Silicon Motion Announces Results For The Period Ended December 31, 2010

Fourth Quarter 2010

Financial Highlights

• Net sales increased 17% quarter-over-quarter to US$40.0 million from US$34.2 million in 3Q10
• Gross margin excluding stock-based compensation decreased to 45.1% from 48.4% in 3Q10
• Operating expenses excluding stock-based compensation, acquisition-related charges, and other items decreased to US$11.2 million from US$13.2 million in 3Q10
• Operating margin excluding stock-based compensation, acquisition-related charges, and other items increased to 17.3% from 9.8% in 3Q10
• Diluted earnings per ADS excluding stock-based compensation, acquisition-related charges, net foreign exchange gain (loss), and other items increased to US$0.18 from US$0.16 in 3Q10

Business Highlights

• Fourth consecutive quarter of revenue growth
• Increased total unit shipments 20% sequentially and 81% year-over-year to approximately 127 million units
• Increased storage controller unit shipments 21% sequentially and 83% year-over-year
• Increased our SSD and embedded controller sales by 9% year-over-year
• Increased our sales of 3-bits per cell controllers by about 32% sequentially and continue to account for approximately 25% of our total controller sales
• Significant design wins at Samsung for microSD, SD and USB flash drives for leading-edge flash components including 3Xnm TLC and 2Xnm MLC and TLC
• Significant design activity for embedded controllers with leading flash OEMs expected to enter production in first half 2011

TAIPEI, Taiwan, Feb. 1, 2011 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (Nasdaq:SIMO) (the "Company") today announced its fourth quarter of 2010 financial results. For the fourth quarter of 2010, net sales increased 17% quarter-over-quarter to US$40.0 million from US$34.2 million in the third quarter of 2010. Net income (GAAP) was a loss of US$5.5 million or US$0.19 per diluted ADS, compared to earning US$0.3 million or US$0.01 per diluted ADS in the third quarter of 2010.

Net income excluding stock-based compensation, acquisition-related charges, foreign exchange gain (loss), and other items increased in the fourth quarter to US$5.8 million or US$0.18 per diluted ADS compared with a net income in the third quarter of US$5.1 million or US$0.16 per diluted ADS.