Revenue for the second quarter of 2009 was $37.3 million, compared to $40.5 million for the first quarter of 2009 and $70.1 million for the second quarter of 2008.
GAAP net loss for the second quarter of 2009 was $13.3 million, or $0.18 per diluted share, compared to a net loss of $33.3 million, or $0.45 per diluted share, for the first quarter of 2009 and net loss of $0.5 million, or $0.01 per diluted share, for the second quarter of 2008. GAAP net loss for the second quarter of 2009 includes pre-tax restructuring expenses of $7.1 million. GAAP net loss for the first quarter of 2009 includes a goodwill impairment charge of $19.2 million.
Non-GAAP net loss for the second quarter of 2009 was $4.3 million, or $0.06 per diluted share, compared to net loss of $3.6 million, or $0.05 per diluted share, for the first quarter of 2009 and net income of $5.0 million, or $0.07 per diluted share, for the second quarter of 2008. Non-GAAP net income excludes stock-based compensation expense, amortization of intangible assets, restructuring charges, and goodwill impairment.
A reconciliation of GAAP and non-GAAP items is provided in a table following the Condensed Consolidated Statements of Operations.
"As we enter the second half of 2009, we are excited about our new products that will be shipping and the progress we are making in the formation of new technology standards consortiums," said Steve Tirado, president and chief executive officer of Silicon Image. "With our design win momentum, our goal is to achieve double digit revenue growth in the second half of 2009 when compared to the first six months. We also expect to start to experience growing adoption of the MHL standard," continued Tirado.
The following are Silicon Image’s financial performance estimates for the third quarter of 2009:
Revenue: $44 million - $46 million
Gross margin: approximately 54%
GAAP operating expenses: approximately $32 million
Non-GAAP operating expenses: approximately $26 million
Interest income: $0.7 million - $0.8 million
Diluted shares outstanding: approximately 75 million
Cash usage of approximately $5 million
Use of Non-GAAP Financial Information
Silicon Image presents and discusses gross margin, operating expenses, net income and basic and diluted net income 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 and goodwill impairment 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.
The company will host an investor conference call today to discuss its second quarter 2009 results at 2:00 p.m. Pacific Time and will webcast the event. To access the conference call, dial 877-397-0235 or 719-325-4851 and enter pass code 5797497. The webcast will be accessible on Silicon Image's investor relations Web site at http://www.SiliconImage.com. A replay of the conference call will be available within two hours of the conclusion of the conference call through July 28, 2009. To access the replay, please dial 888-203-1112 or 719-457-0820 and enter pass code 5797497.
About Silicon Image, Inc.
Silicon Image, Inc. is a leading provider of semiconductor and intellectual property products for the secure distribution, presentation and storage of high-definition content. With a rich history of technology innovation that includes creating industry standards such as DVI and HDMI, the company’s solutions facilitate the use of digital content amongst consumer electronics, personal computer (PC) and storage devices, with the goal to securely deliver digital content anytime, anywhere and on any device. Founded in 1995, the company is headquartered in Sunnyvale, California, with regional engineering and sales offices in China, Germany, Japan, Korea, Taiwan and the United Kingdom. For more information, please visit www.siliconimage.com.
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