Conference Call
Silicon Image will host an investor conference call today to discuss its third quarter of 2014 results at 2:00 p.m. Pacific Time and will webcast the event. To access the conference call, dial 888-428-9490 or 719-325-2455 and enter pass code 8005803. 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 November 13, 2014. To access the replay, please dial 888-203-1112 or 719-457-0820 and enter pass code 8005803.
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/.
Silicon Image and the Silicon Image logo are trademarks, registered trademarks or service marks of Silicon Image, Inc. in the United States and/or other countries. All other trademarks and registered trademarks are the property of their respective owners in the United States and/or other countries.
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 Silicon Image's future operating results, including revenue, gross margin, operating expenses, tax rates, company growth, progress and stock repurchases. These forward-looking statements involve risks and uncertainties, including the risks of uncertain economic conditions, competition in our markets, Silicon Image's ability to deliver financial performance in-line with its stated goals and other risks and uncertainties described from time to time in Silicon Image's filings with the U.S. 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 and 10-Q filed by Silicon Image with the SEC. These forward-looking statements are made on the date of this press release, and Silicon Image assumes no obligation to update any such forward-looking information.
| SILICON IMAGE, INC. | ||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||||
| Unaudited | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
|
September 30, |
June 30, | September 30, |
September 30, |
September 30, | ||||||||||||||
|
2014 |
2014 | 2013 |
2014 |
2013 | ||||||||||||||
| Revenue: | ||||||||||||||||||
| Product | $ | 56,003 | $ | 50,938 | $ | 66,337 | $ | 153,707 | $ | 180,359 | ||||||||
| Licensing | 14,325 | 8,598 | 12,974 | 37,718 | 34,670 | |||||||||||||
|
Total revenue |
70,328 | 59,536 | 79,311 | 191,425 | 215,029 | |||||||||||||
| Cost of revenue and operating expenses: | ||||||||||||||||||
| Cost of product revenue (1)(2) | 27,760 | 24,814 | 33,222 | 77,369 | 90,043 | |||||||||||||
| Cost of licensing revenue | 10 | - | 185 | 30 | 614 | |||||||||||||
| Research and development (3) | 17,772 | 17,416 | 18,424 | 52,145 | 57,207 | |||||||||||||
| Selling, general and administrative (4) | 15,101 | 15,166 | 16,191 | 47,132 | 48,690 | |||||||||||||
| Amortization and impairment of acquisition-related intangible assets | 1,168 | 510 | 405 | 1,886 | 886 | |||||||||||||
| Restructuring expense (recoveries) (5) | (463 | ) | 113 | 483 | (221 | ) | 476 | |||||||||||
|
Total cost of revenue and operating expenses |
61,348 | 58,019 | 68,910 | 178,341 | 197,916 | |||||||||||||
| Income from operations | 8,980 | 1,517 | 10,401 | 13,084 | 17,113 | |||||||||||||
| Gain from sale of a privately held company investment | 4,071 | - | - | 4,071 | - | |||||||||||||
| Proceeds from a legal settlement | - | - | - | - | 1,275 | |||||||||||||
| Other than temporary impairment of a privately held company investment | - | - | - | - | (1,500 | ) | ||||||||||||
| Interest income and other, net | 260 | 1,043 | 168 | 1,321 | 1,059 | |||||||||||||
| Income before provision for income taxes and equity in net loss of an unconsolidated affiliate | 13,311 | 2,560 | 10,569 | 18,476 | 17,947 | |||||||||||||
| Income tax expense | 3,013 | 1,487 | 1,488 | 7,054 | 5,118 | |||||||||||||
| Equity in net loss of an unconsolidated affiliate | - | - | 116 | 150 | 375 | |||||||||||||
