Print page |
Email page
| 
Download PDF
|
Add to briefcase
« Previous Release | Next Release »
SUNNYVALE, Calif., May 3, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Silicon Image, Inc. (Nasdaq: SIMG), a leader in semiconductors for the secure storage, distribution and presentation of high-definition content, today reported financial results for its fiscal year 2007 first quarter.
Financial Highlights
-- First quarter 2007 revenue totaled $69.1 million. Product and licensing
revenue accounted for 80.5 percent and 19.5 percent, respectively, of
the total revenue in the first quarter. Total first quarter revenue
increased 17.0 percent compared with the same quarter of 2006. Fourth
quarter 2006 revenue totaled $87.0 million, including $10.6 million
from the Genesis settlement that were attributable to royalties earned
prior to the fourth quarter of 2006.
-- GAAP gross margin for the first quarter of 2007 totaled $38.4 million,
or 55.5 percent of total revenue, compared with $33.8 million, or 57.1
percent of total revenue in the same quarter of 2006 and $53.6 million,
or 61.6 percent of total revenue in the fourth quarter of 2006.
-- Non-GAAP gross margin for the first quarter of 2007 totaled $38.7
million, or 56.0 percent of first quarter 2007 total revenue. In
comparison, non-GAAP gross margin for the same quarter of 2006 was
$34.4 million, or 58.2 percent of first quarter 2006 total revenue.
Non-GAAP gross margin for the prior quarter was $43.7 million, or 57.3
percent of prior quarter total revenue. A reconciliation of GAAP to
non-GAAP gross margin is included in the summary financial information
attached to this press release.
-- EBITDA for the first quarter of 2007 was $9.3 million, compared with
$5.9 million in the same quarter of 2006 and $29.8 million in the prior
quarter. EBITDA excluding stock-based compensation expense and adjusted
for Genesis royalties earned in periods prior to the fourth quarter of
2006 and other adjustments in the fourth quarter of 2006, for the first
quarter of 2007 was $13.3 million, compared with $13.2 million in the
same quarter of 2006 and $20.7 million in the prior quarter.
-- GAAP first quarter 2007 net income totaled $2.9 million, or $0.03 per
diluted share. In comparison, GAAP net income for the same quarter of
2006 was $2.4 million, or $0.03 per diluted share. GAAP net income for
the prior quarter was $26.3 million, or $0.29 per diluted share.
-- Non-GAAP net income for the first quarter of 2007 totaled $6.3 million,
or $0.07 per basic and diluted share. In comparison, non-GAAP net
income for the same quarter of 2006 was $11.3 million, or $0.14 and
$0.13 per basic and diluted share, respectively. Non-GAAP net income
for the prior quarter was $18.3 million, or $0.21 per basic and diluted
share. A reconciliation of GAAP to non-GAAP net income is included in
the summary financial information attached to this press release.
-- Cash and short-term investments at the end of the first quarter were
approximately $224.0 million or $2.50 per share on a diluted basis,
compared with $167.5 million at the end of the same quarter of 2006 and
$250.6 million at the end of 2006. The decline in total cash was
primarily related to payments for 2006 taxes and 2007 estimated taxes,
the acquisition of sci-worx and a partial payment to Sunplus for an
intellectual property license.
17 Percent Year-over-Year Sales Growth Fueled by HDMI Expansion and VastLane HDMI 1.3 Shipments
Silicon Image's year-over-year revenue growth was driven primarily by increased product and licensing revenue associated with the expanding use of High-Definition Multimedia Interface(TM) (HDMI(TM)). According to HDMI Licensing LLC, a subsidiary of Silicon Image and the licensing agent responsible for licensing and promoting of the HDMI Specification, approximately 590 entities worldwide have adopted HDMI -- including approximately 140 in China -- up from 388 total adopters one year earlier.
"I am encouraged by our strong performance in the seasonally weak March quarter, particularly for our new products," said Steve Tirado, Silicon Image's president and chief executive officer. "Our industry-leading VastLane 1.3 HDMI products accounted for approximately 25 percent of our March quarter consumer electronics product sales. Based upon our current order rate and feedback from customers on our design wins, including our first volume order for our integrated input processors, I expect to see 9 to 14 percent revenue growth in the June quarter," said Tirado.
Outlook for the Second Quarter, ending June 30, 2007
Silicon Image expects:
-- Revenue to range between $75 million and $79 million;
-- GAAP gross margins to range between 50 percent and 52 percent;
-- Non-GAAP gross margins to range between 50 percent and 53 percent;
-- GAAP operating expenses to range between $35 million to $37 million;
and
-- Non-GAAP operating expenses to range between $30 million to
$32 million.
