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Silicon Motion Technology ( SIMO ) stock hit a record high Thursday after the company said first-quarter revenue would come in higher than expected. The Taiwan-based provider of flash-chip storage devices used in consumer products said revenue is expected to be 14% to 15% higher than the previous quarter. It’s prior guidance was in the range of a 2.5% decrease to a 2.5% increase. The consensus estimate, prior to the improved guidance, is for Silicon Motion to report revenue of $99 million, up 1% sequentially and up 23% year over year, which would be the eighth quarter in a row of double-digit gains. The consensus on earnings per share is 56 cents, up 17%, according to analysts polled by Thomson Reuters. Silicon Motion also said its gross profit margin is expected to be in the upper half of its original guidance range of 49% to 51%. Silicon Motion stock was up 4%, near 39.50, in afternoon trading on the stock market today . Shares rose as much as 6.4% earlier, hitting an all-time high of 40.27. Silicon Motion has an IBD Composite Rating of 99, the highest possible, and broke out of a cup-with-handle base at 34.08 last month. That leaves the stock 16% extended. The company is scheduled to release full Q1 earnings after the market close April 27. The majority of Silicon Motion products are integrated in consumer electronic devices. A significant portion of revenue is from customers that use the products in removable and embedded solid state storage solutions for smartphones, tablets, digital cameras, notebooks and desktop PCs. Its customers include Samsung and SK Hynix. Competitors in the mobile storage market include Marvell Technology ( MRVL ). On Tuesday, husband and wife co-founders Sehat Sutardja and Weili Dai resigned under pressure as CEO and president, as the company in March completed a review by its audit committee that found sales staff was under significant pressure from management to meet revenue goals. The company has delayed the filing of its 10-K statement, and Nasdaq has put the company on notice of possible delisting. Marvell stock jumped 13% on Tuesday on that news, but was down a fraction, near 10.80, Thursday afternoon. Scalper1 News
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