| Net income | $ | 10,298 | $ | 1,073 | $ | 8,965 | $ | 11,272 | $ | 12,454 | ||||||||
| Net income per share – basic | $ | 0.13 | $ | 0.01 | $ | 0.12 | $ | 0.14 | $ | 0.16 | ||||||||
| Net income per share – diluted | $ | 0.13 | $ | 0.01 | $ | 0.11 | $ | 0.14 | $ | 0.16 | ||||||||
| Weighted average shares – basic | 78,297 | 78,150 | 77,530 | 78,103 | 77,399 | |||||||||||||
| Weighted average shares – diluted | 79,670 | 79,988 | 78,995 | 79,996 | 78,783 | |||||||||||||
| (1) Includes amortization of acquisition-related intangible assets | $ | 225 | $ | 225 | $ | 250 | $ | 675 | $ | 500 | ||||||||
| (2) Includes stock-based compensation expense | $ | 154 | $ | 148 | $ | 163 | $ | 475 | $ | 451 | ||||||||
| (3) Includes stock-based compensation expense | $ | 845 | $ | 792 | $ | 879 | $ | 2,550 | $ | 2,724 | ||||||||
| (4) Includes stock-based compensation expense | $ | 1,355 | $ | 1,344 | $ | 1,440 | $ | 4,650 | $ | 4,649 | ||||||||
| (5) Includes stock-based compensation expense | $ | 52 | $ | 44 | $ | - | $ | 126 | $ | - | ||||||||
| SILICON IMAGE, INC. | ||||||||||||||||||||
| GAAP NET INCOME TO NON-GAAP NET INCOME RECONCILIATION | ||||||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
| GAAP net income | $ | 10,298 | $ | 1,073 | $ | 8,965 | $ | 11,272 | $ | 12,454 | ||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||
| Stock-based compensation expense (1) | 2,406 | 2,328 | 2,482 | 7,801 | 7,824 | |||||||||||||||
| Amortization of intangible assets (2) | 917 | 735 | 480 | 2,085 | 1,461 | |||||||||||||||
| Amortization of intangible assets of an unconsolidated affiliate (2) | - | - | 52 | 40 | 128 | |||||||||||||||
| Strategic initiative and acquisition related expenses (2) | - | 138 | - | 138 | - | |||||||||||||||
| Gain from business acquisition (2) | - | (361 | ) | - | (361 | ) | - | |||||||||||||
| Gain from sale of a privately held company investment (2) | (4,071 | ) | - | - | (4,071 | ) | - | |||||||||||||
| Other than temporary impairment of a privately held company investment (3) | - | - | - | - | 1,500 | |||||||||||||||
| Other income from prepaid royalty settlement (3) | - | (639 | ) | - | (639 | ) | - | |||||||||||||
| Proceeds from a legal settlement (3) | - | - | - | - | (1,275 | ) | ||||||||||||||
| Recovery related to previously written-down inventory (3) | - | - | (960 | ) | - | (960 | ) | |||||||||||||
| Restructuring expense (recoveries) (3) | (515 | ) | 69 | 483 | (347 | ) | 476 | |||||||||||||
| Impairment of intangible assets (3) | 476 | - | 175 | 476 | 175 | |||||||||||||||
| Non-GAAP net income before tax adjustments | 9,511 | 3,343 | 11,677 | 16,394 | 21,783 | |||||||||||||||
| Tax adjustments (4) | (744 | ) | 38 | (2,462 | ) | 20 | (2,953 | ) | ||||||||||||
| Non-GAAP net income | $ | 8,767 | $ | 3,381 | $ | 9,215 | $ | 16,414 | $ | 18,830 | ||||||||||
| Non-GAAP net income per share — basic | $ | 0.11 | $ | 0.04 | $ | 0.12 | $ | 0.21 | $ | 0.24 | ||||||||||
| Non-GAAP net income per share — diluted | $ | 0.11 | $ | 0.04 | $ | 0.12 | $ | 0.21 | $ | 0.24 | ||||||||||
| Weighted average shares — basic | 78,297 | 78,150 | 77,530 | 78,103 | 77,399 | |||||||||||||||
| Weighted average shares — diluted | 79,670 | 79,988 | 78,995 | 79,996 | 78,783 | |||||||||||||||
| Stock-based compensation expense is composed of the following: | ||||||||||||||||||||
| Cost of revenue | $ | 154 | $ | 148 | $ | 163 | $ | 475 | $ | 451 | ||||||||||
| Research and development | 845 | 792 | 879 | 2,550 | 2,724 | |||||||||||||||
| Selling, general and administrative | 1,355 | 1,344 | 1,440 | 4,650 | 4,649 | |||||||||||||||
| Restructuring expense | 52 | 44 | - | 126 | - | |||||||||||||||
|
Total |
$ | 2,406 | $ | 2,328 | $ | 2,482 | $ | 7,801 | $ | 7,824 | ||||||||||
