SUNNYVALE, Calif.-- July 8, 2014 -- Silicon Image (NASDAQ: SIMG), a leading provider of multimedia connectivity solutions and services, today updated its outlook for the quarter ending June 30, 2014.
Revenue for the second quarter is currently expected to be in the range of $58.5 million to $60.5 million. The Company's previous guidance for second quarter revenue was in the range of $71 million to $76 million. Gross margin is expected to be between 59% and 60%, as compared to previous guidance of approximately 56.5%. Non-GAAP Operating expenses are expected to be in the range of $30 million to $32 million versus prior guidance of approximately $32.5 million.
This updated guidance is due to lower than anticipated mobile IC shipments in the quarter to a significant customer and the delay of expected HDMI royalty revenue.
Silicon Image receives a portion of HDMI royalty revenue that is subject to an agreement among the HDMI Founders. The parties are working to finalize a new 3 year agreement starting in 2014.
"Although the quarter has been challenging, we are confident that we will work through these items over the balance of the year," said Camillo Martino, chief executive officer of Silicon Image. "Most importantly, we remain committed to executing on our strategy of expanding MHL into mid-range mobile devices and addressing the growing 60GHz wireless market for video and data which we believe is key to growing our business and creating long-term value for shareholders."
The company will host an investor conference call and webcast the event at 2:00 p.m. Pacific Time today.
To access the conference call, dial 888-430-8709 or 719-325-2281 and enter pass code 6525198. The webcast and replay will be accessible on Silicon Image's investor relations website at http://www.SiliconImage.com. A replay of the conference call will be available within two hours of the conclusion of the conference call through July 30, 2014. To access the replay, please dial 888-203-1112 or 719-457-0820 and enter pass code 6525198.
About Silicon Image, Inc.
Silicon Image (NASDAQ: SIMG) is a leading provider of multimedia connectivity solutions and services for mobile, consumer electronics and PC markets. Silicon Image's semiconductor and intellectual property products feature wireless and wired technologies that deliver connectivity across a wide array of devices in the home, office and on the go. Silicon Image has driven the creation of the industry standards HDMI®, DVI™, MHL® and WirelessHD®, and offers manufacturers comprehensive standards interoperability and compliance testing services via its wholly-owned subsidiary, Simplay Labs. For more information, visit http://www.siliconimage.com/.