Revenue at High End of Guidance Range; Initiates $50 Million Share Repurchase Program
SUNNYVALE, Calif.-- May 1, 2012-- Silicon Image, Inc. (NASDAQ: SIMG), a leading provider of wireless and wired HD connectivity solutions, today reported financial results for its first quarter ended March 31, 2012.
Revenue for the first quarter of 2012 was $55.0 million, compared to $58.7 million for the fourth quarter of 2011 and $49.0 million for the first quarter of 2011.
"Our strong results were driven by continued growth in our mobile business, and we are pleased to see our MHL-enabled products achieve design wins in mobile, CE products and PC monitors," said Camillo Martino, chief executive officer of Silicon Image, Inc. "We also continued to make progress with our 60GHz low-latency, gigabit wireless video solutions as our third generation of products have been sampled to our key customers for CE applications, and we are currently on track to sample our mobile-oriented wireless product towards the end of this year."
GAAP net loss for the first quarter of 2012 was $9.6 million, or $0.12 per share, compared to a net loss of $10.2 million, or $0.12 per share, for the fourth quarter of 2011 and a net loss of $0.8 million, or $0.01 per share, for the first quarter of 2011.
Non-GAAP net loss for the first quarter of 2012 was $0.8 million, or $0.01 per share, compared to a net income of $4.8 million, or $0.06 per diluted share, for the fourth quarter of 2011 and a net income of $2.4 million, or $0.03 per diluted share, for the first quarter of 2011. 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.
Silicon Image announced that its Board has authorized the repurchase of its common stock to an aggregate purchase of $50 million. The repurchases may occur from time to time in the open market or in privately negotiated transactions; provided that the repurchases are made in accordance with the terms of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The timing and amount of any repurchase of shares will be determined by the company, based on its evaluation of market conditions, cash on hand and other factors, and may be made under a plan that complies with Rule 10b5-1 of the Securities and Exchange Act of 1934, as amended.
"We believe it is the right time to initiate a share repurchase plan and opportunistically repurchase shares to partially offset dilution. Further, it demonstrates our commitment to our shareholders and our confidence in our business going forward," said Mr. Martino.
The authorization will stay in effect until the authorized aggregate amount is expended or the authorization is modified by the Board of Directors. The program does not obligate the company to acquire any particular amount of stock and purchases under the program may be commenced or suspended at any time, or from time to time, without prior notice. Further the stock repurchase program may be modified, extended or terminated by the Board at any time.
The following are Silicon Image's financial performance estimates for the second quarter of 2012:
Revenue: $60 million - $62 million
Gross Margin: 57% - 58%
GAAP operating expenses: $36 million - $37 million
Non-GAAP operating expenses: approximately $32.5 million
Diluted shares outstanding: approximately 85 million
Non-GAAP tax rate: approximately 30% of non-GAAP pre-tax income
To read financial tables, click here
Silicon Image will host an investor conference call today to discuss its first quarter of 2012 results at 2:00 p.m. Pacific Time and will webcast the event. To access the conference call, dial 800-706-9302 or 303-223-4381 and enter pass code 21588530. 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 May 6, 2012. To access the replay, please dial 800-633-8284 or 402-977-9140 and enter pass code 21588530.
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 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/.