Silicon Motion Technology Corporation announced financial results for the fourth quarter and year ended December 31, 2016. For the quarter, the company reported net sales of $144.198 million against $98.041 million a year ago. Operating income was $34.855 million against $18.062 million a year ago. Income before income tax was $35.573 million against $17.995 million a year ago. Net income was $26.157 million or $0.73 per diluted ADS against $13.381 million or $0.38 per diluted ADS a year ago. Operating profit (non-GAAP) was $43.810 million against $23.885 million a year ago. Non-operating income (non-GAAP) was $0.619 million against $0.456 million a year ago. Net income (non-GAAP) was $33.866 million or $0.95 per diluted ADS against $19.651 million or $0.55 per diluted ADS a year ago. During the fourth quarter, the company had $2.1 million of capital expenditures for the routine purchase of software and design tools. Capital expenditures were $2.5 million against $14.4 million a year ago. Net cash provided by operating activities was $34.8 million.

For the full year, the company reported net sales of $556.146 million against $361.297 million a year ago. Operating income was $137.260 million against $76.433 million a year ago. Income before income tax was $138.630 million against $78.500 million a year ago. Net income was $110.940 million or $3.12 per diluted ADS against $60.251 million or $1.73 per diluted ADS a year ago. Operating profit (non-GAAP) was $156.779 million against $88.389 million a year ago. Non-operating income (non-GAAP) was $2.075 million against $1.991 million a year ago. Net income (non-GAAP) was $129.993 million or $3.64 per diluted ADS against $74.039 million or $2.11 per diluted ADS a year ago.

The company provided earnings guidance for the first quarter and full year of 2017. For the quarter, the company expects GAAP revenue in the range of $121 million to $128 million, gross margin in the range of 48% to 50% and operating margin in the range of 20% to 22% and non-GAAP revenue in the range of $121 million to $128 million, gross margin in the range of 48% to 50% and operating margin in the range of 23% to 25%.

For the full year of 2017, the company expects GAAP revenue in the range of $556 million to $612 million, gross margin in the range of 49% to 51% and operating margin in the range of 24.4% to 26.4% and non-GAAP revenue in the range of $556 million to $612 million, gross margin in the range of 49% to 51% and operating margin in the range of 27.5% to 29.5%.