Business Outlook
"Our new programs with our flash maker customers are expected to further scale throughout this year as the move to increase outsourcing continues to build the foundation for the long-term revenue and profitability growth of our business," said Wallace Kou, President and CEO of Silicon Motion. "Our highly differentiated controller solutions for PCs and smartphones deliver high performance, higher density and lower cost solid state storage to enable cutting edge applications such as AI-at-the-edge. Despite the softness in the retail SSD market that is evident across the industry, we are confident that we can achieve our previous full-year outlook based on the ongoing strength of our growing NAND OEM business."
For the third quarter of 2024, management expects:
| ($ in millions) | GAAP | Non-GAAP Adjustment | Non-GAAP |
| Revenue | $205 to $216 -2.5% to +2.5% Q/Q +19% to 25% Y/Y | -- | $205 to $216 -2.5% to +2.5% Q/Q +19% to 25% Y/Y |
| Gross margin | 46.0% to 47.0% | Approximately $0.1* | 46.0% to 47.0% |
| Operating margin | 10.7% to 12.3% | Approximately $6.4 to $7.4** | 14.3% to 15.3% |
* Projected gross margin (non-GAAP) excludes $0.1 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $6.4 million to $7.4 million of stock-based compensation and dispute related expenses.
For the full year 2024, management expects:
| ($ in millions) | GAAP | Non-GAAP Adjustment | Non-GAAP |
| Revenue | $800 to $830 +25% to 30% Y/Y | -- | $800 to $830 +25% to 30% Y/Y |
| Gross margin | 45.9% to 46.9% | Approximately $0.6* | 46.0% to 47.0% |
| Operating margin | 10.9% to 13.3% | Approximately $29.0 to $31.0** | 14.8% to 16.8% |
* Projected gross margin (non-GAAP) excludes $0.6 million of stock-based compensation and restructuring charge.
** Projected operating margin (non-GAAP) excludes $29.0 million to $31.0 million of stock-based compensation, dispute related expenses, restructuring charge and loss from settlement of litigation.