Silicon Motion Technology (SIMO) reported record second-quarter financial results that exceeded Wall Street estimates.
Revenue reached $451 million. This figure represents a 127% increase year-over-year. Non-GAAP earnings hit $2.43 per diluted ADS. Analysts had expected earnings of $2.13 per share. Wall Street projected revenue of approximately $403.5 million.
Surging demand for embedded storage in smartphones and IoT devices drove the performance. Sales of Ferri and Boot Drive solutions grew more than 1,690% year-over-year. These solutions serve automotive and enterprise applications. CEO Wallace Kou attributed the growth to a strategic shift toward AI infrastructure and edge device storage.
The company issued a third-quarter revenue outlook between $519 million and $541 million. Management cited strong backlogs and customer forecasts for the bullish guidance. Silicon Motion shares climbed more than 21% in premarket trading following the announcement.