Silicon Image Announces Revenue of $10.5 Million for the First Quarter of Fiscal 2001

Apr 18, 2001, 01:00 ET from Silicon Image, Inc.

    SUNNYVALE, Calif., April 18 /PRNewswire/ --
 Silicon Image, Inc. (Nasdaq:   SIMG), a price/performance leader in
 high-bandwidth semiconductor solutions for mass markets, today reported
 financial results for its first quarter ended March 31, 2001.  Revenue for the
 first quarter of 2001 was $10.5 million, a 3 percent increase from
 $10.1 million for the comparable quarter in 2000, and a 20 percent decrease
 from $13.1 million for the previous quarter.
     Pro-forma net loss* for the first quarter of 2001 was $1.6 million, or
 $0.03 per basic and diluted share.  This compares to pro-forma net income of
 $642,000, or $0.01 per diluted share, for the comparable quarter in 2000 and
 pro-forma net income of $245,000, or $0.00 per diluted share, for the previous
 quarter.
     Net loss, which includes amortization of goodwill and intangible assets,
 and stock compensation and warrant expense, for the quarter ended
 March 31, 2001, was $6.5 million, or $0.13 per share.  This compares to a net
 loss of $1.8 million, or $0.04 per share, for the comparable quarter in 2000,
 and a net loss of $5.4 million, or $0.11 per share, in the previous quarter.
     "In light of the overall market climate in the semiconductor industry, we
 are pleased with the visibility that we had into our customers' demand and our
 ability to meet the revenue projections made in our January conference call,"
 said David Lee, CEO and president of Silicon Image.  "We remain comfortable
 with our previously announced revenue projections made in that conference call
 for the first half of fiscal 2001 and, although market uncertainty reduces our
 visibility beyond that point, we currently expect to see revenue growth in the
 2nd half of this year.  Despite the current unpredictability of PC market
 forecasts, recent research points to digital adoption in the PC market being
 on track to double in 2001 -- providing opportunity for our DVI-compliant
 PanelLink(TM) solutions -- while overall PC sales may be flat to slightly down
 from 2000 levels.  Additionally, the consumer electronics market continues to
 show strong interest in our new DVI/HDCP solutions with products incorporating
 this digital interface scheduled for introduction in early 2002.  And finally,
 we are on schedule to provide early samples of the industry's first 2Gb/s CMOS
 fibre channel silicon solution to strategic customers this quarter."
     The company will host a conference call at 2:00 p.m. Pacific Time today to
 discuss its first quarter 2001 fiscal results, and future outlook.  The call
 will be broadcast over the Internet and can be accessed at
 www.streetfusion.com or on the investor relation's site located at
 www.siimage.com.
     *Pro-forma net loss represents net income, exclusive of amortization of
 goodwill and intangible assets, and stock compensation and warrant expense.
 
     About Silicon Image
     Headquartered in Sunnyvale, Calif., Silicon Image, Inc. designs, develops
 and markets high-speed semiconductor solutions for a variety of communications
 applications that require cost-effective, high-bandwidth capabilities.
 Leveraging Silicon Image's circuit innovation at the physical layer, the
 company's proprietary, reduced overhead Multi-layer Serial Link (MSL(TM))
 architecture is well suited to address a number of mass markets with
 aggressive bandwidth price/performance requirements-including the display,
 storage and networking sectors. Evidencing its success, Silicon Image has
 shipped more than 15 million high-bandwidth, low-cost semiconductor solutions
 to the PC market alone.  For more information on Silicon Image and its proven
 multi-layered, high-speed interconnect technology, visit www.siimage.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 sales and results, new design wins, technology
 advancements, expected DVI adoption rates, expected PC sales, Silicon Image's
 ability to enter the consumer electronics market and the benefits of its
 technology for that market, the planned appearance of new products supporting
 the DVI/HDCP interface, and the planned introduction of fibre channel
 products.  These forward-looking statements involve risks and uncertainties,
 including those described in Silicon Image's most recent Annual Report on Form
 10-K filed with the Securities and Exchange Commission, that could cause the
 actual results to differ materially from those anticipated by these
 forward-looking statements.  In particular, design wins may not continue or
 yield either revenue or profits, competition may increase in Silicon Image's
 markets and competitors may offer products that are preferred by customers,
 there is no certainty that DVI specification adoption will continue nor the
 market increase, the industry may not adopt Silicon Image's technology for the
 consumer electronics market, and new fibre channel products and products
 supporting the DVI/HDCP interface may not appear, or may not appear when
 predicted. Silicon Image assumes no obligation to update this forward-looking
 information.
 
     NOTE:  PanelLink, Silicon Image, SiI, MSL and PanelLink are trademarks or
 registered trademarks of Silicon Image, Inc. in the United States and other
 countries.
 
