MHL Installed Base Grew to 220 Million Products
SUNNYVALE, Calif. — (BUSINESS WIRE) — February 5, 2013 — Silicon Image, Inc. (NASDAQ: SIMG), a leading provider of HD connectivity solutions, today reported financial results for its fourth quarter and fiscal year ended December 31, 2012.
Revenue for the fourth quarter of 2012 was $59.6 million, approximately a 2% increase from revenue of $58.7 million in the fourth quarter of 2011, and a 19% decrease from $73.9 million in the third quarter of 2012. Revenue for fiscal year 2012 was $252.4 million compared with $221.0 million for fiscal year 2011.
“During 2012, Silicon Image achieved a significant number of milestones,” said Camillo Martino, chief executive officer of Silicon Image, Inc. “We shipped nearly 200 million product units, including more than 140 million MHL transmitters for smartphones and tablets. We also successfully launched our UltraGig™ product line, a complete 60GHz WirelessHD® solution for mobile devices.”
GAAP net loss for the fourth quarter of 2012 was $0.3 million, or $0.00 per diluted share, compared with a net loss of $0.4 million, or $0.00 per diluted share, for the third quarter of 2012 and a net loss of $10.2 million, or $0.12 per diluted share, for the fourth quarter of 2011. GAAP net loss for fiscal year 2012 was $11.2 million, or $0.14 per diluted share, compared with a net loss for fiscal year 2011 of $11.6 million, or $0.14 per diluted share.
Non-GAAP net income for the fourth quarter of 2012 was $6.2 million, or $0.08 per diluted share, compared with a net income of $8.8 million, or $0.11 per diluted share, for the third quarter of 2012 and a net income of $4.8 million, or $0.06 per diluted share, for the fourth quarter of 2011. Non-GAAP net income for fiscal year 2012 was $18.5 million, or $0.22 per share, compared with a net income for fiscal year 2011 of $16.4 million, or $0.20 per diluted share. Non-GAAP net income for these periods excludes stock-based compensation expense, impairment of investment in an unconsolidated affiliate, impairment of intangible asset, write-off certain unsalable inventory, amortization of intangible assets, restructuring charges, business acquisition related expenses and reversal of a subsidiary’s foreign currency translation adjustment.
“Our non-GAAP net income exceeded our expectations for the quarter, and our revenue for the full year increased 14% from the year before,” said Mr. Martino. “Additionally, our non-GAAP earnings per share grew year over year and we remain committed to executing our strategy as planned and driving shareholder value.”
During the fourth quarter of 2012, pursuant to the share repurchase plan announced in April 2012, Silicon Image repurchased approximately 751,000 shares of its common stock for approximately $3.3 million. In addition, pursuant to the $30 million accelerated share repurchase agreement entered in November 2012, Silicon Image received approximately 5 million shares of its common stock and expects to receive an additional 1 million to 1.5 million shares when the program concludes. The company’s cash and short-term investments balance as of December 31, 2012 was $107.5 million.
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 2013:
Revenue: approximately $59 million to $61 million
Gross Margin: approximately 58%
GAAP operating expenses: approximately $37.5 million
Non-GAAP operating expenses: approximately $34.5 million
Diluted shares outstanding: approximately 77 million
Non-GAAP tax rate: approximately 30% of non-GAAP pre-tax income
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, impairment of investment in an unconsolidated affiliate, impairment of intangible asset, write-off certain unsalable inventory, restructuring charges, 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.
Silicon Image will host an investor conference call today to discuss its
fourth quarter of 2012 results at 2:00 p.m. Pacific Time and will
webcast the event. To access the conference call, dial 877-941-8416 or
480-629-9808 and enter pass code 4588511. The webcast and replay will be
accessible on Silicon Image's investor relations website at
A replay of the conference call will be available within two hours of
the conclusion of the conference call through February 19, 2013. To
access the replay, please dial 800-406-7325 or 303-590-0303 and enter
pass code 4558851.