Silicon Motion Technology Corporation (SIMO) has reported 59.72 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $13.18 million, or $0.38 a share in the quarter, compared with $32.72 million, or $0.92 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $20.05 million, or $0.57 a share compared with $38.33 million or $1.07 a share, a year ago.

Revenue during the quarter plunged 39.84 percent to $95.40 million from $158.58 million in the previous year period. Gross margin for the quarter expanded 267 basis points over the previous year period to 51.48 percent. Total expenses were 79.64 percent of quarterly revenues, up from 75.71 percent for the same period last year. That has resulted in a contraction of 393 basis points in operating margin to 20.36 percent.

Operating income for the quarter was $19.42 million, compared with $38.52 million in the previous year period.

However, the adjusted operating income for the quarter stood at $23.40 million compared to $45.52 million in the prior year period. At the same time, adjusted operating margin contracted 417 basis points in the quarter to 24.53 percent from 28.71 percent in the last year period.

"Third quarter sales exceeded our original expectations due to continuing strong demand for our client SSD and eMMC controllers, especially from our NAND flash partners," said Wallace Kou, president and chief executive officer of Silicon Motion. "We are excited that our NAND flash partners have continued to grow their sales of SSDs to PC OEMs and eMMCs to smartphone OEMs. This has led to further expansion of our market shares in both client SSD controllers and eMMC controllers."