Silicon Image Updates Second Quarter Revenue Outlook
09 July 2014 - 6:05AM
Business Wire
Silicon Image (NASDAQ: SIMG), a leading provider of multimedia
connectivity solutions and services, today updated its outlook for
the quarter ending June 30, 2014.
Revenue for the second quarter is currently expected to be in
the range of $58.5 million to $60.5 million. The Company's previous
guidance for second quarter revenue was in the range of $71 million
to $76 million. Gross margin is expected to be between 59% and 60%,
as compared to previous guidance of approximately 56.5%. Non-GAAP
Operating expenses are expected to be in the range of $30 million
to $32 million versus prior guidance of approximately $32.5
million.
This updated guidance is due to lower than anticipated mobile IC
shipments in the quarter to a significant customer and the delay of
expected HDMI royalty revenue.
Silicon Image receives a portion of HDMI royalty revenue that is
subject to an agreement among the HDMI Founders. The parties are
working to finalize a new 3 year agreement starting in 2014.
"Although the quarter has been challenging, we are confident
that we will work through these items over the balance of the
year," said Camillo Martino, chief executive officer of Silicon
Image. “Most importantly, we remain committed to executing on our
strategy of expanding MHL into mid-range mobile devices and
addressing the growing 60GHz wireless market for video and data
which we believe is key to growing our business and creating
long-term value for shareholders.”
The company will host an investor conference call and webcast
the event at 2:00 p.m. Pacific Time today.
To access the conference call, dial 888-430-8709 or 719-325-2281
and enter pass code 6525198. 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 July 30, 2014. To access the replay, please dial
888-203-1112 or 719-457-0820 and enter pass code 6525198.
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 (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/.
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, quarterly results, growth in profitability and
further delays to completing a new HDMI revenue allocation
agreement. 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, 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.
MEDIA CONTACTS:Silicon Image, Inc.Sherrie Gutierrez,
408-616-4088Sherrie.Gutierrez@siliconimage.comorINVESTOR
CONTACT:Silicon Image, Inc.Alex Chervet,
408-616-4153Alex.Chervet@siliconimage.com
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