NEW YORK (TheStreet) -- Shares of Silicon Image Inc. (SIMG) are falling by 26.41% to $4.96 on heavy volume in mid-morning trading on Thursday, after the company issued a sales warning for fiscal 2015.
The company, which provides connectivity solutions that enable the reliable distribution and presentation of HD content for mobile consumer electronics and personal computer markets, said it's expecting a year-over-year revenue decline of approximately 10%.
Silicon said the drop in revenue is due to "a reduction in mobile design wins at one of its largest customers."
"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, Silicon CEO Camillo Martino said.
Separately, TheStreet Ratings team rates SILICON IMAGE INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate SILICON IMAGE INC (SIMG) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."