| Silicon Motion Technology Corporation
Reconciliation of GAAP to Non-GAAP Operating Results (in thousands, except percentages and per ADS data, unaudited) | |||||||||||||||
| For Three Months Ended | For the Year Ended | ||||||||||||||
| Sep. 30, | Jun. 30, | Sep. 30, | Sep. 30, | Sep. 30, | |||||||||||
| 2022 | 2023 | 2023 | 2022 | 2023 | |||||||||||
| ($) | ($) | ($) | ($) | ($) | |||||||||||
| Gross profit (GAAP) | 119,121 | 56,423 | 73,140 | 378,859 | 181,866 | ||||||||||
| Gross margin (GAAP) | 47.5 | % | 40.2 | % | 42.4 | % | 50.8 | % | 41.6 | % | |||||
| Stock-based compensation (A) | 143 | 71 | 94 | 370 | 300 | ||||||||||
| Restructuring charges | - | 3,222 | 88 | 136 | 3,347 | ||||||||||
| Gross profit (non-GAAP) | 119,264 | 59,716 | 73,322 | 379,365 | 185,513 | ||||||||||
| Gross margin (non-GAAP) | 47.6 | % | 42.5 | % | 42.5 | % | 50.9 | % | 42.5 | % | |||||
| Operating expenses (GAAP) | 63,751 | 54,605 | 58,132 | 190,013 | 159,555 | ||||||||||
| Stock-based compensation (A) | (5,679 | ) | (2,359 | ) | (3,751 | ) | (13,451 | ) | (11,460 | ) | |||||
| M&A transaction expenses | (1,766 | ) | (1,548 | ) | (708 | ) | (8,444 | ) | (2,893 | ) | |||||
| MaxLinear arbitration expenses | - | - | (2,904 | ) | - | (2,904 | ) | ||||||||
| Restructuring charges | - | (2,664 | ) | (661 | ) | - | (4,581 | ) | |||||||
| Loss from settlement of litigation | 300 | - | (591 | ) | (400 | ) | (591 | ) | |||||||
| Operating expenses (non-GAAP) | 56,606 | 48,034 | 49,517 | 167,718 | 137,126 | ||||||||||
| Operating profit (GAAP) | 55,370 | 1,818 | 15,008 | 188,846 | 22,311 | ||||||||||
| Operating margin (GAAP) | 22.1 | % | 1.3 | % | 8.7 | % | 25.3 | % | 5.1 | % | |||||
| Total adjustments to operating profit | 7,288 | 9,864 | 8,797 | 22,801 | 26,076 | ||||||||||
| Operating profit (non-GAAP) | 62,658 | 11,682 | 23,805 | 211,647 | 48,387 | ||||||||||
| Operating margin (non-GAAP) | 25.0 | % | 8.3 | % | 13.8 | % | 28.4 | % | 11.1 | % | |||||
| Non-operating income (expense) (GAAP) | (1,543 | ) | 10,094 | 1,221 | (2,942 | ) | 18,109 | ||||||||
| Foreign exchange loss (gain), net | 2,293 | (1,223 | ) | (569 | ) | 4,318 | (2,030 | ) | |||||||
| Unrealized holding loss (gain)
on investments | - | (6,135 | ) | 2,828 | - | (8,053 | ) | ||||||||
| Non-operating income (expense) (non-GAAP) | 750 | 2,736 | 3,480 | 1,376 | 8,026 | ||||||||||
| Net income (GAAP) | 42,891 | 11,044 | 10,587 | 148,975 | 31,781 | ||||||||||
| Total pre-tax impact of non-GAAP
adjustments | 9,581 | 2,506 | 11,056 | 27,119 | 15,993 | ||||||||||
| Income tax impact of non-GAAP
adjustments | (1,311 | ) | (965 | ) | (584 | ) | (3,234 | ) | (2,968 | ) | |||||
| Net income (non-GAAP) | 51,161 | 12,585 | 21,059 | 172,860 | 44,806 | ||||||||||
| Earnings per diluted ADS (GAAP) | $1.29 | $0.33 | $0.32 | $4.45 | $0.95 | ||||||||||
| Earnings per diluted ADS (non-GAAP) | $1.53 | $0.38 | $0.63 | $5.13 | $1.33 | ||||||||||
| Shares used in computing earnings per diluted ADS (GAAP) | 33,140 | 33,438 | 33,471 | 33,448 | 33,431 | ||||||||||
| Non-GAAP adjustments | 263 | 115 | 128 | 249 | 136 | ||||||||||
| Shares used in computing earnings per diluted ADS (non-GAAP) | 33,403 | 33,553 | 33,599 | 33,697 | 33,567 | ||||||||||
| (A) Excludes stock-based compensation as follows: | |||||||||||||||
| Cost of sales | 143 | 71 | 94 | 370 | 300 | ||||||||||
| Research & development | 4,029 | 1,315 | 2,422 | 9,007 | 7,605 | ||||||||||
| Sales & marketing | 615 | 435 | 521 | 1,684 | 1,496 | ||||||||||
| General & administrative | 1,035 | 609 | 808 | 2,760 | 2,359 | ||||||||||
