Thursday, fabless semiconductor company Silicon Motion Technology Corp.(SIMO) revised downwards its second-quarter revenue guidance when compared to the first quarter.
For the quarter, the company expects revenue to be down 5% to 10% sequentially, compared with the prior guidance of a 5% to 15% increase.
On average, five analysts polled by Thomson Reuters expect the company to report revenues of $23.54 million for the quarter.
Taipei, Taiwan-based Silicon Motion anticipates gross margin in the range of 47% to 48% compared with the previous range of 44% to 46%. The company projects operating expense, excluding stock-based compensation, acquisition-related charges, and one time items, to range between $11 million to $12 million, lower than its prior range of $12 million to $13 million.
Wallace Kou, president and chief executive officer, said, "The Company continued to be impacted by the effects of the global economic slowdown and the NAND flash shortage that our customers have been facing. We had anticipated an increase in NAND flash supply from chipmakers in the second quarter as a result of their higher fab utilization rates, but availability of supply to our customers remained limited and this in turn limited their procurement of controllers." The company expects that higher-than-planned gross margins would partially offset the anticipated lower revenue.
SIMO is currently trading at $3.19, down 4.20%, on the Nasdaq.
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