue as we expand our product portfolio and deliver world-class controllers to the market.”

Key Financial Results

 

(in millions, except percentages and per ADS amounts)		GAAP												Non-GAAP
		3Q 2024				2Q 2024				3Q 2023				3Q 2024				2Q 2024				3Q 2023
Revenue		$	212.4			$	210.7			$	172.3			$	212.4			$	210.7			$	172.3
Gross profit		$	99.3			$	96.8			$	73.1			$	99.3			$	96.8			$	73.3
Percent of revenue			46.7	%			45.9	%			42.4	%			46.8	%			46.0	%			42.5	%
Operating expenses		$	74.8			$	66.0			$	58.1			$	65.1			$	62.1			$	49.5
Operating income		$	24.5			$	30.7			$	15.0			$	34.2			$	34.7			$	23.8
Percent of revenue			11.5	%			14.6	%			8.7	%			16.1	%			16.5	%			13.8	%
Earnings per diluted ADS		$	0.62			$	0.91			$	0.32			$	0.92			$	0.96			$	0.63

Other Financial Information

 

(in millions)		3Q 2024				2Q 2024				3Q 2023
Cash, cash equivalents, restricted cash and short-term investments—end of period		$	368.6			$	343.6			$	350.3
Routine capital expenditures		$	7.4			$	6.3			$	6.3
Dividend payments		$	16.8			$	16.8				—

During the third quarter of 2024, we had $12.4 million of capital expenditures, including $7.4 million for the routine purchase of testing equipment, software, design tools and other items, and $5.0 million for building construction in Hsinchu.

 

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Business Outlook

“Looking ahead, we expect to experience gains from greater outsourcing by our NAND flash maker partners, which should continue to deliver revenue and profitability growth for the company,” said Wallace Kou, President and CEO of Silicon Motion. “In the current quarter, we are introducing two key new controllers, including our first AI/enterprise server MonTitan controller and our first PCIe Gen 5.0 client SSD controller, placing Silicon Motion in an exceptionally strong position entering calendar 2025. While the seasonal holiday demand is expected to be more muted than in past years, we are confident that our highly differentiated controller solutions for PCs, smartphones and now enterprise-class storage controllers will further strengthen our market leadership position and will build on our foundation for strong, sustainable long-term growth.”

For the fourth quarter of 2024, management expects:

 

($ in millions)		GAAP		Non-GAAP Adjustment		Non-GAAP
Revenue		$191 to $202 —10% to -5% Q/Q -6% to 0% Y/Y		—		$191 to $202 -10% to -5% Q/Q -6% to 0% Y/Y
Gross margin		46.3% to 47.4%		Approximately $0.3*		46.5 % to 47.5%
Operating margin		8.0% to 9.9%		Approximately $13.4 to $14.4**		15.6% to 16.6%

 

*	Projected gross margin (non-GAAP) excludes $0.3 million of stock-based compensation.

**	Projected operating margin (non-GAAP) excludes $13.4 million to $14.4 million of stock-based compensation and dispute related expenses.

 

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Conference Call & Webcast:

The Company’s management team will conduct a conference call at 8:00 am Eastern Time on October 31, 2024.

Conference Call Details

Participants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration.

Participant Online Registration:

https://register.vevent.com/register/BI3e5d77077ee94ca9b9fd61325f52a0e9

A webcast of the call will be available on the Company’s website at www.siliconmotion.com.

 

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Discussion of Non-GAAP Financial Measures

To supplement the Company’s unaudited selected financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including gross profit (non-GAAP), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly-titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management’s perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

 

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the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;

 

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the ability to better identify trends in the Company’s underlying business and perform related trend analysis;

 

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a better understanding of how management plans and measures the Company’s underlying business; and

 

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an easier way to compare the Company’s operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures.

 

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The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.

Restructuring charges relate to the restructuring of our underperforming product lines, principally the write-down of NAND flash, embedded DRAM and SSD inventory valuation and severance payments.

M&A transaction expenses consist of legal, financial advisory and other fees related to the transaction.

Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.

Foreign exchange loss (gain) consists of translation gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.

