Silicon Motion Technology Results Top View

(RTTNews) - Silicon Motion Technology Corp. (SIMO) Monday reported lower profit and sales for the fourth quarter, which topped estimates. The stock climbed nearly 7 percent in the extended trade.

For the quarter ended December 31, 2013, net income decreased to $5.42 million from $7.93 million last year. Earnings per ADS fell to $0.16 from $0.23.

Adjusted net income was $10.2 million or $0.30 per ADS, while it totaled $12.42 million or $0.36 per ADS last year. On average, 7 analysts polled by Thomson Reuters expected earnings of $0.21 per share. Analysts' estimates typically exclude special items.

Net sales declined to $52.49 million from $70.61 million in the prior year. Wall Street expected revenues of $51.82 million.

For the quarter, mobile storage products accounted for 89 percent of net sales and mobile communications 7 percent of net sales.

Silicon Motion's President and CEO Wallace Kou said, ''2013 was a transitional year. In 2014, with our SSD plus embedded products now our largest product line and targeting growth markets, we believe that we are well positioned for renewed growth. We currently anticipate, however, that revenues in the first quarter will decline due primarily to seasonal weak card and USB flash drive sales. Sales will recover as the year progresses...''

Looking ahead to the first quarter, the firm expects revenue to be down 0 percent to 10 percent sequentially.

For the full year, revenue is estimated to increase 5 to 15 percent year-over-year. The company generated $225.31 million in net sales in 2013. Wall Street expects 2014 revenues of $236.78 million.

SIMO closed down 0.3 percent on Monday at $14.88, but climbed 6.9 percent in the extended trade.