Use of Non-GAAP Financial Information
Silicon Image reports gross margin, gross margin percent, net income and basic and diluted net income per share in accordance with GAAP and supplementally on a non-GAAP basis for informational purposes only. Silicon Image believes that the non-GAAP reporting giving effect to the adjustments shown in the attached reconciliation provides management with meaningful information to evaluate operations, manage and monitor performance and determine bonus compensation. Silicon Image's presentation of non-GAAP financial information excludes stock-based compensation, amortization of intangible assets recorded in connection with our acquisitions, and the non- cash portion of the income tax provision recorded to additional paid in capital. Silicon Image has chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of our operating results and to illustrate the results of operations giving effect to such non-GAAP adjustments. The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
Conference Call
Silicon Image will host a conference call to discuss financial results at 2:00 p.m. Pacific Time on May 3, 2007. To access the conference call, dial (719) 457-2679 and enter pass code 2721674. A replay of the conference call will be available until midnight Pacific Time, May 18, 2007. To access the replay, please dial (719) 457-0820 or (888) 203-1112, and enter pass code 2721674. A webcast of the call will also be available on the Silicon Image investor relations site located at www.siliconimage.com.
About Silicon Image, Inc.
Headquartered in Sunnyvale, Calif., Silicon Image, Inc. is a leader in driving the architecture and semiconductor implementations for the secure storage, distribution and presentation of high-definition content in the consumer electronics and personal computing markets. Silicon Image creates and drives industry standards for digital content delivery such as DVI, HDMI(TM) and Serial ATA (SATA), leveraging partnerships with global leaders in the consumer electronics and personal computing markets to meet the growing digital content needs of consumers worldwide. With a proven track record of improving cross-product interoperability, Silicon Image has shipped more than 100 million HDMI/HDCP and DVI/HDCP semiconductor solutions and offers one of the most robust and comprehensively tested technology platforms in the consumer electronics industry through the Simplay HD(TM) Testing Program of Simplay Labs. Simplay Labs, LLC, a wholly-owned subsidiary of Silicon Image, is a leading provider of testing technologies, tools and services for high- definition consumer electronics devices such as HDTVs, set-top boxes, audio/video receivers and DVD players, helping manufacturers to achieve compatibility and deliver the highest-quality HDTV experience to consumers. Silicon Image is the leading provider of semiconductor intellectual property solutions for high-definition multimedia and data storage applications. For more information, please visit www.siliconimage.com.
Forward-Looking Statements
This news release contains forward-looking information within the meaning of federal securities regulations. These forward-looking statements include statements related to Silicon Image's anticipated revenue growth and future operating results, including the anticipated sequential revenue growth in the second quarter, market demand for our HDMI 1.3 products and input processors, our design wins and increasing HDMI adoption and penetration. These forward- looking statements involve risks and uncertainties, including those described from time to time in Silicon Image's filings with the Securities and Exchange Commission (SEC) that could cause the actual results to differ materially from those anticipated by these forward- looking statements. In addition, see the Risk Factors section of the most recent Form 10-K or Form 10-Q filed by Silicon Image with the SEC. Silicon Image assumes no obligation to update any forward-looking information contained in this press release.
SILICON IMAGE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Unaudited
Three Months Ended
March 31, December 31, March 31,
2007 2006 2006
Revenue:
Product $55,666 $66,278 $53,280
Development, licensing and royalties 13,453 20,675 5,819
Total revenue 69,119 86,953 59,099
Cost of revenue and operating expenses:
Cost of revenue (1) 30,758 33,393 25,348
Research and development (2) 17,195 15,987 15,566
Selling, general and administrative (3) 17,131 18,226 15,389
Amortization of intangible assets 615 78 274
Patent assertion costs
(reimbursements), net 13 (5,369) 72
Total cost of revenue and operating
expenses 65,712 62,315 56,649
Income from operations 3,407 24,638 2,450
Interest income and other, net 3,026 3,024 1,538
Income before provision for income taxes 6,433 27,662 3,988
Provision for income taxes 3,517 1,389 1,636
Net income $2,916 $26,273 $2,352
Net income per share - basic $0.03 $0.31 $0.03
Net income per share - diluted $0.03 $0.29 $0.03
Weighted average shares - basic 86,825 85,618 80,986
Weighted average shares - diluted 89,549 89,113 85,398
(1) Includes stock compensation expense $346 $473 $628
(2) Includes stock compensation expense 2,308 1,715 2,812
(3) Includes stock compensation expense 1,378 2,583 3,843
SILICON IMAGE, INC.