Unrealized holding loss (gain) on investments relates to the net change in fair value of long-term investments.

 

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Silicon Motion Technology Corporation

Consolidated Statements of Income

(in thousands, except percentages and per ADS data, unaudited)

 

		For Three Months Ended												For the Nine Months Ended
		Sep. 30,				Jun. 30,				Sep. 30,				Sep. 30,				Sep. 30,
		2023				2024				2024				2023				2024
		($)				($)				($)				($)				($)
Net Sales			172,333				210,670				212,412				436,763				612,392
Cost of sales			99,193				113,893				113,142				254,897				331,227
Gross profit			73,140				96,777				99,270				181,866				281,165
Operating expenses
Research & development			41,740				50,788				58,486				117,926				163,666
Sales & marketing			6,862				6,777				7,009				20,715				20,090
General & administrative			8,939				7,215				9,315				20,323				23,003
Loss from settlement of litigation			591				1,250				—				591				1,250
Operating income			15,008				30,747				24,460				22,311				73,156
Non-operating income (expense)
Interest income, net			3,480				4,175				3,518				8,026				10,760
Foreign exchange gain (loss), net			569				245				(488	)			2,030				345
Unrealized holding gain(loss) on investments			(2,828	)			1,855				(602	)			8,053				(355	)
Subtotal			1,221				6,275				2,428				18,109				10,750
Income before income tax			16,229				37,022				26,888				40,420				83,906
Income tax expense			5,642				6,201				6,045				8,639				16,226
Net income			10,587				30,821				20,843				31,781				67,680
Earnings per basic ADS			0.32				0.92				0.62				0.95				2.01
Earnings per diluted ADS			0.32				0.91				0.62				0.95				2.01
Margin Analysis:
Gross margin			42.4	%			45.9	%			46.7	%			41.6	%			45.9	%
Operating margin			8.7	%			14.6	%			11.5	%			5.1	%			11.9	%
Net margin			6.1	%			14.6	%			9.8	%			7.3	%			11.1	%
Additional Data:
Weighted avg. ADS equivalents			33,413				33,684				33,687				33,332				33,627
Diluted ADS equivalents			33,471				33,697				33,700				33,431				33,691

 

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Silicon Motion Technology Corporation

Reconciliation of GAAP to Non-GAAP Operating Results

(in thousands, except percentages and per ADS data, unaudited)

 

		For Three Months Ended												For the Nine Months Ended
		Sep. 30,				Jun. 30,				Sep. 30,				Sep. 30,				Sep. 30,
		2023				2024				2024				2023				2024
		($)				($)				($)				($)				($)
Gross profit (GAAP)			73,140				96,777				99,270				181,866				281,165
Gross margin (GAAP)			42.4	%			45.9	%			46.7	%			41.6	%			45.9	%
Stock-based compensation (A)			94				14				63				300				149
Restructuring charges			88				46				—				3,347				46
Gross profit (non-GAAP)			73,322				96,837				99,333				185,513				281,360
Gross margin (non-GAAP)			42.5	%			46.0	%			46.8	%			42.5	%			45.9	%
Operating expenses (GAAP)			58,132				66,030				74,810				159,555				208,009
Stock-based compensation (A)			(3,751	)			(371	)			(3,595	)			(11,460	)			(7,059	)
M&A transaction expenses			(708	)			—				—				(2,893	)			—
Dispute related expenses			(3,495	)			(3,527	)			(6,076	)			(3,495	)			(11,135	)
Restructuring charges			(661	)			—				—				(4,581	)			—
Operating expenses (non-GAAP)			49,517				62,132				65,139				137,126				189,815
Operating profit (GAAP)			15,008				30,747				24,460				22,311				73,156
Operating margin (GAAP)			8.7	%			14.6	%			11.5	%			5.1	%			11.9	%
Total adjustments to operating profit			8,797				3,958				9,734				26,076				18,389
Operating profit (non-GAAP)			23,805				34,705				34,194				48,387				91,545
Operating margin (non-GAAP)			13.8	%			16.5	%			16.1	%			11.1	%			14.9	%
Non-operating income (expense) (GAAP)			1,221				6,275				2,428				18,109				10,750
Foreign exchange loss (gain), net			(569	)			(245	)			488				(2,030	)			(345	)
Unrealized holding loss (gain) on investments			2,828				(1,855	)			602				(8,053	)			355
Non-operating income (expense) (non-GAAP)			3,480				4,175				3,518				8,026				10,760
Net income (GAAP)			10,587				30,821				20,843				31,781				67,680
Total pre-tax impact of non-GAAP adjustments			11,056				1,858				10,824				15,993				18,399
Income tax impact of non-GAAP adjustments			(584	)			(218	)			(649	)			(2,968	)			(1,014	)
Net income (non-GAAP)			21,059				32,461				31,018				44,806				85,065
Earnings per diluted ADS (GAAP)		$	0.32			$	0.91			$	0.62			$	0.95			$	2.01
Earnings per diluted ADS (non-GAAP)		$	0.63			$	0.96			$	0.92			$	1.33			$	2.52
Shares used in computing earnings per diluted ADS (GAAP)			33,471				33,697				33,700				33,431				33,691
Non-GAAP adjustments			128				18				109				136				52
Shares used in computing earnings per diluted ADS (non-GAAP)			33,599				33,715				33,809				33,567				33,743
(A) Excludes stock-based compensation as follows:
Cost of sales			94				14				63				300				149
Research & development			2,422				94				2,377				7,605				4,614
Sales & marketing			521				173				455				1,496				975
General & administrative			808				104				763				2,359				1,470

