Silicon Motion Announces Third Quarter Results For The Period Ended September 30, 2010

Third Quarter 2010

Financial Highlights

• Net sales increased 5% quarter-over-quarter to US$34.2 million from US$32.5 million in 2Q10
• Gross margin excluding stock-based compensation increased to 48.4% from 47.7% in 2Q10
• Operating expenses excluding stock-based compensation, acquisition-related charges, and other items increased to US$13.2 million from US$13.0 million in 2Q10
• Operating margin excluding stock-based compensation, acquisition-related charges, and other items increased to 9.8% from 7.6% in 2Q10
• Diluted earnings per ADS excluding stock-based compensation, acquisition-related charges, net foreign exchange gain (loss), and other items increased to US$0.16 from US$0.09 in 2Q10

Business Highlights

• Increased total unit shipments 13% sequentially and 57% year-over-year to approximately 106 million units
• Increased storage controller unit shipments 14% sequentially and 62% year-over-year
• Increased our SSD and embedded controller sales by almost 30% sequentially and continue to account for nearly 10% of total corporate revenue
• Increased our sales of 3-bits per cell controllers by about 5% sequentially and continue to account for approximately 25% of our total controller sales
• Began shipping our ISDB-T mobile TV SoC for Samsung's flagship Galaxy S Android smartphones for Brazil
• More than doubled our mobile TV SoC wins for Android smartphones in Korea

TAIPEI, Taiwan, Nov. 4, 2010 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (Nasdaq:SIMO) (the "Company") today announced its third quarter of 2010 financial results. For the third quarter of 2010, net sales increased 5% quarter-over-quarter to US$34.2 million from US$32.5 million in the second quarter of 2010. Net income (GAAP) for the third quarter decreased quarter-over-quarter to US$0.3 million or US$0.01 per diluted ADS from a GAAP net income of US$2.2 million or US$0.07 per diluted ADS in the second quarter of 2010.

Net income excluding stock-based compensation, acquisition-related charges, foreign exchange gain, and other items increased in the third quarter to US$5.1 million or US$0.16 per diluted ADS compared with a net income in the second quarter of US$2.9 million or US$0.09 per diluted ADS in the second quarter of 2010.