| From: Elroy | 11/28/2023 1:21:43 PM | | | | | | | BOISE, Idaho, Nov. 28, 2023 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) (the “Company”) today announced that it is updating its revenue, gross margin, operating expense, and EPS guidance for the first quarter of fiscal 2024, which ends Nov. 30, 2023. The Company previously guided revenue of $4.4 billion ± $200 million and non-GAAP gross margins of (4.0%) ± 2%. As a result of improved supply and demand balance and improved pricing, the Company today announced that it expects revenue will approach $4.7 billion and non-GAAP gross margins will approach breakeven for the first quarter of fiscal 2024. The Company announced additional updates as set forth in the tables below. |
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| From: Elroy | 12/11/2023 8:43:04 AM | | | | | | | Silicon Motion Announces New Organizational Structure to Support Continued Global Business Growth |
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Establishes Two Dedicated Business Units and Appoints Senior Leaders to Oversee Growth and Further Market ExpansionTAIPEI, Taiwan and MILPITAS, Calif., Dec. 11, 2023 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company” or “we”), a global leader in designing and marketing NAND flash controllers for solid-state storage devices, today, announced a new organizational structure and leadership team appointments to support the Company’s continued global business growth. These changes will take effect immediately.
Core to this announcement is the establishment of two business units designed to create a more focused and specialized structure that should enable faster innovation and stronger growth and support the Company’s commitment to delivering the best-in-class solutions for its customers. The Client & Automotive Storage (“CAS”) Business Unit will house the Company’s client SSD controllers, mobile controllers, Ferri products and expandable controllers. The Enterprise Storage & Display Interface Solution (“ESDI”) Business Unit will encompass the Company’s enterprise SSD controllers and display interface products.
As part of the new organizational structure, Silicon Motion has created the following leadership roles:
- Nelson S. Duann, currently Silicon Motion’s Senior Vice President of Marketing and R&D, has been appointed as a Senior Vice President of the CAS business unit. In this capacity, he will oversee product planning, major OEM business development and OEM project management for the Company’s client SSD controllers, mobile controllers, Ferri products and expandable controllers.
- Alex Chou joins Silicon Motion as a Senior Vice President to lead the ESDI business unit. In this role, he will be responsible for leading Silicon Motion’s enterprise storage group, to expand the business into data center and enterprise storage as well as expand the Company’s display interface business into the PC docking market.
- Robert Fan, currently the Company’s President of Silicon Motion, Inc. (“SMI USA”), has been promoted to Senior Vice President of Global Sales and President of SMI USA. In this capacity, he will lead the Company’s worldwide sales, field application engineers (FAEs), and corporate marketing communications and public relations efforts.
“The increasing adoption of NAND in consumer, industrial, commercial and enterprise applications continue to expand our opportunities for growth,” said Wallace Kou, President and CEO of Silicon Motion. “By creating these two dedicated business units, we will be even better positioned to develop the most advanced controller technology and deliver industry-leading solutions for our customers. Today, we see a unique opportunity to expand into new markets and increase share in our existing businesses, and with this new structure, we will be able to do so quicker and more effectively to drive our long-term success.”
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| To: Elroy who wrote (2749) | 1/4/2024 11:16:23 AM | | From: Sam | | | | JPMorgan Upgrades Silicon Motion Technology to Overweight From Neutral, Adjusts Price Target to $77 From $54
Published 53 minutes ago
MT Newswires
10:22 AM EST, 01/04/2024 (MT Newswires) -- Silicon Motion Technology (SIMO) has an average outperform rating and a price target range of $59 to $100, according to analysts polled by Capital IQ.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: mtnewswires.com
Price: 62.37, Change: +2.92, Percent Change: +4.91 |
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| From: Elroy | 1/5/2024 8:04:26 AM | | | | | | | Silicon Motion Announces Preliminary Fourth Quarter 2023 Revenue and Earnings Conference Call Details |
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TAIPEI, Taiwan and MILPITAS, Calif., Jan. 05, 2024 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion” or the “Company”), a global leader in NAND flash controllers for solid state storage devices, announces that based on its preliminary fourth quarter financial results, sequential revenue growth is expected to slightly exceed the high-end of its original guidance range of 10% to 15%, which the company issued on November 2, 2023. Gross margin (non-GAAP) is also expected to exceed the high-end the company's original 42.5% to 43.5% guidance range.
The Company will release its fourth quarter 2023 financial results after the market closes on February 6, 2024 and will host a conference call on February 7 at 8:00 a.m. Eastern Time. Participants must pre-register using the link below in order to participate in the live call.
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| From: Elroy | 1/25/2024 10:14:40 PM | | | | | | From the Intel conference call
Moving to client. CCG performed very well in Q4, posting the third consecutive quarter of double-digit sequential growth. Demand reflected a normalized inventory environment with sustained strength in gaming and commercial with our highest-end SKUs exceeding Q3 records by 20%.
