Silicon Motions Higher: Fool by Numbers

On Feb. 1, fabless semiconductor firm Silicon Motion Technology (Nasdaq: SIMO  ) released fourth-quarter earnings for the period ended Dec. 31.

• Net sales increased by 37%, mainly because of increased demand for the company's controllers from makers of high-density micro-SD cards and SD memory cards.
• Management expects sales in the first quarter of 2007 to decline 15%-20% from the fourth quarter, and full-year earnings per ADS are estimated to be in the range of $1.20 to $1.30.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$35.6	$26.1	36.6%
Net Profit	$10.2	$7.4	37.2%
EPS	$0.32	$0.24	33.3%
Diluted Shares	31.6	31.6	(0.2%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	53.5%	53.9%	(0.4)
Operating Margin	25.4%	30.2%	(4.8)
Net Margin	28.6%	28.5%	0.1

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q4 2006	Q4 2005	Change
Cash + ST Invest.	$100.3	$83.5	20.1%
Accounts Rec.	$25.8	$17.5	47.4%
Inventory	$13.1	$8.5	54.1%

Liabilities	Q4 2006	Q4 2005	Change
Long-Term Debt	--	--	--

Learn the ways of the balance sheet.

Cash Flow Highlights
Management has not yet decided to include a cash flow statement with the earnings release.

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.