Silicon Motion craters on disaster Q2
Shares of Silicon Motion Technology Corp. (Nasdaq:SIMO) are crumbling on high volume in pre-market trading after the maker of semiconductors for consumer electronics said this morning that net income for the second quarter plunged 44% and clocked in at half the level analysts were on average forecasting. Although sales increased 2% in the quarter, the top-line still fell below the consensus on Wall Street.
Results took a hit, as the small cap bore the brunt of anemic sales for storage products, as demand weakened. Silicon was unfavorably affected by weak demand from many customers, in both retail as well as its bundled card controller segments.
Shares flopped 24%, or $2.59, to $8.41 in pre-market trading. For detailed price information and recent news stories about Silicon Motion, click SIMO.
About the Author
Reporter Jennifer Schonberger is based in SmallCapInvestor.com's Washington, D.C. bureau.
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