SUNNYVALE, Calif., April 21, 2005 - Silicon Image, Inc. (Nasdaq: SIMG), a leader in multi-gigabit semiconductor solutions for the secure transmission and storage of rich digital media, today reported financial results for its first quarter ended March 31, 2005. Selected Q1 Highlights:
Silicon Image achieved revenue of $44.3 million for the first quarter. This was an increase of 23.6 percent from revenue of $35.9 million achieved in the first quarter of 2004, and was down 3.8 percent sequentially from the $46.1 million in revenue recorded for the fourth quarter of 2004.
Net income under Generally Accepted Accounting Principles (GAAP), which includes stock compensation benefit, amortization of intangible assets, patent defense costs and realized loss on an investment security was $16.6 million, or $0.19 per diluted share, for the quarter ended March 31, 2005. This compares to a net loss of $7.9 million, or $0.11 per diluted share, for the year ago quarter, and a net loss of $0.1 million, or $0.00 per diluted share for the fourth quarter of 2004.
First quarter pro-forma* net income was $7.7 million or $0.09 per diluted share, and was calculated excluding a non-cash benefit for stock compensation ($9.3 million, resulting primarily from a decreased average stock price on options granted and re-priced in prior periods), a non-cash expense for the amortization of intangible assets ($0.3 million), and a loss ($0.1 million) on an investment security and patent defense costs. This compares to a pro-forma net income of $10.3 million, or $0.12 per diluted share, for the fourth quarter of 2004, and a pro-forma net income of $4.7 million, or $0.06 per diluted share, for the first quarter of 2004.
Commenting on the results, Steve Tirado, Silicon Image's president and chief executive officer, said, "We executed well in the first quarter and achieved both our top and bottom line goals. While we experienced softness in our licensing revenues, we made up for it by improvements in our product revenue combined with lower operating expenses. We are also extremely pleased by the continued wide-spread adoption of HDMI as evidenced by the 41 new HDMI licensees for the quarter. In general our business outlook remains strong and we look forward to achieving record revenues in the upcoming quarter."
"We had an extremely good quarter in terms of incoming orders. First we signed a number of licensing transactions that will receive revenue recognition in future periods. Second, we achieved record incoming product orders for the quarter and as a result, we are entering the second quarter with approximately 70 percent visibility. We are looking forward to improved operating results as we enter the traditional growth-oriented quarters for our business, " added, Silicon Image's chief financial officer, Robert Gargus.
The company will host a conference call at 2:00 p.m. PST today to discuss its first quarter 2005 results and business outlook. The call will be broadcast over the Internet and can be accessed on the investor relation site located at http://www.siliconimage.com. A replay of the conference call will be available on this site until 12:00 p.m. PST on May 1, 2005.
* Pro-forma net income or loss represents net income or net loss, exclusive of stock compensation expense (benefit), amortization of intangible assets, patent defense costs, restructuring costs, and losses on investment securities.
About Silicon Image
Headquartered in Sunnyvale, Calif., Silicon Image, Inc. designs, develops and markets multi-gigabit semiconductor and system solutions for a variety of communications applications demanding high-bandwidth capability. With its proprietary Multi-layer Serial Link (MSL™) architecture, Silicon Image is well positioned for leadership in multiple mass markets including PCs, consumer electronics, and storage. Silicon Image is a leader in the global PC/display arena with its innovative digital interconnect technology and is now emerging as a leading player in the fields of storage and consumer electronics by offering robust, high-bandwidth semiconductors. For more information on Silicon Image, visit www.siliconimage.com
Safe Harbor Statement
This news release contains forward-looking information within the meaning of federal securities regulations. These forward-looking statements include statements related to future financial results, and business outlook. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. In particular, future demand in PC, display, consumer electronics and storage markets may differ from current expectations, adversely affecting expected future results for the company, new product introductions may not be timely or successful, and standards may not be adopted at the rates anticipated. In addition, see "Management's Discussion and Analysis of Financial Condition and Results of Operations - Factors Affecting Future Results" in the most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K filed by Silicon Image with the SEC. Silicon Image assumes no obligation to update this forward-looking information.
ROBERT G. GARGUS
Chief Financial Officer
Silicon Image, Inc.
Silicon Image, Inc.