Silicon Image Receives NASDAQ Notifications
SUNNYVALE, Calif., May 4, 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 the NASDAQ Listing Qualifications Hearings Department notified Silicon Image by letter dated May 2, 2005, that Silicon Image is not in compliance with certain NASDAQ Marketplace Rules for the following reasons:
1) The Company filed its Form 10-K for the year ended December 31, 2004, with the Securities and Exchange Commission on March 16, 2005. The Form 10-K included certifications of the Company's principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 that complied with certification requirements for the preceding year, but inadvertently did not comply with current certification requirements. The Company subsequently filed an amendment to the Form 10-K that contained only corrected certifications. NASDAQ has informed the Company that it deems the amended filing to be incomplete because the Company did not include the body of the entire Form 10-K with the corrected certifications, and that as a result the Company is not in compliance with NASDAQ Marketplace Rule 4301(c)(14).
2) Due to the resignations of four independent directors from the Company's board of directors (the "Board") on April 24, 2005, a majority of the Board is not comprised of independent directors, and the Company's audit committee is not comprised of three independent directors, including at least one director with requisite financial sophistication. As a result, the Company is not in compliance with NASDAQ Marketplace Rules 4350(c)(1) and 4350(d)(2).
The Hearings Department also notified the Company by letter dated May 3, 2005, that due to the incomplete filing of its Form 10-K for the year ended December 31, 2004, the Company's trading symbol will change from "SIMG" to "SIMGE" commencing on May 5, 2005.
The Company intends to take appropriate steps to seek to bring the Company into compliance with the NASDAQ Marketplace Rules in a timely manner. However, there can be no assurance that NASDAQ will allow the continued listing of the Company's common stock on the NASDAQ National Market.
About Silicon Image
Headquartered in Sunnyvale, Calif., Silicon Image 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 (MSLâ„¢) 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 NASDAQ proceeding, the listing of Silicon Image common stock, and the timing of remedial measures to bring Silicon Image into compliance with NASDAQ Marketplace Rules. These forward-looking statements involve risks and uncertainties, including those described from time to time in Silicon Image's filings with the SEC, that could cause the actual results to differ materially from those anticipated by these forward-looking statements. In particular, NASDAQ proceedings may result in the immediate or subsequent delisting of Silicon Image's common stock from the NASDAQ National Market, and remedial measures may not be completed in a timely manner. Also see "Management's Discussion and Analysis of Financial Condition and Results of Operations-Factors Affecting Future Results" in the most recent Annual Report, Form 10-K or 10-Q filed by Silicon Image with the SEC. Silicon Image assumes no obligation to update this forward-looking information.
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Silicon Image, MSL, and www.siliconimage.com are trademarks, registered trademarks or service marks of Silicon Image, Inc. in the United States and other countries.
