SUNNYVALE, Calif., April 25, 2005
- Silicon Image, Inc. (Nasdaq: SIMG), a leader in multi-gigabit semiconductor solutions for the secure transmission and storage of rich digital media, today announced that it received resignations from four members of its board of directors on April 24, 2005.
Christopher Paisley (chairman of the board and member of the audit, compensation and governance and nominating committees) and David Courtney (chairman of the audit committee and member of the governance and nominating committee) stated that they were resigning due to a disagreement over whether or not David Lee should be re-nominated to the Company's board of directors. Keith McAuliffe (chairman of the compensation committee and member of the audit and governance and nominating committees) stated that he was resigning due to events surrounding the question of whether or not David Lee should be re-nominated to the Company's board of directors. Richard Sanquini (member of the compensation and governance and nominating committees) resigned without stating a reason.
The Company's board of directors currently has three members - Steve Tirado, president and CEO; David Lee, founder of the Company and chairman of PanelLink Cinema, LLC, a wholly-owned subsidiary of the Company; and David Hodges, an independent director. As a result of the resignations, a majority of the board of directors is not "independent" as required by NASDAQ listing requirements. In addition, as a result of the resignations, no directors are serving on the audit committee of the board of directors. NASDAQ listing rules require that the audit committee be comprised of at least three independent directors. The Company will endeavor to bring itself into compliance with the foregoing NASDAQ listing requirements as soon as practicable.
Steve Tirado, the Company's CEO, stated, "Obviously, I am disappointed at the resignations of four of our directors. I appreciate the service that they have provided to the Company. The management team continues to be focused on executing against our strategic and operational objectives. We achieved record incoming product orders for the first quarter, and entered the second quarter with approximately 70 percent visibility. We re-affirm the financial guidance that we provided in our conference call on April 21, 2005. The Board had previously identified several potential director candidates, and I will be working with the remaining board members to quickly fill the board vacancies."About Silicon Image
Headquartered in Sunnyvale, Calif., Silicon Image, Inc. designs, develops and markets multi-gigabit semiconductor and system solutions for a variety of communications applications demanding high-bandwidth capability. With its proprietary Multi-layer Serial Link (MSL) architecture, Silicon Image is well positioned for leadership in multiple mass markets including PCs, consumer electronics and storage. Currently, Silicon Image leads the global PC/display arena with its innovative digital interconnect technology, and has emerged as a leading player in the consumer electronics and storage markets by offering robust, high-bandwidth semiconductors. For more information on Silicon Image, visit www.siliconimage.com
This news release contains forward-looking information within the meaning of federal securities regulations. These forward-looking statements include statements related to future financial results and business outlook, and statements related to the addition of new independent directors. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. In particular, the addition of new independent directors may not occur in a timely manner or at all, and future financial results may differ from current expectations. In addition, see "Management's Discussion and Analysis of Financial Condition and Results of Operations - Factors Affecting Future Results" in the Annual Report on Form 10-K filed by Silicon Image with the SEC. Silicon Image assumes no obligation to update this forward-looking information.
Silicon Image, PanelLink Cinema, MSL and www.siliconimage.com are trademarks or registered trademarks of Silicon Image, Inc. in the United States and other countries.