2 Assumes all outstanding ordinary shares are represented by ADSs.  Each ADS represents four ordinary shares.

Silicon Motion Technology Corporation Reconciliation of GAAP to Non-GAAP Operating Results (in thousands, except percentages and per ADS data, unaudited)
			For the Three Months Ended
			Sep. 30, 2015 ($)			Jun. 30, 2016 ($)			Sep. 30, 2016 ($)
Gross profit (GAAP)			49,112			68,121			77,405
Gross margin (GAAP)			51.5	%		48.4	%		48.8	%
Stock-based compensation expense(A)			88			2			156
Gross profit (non-GAAP)			49,200			68,123			77,561
Gross margin (non-GAAP)			51.6	%		48.4	%		48.9	%
Operating expenses (GAAP)			29,693			31,908			38,886
Stock-based compensation expense (A)			(3,347	)		(470	)		(6,320	)
Amortization of intangible assets			(526	)		(526	)		(526	)
Litigation expense			(28	)		(9	)		(1	)
Acquisition-related expense			6			-			-
Operating expenses (non-GAAP)			25,798			30,903			32,039
Operating profit (GAAP)			19,419			36,213			38,519
Operating margin (GAAP)			20.4	%		25.7	%		24.3	%
Total adjustments to operating profit			3,983			1,007			7,003
Operating profit (non-GAAP)			23,402			37,220			45,522
Operating margin (non-GAAP)			24.5	%		26.5	%		28.7	%
Non-operating income (expense) (GAAP)			730			(27	)		194
Foreign exchange loss (gain), net			(220	)		488			375
Non-operating income (expense) (non-GAAP)			510			461			569
Net income (GAAP)			13,180			29,047			32,722
Total pre-tax impact of non-GAAP adjustments			3,763			1,495			7,378
Income tax impact of non-GAAP adjustments			3,105			162			(1,768	)
Net income (non-GAAP)			20,048			30,704			38,332
Earnings per diluted ADS (GAAP)		$	0.38		$	0.82		$	0.92
Earnings per diluted ADS (non-GAAP)		$	0.57		$	0.86		$	1.07
Shares used in computing earnings per diluted ADS (GAAP)			34,941			35,476			35,539
Non-GAAP Adjustments			332			63			244
Shares used in computing earnings per diluted ADS (non-GAAP)			35,273			35,539			35,783
(A)  Excludes stock-based compensation as follows:
Cost of Sales			88			2			156
Research & development			2,125			278			4,009
Sales & marketing			604			159			1,038
General & administrative			618			33			1,273