Revenue at High End of Guidance Range; Initiates $50 Million Share Repurchase Program
SUNNYVALE, Calif. — (BUSINESS WIRE) — 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|
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, restructuring charges, impairment
of intangible assets, 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.