Silicon Motion Announces Results for the Quarterly Period Ended September 30, 2026

Busi ess Highlights

• Thi d qua te of 2026 sales i c eased 24% Q/Q a d i c eased 131% Y/Y
  • SSD co t olle sales: 3Q of 2026 i c eased 20% to 25% Q/Q a d i c eased 55% to 60% Y/Y
  • eMMC+UFS co t olle sales: 3Q of 2026 dec eased 10% to 15% Q/Q a d i c eased 35% to 40% Y/Y
  • Fe i & Boot D ive solutio s sales: 3Q of 2026 i c eased 75% to 80% Q/Q a d i c eased 2,580% to 2,585% Y/Y 

Fi a cial Highlights

* Please see eco ciliatio s of U.S. Ge e ally Accepted Accou ti g P i ciples (“GAAP”) to all o -GAAP fi a cial measu es me tio ed he ei towa ds the e d of this ews elease.

TAIPEI, Taiwa a d MILPITAS, Calif., Oct. 29, 2026 (GLOBE NEWSWIRE) — Silico Motio Tech ology Co po atio (NasdaqGS: SIMO) (“Silico Motio ,” the “Compa y,” “we” o simila te ms) today a ou ced its fi a cial esults fo the qua te e ded Septembe 30, 2026.  Fo the thi d qua te of 2026, et sales (GAAP) i c eased seque tially to $560.2 millio f om $451.0 millio i the seco d qua te of 2026. Net i come (GAAP) dec eased seque tially to $65.3 millio , o $1.91 pe diluted Ame ica deposita y sha e (“ADS”) (GAAP), f om et i come (GAAP) of $136.1 millio , o $3.99 pe diluted ADS (GAAP), i the seco d qua te of 2026.

Fo the thi d qua te of 2026, et i come ( o -GAAP) i c eased seque tially to $149.2 millio , o $4.35 pe diluted ADS ( o -GAAP), f om et i come ( o -GAAP) of $83.1 millio , o $2.43 pe diluted ADS ( o -GAAP), i the seco d qua te of 2026.

All fi a cial umbe s a e i U.S. dolla s u less othe wise oted.

Thi d Qua te of 2026 Review“Silico Motio is apidly evolvi g f om a co sume -focused NAND flash co t olle supplie i to a dive sified leade i co t olle s a d sto age solutio s, se vi g ma kets f om AI i f ast uctu e to the edge,” said Wallace Kou, P eside t a d CEO of Silico Motio . “I the thi d qua te , eve ue, g oss ma gi a d ope ati g ma gi all g ew mea i gfully. This was d ive by ou Fe i p oduct family fo automotive a d edge AI a d e te p ise boot d ive solutio s, a d by ou SSD co t olle busi esses, i cludi g edge a d e te p ise SSD co t olle s, with ou ew Mo Tita e te p ise a d AI co t olle s begi i g to scale. Buildi g o the st o g esults we have delive ed this yea , we expect co ti ued mome tum i the fou th qua te as we b oade ou p oduct po tfolio a d expa d i to ew ma kets, p ovidi g a fou datio fo sustai able, lo g-te m g owth i eve ue a d p ofitability.”

Key Fi a cial Results

Othe Fi a cial I fo matio

Du i g the thi d qua te of 2026, we had $23.0 millio of capital expe ditu es, i cludi g $20.1 millio fo the outi e pu chases of testi g equipme t, softwa e, desig tools a d othe items, a d $2.9 millio fo buildi g co st uctio .

Retu i g Value to Sha eholde sO Octobe 27, 2025, ou Boa d of Di ecto s decla ed a $2.00 pe ADS a ual cash divide d to be paid i qua te ly i stallme ts of $0.50 pe ADS. O August 20, 2026, we paid $16.9 millio to Silico Motio sha eholde s as the fou th i stallme t of the a ual cash divide d. O Octobe 16, 2026, ou Boa d of Di ecto s decla ed a $2.30 pe ADS a ual divide d, ep ese ti g a a ual i c ease of 15%, to be paid i qua te ly i stallme ts of $0.575 pe ADS. The fi st i stallme t of ou a ual divide d will be paid o Novembe 19, 2026 to all Silico Motio sha eholde s of eco d as of the close of busi ess o Novembe 5, 2026.

