Silicon Image Reports Fourth Quarter 2007 Results; Announces Accelerated Stock Repurchase Program

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements include, but are not limited to, statements related to improvements in Silicon Image's business processes, Silicon Image's future operating results, including revenue, gross margins, operating expenses and tax rates in the first quarter and full fiscal year 2008, customer design wins and future growth opportunities, the implementation of the company's accelerated stock repurchase program within the time frame indicated and the effectuation of the company's new stock repurchase program. These forward-looking statements involve risks and uncertainties, including the company's ability to maintain its improved business processes, the company ability to enter into an agreement with a counterparty to implement its accelerated stock repurchase program, the company's ability to generate sufficient resources to effectuate its new stock repurchase program and other risks and uncertainties described from time to time in Silicon Image's filings with the Securities and Exchange Commission (SEC). These risks and uncertainties could cause the actual results to differ materially from those anticipated by these forward-looking statements. In addition, see the Risk Factors section of the most recent Form 10-K or Form 10-Q filed by Silicon Image with the SEC. Silicon Image assumes no obligation to update any forward-looking information contained in this press release.

NOTE: Silicon Image and Simplay HD are trademarks, registered trademarks or service marks of Silicon Image, Inc. in the United States and other countries. HDMI(TM) and High-Definition Multimedia Interface are trademarks or registered trademarks of HDMI Licensing, LLC in the United States and other countries, and are used under license from HDMI Licensing, LLC. All other trademarks and registered trademarks are the property of their respective owners.


                             SILICON IMAGE, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME

    (In thousands, except
     per share amounts)
    (unaudited)

                                   Three Months Ended      Twelve Months Ended
                             December  September  December     December 31,
                             31, 2007   30, 2007  31, 2006    2007      2006
    Revenue:
      Product                 $73,986   $74,173   $66,278  $269,700  $250,374
      Development, licensing
       and royalties           11,345    12,109    20,675    50,803    44,584
         Total revenue         85,331    86,282    86,953   320,503   294,958
    Cost of revenue and
     operating expenses:
      Cost of revenue (1)      35,247    37,500    33,393   140,443   121,247
      Research and
       development (2)         21,285    20,489    15,987    77,994    63,598
      Selling, general and
       administrative (3)      19,240    16,827    18,226    70,340    67,597
      Amortization of
       intangible assets        1,857       540        78     3,549       508
      Reimbursement of patent
       assertion costs, net         -         -    (5,369)       22    (5,244)
         Total cost of revenue
           and operating
           expenses            77,629    75,356    62,315   292,348   247,706
    Income from operations      7,702    10,926    24,638    28,155    47,252
    Interest income and
     other, net                 2,779     2,302     3,024    11,397     9,205
    Income before provision
     for income taxes          10,481    13,228    27,662    39,552    56,457
    Provision for income taxes  2,872     9,118     1,389    20,545    13,992
    Net income                 $7,609    $4,110   $26,273   $19,007   $42,465

    Net income per share -
     basic                      $0.09     $0.05     $0.31     $0.22     $0.51
    Net income per share -
     diluted                    $0.09     $0.05     $0.29     $0.22     $0.49
    Weighted average shares -
     basic                     84,218    84,489    85,618    85,557    82,787
    Weighted average shares -
     diluted                   85,228    85,937    89,113    87,388    86,791

    (1) Includes stock
     compensation expense        $387      $421      $473    $1,597    $2,427
    (2) Includes stock
     compensation expense       1,866     2,181     1,715     8,411    11,108
    (3) Includes stock
     compensation expense       2,646     2,731     2,583     9,442    13,696




                             SILICON IMAGE, INC.
            GAAP NET INCOME TO NON-GAAP NET INCOME RECONCILIATION

                                      Three Months Ended       Twelve Months
                                                             December    September    December            Ended
        (In  thousands,  except                    31,              30,              31,            December  31,
          per  share  amounts)                      2007            2007            2006          2007          2006
        (unaudited)
        GAAP  Net  income                            $7,609        $4,110      $26,273    $19,007    $42,465

        Non-GAAP  adjustments:
        Stock-based  compensation
          expense  (1)                                    4,899          5,333          4,771      19,450      27,231
        Amortization  of  intangible
          assets  (2)                                      1,857              540                78        3,549            508
        Adjustments  related  to
          Genesis  Settlement  (3)                      -                  -      (13,831)              -    (11,113)
        Adjustments  related  to
          change  in  recognition  of
          distributor  revenue  (4)          (4,105)                -                  -      (4,105)              -
        Non-GAAP  Net  income  before
          tax  adjustments                          10,260          9,983        17,291      37,901      59,091

        Income  tax  effects  on
          above  adjustments                          (713)      (1,712)      (3,469)    (5,232)    (6,356)
        Tax  benefit  from  employee
          stock  transactions  (5)                      -                  -          4,467                -      16,181
        Non-GAAP  net  income                    $9,547        $8,271      $18,289    $32,669    $68,916

