Silicon Image, Inc. (
Q1 2011 Earnings Call
April 26, 2011 5:00 pm ET
Mike Bishop – Investor Relations, The Blueshirt Group
Camillo Martino – Chief Executive Officer
Noland Granberry – Chief Financial Officer
Christopher Longiaru – Sidoti & Company
Rajvindra Gill – Needham & Company
Richard Shannon – Northland Securities
Shawn Boyd – Westcliff Capital Management, LLC
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» Silicon Image, Inc. Q1 2010 Earnings Call Transcript
Ladies and gentlemen, thank you for standing by. Welcome to the Silicon Image’s First Quarter 2011 Earnings Call. During the presentation all participants will be in a listen-only mode, after which we will conduct a question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded Tuesday April 26, 2011.
I would like to turn the conference over to Mike Bishop. Please go ahead, sir.
Good afternoon, everyone, and welcome to the Silicon Image’s first quarter of 2011 financial results conference call. I’m Mike Bishop from Silicon Image’s Investor Relations. Joining me today is Camillo Martino, the Company’s Chief Executive Officer and Noland Granberry, the Company’s Chief Financial Officer.
The agenda for today’s call includes the discussion of the financial results and the product and market strategy from Camillo. Noland will then provide a more in-depth discussion of the financial results and provide a financial performance estimates for the second quarter of 2010. We will then open the call for Q&A.
Before I turn the call over to Camillo, let me remind the listeners that we will be making forward-looking statements based on our current expectations during the call regarding many aspects of our business and the markets in which we operate, including, but not limited to forward-looking statements about our financial performance, our current and future products and technologies, the timing of new product introductions, average selling prices, design wins, market demand for our products and operating expenses.
Our actual results may differ materially from our forward-looking statements and we disclaim any obligation to update any of our forward-looking statements. In addition our forward-looking statements and the company’s future results are subject to risks and uncertainties, which we described in today’s press release, as well as in the most recent periodic reports on Forms 10-K and 10-Q filed with the SEC. These documents describe certain relevant risk factors that could affect our future results.
I also want to mention that we have provided a financial metrics table and a reconciliation of non-GAAP financial information to GAAP information in our first quarter 2011 financial results press release, which is available on the Investor Relations section of our website at www.siliconimage.com.
And with that, I will now turn the call over to Camillo.
Thanks Mike. Good afternoon and thank you joining our conference call today. I will first give you a brief overview of our recent company’s events and performance followed by a market update. Then Noland will go through the numbers in more detail and provide you with an outlook for Q2.
Revenue for the first quarter of 2011 was $49 million, in line with the high-end of our expectations, compared to $52 million for the fourth quarter of 2010 and $34.3 million for the first quarter of 2010.
Non-GAAP EPS was $0.03 compared to $0.07 last quarter and a loss of $0.05 in Q1 of last year. We are pleased with our company’s performance in Q1, including the overall financial results, the progress we made in the mobile segment and the actions we took supporting our long-term corporate growth strategy resulting in the definitive agreement to acquire wireless technology company, SiBEAM.
Our philosophy is that consumers will want a variety of HD connectivity options regardless of whether it is wired or wireless and we are committed to providing a full range of HD connectivity solutions.
As we’ve seen in our recent conference call to discuss the announcement of the definitive agreement, SiBEAM has a successfully developed technology and products that wirelessly transmit HDMI-quality video between devices in the same room using the 60 GHz frequency band. They have sold many hypothetical complexities associated with the 60 GHz technology to make it a commercially viable product.
SiBEAM’s technology with multi-gigabit data rates offers the highest throughput of any mass-market wireless solution available today and has already been designed into products for the DTV and PC markets.
Just this past week Dell’s Alienware has started featuring Notebook PCs that offer WirelessHD as a configuration option. In addition, a VIZIO Universal Video and Audio Kit compliant with WirelessHD is available at retail now and according to VIZIO product description it lets you mount you HDTV in one area of the room and have your Blu-Ray player or gaming console on our equipment up to 30 feet away.
Now let’s address why we have chosen to acquire 60 GHz wireless technology. For the closest to an HDMI cable like experience, this technology is the only viable wireless solution available today. That means wireless, real-time, interactive HD video delivery between different HD capable devices such as a notebook PC and a DTV.
60 GHz technology enables the transmission of multiple gigabits per second, a key requirement for uncompressed HD video. Its interim characteristics allow for multiple non-interfering hotspots in the home or office, providing an enhanced overall user experience. Leading companies have also endorsed 60 GHz technology via two standardization efforts; WirelessHD and WiGig. SiBEAM’s products not only implement and support WirelessHD but also provide compatibility with WiGig.
Now let’s take a closer look at our revenue for the first quarter starting with IP, then CE products, which include DTV and home theater followed by mobile products. Our IP business came in strong, representing over 20% our overall revenue due to the continued global success of the HDMI standard. There are now more than 1,000 HDMI adopters worldwide and it is forecasted that there will be an installed base of over two billion devices with an HDMI interface by the end of this year.