Silicon Motion Announces Second Quarter Results For The Period Ended June 30, 2010

Second Quarter 2010

Financial Highlights

• Net sales increased 25% quarter-over-quarter to US$32.5 million from US$26.0 million in 1Q10
• Gross margin excluding stock-based compensation increased to 47.7% from 47.1% in 1Q10
• Operating expenses excluding stock-based compensation, acquisition-related charges, and other items increased to US$13.0 million from US$12.0 million in 1Q10
• Operating margin excluding stock-based compensation, acquisition-related charges, and other items increased to 7.6% from 0.9% in 1Q10
• Diluted earnings per ADS excluding stock-based compensation, acquisition-related charges, net foreign exchange gain (loss), and other items improved to US$0.09 compared to a loss per ADS of US$0.01 in 1Q10

Business Highlights

• Increased total unit shipments 12% sequentially and 72% year-over-year to approximately 94 million units
• Increased storage controller unit shipments 16% sequentially and 71% year-over-year
• Increased our SSD and embedded controller shipments 25% sequentially and almost 350% compared with 2Q09 to account for nearly 10% of our total revenue
• Increased our shipment of 3-bits per cell controllers by almost 130% sequentially to account for approximately 30% of our controller shipments
• Significant design win with Samsung for OEM SD and microSD card business
• Became sole supplier to a leading Japanese OEM for Memory Stick and UFD products
• Several new design wins for our T-DMB mobile TV solution for Android smartphones

TAIPEI, Taiwan, July 29, 2010 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (Nasdaq:SIMO) (the "Company") today announced its second quarter of 2010 financial results. For the second quarter of 2010, net sales increased 25% quarter-over-quarter to US$32.5 million. Net income (GAAP) for the second quarter improved quarter-over-quarter to US$2.2 million or US$0.07 per diluted ADS from a GAAP net loss of US$2.2 million or US$0.08 per diluted ADS in the first quarter of 2010.

Net income excluding stock-based compensation, acquisition-related charges, foreign exchange gain, and other items increased in the second quarter to US$2.9 million or US$0.09 per diluted ADS compared with a net loss in the first quarter of US$0.2 million or US$0.01 per diluted ADS in the first quarter of 2010.