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Revenue at High End of
Revenue for the first quarter of 2012 was
"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
GAAP net loss for the first quarter of 2012 was
Non-GAAP net loss for the first quarter of 2012 was
A reconciliation of GAAP and non-GAAP items is provided in a table following the Condensed Consolidated Statements of Operations.
"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
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:
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Revenue: |
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Gross Margin: 57% - 58% |
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GAAP operating expenses: |
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Non-GAAP operating expenses: approximately |
| Diluted shares outstanding: approximately 85 million |
| Non-GAAP tax rate: approximately 30% of non-GAAP pre-tax income |
Use of Non-GAAP Financial Information
Conference Call
About
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
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||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (In thousands, except per share amounts) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
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||||||||||
| Revenue: | ||||||||||||
| Product | $ | 43,024 | $ | 45,029 | $ | 38,057 | ||||||
| Licensing | 11,979 | 13,704 | 10,942 | |||||||||
| Total revenue | 55,003 | 58,733 | 48,999 | |||||||||
| Cost of revenue and operating expenses: | ||||||||||||
| Cost of product revenue (1) | 23,099 | 22,824 | 19,872 | |||||||||
| Cost of licensing revenue | 125 | 150 | 400 | |||||||||
| Research and development (2) | 21,707 | 17,646 | 15,243 | |||||||||
| Selling, general and administrative (3) | 16,137 | 13,865 | 13,051 | |||||||||
| Amortization of intangible assets | 496 | 496 | 197 | |||||||||
| Restructuring expense | 5 | 812 | 365 | |||||||||
| Impairment of intangible assets | - | 8,500 | - | |||||||||
| Total cost of revenue and operating expenses | 61,569 | 64,293 | 49,128 | |||||||||
| Loss from operations | (6,566 | ) | (5,560 | ) | (129 | ) | ||||||
| Interest income and others, net | 538 | 384 | 377 | |||||||||
| Income (loss) before provision for income taxes and equity in net loss of unconsolidated affiliate | (6,028 | ) | (5,176 | ) | 248 | |||||||
| Income tax expense | 2,948 | 4,047 | 1,068 | |||||||||
| Equity in net loss of unconsolidated affiliate | (600 | ) | (994 | ) | - | |||||||
| Net loss | $ | (9,576 | ) | $ | (10,217 | ) | $ | (820 | ) | |||
| Net loss per share — basic and diluted | $ | (0.12 | ) | $ | (0.12 | ) | $ | (0.01 | ) | |||
| Weighted average shares — basic and diluted | 82,722 | 82,050 | 78,724 | |||||||||
| (1) Includes stock-based compensation expense | $ | 218 | $ | 84 | $ | 180 | ||||||
| (2) Includes stock-based compensation expense | $ | 1,160 | $ | 777 | $ | 573 | ||||||
| (3) Includes stock-based compensation expense | $ | 1,910 | $ | 1,135 | $ | 1,132 | ||||||
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||||||||||||
| GAAP NET LOSS TO NON-GAAP NET INCOME (LOSS) RECONCILIATION | ||||||||||||
| (In thousands, except per share amounts) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
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||||||||||
| GAAP net loss | $ | (9,576 | ) | $ | (10,217 | ) | $ | (820 | ) | |||
| Non-GAAP adjustments: | ||||||||||||
| Stock-based compensation expense (1) | 3,288 | 1,996 | 1,885 | |||||||||
| Business strategic initiative and acquisition related expenses (2) | 1,528 | - | 138 | |||||||||
| Amortization of intangible assets (2) | 496 | 496 | 197 | |||||||||
| Amortization of intangible assets of unconsolidated affiliate (2) | 134 | 232 | - | |||||||||
| Restructuring expense (3) | 5 | 812 | 365 | |||||||||
| Impairment of intangible assets (3) | - | 8,500 | - | |||||||||
|
Reversal of a subsidiary's foreign currency translation adjustment (3) |
- | - | 132 | |||||||||
| Non-GAAP net income (loss) before tax adjustments | (4,125 | ) | 1,819 | 1,897 | ||||||||
| Tax adjustments (4) | 3,301 | 2,992 | 534 | |||||||||
| Non-GAAP net income (loss) | $ | (824 | ) | $ | 4,811 | $ | 2,431 | |||||
| Non-GAAP net income (loss) per share — basic | $ | (0.01 | ) | $ | 0.06 | $ | 0.03 | |||||
