Silicon Image Cautions on Mobile Outlook
December 18 2014 - 6:00AM
Business Wire
Silicon Image (NASDAQ:SIMG), a leading provider of multimedia
connectivity solutions and services, today announced that it
expects a year-over-year revenue decline in 2015 of approximately
10% due to a reduction in mobile design wins at one of its largest
customers.
The decline in the mobile business segment is expected to be
partially offset by continued strength in the company’s CE business
segment due to continued penetration of MHL® in mainstream TVs, and
the popularity of 4K Ultra HD where the company has multiple HDMI®
2.0 / MHL 3.0 designs.
“Although we believe that both our CE and licensing businesses
will remain strong, we now anticipate top line 2015 revenues to be
down compared to 2014,” said Camillo Martino, chief executive
officer of Silicon Image. “While we continue to execute on our long
term strategic growth initiatives, we remain committed to reduce
our operating expenses in 2015 and anticipate that even with a top
line revenue decline, we will remain profitable with operating
margin as a percent of revenue expected to be flat to slightly up
for the year.”
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,
design wins, anticipated trends with respect to revenue, operating
expense and operating margins, and strength in the Company’s CE
business segment. 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 CONTACT:Silicon Image, Inc.Sherrie Gutierrez,
408-616-4017Sherrie.Gutierrez@siliconimage.comorINVESTOR
CONTACT:Silicon Image, Inc.Alex Chervet,
408-616-4153Alex.Chervet@siliconimage.com
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