The following is a summary of the Silicon Motion Technology (SIMO) Q1 2024 Earnings Call Transcript:
Financial Performance:
Silicon Motion Technology reported a revenue of $189 million in Q1 2024, a sequential decrease of 6%.
Gross margin increased to 45% due to a better product mix and higher ASPs.
Operating margin decreased from 13.8% in Q4 2023 to 12% in Q1 2024.
Earnings per ADS reduced from $0.93 in the previous quarter to $0.64 in this quarter.
Business Progress:
The SSD controller business recorded growth above expectations due to two key flash maker customers.
Its first MonTitan PCIe Gen 5 controller secured two Tier 1 customers and is expected to start ramping up in 2025.
The launch of the first UFS 4.0 controller in Q1 2024 is expected to start qualification in H2 2024.
Growing demand for QLC UFS products influences the expected launch of a QLC UFS solution for a leading handset OEM this year.
The company sees strong design activity for PCIe Gen 4 SSD and Gen 5 8-channel controller.
Expect an increase in enterprise controller revenue, contributing to 5% to 10% of total revenue by 2026 and '27.
The company is expecting to see significant market share gain and growth from both SSDs and eMMC UFS segments.
Collaborations with major companies, including design wins with Toyota, Honda, and China's BYD, are foreseen, signalling projected growth from 2025.
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