SUNNYVALE, Calif. — (BUSINESS WIRE) — February 2, 2012 — Silicon Image, Inc. (NASDAQ: SIMG), a leading provider of wireless and wired HD connectivity solutions, today reported financial results for its fourth quarter and fiscal year ended December 31, 2011.

Revenue for the fourth quarter of 2011 was $58.7 million, compared to $59.7 million for the third quarter of 2011 and $52.0 million for the fourth quarter of 2010. Revenue for fiscal year 2011 was $221.0 million, compared to $191.3 million for fiscal year 2010.

“Silicon Image had a strong fourth quarter, driven by continued success with our mobile products and growth in our intellectual property revenue. We shipped a record number of MHL-enabled products, driving mobile to be the largest product revenue contributor in the fourth quarter,” said Camillo Martino, chief executive officer of Silicon Image, Inc. “Over the past year, we have positioned the company to benefit from the growth in connectivity between CE, mobile and PC devices. We expect to grow our total addressable market to more than two billion units by 2015, which will continue to drive revenue and earnings growth.”

GAAP net loss for the fourth quarter of 2011 was $5.9 million, or $0.07 per diluted share, compared to a net income of $0.7 million, or $0.01 per diluted share, for the third quarter of 2011 and a net income of $4.2 million, or $0.05 per diluted share, for the fourth quarter of 2010. GAAP net loss for fiscal year 2011 was $7.3 million, or $0.09 per diluted share, compared to net income of $8.2 million, or $0.10 per diluted share, for fiscal year 2010. GAAP net loss for the fourth quarter and fiscal year 2011 includes a $4.2 million intangible asset impairment charge.

Non-GAAP net income for the fourth quarter of 2011 was $4.8 million, or $0.06 per diluted share, compared to $5.0 million, or $0.06 per diluted share, for the third quarter of 2011 and $5.3 million, or $0.07 per diluted share, for the fourth quarter of 2010. Non-GAAP net income for fiscal year 2011 was $16.4 million, or $0.20 per diluted share, compared to net income of $17.3 million, or $0.22 per diluted share, for fiscal year 2010. Non-GAAP net income for these periods excludes stock-based compensation expense, impairment of intangible assets, amortization of intangible assets, restructuring charges, business acquisition related expenses and reversal of a subsidiary’s foreign currency translation adjustment.

A reconciliation of GAAP and non-GAAP items is provided in a table following the Condensed Consolidated Statements of Operations.

The following are Silicon Image’s financial performance estimates for the first quarter of 2012:

Use of Non-GAAP Financial Information

Silicon Image presents and discusses gross margin, operating expenses, net income (loss) and basic and diluted net income (loss) per share in accordance with Generally Accepted Accounting Principles (GAAP), and on a non-GAAP basis for informational purposes only. Silicon Image believes that non-GAAP reporting, giving effect to the adjustments shown in the attached reconciliation, provides meaningful information and therefore uses non-GAAP reporting to supplement its GAAP reporting and internally in evaluating operations, managing and monitoring performance, and determining bonus compensation. Further, Silicon Image uses non-GAAP information as certain non-cash charges such as amortization of intangibles, stock based compensation, restructuring charges, impairment of intangible assets, business acquisition related expenses and reversal of a subsidiary’s foreign currency translation adjustment do not reflect the cash operating results of the business. Silicon Image has chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of its 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.