 

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Silicon Motion Technology Corporation

Consolidated Balance Sheet

(In thousands, unaudited)

 

		Sep. 30,				Jun. 30,				Sep. 30,
		2023				2024				2024
		($)				($)				($)
Cash and cash equivalents			295,385				289,175				313,924
Accounts receivable (net)			193,389				191,692				202,726
Inventories			199,003				240,811				214,574
Refundable deposits – current			49,445				51,036				51,102
Prepaid expenses and other current assets			16,896				31,460				38,246
Total current assets			754,118				804,174				820,572
Long-term investments			17,023				17,301				16,878
Property and equipment (net)			162,107				179,550				181,983
Other assets			33,672				29,121				29,304
Total assets			966,920				1,030,146				1,048,737
Accounts payable			26,975				36,411				30,888
Income tax payable			26,279				14,103				14,444
Accrued expenses and other current liabilities			77,502				134,947				131,143
Total current liabilities			130,756				185,461				176,475
Other liabilities			62,112				60,182				62,673
Total liabilities			192,868				245,643				239,148
Shareholders’ equity			774,052				784,503				809,589
Total liabilities & shareholders’ equity			966,920				1,030,146				1,048,737

 

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Silicon Motion Technology Corporation

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

		For Three Months Ended												For the Nine Months Ended
		Sep. 30,				Jun. 30,				Sep. 30,				Sep. 30,				Sep. 30,
		2023				2024				2024				2023				2024
		($)				($)				($)				($)				($)
Net income			10,587				30,821				20,843				31,781				67,680
Depreciation & amortization			8,043				5,802				6,664				19,032				18,075
Stock-based compensation			3,845				385				3,658				11,760				7,208
Investment losses (gain) & disposals			3,135				(1,855	)			602				(7,556	)			355
Changes in operating assets and liabilities			39,302				(13,660	)			22,280				52,910				(9,967	)
Net cash provided by (used in) operating activities			64,912				21,493				54,047				107,927				83,351
Purchase of property & equipment			(17,052	)			(10,427	)			(12,436	)			(40,687	)			(33,612	)
Net cash provided by (used in) investing activities			(17,052	)			(10,427	)			(12,436	)			(40,687	)			(33,612	)
Dividend payments			—				(16,820	)			(16,812	)			(15	)			(50,441	)
Net cash used in financing activities			—				(16,820	)			(16,812	)			(15	)			(50,441	)
Net increase (decrease) in cash, cash equivalents & restricted cash			47,860				(5,754	)			24,799				67,225				(702	)
Effect of foreign exchange changes			(2,528	)			86				186				(3,977	)			308
Cash, cash equivalents & restricted cash—beginning of period			304,971				349,279				343,611				287,055				368,990
Cash, cash equivalents & restricted cash—end of period			350,303				343,611				368,596				350,303				368,596

