MHL Installed Base Grew to 220 Million Products
SUNNYVALE, Calif.-- February 5, 2013 -- Silicon Image, Inc. (NASDAQ: SIMG), a leading provider of HD connectivity solutions, today reported financial results for its fourth quarter and fiscal year ended December 31, 2012.
Revenue for the fourth quarter of 2012 was $59.6 million, approximately a 2% increase from revenue of $58.7 million in the fourth quarter of 2011, and a 19% decrease from $73.9 million in the third quarter of 2012. Revenue for fiscal year 2012 was $252.4 million compared with $221.0 million for fiscal year 2011.
"During 2012, Silicon Image achieved a significant number of milestones," said Camillo Martino, chief executive officer of Silicon Image, Inc. "We shipped nearly 200 million product units, including more than 140 million MHL transmitters for smartphones and tablets. We also successfully launched our UltraGig™ product line, a complete 60GHz WirelessHD® solution for mobile devices."
GAAP net loss for the fourth quarter of 2012 was $0.3 million, or $0.00 per diluted share, compared with a net loss of $0.4 million, or $0.00 per diluted share, for the third quarter of 2012 and a net loss of $10.2 million, or $0.12 per diluted share, for the fourth quarter of 2011. GAAP net loss for fiscal year 2012 was $11.2 million, or $0.14 per diluted share, compared with a net loss for fiscal year 2011 of $11.6 million, or $0.14 per diluted share.
Non-GAAP net income for the fourth quarter of 2012 was $6.2 million, or $0.08 per diluted share, compared with a net income of $8.8 million, or $0.11 per diluted share, for the third quarter of 2012 and a net income of $4.8 million, or $0.06 per diluted share, for the fourth quarter of 2011. Non-GAAP net income for fiscal year 2012 was $18.5 million, or $0.22 per share, compared with a net income for fiscal year 2011 of $16.4 million, or $0.20 per diluted share. Non-GAAP net income for these periods excludes stock-based compensation expense, impairment of investment in an unconsolidated affiliate, impairment of intangible asset, write-off certain unsalable inventory, amortization of intangible assets, restructuring charges, business acquisition related expenses and reversal of a subsidiary's foreign currency translation adjustment.
"Our non-GAAP net income exceeded our expectations for the quarter, and our revenue for the full year increased 14% from the year before," said Mr. Martino. "Additionally, our non-GAAP earnings per share grew year over year and we remain committed to executing our strategy as planned and driving shareholder value."
During the fourth quarter of 2012, pursuant to the share repurchase plan announced in April 2012, Silicon Image repurchased approximately 751,000 shares of its common stock for approximately $3.3 million. In addition, pursuant to the $30 million accelerated share repurchase agreement entered in November 2012, Silicon Image received approximately 5 million shares of its common stock and expects to receive an additional 1 million to 1.5 million shares when the program concludes. The company's cash and short-term investments balance as of December 31, 2012 was $107.5 million.
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 2013:
- Revenue: approximately $59 million to $61 million
- Gross Margin: approximately 58%
- GAAP operating expenses: approximately $37.5 million
- Non-GAAP operating expenses: approximately $34.5 million
- Diluted shares outstanding: approximately 77 million
- Non-GAAP tax rate: approximately 30% of non-GAAP pre-tax income
To read financial tables, click here
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, impairment of investment in an unconsolidated affiliate, impairment of intangible asset, write-off certain unsalable inventory, restructuring charges, 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.
About Silicon Image, Inc.
Silicon Image is a leading provider of 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 mobile phones, tablets, DTVs, Blu-ray Disc™ players, audio-video receivers, digital cameras, as well as desktop and notebook PCs. Silicon Image has driven the creation of the highly successful HDMI® and DVI™ industry standards, the latest standard for mobile devices — 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/.