SUNNYVALE, Calif. — (BUSINESS WIRE) — October 22, 2009 — Silicon Image, Inc. (NASDAQ: SIMG), a leader in semiconductors and intellectual property for the secure distribution, presentation and storage of high-definition content, today reported financial results for its third quarter ended September 30, 2009.
Revenue for the third quarter of 2009 was $37.2 million, compared to $37.3 million for the second quarter of 2009 and $77.8 million for the third quarter of 2008.
GAAP net loss for the third quarter of 2009 was $15.5 million, or $0.21 per diluted share, compared to a net loss of $13.3 million, or $0.18 per diluted share, for the second quarter of 2009 and net income of $6.1 million, or $0.08 per diluted share, for the third quarter of 2008. GAAP net loss for the third quarter of 2009 includes a one time charge of approximately $2.0 million for professional fees. GAAP net loss for the second quarter of 2009 includes pre-tax restructuring expenses of $7.1 million.
Non-GAAP net loss for the third quarter of 2009 was $3.4 million, or $0.04 per diluted share, compared to a non-GAAP net loss of $4.3 million, or $0.06 per diluted share, for the second quarter of 2009 and non-GAAP net income of $17.7 million, or $0.23 per diluted share, for the third quarter of 2008. Non-GAAP net income (loss) for these periods exclude stock-based compensation expense, amortization of intangible assets, restructuring charges, and certain professional fees.
A reconciliation of GAAP and non-GAAP items is provided in a table following the Condensed Consolidated Statements of Operations.
"The company is in the process of implementing a number of important internal changes that will continue to improve our operating infrastructure from both execution and cost standpoints," said Hal Covert, president and chief operating officer of Silicon Image. "These changes will enhance our ability to take full advantage of the roll-out of our new products that will be underway as we enter 2010. Our new products and enhanced operational infrastructure are key factors in the company's plan to improve revenue generation and achieve profitability in 2010,” concluded Covert.
The following are Silicon Image’s financial performance estimates for the fourth quarter of 2009:
Revenue: $34 million - $37 million
Gross margin: 54% - 55%
GAAP operating expenses: approximately $71 million
Non-GAAP operating expenses: approximately $25 million
Interest income: approximately $0.7 million
Diluted shares outstanding: approximately 75 million
Cash flow neutral
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 third quarter 2009 results at 2:00 p.m. Pacific Time and will webcast the event. To access the conference call, dial 800-533-7619 or 785-830-1923 and enter pass code 8745196. 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 October 27, 2009. To access the replay, please dial 888-203-1112 or 719-457-0820 and enter pass code 8745196.
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 and Taiwan. For more
information, please visit