SiRF Technology Holdings, Inc. Announces Financial Results for Second Quarter 2008

This event is available through the SiRF Technology web site at http://www.sirf.com by clicking on the "Investors" link. Listeners should go to the website at least ten minutes before the event to download and install any necessary audio software. For those unable to attend the live broadcast, an archived version of the webcast will be available for twelve months.

The call can also be heard by dialing (800) 862-9098 (domestic) or (785) 424-1051 (international) and entering the conference id: SIRF. A telephonic replay will also be available approximately 2 hours following the earnings call and will be available for two weeks. The telephone playback of the conference call can be accessed by dialing (800) 283-5758.

About SiRF Technology Holdings, Inc.:

SiRF Technology Holdings, Inc. develops and markets semiconductor and software products that are designed to enable location-awareness utilizing GPS and other location technologies, enhanced by wireless connectivity capabilities such as Bluetooth, for high-volume mobile consumer devices and commercial applications. SiRF's technology has been integrated into mobile consumer devices, such as automobile navigation systems, mobile phones, PDAs, GPS-based peripherals and handheld GPS navigation devices, and into commercial applications, such as location servers, asset tracking devices and fleet management systems. SiRF markets and sells its products in three target platforms: wireless handheld devices, such as mobile phones; automotive electronics systems, including navigation and telematics systems; and consumer and compute devices, including personal digital assistants, notebook computers, recreational GPS handhelds, mobile gaming machines, digital cameras and watches. Founded in 1995, SiRF is headquartered in San Jose, Calif., and has sales offices, design centers and research facilities around the world. The company trades on the Nasdaq Stock Exchange under the symbol SIRF. Additional information about SiRF and its Location Technology solutions can be found at http://www.sirf.com.

FORWARD-LOOKING STATEMENTS:

Except for purely historical information contained herein, the matters set forth in this press release, including but not limited to statements related to our business outlook and leadership position in the PND market, our product portfolio and design wins, the anticipated features and benefits of our products, including SiRFprima(TM) multifunction platform and our first host based-single die SiRFstarIII product, GSD3tw, customer response to these products, the perceived traction and growth of location capabilities in the wireless market, expansion and penetration by our customer's product lines, the timing of the restructuring plan, effects of the restructuring plan and amount of related charges, the purposes and benefits to our management and investors of using non-GAAP measures and the recurrence of certain expenses in the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "to," "being," "possible," "may," "address," "designed to," "provide," "anticipate," "believe," "expect," "plan," "will," and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and reported results should not be considered as an indication of future performance. SiRF's actual results could differ materially from those discussed in these forward-looking statements as a result of risks and uncertainties, including, among others, the market for GPS-based location awareness capabilities, our ability to keep pace with rapid technological change, trends and uncertainties with respect to consumer demand, the macroeconomic environment and the semiconductor industry, international operations and our ability to compete, and other risks and uncertainties discussed in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 and from time to time in SiRF's SEC reports. These forward-looking statements speak only as of the date hereof. We do not undertake any obligation to update forward-looking statements.



                        SiRF TECHNOLOGY HOLDINGS, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEET
                                (In thousands)

                                                    June 30,    December 31,
                                                      2008           2007
                                                   (Unaudited)        (1)
                             ASSETS
    Current assets:
      Cash and cash equivalents                     $ 85,011      $ 100,963
      Marketable securities                           20,913         38,446
      Accounts receivable, net                        31,344         37,060
      Inventories                                     25,873         27,962
      Current deferred tax assets                         28          6,946
      Prepaid expenses and other current assets        4,684          5,380
        Total current assets                         167,853        216,757
      Property and equipment, net                     14,187         13,147
      Goodwill                                             -        215,752
      Identified intangible assets, net               27,769         82,705
      Long-term deferred tax assets                    2,913         34,032
      Other long-term assets                           1,207          1,348
      Note receivable                                  1,700                    -
                Total  assets                                                              $  215,629            $  563,741

                            LIABILITIES  AND  STOCKHOLDERS'  EQUITY
        Current  liabilities:
            Accounts  payable                                                            $  12,736              $  22,069
            Accrued  payroll  and  related  benefits                          7,950                  12,590
            Other  accrued  liabilities                                              11,445                    6,145
            Deferred  margin  on  shipments  to  distributors          2,925                    3,028
            Deferred  revenue                                                                      700                        373
            Advance  contract  billings                                                    170                        191
            Rebates  payable  to  customers                                          1,430                    5,452
            Capital  lease  obligations                                                        -                        129
                Total  current  liabilities                                          37,356                  49,977
        Long-term  deferred  tax  liabilities                                      170                        169
        Long-term  income  taxes  payable                                          2,855                    2,762
        Long-term  obligations                                                            1,586                    1,421
                Total  liabilities                                                          41,967                  54,329
        Commitments  and  contingencies
        Stockholders'  equity:
            Common  stock                                                                                  6                            6
            Additional  paid-in  capital                                          573,806                548,895
            Accumulated  other  comprehensive  loss                            (118)                    (105)
            Accumulated  deficit                                                      (400,032)              (39,384)
                Total  stockholders'  equity                                      173,662                509,412
                    Total  liabilities  and
                      stockholders'  equity                                        $  215,629            $  563,741


          (1)    The  condensed  consolidated  balance  sheet  information  was  derived
                    from  SiRF  Technology  Holdings,  Inc.  audited  consolidated  financial
                    statements  for  the  year  ended  December  31,  2007  as  presented  in  the
                    Company's  December  31,  2007  Form  10-K.