The 2023 consumption TAM was roughly 270 million units consistent with our views entering the year, and we expect the PC TAM up low single digits year on year in 2024, in line with third-party estimates. Our share position is strong, and our product portfolio for 2024 and beyond and ecosystem work will continue to drive industry-leading performance and experiences.
CCG (PCs) delivered revenue of $8.8 billion, up 12% sequentially, 33% year over year, and ahead of internal expectations for the fourth consecutive quarter. We saw sustained strength in gaming and commercial segments, along with record performance of notebook shipments in the quarter. Customer inventory levels have normalized, and 2023 PC consumption was in line with our 270 million-unit forecast.
With market signals remaining positive for PC demand and usage rates, we expect TAM to grow in the low single digits in 2024, consistent with third-party views.
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Ben Reitzes -- Melius Research -- Analyst
Yeah. Thanks, John. Could you talk about a bit more about the client market? There was -- you mentioned that corporate, you said some strength. And Dell had said there was some weakness.
And heading into the first quarter, I was -- can you talk about the revenues on client and what makes you so confident that it's really going to pick up? Thanks.
Pat Gelsinger -- Chief Executive Officer
Yeah. So, you know, as we look at the market year on year, we expect it to be a few points bigger than it was last year. So, last year, it was 270. This year, a couple of points higher than that.
I think that's consistent with the various market forecasters that we have. Our market share position is very stable. We had good execution on market share through last year, and the product line is better this year with a number of tailwinds like we said. So, overall, we think it's going to be a very solid year for us in our client business.
Obviously, as we start the year, everybody is -- I'll say, managing through what their Q1 outlook looks like even as they expect to see stronger business as we go through the year. I'd also comment, Ben, that some of these tailwinds really only start to materialize as you go into second quarter and second half. AIPC is just ramping right now. The Windows 10 EOS goes into effect and customers are starting to look at their post-COVID refreshes. |
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| From: Elroy | 1/31/2024 1:40:20 PM | | | | | | MXL reports today after the close. I doubt we get any meaningful SIMO-related information, but ya never know.
I have no idea whether they have a decent idea by now about whether they're winning or losing in Singapore Arbitration. |
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| From: Elroy | 2/2/2024 2:09:11 PM | | | | | | From the MXL 10K
Risks Relating to our Terminated Merger with Silicon Motion
The termination of the Merger Agreement and the related legal proceedings have caused us to incur substantial costs, may divert management’s attention from our business and could otherwise
adversely affect our business, financial results and operations.
We terminated the Merger Agreement on July 26, 2023 and notified Silicon Motion that we are relieved of our obligation to close the merger. Silicon Motion has challenged the validity of that
termination.
On August 16, 2023, Silicon Motion delivered to us a notice, which Silicon Motion publicly disclosed, that it was purporting to terminate the Merger Agreement and that Silicon Motion would
be commencing an arbitration before the Singapore International Arbitration Centre to seek damages from us arising from our alleged breaches of the Merger Agreement.
On October 5, 2023, Silicon Motion filed a Notice of Arbitration with the Singapore International Arbitration Centre alleging that we breached the Merger Agreement. Additionally, on August 31, 2023, a Silicon Motion stockholder filed a class action complaint against us and certain of our current officers alleging that we materially misrepresented the likelihood the merger would close. Other potential plaintiffs may file additional lawsuits related to the previously contemplated merger. See Part I, Item 3 (Legal Proceedings) of this report for more information on the Silicon Motion arbitration and the class action lawsuit. We intend to vigorously defend against these legal proceedings and any alleged breaches of the Merger Agreement, but due to the uncertainties inherent in any legal proceedings, we cannot predict the outcome of any legal proceedings.
Legal proceedings are time-consuming, and may divert management’s attention from our business. Legal proceedings are also expensive and could result in substantial costs to us, including any damages we
are required to pay and costs associated with the indemnification of directors and officers.
Please refer to the Risk Factor entitled “If we are required to pay any damages in connection with legal proceedings related to the termination of the Merger Agreement with Silicon Motion, including for any alleged breaches of the Merger Agreement, or if we agree to make any payments in any settlement of legal
proceedings related to the termination of the Merger Agreement, the amount of such damages or payments could be significant and require us to draw down on all our existing lines of credit and use our cash
resources, which may not be sufficient to satisfy any damages or payments and could have a material adverse effect on our business, operating results, and financial condition. We expect that we may not be
able to obtain financing on favorable terms if at all or raise additional capital for any such payments. Even if we are able to finance such payments through the incurrence of additional indebtedness, any
material increase in our indebtedness would adversely affect our operating results and cash-flows as we satisfy our underlying interest and principal payment obligations. Issuing additional shares of our
common stock, if material, will result in dilution of existing shares outstanding. Any loan agreement is also expected to contain financial and operational covenants that would adversely affect our operational
freedom or ability to pursue strategic transactions that we would otherwise consider to be in the best interests of stockholders, including obtaining additional indebtedness to finance such transactions.”