| Non-GAAP net income (loss) per share — diluted | $ | (0.01 | ) | $ | 0.06 | $ | 0.03 | |||||
| Weighted average shares — basic |
82,722 |
82,050 | 78,724 | |||||||||
| Weighted average shares — diluted | 82,722 | 83,406 | 82,351 | |||||||||
| Stock-based compensation expense is composed of the following: | ||||||||||||
| Cost of Revenue | $ | 218 | $ | 84 | $ | 180 | ||||||
| Research and Development | 1,160 | 777 | 573 | |||||||||
| Selling, General and Administrative | 1,910 | 1,135 | 1,132 | |||||||||
| Total | $ | 3,288 | $ | 1,996 | $ | 1,885 | ||||||
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Discussion of Non-GAAP Financial Measures |
||||
| (1) |
Stock-Based Compensation Related Items: Stock-based compensation expense relates primarily to equity awards, such as stock options and restricted stock units. Stock-based compensation is a non-cash expense that varies in amount from period to period and is dependent on market forces that are often beyond our control. As such, management excludes this item from our internal operating forecasts and models. Management believes that non-GAAP measures adjusted for stock-based compensation provide investors with a basis to measure our core performance against the performance of other companies without the variability created by stock-based compensation as a result of the variety of equity awards used by companies and the varying methodologies and subjective assumptions used in determining such non-cash expense. |
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| (2) |
Business Strategic Initiative and Acquisition Related Items:
We exclude certain expense items resulting from our business
strategic initiative and acquisitions including the following,
when applicable: (i) amortization of purchased intangible
assets associated with our acquisitions; or relating to our
unconsolidated affiliates and (ii) business strategic
initiative and acquisition-related charges. The amortization of
purchased intangible assets associated with our acquisitions
results in our recording expenses in our GAAP financial statements
that were already expensed by the acquired company before the
acquisition and for which we have not expended cash. Moreover, had
we internally developed the products acquired, the amortization of
intangible assets, and the expenses of uncompleted research and
development would have been expensed in prior periods.
Accordingly, we analyze the performance of our operations in each
period without regard to such expenses. In addition, our business
strategic initiatives and acquisitions result in non-continuing
operating expenses, which would not otherwise have been incurred
by us in the normal course of our business operations. During
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| (3) |
Other Items: We exclude certain other items that are the
result of either unique or unplanned events including the
following, when applicable: (i) restructuring and related
costs, (ii) impairment charges and (iii) reversal of
a subsidiary's foreign currency translation adjustment. It is
difficult to estimate the amount or timing of these items in
advance. Restructuring and impairment charges result from events
which arise from unforeseen circumstances, which often occur
outside of the ordinary course of continuing operations. Although
these events are reflected in our GAAP financials, these unique
transactions may limit the comparability of our on-going
operations with prior and future periods. As such, we believe that
these expenses do not accurately reflect the underlying
performance of our continuing operations for the period in which
they are incurred. Reversal of a subsidiary's foreign currency
translation adjustment relates to the reversal from accumulated
Other Comprehensive Income (OCI) to income of the accumulated
foreign currency translation adjustment of our wholly owned
subsidiary in |
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| (4) |
Tax adjustments: For the three months ended |
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||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (In thousands) | ||||||
| Unaudited | ||||||
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|||||
| ASSETS | ||||||
| Current Assets: | ||||||
| Cash and cash equivalents | $ | 34,471 | $ | 37,125 | ||
| Short-term investments | 116,842 | 124,301 | ||||
| Accounts receivable, net | 37,288 | 27,368 | ||||
| Inventories | 12,223 | 10,062 | ||||
| Prepaid expenses and other current assets | 7,900 | 9,101 | ||||
| Deferred income taxes | 739 | 708 | ||||
| Total current assets | 209,463 | 208,665 | ||||
| Property and equipment, net | 13,074 | 12,772 | ||||
| Deferred income taxes, non-current | 4,066 | 4,706 | ||||
| Intangible assets, net | 11,419 | 11,915 | ||||
| Goodwill | 18,646 | 18,646 | ||||
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Other assets |
13,349 | 9,369 | ||||
| Total assets | $ | 270,017 | $ | 266,073 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current Liabilities: | ||||||
| Accounts payable | $ | 17,322 | $ | 10,133 | ||
| Accrued and other current liabilities | 22,204 | 26,116 | ||||
| Deferred margin on sales to distributors | 11,251 | 7,809 | ||||
| Deferred license revenue | 3,599 | 2,684 | ||||
| Total current liabilities | 54,376 | 46,742 | ||||
| Other long-term liabilities | 15,844 | 14,815 | ||||
| Total liabilities | 70,220 | 61,557 | ||||
| Stockholders' equity | 199,797 | 204,516 | ||||
| Total liabilities and stockholders' equity | $ | 270,017 | $ | 266,073 | ||
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| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In thousands) | ||||||||
| Unaudited | ||||||||
| Three Months Ended March 31, | ||||||||
| 2012 | 2011 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (9,576 | ) | $ | (820 | ) | ||
| Adjustments to reconcile net loss to cash used in operating activities: | ||||||||
| Depreciation | 1,591 | 1,659 | ||||||
| Stock-based compensation expense | 3,288 | 1,885 | ||||||
| Amortization of investment premium | 509 | 806 | ||||||
| Tax benefits from employee stock-based transactions | 310 | 923 | ||||||
| Amortization of intangible assets | 496 | 197 | ||||||
| Excess tax benefits from employee stock-based transactions | (310 | ) | (923 | ) | ||||
| Realized gain on sale of short-term investments | (45 | ) | (39 | ) | ||||
| Equity in net loss of unconsolidated affiliate | 600 | - | ||||||
| Others | 358 | 162 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (9,967 | ) | (4,261 | ) | ||||
| Inventories | (2,161 | ) | (758 | ) | ||||
| Prepaid expenses and other assets | 969 | (827 | ) | |||||
| Accounts payable | 6,483 | (1,548 | ) | |||||
| Accrued and other liabilities | (1,847 | ) | (4,322 | ) | ||||
| Deferred margin on sales to distributors | 3,442 | 5,224 | ||||||
| Deferred license revenue | 858 | (725 | ) | |||||
| Cash used in operating activities | (5,002 | ) | (3,367 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Proceeds from maturities and sales of short-term investments | 23,031 | 35,457 | ||||||
| Purchases of short-term investments | (15,797 | ) | (30,076 | ) | ||||
| Cash used in business acquisitions | - | (1,915 | ) | |||||
| Purchases of property and equipment | (2,191 | ) | (1,924 | ) | ||||
| Investment in a privately held company | (3,500 | ) | - | |||||
| Advances for intellectual properties | - | (4,750 | ) | |||||
| Other investing activities | (500 | ) | - | |||||
| Cash provided by (used in) investing activities | 1,043 | (3,208 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuances of common stock | 2,486 | 4,047 | ||||||
| Excess tax benefits from employee stock-based transactions | 310 | 923 | ||||||
| Repurchases of restricted stock units for income tax withholding | (1,465 | ) | (1,069 | ) | ||||
| Cash provided by financing activities | 1,331 | 3,901 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (26 | ) | (4 | ) | ||||
| Net decrease in cash and cash equivalents | (2,654 | ) | (2,678 | ) | ||||
| Cash and cash equivalents — beginning of period | 37,125 | 29,942 | ||||||
| Cash and cash equivalents — end of period | $ | 34,471 |
$ |
27,264 | ||||
| Supplemental cash flow information: | ||||||||
| Cash payment for income taxes | $ | (209 | ) | $ | (1,625 | ) | ||
| Restricted stock units vested | $ | 3,929 | $ | 2,735 | ||||
| Property and equipment and other assets purchased but not paid for | $ | 1,150 | $ | 626 | ||||
| Unrealized gain (loss) on short term investments | $ | 174 | $ | (9 | ) | |||
gcollier@siliconimage.com
or
mike@blueshirtgroup.com
Source:
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