SUNNYVALE, Calif.-- February 2, 2012 -- Silicon Image, Inc. (NASDAQ: SIMG), a leading provider of wireless and wired HD connectivity solutions, today reported financial results for its fourth quarter and fiscal year ended December 31, 2011.
Revenue for the fourth quarter of 2011 was $58.7 million, compared to $59.7 million for the third quarter of 2011 and $52.0 million for the fourth quarter of 2010. Revenue for fiscal year 2011 was $221.0 million, compared to $191.3 million for fiscal year 2010.
"Silicon Image had a strong fourth quarter, driven by continued success with our mobile products and growth in our intellectual property revenue. We shipped a record number of MHL-enabled products, driving mobile to be the largest product revenue contributor in the fourth quarter," said Camillo Martino, chief executive officer of Silicon Image, Inc. "Over the past year, we have positioned the company to benefit from the growth in connectivity between CE, mobile and PC devices. We expect to grow our total addressable market to more than two billion units by 2015, which will continue to drive revenue and earnings growth."
GAAP net loss for the fourth quarter of 2011 was $5.9 million, or $0.07 per diluted share, compared to a net income of $0.7 million, or $0.01 per diluted share, for the third quarter of 2011 and a net income of $4.2 million, or $0.05 per diluted share, for the fourth quarter of 2010. GAAP net loss for fiscal year 2011 was $7.3 million, or $0.09 per diluted share, compared to net income of $8.2 million, or $0.10 per diluted share, for fiscal year 2010. GAAP net loss for the fourth quarter and fiscal year 2011 includes a $4.2 million intangible asset impairment charge.
Non-GAAP net income for the fourth quarter of 2011 was $4.8 million, or $0.06 per diluted share, compared to $5.0 million, or $0.06 per diluted share, for the third quarter of 2011 and $5.3 million, or $0.07 per diluted share, for the fourth quarter of 2010. Non-GAAP net income for fiscal year 2011 was $16.4 million, or $0.20 per diluted share, compared to net income of $17.3 million, or $0.22 per diluted share, for fiscal year 2010. Non-GAAP net income for these periods excludes stock-based compensation expense, impairment of intangible assets, amortization of intangible assets, restructuring charges, business acquisition related expenses and reversal of a subsidiary's foreign currency translation adjustment.
A reconciliation of GAAP and non-GAAP items is provided in a table following the Condensed Consolidated Statements of Operations.
The following are Silicon Image's financial performance estimates for the first quarter of 2012:
- Revenue: $51 million - $55 million
- Gross Margin: approximately 56% - 58%
- GAAP operating expenses: approximately $36 million
- Non-GAAP operating expenses: approximately $32 million
- Diluted shares outstanding: approximately 84 million
- Non-GAAP tax rate: approximately 22% of non-GAAP pre-tax income
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 amortization of intangibles, stock based compensation, restructuring charges, impairment of intangible assets, business acquisition related expenses and reversal of a subsidiary's foreign currency translation adjustment 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.
To read financial tables, click here
Silicon Image will host an investor conference call today to discuss its fourth quarter of 2011 results at 2:00 p.m. Pacific Time and will webcast the event. To access the conference call, dial 888-224-3708 or 303-223-2680 and enter pass code 21572628. The webcast 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 February 7, 2012. To access the replay, please dial 800-633-8284 or 402-977-9140 and enter pass code 21572628.
About Silicon Image, Inc.
Silicon Image is a leading provider of wireless and wired connectivity solutions that enable the reliable distribution and presentation of high-definition content for consumer electronics, mobile, 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 desktop and notebook PCs, DTVs, Blu-ray Disc™ players, audio-video receivers, as well as mobile phones, tablets and digital cameras. Silicon Image has driven the creation of the highly successful HDMI® and DVI™ industry standards, the latest standards for mobile devices - SPMT™ and MHL™, and the standard for 60GHz wireless HD video — WirelessHD™. Via its wholly-owned subsidiaries, Silicon Image offers manufacturers comprehensive standards interoperability and compliance testing services from Simplay Labs, as well as interoperability testing and certification of WiSA-certified products. For more information, visit us at http://www.siliconimage.com/.