We have already incurred, and expect to continue to incur, substantial costs in connection with the previously pending merger, the termination of the Merger Agreement, and the related legal
proceedings. Aside from any damages or settlement amounts we may be required to pay, these costs are primarily associated with the fees of our financial advisors, accountants, lenders, and legal counsel.
Since the merger has been terminated, we will have received little or no benefit in respect of such costs incurred. We may also experience negative reactions from the financial markets and our suppliers,
customers, customer prospects, and employees with regard to legal proceedings related to the termination of the Merger Agreement. Any of these factors could have a material adverse effect on our business, operating results, and financial condition or on the trading price of our common stock.
If we are required to pay any damages in connection with legal proceedings related to the termination of the Merger Agreement with Silicon Motion, including for any alleged breaches of the Merger
Agreement, or if we agree to make any payments in any settlement of legal proceedings related to the termination of the Merger Agreement, the amount of such damages or payments could be significant and
require us to draw down on all our existing lines of credit and use our cash resources, which may not be sufficient to satisfy any damages or payments and could have a material adverse effect on our
business, operating results, and financial condition. We expect that we may not be able to obtain financing on favorable terms if at all or raise additional capital for any such payments. Even if we are able to
finance such payments through the incurrence of additional indebtedness, any material increase in our indebtedness would adversely affect our operating results and cash-flows as we satisfy our underlying
interest and principal payment obligations. Issuing additional shares of our common stock, if material, will result in dilution of existing shares outstanding. Any loan agreement is also expected to contain
financial and operational covenants that would adversely affect our operational freedom or ability to pursue strategic transactions that we would otherwise consider to be in the best interests of stockholders,
including obtaining additional indebtedness to finance such transactions.
If we are required to pay any damages in connection with legal proceedings related to the termination of the Merger Agreement, including for any alleged breaches of the Merger Agreement, or if we
agree to make any payments in any settlement of legal proceedings related to the termination of the Merger Agreement, the amount of such damages or payments could be significant and require us to draw
down on all our existing lines of credit and use our cash resources, which may not be sufficient to satisfy any damages or payments and could have a material adverse effect on our business, operating results,
and financial condition. We expect that we may not be able to obtain financing on favorable terms if at all or raise additional capital for any such payments. However, if we finance all or a portion of the
payment of damages or settlement amounts through the incurrence of additional indebtedness, any material payment and increase in our indebtedness would adversely affect our ability to use cash generated
from operations as we repay interest and principal under the term loans and revolving credit facility, as applicable. Issuing additional shares of common stock, if material, would result in dilution of existing
shares outstanding. In addition, our current credit agreement, and any new loan agreements, contain and would likely contain financial and operational covenants that may adversely affect our ability to
engage in certain activities, including certain financing and acquisition transactions, stock repurchases, guarantees, and similar transactions, without obtaining the consent of the lenders, which may or may
not be forthcoming. Such financial and operational covenants include compliance with a secured net leverage ratio test. Accordingly, outstanding indebtedness could adversely affect our operational freedom
or ability to pursue strategic transactions that we would otherwise consider to be in the best interests of stockholders.
Specifically, if we are required to pay damages in connection with legal proceedings related to the termination of the Merger Agreement, including for alleged breaches of the Merger Agreement, or if
we agree to make any payments in any settlement of legal proceedings related to the termination of the Merger Agreement, and we finance all or a portion of the payment of damages through the incurrence of
additional indebtedness, any materially increased indebtedness could have important consequences to investors in our common stock, including the following:
• our ability to obtain any necessary financing in the future for working capital, capital expenditures, debt service requirements, or other purposes may be limited or financing may be unavailable;
• rising interest rates may make it more difficult for us, our customers, and our distributors to obtain financing and service our respective interest and debt obligations, which in turn has an impact on
customer demand for our products as well as the business of our distributors;
• we could be subject to substantial variable interest rate risk because our interest rate under term loans typically varies based on a fixed margin over an indexed rate (such as for the Initial Term Loan
under the June 23, 2021 Credit Agreement) or an adjusted base rate. If interest rates were to continue to increase substantially, and we incur additional indebtedness, it would adversely affect our
operating results and could affect our ability to service the indebtedness;
• a portion of our cash flows is dedicated to the payment of interest and when applicable, principal, on our indebtedness and other obligations and will not be available for use in our business;
• our level of indebtedness, combined with rising interest rates, could limit our flexibility in planning for, or reacting to, changes in our business and the markets in which we operate, including limiting
our future investments or ability to enter into acquisitions and strategic partnerships, and obtain financing for such transactions; and
• our high degree of indebtedness may make us more vulnerable to changes in general economic conditions and/or a downturn in our business, thereby making it more difficult for us to satisfy our
obligations.
If we fail to make required debt payments, or if we fail to comply with other covenants in our debt service agreements, we would be in default under the terms of these agreements. Subject to customary
cure rights, any default would permit the holders of the indebtedness to accelerate repayment of this debt and could cause defaults under other indebtedness that we have, any of which could have a material
adverse effect on the trading price of our common stock. |
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