Silicon Motion jumps on higher 2Q revenue forecast, growth in mobile storage product sales
By APThursday, July 8, 2010
Silicon Motion raises 2Q revenue expectations
NEW YORK — Taiwanese chip designer Silicon Motion Technology Corp. on Thursday raised its second-quarter revenue forecast, citing better-than-expected sales of mobile storage products such as flash memory cards and USB flash drives for digital cameras and multimedia players.
Shares jumped 42 cents, or 9 percent, to $5.10 in afternoon trading.
The company now expects second-quarter sales to jump 23 percent to 25 percent over first-quarter revenue of $26 million. That implies sales of $32 million to $32.5 million. The company said in late April it expected revenue growth of 10 percent to 20 percent.
Analysts polled by Thomson Reuters, on average, expect revenue of $29.8 million.
“The first half of 2010 came in better than expected and we continue to believe that this is a year of gradual recovery for Silicon Motion,” said President and CEO Wallace Kou.
Silicon Motion plans to release second-quarter results in the last week of July.
