Silicon Motion Technology has announced its net sales increased 8.8% on quarter to US$69.7 million in the second quarter of 2012, while net income (non-GAAP) increased to US$14.6 million or US$0.42 per diluted ADS in the same quarter compared to US$14.0 million or US$0.41 per diluted ADS in the previous quarter.

Net income (GAAP) for the second quarter decreased sequentially to US$10.7 million or US$0.32 per diluted ADS from a net income of US$13.0 million or US$0.39 per diluted ADS in the first quarter of 2012.

Sales of new growth products, including LTD and SSD plus embedded products, more than offset the unfavorable market conditions relating to sales of the company's core products and contributed to second quarter growth, said president and CEO Wallace Kou.

Sales of LTE transceivers increased 23% sequentially in the second quarter as Samsung started building its Galaxy S III LTE smartphones for all three wireless carriers in Korea, said Silicon Motion, adding that it has also secured the first LTE design win for an upcoming Samsung smartphone model that is targeted at one of the larger US wireless carriers.

Sales of the company's eMMC controllers have been ramping up sharply, and the company also began mass production of eMMC controllers for its second NAND flash partner, said Silicon Motion, adding that it is now supplying eMMC controllers to both Samsung and Hynix.

The company expects its revenues to grow 5-8% sequentially in the third quarter with a gross margin ranging from 47-49%. Silicon Motion's previous guidance for a 20-30% growth in revenues and a gross margin of 48-50% for all of 2012 also remains unchanged, said the company.