Busi ess Outlook“The NAND i dust y is u de goi g sig ifica t cha ge. G owi g dema d fo e te p ise a d AI sto age is abso bi g a la ge sha e of i dust y supply a d pushi g NAND flash p ices highe . I espo se, NAND ma ufactu e s a e i c easi gly p io itizi g high-capacity e te p ise SSDs a d pulli g back f om ce tai co sume -o ie ted segme ts, i cludi g PCs, mobile devices, IoT, automotive a d e te p ise boot d ives. We believe this shift c eates a mea i gful oppo tu ity fo ou p oducts i these segme ts. Ou p op ieta y co t olle tech ology a d ea ly two decades of NAND ecosystem elatio ships, togethe with ou i vestme ts i eMMC a d UFS solutio s, 6 m PCIe Ge 5 edge SSD co t olle s, 4 m PCIe Ge 6 Mo Tita e te p ise a d AI SSD co t olle s, a d ou Fe i a d boot d ive p oduct families, positio us to add ess dema d ac oss AI data ce te , AI se ve , edge AI a d physical AI applicatio s.”

“While isi g memo y costs have c eated p ici g p essu e i some co sume device segme ts, ou e te p ise a d Fe i custome s have ge e ally p io itized supply assu a ce ove p ice. As ou eve ue mix co ti ues to shift towa d e te p ise a d AI applicatio s, ou backlog a d custome fo ecasts suppo t ou expectatio of co ti ued g owth. Based o esults to date a d cu e t visibility, we believe we a e o t ack to delive eco d a ual eve ue i 2026, ep ese ti g mo e tha 100% g owth ove the p io yea , with ou e te p ise a d AI p oduct families still i the ea ly stages of eve ue co t ibutio ,” said M . Kou.

Fo the fou th qua te of 2026, ma ageme t expects:

* P ojected g oss ma gi ( o -GAAP) excludes $1.0 millio of stock-based compe satio .** P ojected ope ati g ma gi ( o -GAAP) excludes $34.6 millio to $35.6 millio of stock-based compe satio a d dispute- elated expe ses.

Co ve tible Notes Offe i gO August 13, 2026, the Compa y completed the issua ce of $1,150,000,000 agg egate p i cipal amou t of 0.00% Co ve tible Se io Notes due 2031 (the “Co ve tible Notes”), i cludi g the exe cise i full of the i itial pu chase s’ optio to pu chase a additio al $150,000,000 agg egate p i cipal amou t. The Co ve tible Notes a e se io , u secu ed obligatio s of the Compa y, do ot bea egula i te est, a d will matu e o August 15, 2031, u less ea lie epu chased, edeemed, o co ve ted. The Compa y will settle co ve sio s by payi g the p i cipal amou t i cash, with a y co ve sio value i excess of the p i cipal amou t settled i cash, ADSs, o a combi atio the eof, at the Compa y’s electio . The Compa y may edeem the Co ve tible Notes o o afte August 20, 2029 if the last epo ted sale p ice of the ADSs equals o exceeds 130% of the co ve sio p ice fo a specified pe iod. The Co ve tible Notes we e issued i a p ivate offe i g to pe so s easo ably believed to be “qualified i stitutio al buye s” pu sua t to Rule 144A u de the Secu ities Act of 1933, as ame ded. The Compa y i te ds to use the et p oceeds fo ge e al co po ate pu poses a d the epayme t of outsta di g bo owi gs u de ou c edit ag eeme t with CTBC Ba k Co., Ltd. The Co ve tible Notes a e eflected as a lo g-te m liability of app oximately $1.1 billio o the Compa y’s co solidated bala ce sheet as of Septembe 30, 2026.

Co fe e ce Call & Webcast:The Compa y’s ma ageme t team will host a co fe e ce call at 8:00 a.m. Easte Time o Octobe 29, 2026. 

Co fe e ce Call DetailsPa ticipa ts must egiste i adva ce to joi the co fe e ce call usi g the li k p ovided below. Co fe e ce access details, i cludi g dial-i i fo matio a d a u ique access PIN, will be p ovided i the co fi matio email eceived upo egist atio .

Pa ticipa t O li e Regist atio :https:// egiste -co f.media-se ve .com/ egiste /BI5a2f2137ff5446e59f001272500c5465

A webcast of the call will be available o the Compa y’s website at www.silico motio .com.

Discussio of No -GAAP Fi a cial Measu es

To suppleme t the Compa y’s u audited co solidated fi a cial esults calculated i acco da ce with GAAP, the Compa y discloses ce tai o -GAAP fi a cial measu es that exclude stock-based compe satio a d othe items, i cludi g g oss p ofit ( o -GAAP), g oss ma gi ( o -GAAP), ope ati g expe ses ( o -GAAP), ope ati g p ofit ( o -GAAP), ope ati g ma gi ( o -GAAP), o -ope ati g i come (expe se) ( o -GAAP), et i come ( o -GAAP), a d ea i gs pe diluted ADS ( o -GAAP). These o -GAAP measu es a e ot i acco da ce with o a alte ative to GAAP a d may be diffe e t f om simila ly titled o -GAAP measu es used by othe compa ies.  We believe that these o -GAAP measu es have limitatio s i that they do ot eflect all the amou ts associated with the Compa y’s esults of ope atio s as dete mi ed i acco da ce with GAAP a d that these measu es should o ly be used to evaluate the Compa y’s esults of ope atio s i co ju ctio with the co espo di g GAAP measu es.  The p ese tatio of this additio al i fo matio is ot mea t to be co side ed i isolatio o as a substitute fo the most di ectly compa able GAAP measu e.  We compe sate fo the limitatio s of ou o -GAAP fi a cial measu es by elyi g upo GAAP esults to gai a complete pictu e of ou pe fo ma ce.

