Matthew Bryson's questions to Silicon Motion Technology (SIMO) leadership • Q2 2025
Question
Matthew Bryson began a question about the path to achieving the company's 25%+ operating margin target, noting the high revenue run rate required, especially if operating expenses continue to increase, before being cut off by a technical issue.
Answer
President & CEO Wallace Kou addressed the partial question by confirming operating expenses will increase slightly due to R&D and advanced node tape-outs. However, he expressed confidence that strong top-line revenue growth will provide operating leverage, targeting a return to the 20-25% margin range in 2026.