Silicon Image Reports First Quarter 2009 Financial Results

-- Silicon Image, Inc. (NASDAQ:SIMG), a leader in semiconductors and intellectual property for the secure distribution, presentation and storage of high-definition content, today reported financial results for its first quarter ended March 31, 2009.

Revenue for the first quarter of 2009 was $40.5 million, compared to $59.4 million for the fourth quarter of 2008 and $67.1 million for the first quarter of 2008.

GAAP net loss for the first quarter of 2009 was $33.3 million, or $0.45 per diluted share, compared to a net income of $5.0 million, or $0.07 per diluted share, for the fourth quarter of 2008 and net loss of $562,000, or $0.01 per diluted share, for the first quarter of 2008. GAAP net loss for the first quarter of 2009 includes a goodwill impairment charge of $19.2 million. GAAP net income for the fourth quarter of 2008 includes pre-tax restructuring expenses of $4.0 million.

Non-GAAP net loss for the first quarter of 2009 was $3.6 million, or $0.05 per diluted share, compared to net income of $15.7 million, or $0.21 per diluted share, for the fourth quarter of 2008 and net income of $3.4 million, or $0.04 per diluted share, for the first quarter of 2008. Non-GAAP net income excludes stock-based compensation expense, amortization of intangible assets, restructuring charges, and goodwill impairment.

A reconciliation of GAAP and non-GAAP items is provided in a table following the Condensed Consolidated Statements of Income.

"During the first quarter of 2009 we continued to make good progress capturing design wins and working with industry leaders to form new technology standards consortiums," said Steve Tirado, president and chief executive officer of Silicon Image. "Our financial performance for the first quarter was in line with our internal plan and reflective of the global economic environment."

The following are Silicon Image's financial performance estimates for the second quarter of 2009:

• Revenue: $40 million - $42 million    
• Gross margin: 54% - 55%
• GAAP operating expenses: $35 million - $36 million
• Non-GAAP operating expenses: $29 million - $30 million
• Interest income: $0.8 million - $0.9 million
• Diluted shares outstanding: approximately 75 million    
• Cash flow: neutral

Click here to read financial tables

About Silicon Image, Inc.

Silicon Image, Inc. is a leading provider of semiconductor and intellectual property products for the secure distribution, presentation and storage of high-definition content. With a rich history of technology innovation that includes creating industry standards such as DVI and HDMI, the company's solutions facilitate the use of digital content amongst consumer electronics, personal computer (PC) and storage devices, with the goal to securely deliver digital content anytime, anywhere and on any device. Founded in 1995, the company is headquartered in Sunnyvale, California, with regional engineering and sales offices in China, Germany, Japan, Korea, Taiwan and the United Kingdom. For more information, please visit www.siliconimage.com.