      SILICON IMAGE, INC.
      PRO-FORMA CONDENSED STATEMENTS OF OPERATIONS
 
                                                    Three Months Ended
                                                        (unaudited)
                                                March 31,  Dec 31,  March 31,
     (In thousands, except per share amounts)     2001      2000      2000
 
     Product revenue                             $10,451   $13,059   $10,104
 
     Pro-forma cost and operating expenses:
       Cost of product revenue                     4,372     5,123     3,689
       Research and development                    4,408     3,933     2,754
       Selling, general and administrative         4,167     4,742     3,890
       Stock compensation and warrant expense      2,719     3,489     2,455
       Amortization of goodwill and
        intangible assets                          2,221     2,199        --
         Total cost and operating expenses        17,887    19,486    12,788
 
     Net loss from operations                    (7,436)   (6,427)   (2,684)
     Interest income and other, net                  897     1,011       942
 
     Net loss before income taxes                (6,539)   (5,416)   (1,742)
     Provision for income taxes                       --        27        71
     Net income/(loss)                          $(6,539)  $(5,443)  $(1,813)
 
 
     Net loss per share:
       Basic and diluted                         $(0.13)   $(0.11)   $(0.04)
       Weighted average shares                    51,965    51,503    48,020
 
 
     Pro-forma net income (loss) *              $(1,599)      $245      $642
 
       Pro-forma net income (loss) per share -
        basic                                    $(0.03)     $0.00     $0.01
       Weighted average shares                    51,965    51,503    48,020
 
       Pro-forma net income (loss) per share -
        diluted                                  $(0.03)     $0.00     $0.01
       Weighted average shares and equivalents    51,965    56,340    53,470
 
     * Excludes stock compensation and warrant expense and amortization of
 goodwill and intangible assets.
 
 
      SILICON IMAGE, INC.
      CONDENSED BALANCE SHEETS
 
                                                         March 31,   Dec 31,
     (In thousands)                                        2001       2000
 
     Assets
     Current assets:
      Cash and short-term investments                     $57,533    $60,189
       Accounts receivable, net                             4,198      7,088
       Inventories                                          3,269      3,064
       Prepaids and other current assets                    1,714      1,644
         Total current assets                              66,714     71,985
     Property and equipment, net                            4,486      4,371
     Goodwill and intangible assets, net                   19,132     21,353
     Other assets                                           2,154      1,790
         Total assets                                     $92,486    $99,499
 
     Liabilities and Stockholders' Equity
     Current liabilities:
       Accounts payable and other current liabilities      $8,178    $10,483
       Deferred margin on sales to distributors             3,199      4,789
         Total current liabilities                         11,377     15,272
     Capital lease obligations, long-term                     805      1,030
         Total liabilities                                 12,182     16,302
 
     Stockholders' equity                                  80,304     83,197
         Total liabilities and stockholders' equity       $92,486    $99,499
 
 

SOURCE Silicon Image, Inc.
    SUNNYVALE, Calif., April 18 /PRNewswire/ --
 Silicon Image, Inc. (Nasdaq:   SIMG), a price/performance leader in
 high-bandwidth semiconductor solutions for mass markets, today reported
 financial results for its first quarter ended March 31, 2001.  Revenue for the
 first quarter of 2001 was $10.5 million, a 3 percent increase from
 $10.1 million for the comparable quarter in 2000, and a 20 percent decrease
 from $13.1 million for the previous quarter.
     Pro-forma net loss* for the first quarter of 2001 was $1.6 million, or
 $0.03 per basic and diluted share.  This compares to pro-forma net income of
 $642,000, or $0.01 per diluted share, for the comparable quarter in 2000 and
 pro-forma net income of $245,000, or $0.00 per diluted share, for the previous
 quarter.
     Net loss, which includes amortization of goodwill and intangible assets,
 and stock compensation and warrant expense, for the quarter ended
 March 31, 2001, was $6.5 million, or $0.13 per share.  This compares to a net
 loss of $1.8 million, or $0.04 per share, for the comparable quarter in 2000,
 and a net loss of $5.4 million, or $0.11 per share, in the previous quarter.
     "In light of the overall market climate in the semiconductor industry, we
 are pleased with the visibility that we had into our customers' demand and our
 ability to meet the revenue projections made in our January conference call,"
 said David Lee, CEO and president of Silicon Image.  "We remain comfortable
 with our previously announced revenue projections made in that conference call
 for the first half of fiscal 2001 and, although market uncertainty reduces our
 visibility beyond that point, we currently expect to see revenue growth in the
 2nd half of this year.  Despite the current unpredictability of PC market
 forecasts, recent research points to digital adoption in the PC market being
 on track to double in 2001 -- providing opportunity for our DVI-compliant
 PanelLink(TM) solutions -- while overall PC sales may be flat to slightly down
 from 2000 levels.  Additionally, the consumer electronics market continues to
 show strong interest in our new DVI/HDCP solutions with products incorporating
 this digital interface scheduled for introduction in early 2002.  And finally,
 we are on schedule to provide early samples of the industry's first 2Gb/s CMOS
 fibre channel silicon solution to strategic customers this quarter."
     The company will host a conference call at 2:00 p.m. Pacific Time today to
 discuss its first quarter 2001 fiscal results, and future outlook.  The call
 will be broadcast over the Internet and can be accessed at
 www.streetfusion.com or on the investor relation's site located at
 www.siimage.com.
     *Pro-forma net loss represents net income, exclusive of amortization of
 goodwill and intangible assets, and stock compensation and warrant expense.
 
