Silicon Motion Cuts Q4 View: Consumer Sales Weakening
Shares of $90 million (market cap) Silicon Motion (SIMO), the Taiwanese maker of chips to control flash memory and computer cameras, are falling after the company this morning said the current quarter’s decline in sales will be much deeper than previously thought, with sales falling 25 to 30 percent sequentially, versus a prior forecast of 10 percent. The firm said its gross profit margin is expected to still come in at 48 to 50 percent, as previously stated. Operating expenses are also unchanged from the prior forecast at $15 million to $16 million.