 

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Shareholder Litigation

On August 31, 2023, a Silicon Motion ADS holder (the “Plaintiff”) filed a putative class action complaint in the United States District Court for the Southern District of California, captioned Water Island Event-Driven Fund v. MaxLinear, Inc., No. 23-cv-01607 (S.D. Cal.), asserting claims against MaxLinear and two of its officers (the “MaxLinear Defendants”) for alleged violations of (i) Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder and (ii) Section 20(a) of the Exchange Act, in connection with alleged false and misleading statements made by the MaxLinear Defendants between June 6, 2023 and July 26, 2023 concerning MaxLinear’s intent to consummate the merger agreement it had entered into with Silicon Motion. On August 28, 2024, the Court dismissed the complaint against the MaxLinear Defendants without prejudice for lack of standing. On September 18, 2024, the Plaintiff filed an amended complaint against the MaxLinear Defendants, and also added Silicon Motion and two of its officers (the “Silicon Motion Defendants”), asserting substantially similar claims under the Exchange Act. The complaint seeks compensatory damages, including interest, costs and expenses, and such other equitable or injunctive relief that the court deems appropriate. Motions to dismiss the amended complaint are expected to be fully briefed by February 2025. The Silicon Motion Defendants believe that the claims asserted against them are without merit and intend to defend themselves vigorously.

About Silicon Motion:

We are the global leader in supplying NAND flash controllers for solid state storage devices. We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications. We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions. Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs. For further information on Silicon Motion, visit us at www.siliconmotion.com.

Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of

 

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customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing tensions between Taiwan and China including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; changes in our cost of finished goods; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our board of directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2024. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this press release.

 

Silicon Motion Investor Contacts:
Tom Sepenzis		Selina Hsieh
Senior Director of IR & Strategy		Investor Relations
[e-mail]		[e-mail]
Media Contact:
Dan Scorpio, H/Advisors Abernathy
[e-mail]

 

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Exhibit 99.2

 

		Silicon Motion Appoints Jason Tsai as Chief Financial Officer

TAIPEI, Taiwan and MILPITAS, Calif., October 31, 2024 –Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion” or the “Company”), a global leader in designing and marketing NAND flash controllers for solid state storage devices, today announced, following a search process, that Jason Tsai, currently the Interim Chief Financial Officer and VP of Investor Relations and Finance of the Company, has been appointed the Chief Financial Officer, effective October 28, 2024. Mr. Tsai has served as our Interim CFO since April 25, 2024.

Wallace Kou, Chief Executive Officer of Silicon Motion, said, “Jason has made innumerable contributions to the strong performance of our finance team and the financial results of the Company in his previous roles as Interim CFO and VP of Investor Relations and Finance. After a six-month search, our Board unanimously resolved that with his long history with the Company and his in-depth knowledge of our business, our customers and our industry, Jason is the ideal choice to help align our long-term strategy with our strong financial performance and operational excellence in the years ahead.”

“I am excited for this opportunity to help Silicon Motion through its next chapter,” said Jason Tsai. “I believe that the Company is poised for significant growth as it extends its market leading position in its current markets and capitalize on its new and growing opportunities in the enterprise storage market.”

Jason has over 25 years of finance leadership experience in the semiconductor, hardware and software (SaaS) sectors. Prior to rejoining Silicon Motion last year, he held finance leadership positions at Zendesk and Synaptics and brings an extensive background in financial planning, treasury, capital markets, investor relations and strategic planning.

ABOUT SILICON MOTION:

We are the global leader in supplying NAND flash controllers for solid state storage devices. We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications. We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions. Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs. For further information on Silicon Motion, visit us at www.siliconmotion.com.

FORWARD-LOOKING STATEMENTS:

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on

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our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing tensions between Taiwan and China including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; changes in our cost of finished goods; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our board of directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2024. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this press release.

Investor Contact:

Tom Sepenzis

Senior Director of IR & Strategy

E-mail: [e-mail]

Selina Hsieh

Investor Relations

[e-mail]

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