Silicon Image Updates Fourth Quarter Revenue Outlook
04 January 2013 - 10:00PM
Business Wire
Silicon Image (NASDAQ: SIMG), a leading provider of HD
connectivity solutions, today updated its revenue outlook for the
quarter ending December 31, 2012.
Revenue for the fourth quarter is currently expected to be in
the range of $59 million to $60 million. The Company's previous
guidance for fourth quarter revenue was in the range of $64 million
to $67 million. The reduction is the result of the rescheduling of
certain orders by a large customer.
The Company also announced it has taken a charge to reflect the
write down of certain unsalable inventory due to defects in the
material used by one of our assembly vendors in the packaging
process. All parts known to be defective have been identified and
are within the Company’s control. The Company is working with its
vendor to resolve this matter as well as to recover the value of
the inventory being written off. The amount of this charge as of
December 31, 2012 is approximately $6.3 million which will be
included in cost of goods sold and represents a GAAP pre-tax per
share charge of approximately $0.08 per diluted share for the
quarter. This charge will be excluded from our non-GAAP results as
we believe this is an unusual and one time charge for which the
Company is seeking recovery.
“Our lowered revenue guidance for the fourth quarter is the
result of changes in the timing of production schedules and the
level of inventory management by one of our large customers. Our
operating expenses will be lower than planned for the quarter due
to continued cost controls as well as lower incentive pay as a
result of the reduced financial performance. With respect to our
inventory charge, we are working with our vendor to either replace
the inventory or compensate the Company for its incurred costs,”
said Camillo Martino, chief executive officer of Silicon Image. “As
we enter the new year, we continue to expect our product revenues
in the first quarter to be higher sequentially based on ordering
patterns driven by the continued growth of MHL and an improved
consumer electronics environment. We remain focused on enhancing
shareholder value in 2013 through achieving our strategic and
financial objectives for the year including significantly improving
our profitability.”
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
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, 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.
About Silicon Image, Inc.
Silicon Image is a leading provider of connectivity solutions
that enable the reliable distribution and presentation of
high-definition content for consumer electronics, mobile, and PC
markets. The company delivers its technology via semiconductor and
intellectual property products that are compliant with global
industry standards and feature market leading Silicon Image
innovations such as InstaPort™ and InstaPrevue™. Silicon Image’s
products are deployed by the world’s leading electronics
manufacturers in devices such as desktop and notebook PCs, DTVs,
Blu-ray Disc™ players, audio-video receivers, as well as mobile
phones, tablets and digital cameras. Silicon Image has driven the
creation of the highly successful HDMI® and DVI™ industry
standards, the latest standard for mobile devices – MHL®, and the
leading 60GHz wireless HD video standard – WirelessHD®. Via its
wholly-owned subsidiary, Simplay Labs, Silicon Image offers
manufacturers comprehensive standards interoperability and
compliance testing services. For more information, visit us at
http://www.siliconimage.com/.
Forward-looking Statements
This news 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,
company growth, recovery of the value of written-off inventory,
first quarter revenue and growth in profitability for 2013. 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 guidance, ability to
recover the value of written off inventory 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 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.
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