|Ok boys and girls, it's SIMO Q3 earnings press release day. The news is expected out after the close.|
The Q3 revenue pre-announced guidance is $125.5m to $129m and gross margins are about 46%.
Based on their full year guidance from the Q2 release ($512m to $528m for the full year), and assuming SIMO did $127m in Q3, the Q4 revenues should be $126.5m to $139m.
That's not terribly exciting. Hopefully they are now expecting better revenues than that.
Hmm, these numbers sort of make you wonder why the stock is up around $50 rather than $42 as it was over the summer.
If SIMO did $127m in Q3 I would hope they could manage to do at least $140m in Q4, but that's probably way too aggressive a ramp. $140m in Q4 would be below Q4 last year and only put them back at the level they were at in Q2 of this year.
It will be interesting to see how many shares they repurchased, whether Shannon sales are ramping up again or slowing down, and any commentary on 2018 expectations.
I don't know.....the share price seems pretty high relative to the near term outlook, I'm not optimistic. I'm not sure what they can say to push the share price much higher? Lets supposed they expect 10% revenue growth in 2018, that would get them up to $570m in 2018 revenues. Is that exciting? I think 2016 was higher than that.
My hunch is the story will be they and the industry expect NAND to ramp meaningfully in 2018, and SIMO revenues will hopefully ramp along with NAND output. Same story as the past few quarters, hopefully some day it will come true.