                                                SiRF  TECHNOLOGY  HOLDINGS,  INC.
                          CONDENSED  CONSOLIDATED  GAAP  STATEMENT  OF  OPERATIONS
                                      (In  thousands,  except  per  share  amounts)
                                                                  (Unaudited)

                                                          Three  Months  Ended              Six  Months  Ended
                                                                  June  30,                                    June  30,
                                                          2008                  2007                  2008                  2007
        Revenue:
            Product  revenue          $  61,367          $  68,966        $  121,295        $  134,764
            License  royalty
              revenue                              1,770                1,635                3,818                3,101
                Net  revenue                  63,137              70,601            125,113            137,865
        Cost  of  revenue:
            Cost  of  product
              revenue  (includes
              stock-based
              compensation  expense
              of  $392  and  $313  for
              the  three  months  ended
              June  30,  2008  and  2007,
              respectively,  and  $609
              and  $539  for  the  six
              months  ended  June  30,
              2008  and  2007,
              respectively)                33,735              32,055              65,633              62,575
            Amortization  of
              acquisition-related
              intangible  assets(1)    3,695                    470                7,402                    940
            Acquisition-related
              intangible  asset
              impairment                      12,472                        -              12,472                        -
                Gross  profit                13,235              38,076              39,606              74,350
        Operating  expenses:
            Research  and
              development  (includes
              stock-based
              compensation  expense
              of  $5,911  and  $4,940
              for  the  three  months
              ended  June  30,  2008
              and  2007,  respectively,
              and  $10,719  and  $9,303
              for  the  six  months
              ended  June  30,  2008
              and  2007,
              respectively)                28,876              22,838              55,757              44,005
            Sales  and  marketing
              (includes  stock-
              based  compensation
              expense  of  $1,991
              and  $1,613  for  the
              three  months  ended
              June  30,  2008  and
              2007,  respectively,
              and  $3,362  and
              $2,617  for  the  six
              months  ended  June  30,
              2008  and  2007,
              respectively)                  6,934                6,373              14,359              12,500
            General  and
              administrative
              (includes  stock-
              based  compensation
              expense  of  $2,015
              and  $1,944  for  the
              three  months  ended
              June  30,  2008  and
              2007,  respectively,
              and  $4,495  and
              $3,679  for  the  six
              months  ended  June  30,
              2008  and  2007,
              respectively)                14,482                8,416              29,572              14,901
            Amortization  of
              acquisition-related
              intangible  assets(1)    2,489                    570                4,978                1,183
            Restructuring  and
              asset  impairment
              charges                                    91                        -                    564                        -
            Goodwill  impairment    215,717                        -            215,717                        -
            Acquisition-related
              intangible  asset
              impairment                      30,407                        -              30,407                        -
                Total  operating
                  expenses                    298,996              38,197            351,354              72,589
            Operating  (loss)
              income                          (285,761)                (121)        (311,748)              1,761
            Other  income,  net                688                2,376                1,700                4,346
            Note  receivable
              impairment                    (11,800)                      -            (11,800)                      -
                Net  (loss)
                  income  before
                  provision  for
                  income  taxes          (296,873)              2,255          (321,848)              6,107
                Provision  for
                  income  taxes              35,690                    118              38,800                1,166
                Net  (loss)
                  income                  $  (332,563)          $  2,137      $  (360,648)          $  4,941

        Net  (loss)  income
          per  share:
                Basic                            $  (5.41)            $  0.04            $  (5.92)            $  0.09
                Diluted                        $  (5.41)            $  0.04            $  (5.92)            $  0.09
        Weighted  average
          number  of  shares
          used  in  per  share
          calculations:
                Basic                              61,508              52,816              60,927              52,497
                Diluted                          61,508              56,461              60,927              56,391


          (1)    Certain  reclassifications  have  been  made  to  prior  period  amounts  to
                    conform  to  SiRF's  current  period  presentation.  Certain  amounts  of
                    amortization  of  acquisition-related  intangible  assets  have  been
                    reclassed  and  are  being  presented  as  a  component  of  cost  of  revenue.
                    Previously,  SiRF  had  presented  these  amounts  as  a  component  of
                    operating  expense.