        Non-GAAP  net  income  per
          share  -  basic                                $0.11          $0.10          $0.21        $0.38        $0.83
        Non-GAAP  net  income  per
          share  -  diluted                            $0.11          $0.10          $0.21        $0.37        $0.79

        Weighted  average  shares  -
          basic                                              84,218        84,489        85,618      85,557      82,787
        Weighted  average  shares  -
          diluted                                          85,228        85,937        89,113      87,388      86,791

        (1)    For  the  three  months  ended  December  31,  2006,  September  30,  2007  and
                  December  31,  2007,  and  for  the  twelve  months  ended  December  31,  2006
                  and  2007,  these  adjustments  represent  the  non-cash  amortization  of
                  stock-based  compensation  associated  with  SFAS  No.  123  (R)  Share-based
                  Payment.

        Cost  of  Revenue                                $387            $421            $473      $1,597      $2,427
        Research  and  Development            1,866          2,181          1,715        8,411      11,108
        Selling  General  and
          Administrative                              2,646          2,731          2,583        9,442      13,696
        Total                                                $4,899        $5,333        $4,771    $19,450    $27,231

        (2)    This  adjustment  represents  expenses  for  the  amortization  of
                  intangible  assets  recorded  in  connection  with  our  acquisitions.  These
                  on-going  expenses  pertain  to  intangible  assets  that  are  not  expected
                  to  be  replaced  when  fully  amortized,  as  might  a  depreciable  tangible
                  asset.

        (3)    This  adjustment  represents  the  reversal  of  royalty  revenue  and
                  reversal  of  contra  expense  for  reimbursement  of  litigation  expenses
                  for  the  quarter  ended  December  31,  2006.

        (4)    This  adjustment  represents  the  change  in  recognition  of  distributor
                  revenue  and  related  standard  cost  of  sales.

        (5)    This  adjustment  represents  the  non-cash  tax  benefits  from  employee
                  stock  transactions  and  other  discrete  items  included  in  the  tax
                  provision  and  recorded  to  additional  paid  in  capital.



                                                          SILICON  IMAGE,  INC.
                                        CONDENSED  CONSOLIDATED  BALANCE  SHEETS
        (In  thousands)
        Unaudited                                                                                          December  31,
                                                                                                          2007                            2006
        Assets
        Current  Assets:
            Cash  and  cash  equivalents                                      $137,822                      $81,921
            Short-term  investments                                              111,889                      168,724
            Accounts  receivable,  net                                            21,254                        39,931
            Inventories                                                                      20,198                        28,287
            Prepaid  expenses  and  other  current  assets          14,149                          4,895
            Deferred  income  taxes                                                    3,567                        12,793
                  Total  current  assets                                            308,879                      336,551
        Property  and  equipment,  net                                          24,191                        18,431
        Goodwill                                                                                19,210                        13,021
        Intangible  assets,  net                                                    39,269                                78
        Deferred  income  taxes,  non-current                            19,978                        10,580
        Other  assets                                                                          1,421                          1,570
                  Total  assets                                                          $412,948                    $380,231
        Liabilities  and  Stockholders'  Equity
        Current  Liabilities:
            Accounts  payable                                                          $17,892                      $14,187
            Accrued  liabilities  and  other  current
              liabilities                                                                    36,996                        37,308
            Deferred  license  revenue                                              3,860                          5,264
            Deferred  margin  on  sales  to
              distributors                                                                  26,443                        17,712
                  Current  liabilities                                                85,191                        74,471
            Other  long-term  liabilities                                      13,910                              538
                  Total  liabilities                                                    99,101                        75,009
        Stockholders'  Equity:
                  Total  stockholders'  equity                                313,847                      305,222
                  Total  liabilities  and
                    stockholders'  equity                                        $412,948                    $380,231

 

Web site: http://www.siliconimage.com/



« Previous Page 1 | 2             
Featured Video
Latest Blog Posts
Vijay ChobisaSiemens EDA
by Vijay Chobisa
The Rise of Custom Acceleration
Bob Smith, Executive DirectorBridging the Frontier
by Bob Smith, Executive Director
Nomination Deadline for Phil Kaufman Award and Hall of Fame: June 30
Jobs
Design Verification Engineer for Blockwork IT at Milpitas, California
Senior DPU System Application Engineer for Nvidia at Santa Clara, California
Hardware Engineer for PTEC Solutions at Fremont, California
Senior Post Silicon Hardware Engineer for Nvidia at Santa Clara, California
Upcoming Events
Design Automation Conference (DAC) 2024 at Moscone West, San Francisco CA - Jun 23 - 27, 2024
SemiconWest - 2024 at Moscone Center San Francisco CA - Jul 9 - 11, 2024
Flash Memory 2024 Conference & Expo FMS2024 at Santa Clara Convention Center Santa Clara CA - Aug 6 - 8, 2024



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise