Silicon Motion Technology (NASDAQ:SIMO) shares are gaining ground premarket after the company announced preliminary third-quarter results.
Based on its preliminary Q3 results, the NAND flash controllers company revealed that sequential revenue growth is expected to be slightly above the high-end of its original guidance range of 15% to 20%, which it issued on July 28.
The stock has gained more than 3% premarket, trading at around $55 per share.
In Q2, the company reported net sales of $140.4 million, representing a 13% rise quarter-on-quarter but a 44% decline year-on-year.
When the company posted its Q2 results in July, it stated: "We believe that we are well positioned to drive long-term growth of our business and increase our profitability levels.”
SIMO added that it was "optimistic that the industry is well positioned for recovery and growth in the second half of this year."
Furthermore, in its preliminary Q3 results today, SIMO said its adjusted gross margin is expected to be similar sequentially and in line with the original guidance range.