     About Silicon Image
     Headquartered in Sunnyvale, Calif., Silicon Image, Inc. designs, develops
 and markets high-speed semiconductor solutions for a variety of communications
 applications that require cost-effective, high-bandwidth capabilities.
 Leveraging Silicon Image's circuit innovation at the physical layer, the
 company's proprietary, reduced overhead Multi-layer Serial Link (MSL(TM))
 architecture is well suited to address a number of mass markets with
 aggressive bandwidth price/performance requirements-including the display,
 storage and networking sectors. Evidencing its success, Silicon Image has
 shipped more than 15 million high-bandwidth, low-cost semiconductor solutions
 to the PC market alone.  For more information on Silicon Image and its proven
 multi-layered, high-speed interconnect technology, visit www.siimage.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 sales and results, new design wins, technology
 advancements, expected DVI adoption rates, expected PC sales, Silicon Image's
 ability to enter the consumer electronics market and the benefits of its
 technology for that market, the planned appearance of new products supporting
 the DVI/HDCP interface, and the planned introduction of fibre channel
 products.  These forward-looking statements involve risks and uncertainties,
 including those described in Silicon Image's most recent Annual Report on Form
 10-K filed with the Securities and Exchange Commission, that could cause the
 actual results to differ materially from those anticipated by these
 forward-looking statements.  In particular, design wins may not continue or
 yield either revenue or profits, competition may increase in Silicon Image's
 markets and competitors may offer products that are preferred by customers,
 there is no certainty that DVI specification adoption will continue nor the
 market increase, the industry may not adopt Silicon Image's technology for the
 consumer electronics market, and new fibre channel products and products
 supporting the DVI/HDCP interface may not appear, or may not appear when
 predicted. Silicon Image assumes no obligation to update this forward-looking
 information.
 
     NOTE:  PanelLink, Silicon Image, SiI, MSL and PanelLink are trademarks or
 registered trademarks of Silicon Image, Inc. in the United States and other
 countries.
 
      SILICON IMAGE, INC.
      PRO-FORMA CONDENSED STATEMENTS OF OPERATIONS
 
                                                    Three Months Ended
                                                        (unaudited)
                                                March 31,  Dec 31,  March 31,
     (In thousands, except per share amounts)     2001      2000      2000
 
     Product revenue                             $10,451   $13,059   $10,104
 
     Pro-forma cost and operating expenses:
       Cost of product revenue                     4,372     5,123     3,689
       Research and development                    4,408     3,933     2,754
       Selling, general and administrative         4,167     4,742     3,890
       Stock compensation and warrant expense      2,719     3,489     2,455
       Amortization of goodwill and
        intangible assets                          2,221     2,199        --
         Total cost and operating expenses        17,887    19,486    12,788
 
     Net loss from operations                    (7,436)   (6,427)   (2,684)
     Interest income and other, net                  897     1,011       942
 
     Net loss before income taxes                (6,539)   (5,416)   (1,742)
     Provision for income taxes                       --        27        71
     Net income/(loss)                          $(6,539)  $(5,443)  $(1,813)
 
 
     Net loss per share:
       Basic and diluted                         $(0.13)   $(0.11)   $(0.04)
       Weighted average shares                    51,965    51,503    48,020
 
 
     Pro-forma net income (loss) *              $(1,599)      $245      $642
 
       Pro-forma net income (loss) per share -
        basic                                    $(0.03)     $0.00     $0.01
       Weighted average shares                    51,965    51,503    48,020
 
       Pro-forma net income (loss) per share -
        diluted                                  $(0.03)     $0.00     $0.01
       Weighted average shares and equivalents    51,965    56,340    53,470
 
     * Excludes stock compensation and warrant expense and amortization of
 goodwill and intangible assets.
 
 
      SILICON IMAGE, INC.
      CONDENSED BALANCE SHEETS
 
                                                         March 31,   Dec 31,
     (In thousands)                                        2001       2000
 
     Assets
     Current assets:
      Cash and short-term investments                     $57,533    $60,189
       Accounts receivable, net                             4,198      7,088
       Inventories                                          3,269      3,064
       Prepaids and other current assets                    1,714      1,644
         Total current assets                              66,714     71,985
     Property and equipment, net                            4,486      4,371
     Goodwill and intangible assets, net                   19,132     21,353
     Other assets                                           2,154      1,790
         Total assets                                     $92,486    $99,499
 
     Liabilities and Stockholders' Equity
     Current liabilities:
       Accounts payable and other current liabilities      $8,178    $10,483
       Deferred margin on sales to distributors             3,199      4,789
         Total current liabilities                         11,377     15,272
     Capital lease obligations, long-term                     805      1,030
         Total liabilities                                 12,182     16,302
 
     Stockholders' equity                                  80,304     83,197
         Total liabilities and stockholders' equity       $92,486    $99,499
 
 SOURCE  Silicon Image, Inc.