                                                SiRF  TECHNOLOGY  HOLDINGS,  INC.
                                CONDENSED  CONSOLIDATED  STATEMENT  OF  OPERATIONS
                                  GAAP  BASIS  to  NON-GAAP  BASIS  RECONCILIATION
                                      (In  thousands,  except  per  share  amounts)
      (Presentation  is  not  based  on  a  comprehensive  set  of  accounting  rules  or
                                                                  principles)
                                                                  (Unaudited)


                                                        Three  Months  Ended                  Six  Months  Ended
                                                                    June  30,                                    June  30,
                                                          2008                  2007                  2008                  2007
        Net  revenue:                    $  63,137          $  70,601        $  125,113        $  137,865
        Gross  profit:
            GAAP  gross  profit      $  13,235          $  38,076          $  39,606          $  74,350
                Stock-based
                  compensation
                  expense              (A)          392                    313                    609                    539
                Amortization  of
                  acquisition-
                  related
                  intangible
                  assets(1)          (B)      3,695                    470                7,402                    940
                Acquisition-
                  related
                  intangible
                  asset
                  impairment        (G)    12,472                        -              12,472                        -
            Non-GAAP  gross
              profit                          $  29,794          $  38,859          $  60,089          $  75,829
            Non-GAAP  gross
              margin                                  47.2%                55.0%                48.0%                55.0%
        Operating  expenses:
            GAAP  operating
              expenses                    $  298,996          $  38,197        $  351,354          $  72,589
                Stock-based
                  compensation
                  expense              (A)    (9,917)            (8,497)          (18,576)          (15,599)
                Amortization
                  of  acquisition-
                  related
                  intangible
                  assets(1)          (B)    (2,489)                (570)            (4,978)            (1,183)
                Acquisition-
                  related
                  contingent
                  payments            (C)          (26)                (730)                (340)            (1,480)
                Restructuring
                  and  asset
                  impairment
                  charges              (D)          (91)                      -                  (564)                      -
                Goodwill
                  impairment        (F)(215,717)                      -          (215,717)                      -
                Acquisition-
                  related
                  intangible
                  asset
                  impairment        (G)  (30,407)                      -            (30,407)                      -
            Non-GAAP
              operating
              expenses                      $  40,349          $  28,400          $  80,772          $  54,327

        Operating  (loss)
          income:
            GAAP  operating
              (loss)  income        $  (285,761)            $  (121)    $  (311,748)          $  1,761
                Stock-based
                  compensation
                  expense              (A)    10,309                8,810              19,185              16,138
                Amortization
                  of  acquisition-
                  related
                  intangible
                  assets(1)          (B)      6,184                1,040              12,380                2,123
                Acquisition-
                  related
                  contingent
                  payments            (C)            26                    730                    340                1,480
                Restructuring
                  and  asset
                  impairment
                  charges              (D)            91                        -                    564                        -
                Impairment  on
                  note
                  receivable        (E)    11,800                        -              11,800                        -
                Goodwill
                  impairment        (F)  215,717                        -            215,717                        -
                Acquisition-
                  related
                  intangible
                  asset
                  impairment        (G)    42,879                        -              42,879                        -
            Non-GAAP
              operating  (loss)
              income                            $  1,245          $  10,459          $  (8,883)        $  21,502

        Net  (loss)  income:
            GAAP  net  (loss)
              income                      $  (332,563)          $  2,137      $  (360,648)          $  4,941
                Stock-based
                  compensation
                  expense              (A)    10,309                8,810              19,185              16,138
                Amortization  of
                  acquisition-
                  related
                  intangible
                  assets(1)          (B)      6,184                1,040              12,380                2,123
                Acquisition-
                  related
                  contingent
                  payments            (C)            26                    730                    340                1,480
                Restructuring
                  and  asset
                  impairment
                  charges              (D)            91                        -                    564                        -
                Note  receivable
                  impairment        (E)    11,800                        -              11,800                        -
                Goodwill
                  impairment        (F)  215,717                        -            215,717                        -
                Acquisition-
                  related
                  intangible
                  asset
                  impairment        (G)    42,879                        -              42,879                        -
                Provision  for
                  income  taxes    (H)    34,162                        -              37,986                        -
            Non-GAAP  net
              (loss)  income          $  (11,395)        $  12,717        $  (19,797)        $  24,682

        Diluted  net  (loss)
          income  per  share:
            GAAP  diluted  net
              (loss)  income
              per  share                      $  (5.41)            $  0.04            $  (5.92)            $  0.09
            Non-GAAP  diluted
              net  (loss)  income
              per  share                      $  (0.19)            $  0.23            $  (0.32)            $  0.44

        Shares  used  to  compute
          diluted  net  (loss)
          income  per  share:
            GAAP                                    61,508              56,461              60,927              56,391
            Non-GAAP                            61,508              56,461              60,927              56,391


          (1)    Certain  reclassifications  have  been  made  to  prior  period  amounts  to
                    conform  to  SiRF's  current  period  presentation.  Certain  amounts  of
                    amortization  of  acquisition-related  intangible  assets  have  been
                    reclassed  and  are  being  presented  as  a  component  of  cost  of  revenue.
                    Previously,  SiRF  had  presented  these  amounts  as  a  component  of
                    operating  expense.


 





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