Ou o -GAAP fi a cial measu es a e p ovided to e ha ce the use ’s ove all u de sta di g of ou cu e t fi a cial pe fo ma ce a d ou p ospects fo the futu e. Specifically, we believe the o -GAAP esults p ovide useful i fo matio to both ma ageme t a d i vesto s as these o -GAAP esults exclude ce tai expe ses, gai s a d losses that we believe a e ot i dicative of ou co e ope ati g esults a d because they a e co siste t with the fi a cial models a d estimates published by ma y a alysts who follow the Compa y.  We use o -GAAP measu es to evaluate the ope ati g pe fo ma ce of ou busi ess, fo compa iso with ou fo ecasts, a d fo be chma ki g ou pe fo ma ce exte ally agai st ou competito s.  Also, whe evaluati g pote tial acquisitio s, we exclude the items desc ibed below f om ou co side atio of the ta get’s pe fo ma ce a d valuatio .  Si ce we fi d these measu es to be useful, we believe that ou i vesto s be efit f om seei g the esults f om ma ageme t’s pe spective i additio to seei g ou GAAP esults.  We believe that these o -GAAP measu es, whe ead i co ju ctio with the Compa y’s GAAP fi a cials, p ovide useful i fo matio to i vesto s by offe i g:

• the ability to make mo e mea i gful pe iod-to-pe iod compa iso s of the Compa y’s o -goi g ope ati g esults;
• the ability to bette ide tify t e ds i the Compa y’s u de lyi g busi ess a d pe fo m elated t e d a alysis;
• a bette u de sta di g of how ma ageme t pla s a d measu es the Compa y’s u de lyi g busi ess; a d
• a easie way to compa e the Compa y’s ope ati g esults agai st a alyst fi a cial models a d ope ati g esults of ou competito s that suppleme t thei GAAP esults with o -GAAP fi a cial measu es.

The followi g a e expla atio s of each of the adjustme ts that we i co po ate i to ou o -GAAP measu es, as well as the easo s fo excludi g each of these i dividual items i ou eco ciliatio of these o -GAAP fi a cial measu es:

Stock-based compe satio expe se co sists of o -cash cha ges elated to the fai value of est icted stock u its awa ded to employees. The Compa y believes that the exclusio of these o -cash cha ges p ovides fo mo e accu ate compa iso s of ou ope ati g esults to ou pee compa ies due to the va yi g available valuatio methodologies, subjective assumptio s a d the va iety of awa d types. I additio , the Compa y believes it is useful to i vesto s to u de sta d the specific impact of sha e-based compe satio o its ope ati g esults.

Dispute elated expe ses co sist of legal, co sulti g, a d othe fees a d esolutio costs elated to the dispute.

Fo eig excha ge loss (gai ) co sists of emeasu eme t gai s a d/o losses of o -US$ de omi ated cu e t assets a d cu e t liabilities, as well as ce tai othe bala ce sheet items, which esult f om the app eciatio o dep eciatio of o -US$ cu e cies agai st the US$. We do ot use fi a cial i st ume ts to ma age the impact o ou ope atio s f om cha ges i fo eig excha ge ates, a d because ou ope atio s a e subject to fluctuatio s i fo eig excha ge ates, we the efo e exclude fo eig excha ge gai s a d losses whe p ese ti g o -GAAP fi a cial measu es.

Realized/U ealized loss (gai ) o i vestme ts elates to the disposal a d et cha ge i fai value of lo g-te m i vestme ts.

About Silico Motio :We a e the global leade i supplyi g NAND flash co t olle s fo solid state sto age devices.  We supply mo e SSD co t olle s tha a y othe compa y i the wo ld fo se ve s, PCs a d othe clie t devices a d a e the leadi g me cha t supplie of eMMC a d UFS embedded sto age co t olle s used i sma tpho es, IoT devices a d othe applicatio s.  We also supply customized high-pe fo ma ce hype scale data ce te s a d specialized i dust ial a d automotive SSD solutio s.  Ou custome s i clude most of the NAND flash ve do s, sto age device module make s a d leadi g OEMs.  Fo fu the i fo matio o Silico Motio , visit us at www.silico motio .com.

