Silicon Image and Genesis Microchip Sign Settlement and License Agreement; Silicon Image Expects $13-$15 Million Increase in Fourth Quarter 2006 Operating Income
SUNNYVALE, Calif., Dec. 21, 2006 — Silicon Image, Inc. (Nasdaq: SIMG), a leader in semiconductors for the secure storage, distribution and presentation of high-definition content, today announced it has signed a settlement and license agreement with Genesis Microchip Inc., which includes provisions for ongoing royalty licensing revenue for Silicon Image on DVI and HDMI products, resolving an outstanding patent matter between the two companies. As a result of this agreement, Silicon Image will record a one-time catch-up of previously earned royalties and a partial recovery of patent assertion costs in its fourth quarter ending Dec. 31, 2006.
The agreement concludes matters associated with a suit that Silicon Image originally filed in 2001 in the U.S. District Court for the Eastern District of Virginia against Genesis Microchip Corp. and Genesis Microchip Inc. (collectively, “Genesis”) for infringement of Silicon Image’s patents.
Genesis had paid Silicon Image $11 million through Sept. 30, 2006 relating to this matter. As a result of the signing of the settlement and license agreement, Genesis is obligated to pay Silicon Image additional monies and Silicon Image expects to record approximately a $13 to $15 million increase (inclusive of the $11 million in payments received from Genesis through Sept. 30, 2006) in operating income in the quarter ending Dec. 31, 2006. The exact composition of increase between licensing revenue, recovery of patent assertion expenses and other items is not currently known as Silicon Image is awaiting required royalty data from Genesis.
Silicon Image will host a conference call to discuss the settlement and license agreement at 5:30 a.m. Pacific Time on Dec. 22, 2006. To access the conference call, dial 913-981-5559 and enter pass code 1594081. A replay of the conference call will be available until midnight Pacific Time, Jan. 20, 2007. To access the replay, dial 719-457-0820 and enter pass code 1594081. A webcast of the call will also be available on the investor relations site located at www.siliconimage.com.
About Silicon Image, Inc.
Headquartered in Sunnyvale, Calif., Silicon Image, Inc. is a leader in driving the architecture and semiconductor implementations for the secure storage, distribution and presentation of high-definition content in the consumer electronics and personal computing markets. Silicon Image creates and drives industry standards for digital content delivery such as DVI, HDMI™ and Serial ATA (SATA), leveraging partnerships with global leaders in the consumer electronics and personal computing markets to meet the growing digital content needs of consumers worldwide. The Simplay HD™ Testing Program administered by Silicon Image’s wholly-owned subsidiary, Simplay Labs, LLC, provides compatibility testing for high-definition consumer electronics devices such as HDTVs, set-top boxes, audio/video receivers and DVD players, helping manufacturers to achieve compatibility and deliver the highest-quality HDTV experience to consumers. Silicon Image is the leading provider of semiconductor intellectual property solutions for high-definition multimedia and data storage applications. For more information, please visit www.siliconimage.com.
|
Related News
- Imagination signs revised agreement to acquire the operating business, certain patent properties and license rights to the rest of the patent properties of MIPS Technologies, Inc. for $100 million
- Imagination signs revised agreement to acquire the operating business, certain patent properties and license rights to the rest of the patent properties of MIPS Technologies, Inc. for $80 million
- Virage Logic Reports First-Quarter Fiscal 2006 Results; Revenue of $13.7 Million Increases by 7% over Q4 Fiscal 2005
- Silicon Image Reports Record Revenues and Significant Increase in Pre-Tax Income for the Third Quarter 2005
- Sequans Announces a New $15 Million Licensing Agreement
Breaking News
- Comcores Announces Availability of its Ultra-Compact Ethernet TSN End Station Controller IP for Automotive Networks
- Now Gelsinger is gone, what is Intel's Plan B?
- X-FAB Releases Embedded Flash Solution on its 110nm Automotive BCD-on-SOI Technology
- Kudelski IoT and PUFsecurity Combine IoT Security Strengths to Meet the Challenges of Increasing Global Regulation
- Alphawave Semi Joins UALink™ Consortium to Accelerate High-Speed AI Connections
Most Popular
- Intel Announces Retirement of CEO Pat Gelsinger
- Tenstorrent closes $693M+ of Series D funding led by Samsung Securities and AFW Partners
- Lip-Bu Tan quit Intel board after "differences" with CEO, says Reuters
- MIPS Releases P8700, Industry's First High-Performance AI-Enabled RISC-V Automotive CPU for ADAS and Autonomous Vehicles
- Arteris Deployed by Menta for Edge AI Chiplet Platform
E-mail This Article | Printer-Friendly Page |