Record Mobile Unit Shipments with GAAP Net Income Margin Exceeding 11%
SUNNYVALE, Calif., October 29, 2013 Silicon Image, Inc. (NASDAQ: SIMG), a leading provider of HD connectivity solutions, today reported financial results for its third quarter ended September 30, 2013.
Revenue for the third quarter of 2013 was $79.3 million, approximately a 7.6% increase from revenue of $73.7 million in the second quarter of 2013 and a 7.3% increase from revenue of $73.9 million in the third quarter of 2012.
We have demonstrated strong earnings through profitable growth and solid operational execution, driven by our mobile and CE product revenue which increased 20% year to date, said Camillo Martino, chief executive officer of Silicon Image, Inc. The broad adoption of the MHL standard is driving growth in both our mobile and CE businesses and we are also seeing traction for products using our 60GHz technology. Additionally, we expect the recent release of MHL 3.0 and HDMI 2.0 specifications to drive renewed opportunities in our mobile and CE businesses.
GAAP net income for the third quarter of 2013 was $9.0 million, or $0.11 per diluted share, compared with a GAAP net income of $4.2 million, or $0.05 per diluted share, for the second quarter of 2013 and a GAAP net loss of $0.4 million, or $0.00 per share, for the third quarter of 2012.
Non-GAAP net income for the third quarter of 2013 was $9.2 million, or $0.12 per diluted share, compared with a non-GAAP net income of $6.5 million, or $0.08 per diluted share, for the second quarter of 2013, and a non-GAAP net income of $8.8 million, or $0.11 per diluted share, for the third quarter of 2012. Non-GAAP net income for these periods excludes stock-based compensation expense, amortization of intangible assets, business acquisition related expenses, other than temporary impairment of a privately-held company investment, proceeds from legal settlement, restructuring charges, impairment of intangible assets and recovery related to previously written-down inventory.
A reconciliation of GAAP and non-GAAP items is provided in a table following the Condensed Consolidated Statements of Operations.
Pursuant to the previously announced share repurchase program, Silicon Image repurchased 256,000 shares of its common stock at an average price of approximately $5.40 per share. The companys cash and short-term investments balance as of September 30, 2013 was $134.1 million.
The following are Silicon Images financial performance estimates for the fourth quarter of 2013:
| Revenue: || $60 million to $62 million |
| Gross Margin: || approximately 58-59% |
| GAAP operating expenses: || approximately $34.5 million |
| Non-GAAP operating expenses: || approximately $31.5 million |
| Diluted shares outstanding: || approximately 79 million |
| Non-GAAP tax rate: || approximately 30% of non-GAAP pre-tax income |
To read financial tables, click here
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 stock-based compensation expense, amortization of intangible assets, business acquisition related expenses, other than temporary impairment of a privately-held company investment, proceeds from legal settlement, restructuring charges, impairment of intangible assets and recovery related to previously written-down inventory 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 third quarter of 2013 results at 2:00 p.m. Pacific Time and will webcast the event. To access the conference call, dial 877-941-2068 or 480-629-9712 and enter pass code 4643817. The webcast and replay will be accessible on Silicon Image's investor relations website at http://ir.siliconimage.com. A replay of the conference call will be available within two hours of the conclusion of the conference call through November 12, 2013. To access the replay, please dial 800-406-7325 or 303-590-3030 and enter pass code 4643817.
About Silicon Image, Inc.
Silicon Image is a leading provider of connectivity solutions that enable the reliable distribution and presentation of high-definition content for mobile, consumer electronics, and PC markets. The company delivers its technology via semiconductor and intellectual property products that are compliant with global industry standards and feature market leading Silicon Image innovations such as InstaPort and InstaPrevue. Silicon Image's products are deployed by the world's leading electronics manufacturers in devices such as mobile phones, tablets, DTVs, Blu-ray Disc players, audio-video receivers, digital cameras, as well as desktop and notebook PCs. Silicon Image has driven the creation of the highly successful HDMI® and DVI industry standards, the latest standard for mobile devices - MHL®, and the leading 60GHz wireless HD video standard - WirelessHD®. Via its wholly-owned subsidiary, Simplay Labs, Silicon Image offers manufacturers comprehensive standards interoperability and compliance testing services. For more information, visit us at http://www.siliconimage.com.