Fo wa d-Looki g Stateme ts:This ews elease co tai s “fo wa d-looki g stateme ts” withi the mea i g of Sectio  27A of the Secu ities Act of 1933, as ame ded, a d Sectio  21E of the Secu ities Excha ge Act of 1934, as ame ded. I some cases, you ca ide tify fo wa d-looki g stateme ts by te mi ology such as “may,” “will,” “should,” “expect,” “i te d,” “pla ,” “a ticipate,” “believe,” “estimate,” “p edict,” “pote tial,” “co ti ue,” o the egative of these te ms o othe compa able te mi ology. Although such stateme ts a e based o ou ow i fo matio a d i fo matio f om othe sou ces we believe to be eliable, you should ot place u due elia ce o them. These stateme ts i volve isks a d u ce tai ties, a d actual ma ket t e ds o ou actual esults of ope atio s, fi a cial co ditio o busi ess p ospects may diffe mate ially f om those exp essed o implied i these fo wa d-looki g stateme ts fo a va iety of easo s. Pote tial isks a d u ce tai ties i clude, but a e ot limited to, the u p edictable volume a d timi g of custome o de s, which a e ot fixed by co t act but va y o a pu chase o de basis; the loss of o e o mo e key custome s o the sig ifica t eductio , postpo eme t, escheduli g o ca cellatio of o de s f om o e o mo e custome s; ge e al eco omic co ditio s o co ditio s i the semico ducto o co sume elect o ics ma kets; the impact of i flatio o ou busi ess a d custome s’ busi esses a d a y effect this has o eco omic activity i the ma kets i which we ope ate; the fu ctio alities a d pe fo ma ce of ou i fo matio tech ology (“IT”) systems, which a e subject to cybe secu ity th eats a d which suppo t ou c itical ope atio al activities, a d a y b eaches of ou IT systems o those of ou custome s, supplie s, pa t e s a d p ovide s of thi d-pa ty lice sed tech ology; the effects o ou busi ess a d ou custome s’ busi ess taki g i to accou t the o goi g U.S.-Chi a ta iffs a d t ade disputes; othe facto s beyo d ou co t ol such as atu al disaste s, te o ism, civil u est, wa , i cludi g co flicts i the Middle East, th eats to the St ait of Ho muz a d global e e gy supply outes, a d the o goi g Russia-Uk ai e Wa , a d pa demics, epidemics a d othe health eme ge cies; the co ti ui g te sio s betwee Taiwa a d Chi a, i cludi g e ha ced milita y activities; dec eases i the ove all ave age selli g p ices of ou p oducts; cha ges i the elative sales mix of ou p oducts; supply chai dis uptio s that have affected us a d ou i dust y as well as othe i dust ies o a global basis; the payme t, o   o -payme t, of cash divide ds i the futu e at the disc etio of ou Boa d of Di ecto s a d a y a ou ced pla ed i c eases i such divide ds; cha ges i ou cost of fi ished goods; the availability, p ici g, a d timeli ess of delive y of othe compo e ts a d aw mate ials used i the p oducts we sell give the cu e t aw mate ial supply sho tages bei g expe ie ced i ou i dust y; ou custome s’ sales outlook, pu chasi g patte s, a d i ve to y adjustme ts based o co sume dema ds a d ge e al eco omic co ditio s; a y pote tial impai me t cha ges that may be i cu ed elated to busi esses p eviously acqui ed o divested i the futu e; the isk that the a ticipated be efits f om ou PCIe Ge 5 co t olle p oducts, i cludi g highe ave age selli g p ices, may ot be mai tai ed o may be less tha expected; the isk that ou a ticipated ma ket sha e gai s ac oss ou p oduct li es a d pe et atio of e te p ise e d ma kets may ot mate ialize as expected o o the a ticipated timeli e; ou ability to successfully develop, i t oduce, a d sell ew o e ha ced p oducts i a timely ma e ; a d the timi g of ew p oduct a ou ceme ts o i t oductio s by us o by ou competito s. Fo additio al discussio of these isks a d u ce tai ties a d othe facto s, please see the docume ts we file f om time to time with the U.S. Secu ities a d Excha ge Commissio , i cludi g ou A ual Repo t o Fo m 20-F filed with the U.S. Secu ities a d Excha ge Commissio o  Ap il 30, 2026. Othe tha as equi ed u de the secu ities laws, we do ot i te d, a d do ot u de take a y obligatio to, update o evise a y fo wa d-looki g stateme ts, which apply o ly as of the date of this ews elease.