GAAP GROSS MARGIN TO NON-GAAP GROSS MARGIN RECONCILIATION
Three Months Ended
% of % of % of
March total December total March total
31, revenue 31, revenue 31, revenue
(In thousands, except 2007 2006 2006
percentages)
(unaudited)
GAAP Gross margin $38,361 55.5% $53,560 61.6% $33,751 57.1%
Non-GAAP adjustments:
Stock-based compensation
expense (1) 346 0.5% 473 0.5% 628 1.1%
Adjustments related to
Genesis Settlement (2) - - (10,291) -11.8% - -
Non-GAAP Gross margin $38,707 56.0% $43,742 50.3% $34,379 58.2%
(1) For the three months ended March 31, 2007 and 2006 and December 31,
2006, these adjustments represent the non-cash amortization of
stock-based compensation associated with SFAS No. 123( R ).
(2) This adjustment represents the reversal of royalty revenue and bonus
expense related to the Genesis settlement for the amounts that related
to quarters prior to Q4' 2006.
SILICON IMAGE, INC.
GAAP NET INCOME TO NON-GAAP NET INCOME RECONCILIATION
Three Months Ended
(In thousands, except per share March 31, December 31, March 31,
amounts) 2007 2006 2006
(unaudited)
GAAP Net income $2,916 $26,273 $2,352
Non-GAAP adjustments:
Stock-based compensation expense (1) 4,032 4,771 7,283
Adjustments related to Genesis
Settlement (2) - (13,831) -
Amortization of intangible assets (3) 615 78 274
Non-GAAP Net income before tax
adjustments 7,563 17,291 9,909
Income tax effects on above
adjustments 1,247 3,469 -
Non-cash tax benefits (4) - (4,467) (1,356)
Non-GAAP net income $6,316 $18,289 $11,265
Non-GAAP net income per share - basic $0.07 $0.21 $0.14
Non-GAAP net income per share - diluted $0.07 $0.21 $0.13
Weighted average shares - basic 86,825 85,618 80,986
Weighted average shares - diluted 89,549 89,113 85,398
(1) For the three months ended March 31, 2007 and 2006 and December 31,
2006, these adjustments represent the non-cash amortization of stock-
based compensation associated with SFAS No. 123( R ).
(2) This adjustment represents the reversal of royalty revenue from
Genesis for the amounts that related to quarters prior to Q4' 2006
and reversal of contra expense for reimbursement of litigation
expenses for the quarter ended December 31, 2006.
(3) This adjustment represents expenses for the amortization of
intangible assets recorded in connection with our acquisitions.
These on-going expenses pertain to intangible assets that are not
expected to be replaced when fully amortized, as might a
depreciable tangible asset.
(4) This adjustment represents the non-cash tax benefits from employee
stock transactions and other discrete items included in the
GAAP tax provision and recorded to additional paid in capital.
SILICON IMAGE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Unaudited March 31, December 31,
2007 2006
Assets
Current Assets:
Cash and cash equivalents $78,649 $81,921
Short-term investments 145,376 168,724
Accounts receivable, net 33,226 39,931
Inventories 24,551 28,287
Prepaid expenses and other current assets 9,381 4,895
Deferred income taxes 10,075 12,793
Total current assets 301,258 336,551
Property and equipment, net 21,896 18,431
Goodwill 19,131 13,021
Intangible assets, net 2,603 78
Deferred income taxes, non-current 14,770 10,580
Other assets 11,836 1,570
Total assets $371,494 $380,231
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $12,216 $14,187
Accrued liabilities and other current
liabilities 16,820 37,308
Deferred license revenue 4,054 5,264
Deferred margin on sales to distributors 15,849 17,712
Total current liabilities 48,939 74,471
Other long-term liabilities 10,107 538
Total liabilities 59,046 75,009
Stockholders' Equity:
Total stockholders' equity 312,448 305,222
Total liabilities and stockholders'
equity $371,494 $380,231
SOURCE Silicon Image, Inc.
Kasey Holman, Media Relations, +1-408-616-4192, kasey.holman@siliconimage.com, or David H. Allen, Investor Relations, +1-408-616-4003, david.allen@siliconimage.com, both of Silicon Image, Inc.
http://www.siliconimage.com/
Copyright (C) 2007 PR Newswire. All rights reserved
News Provided by COMTEX