UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

 

Silicon Image, Inc.

(Exact name of registrant as specified in its charter)

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) Yes ý No o and (2) has been subject to such filing requirements for the past 90 days Yes ý No o

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o

 

The number of shares of the registrant’s Common Stock, $0.001 par value per share, outstanding as of July 31, 2003 was 70,589,476 shares.

 

 

Silicon Image, Inc.

Quarterly Report on Form 10-Q

Three and Six Months Ended

June 30, 2003

 

Table of Contents

 

Part I	Financial Information (Unaudited)
Item 1	Financial Statements
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2003 and 2002
	Condensed Consolidated Balance Sheets as of June 30, 2003 and December 31, 2002
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2003 and 2002
	Notes to Unaudited Condensed Consolidated Financial Statements
Item.2	Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3	Quantitative and Qualitative Disclosures About Market Risk
Item 4	Controls and Procedures
Part II	Other Information
Item 1	Legal Proceedings
Item 2	Change in Securities and Use of Proceeds
Item 3	Defaults Upon Senior Securities
Item 4	Submission of Matters to a Vote of Security Holders
Item 5	Other Information
Item 6	Exhibits and Reports on Form 8-K
Signatures
Exhibit Index
Exhibit	31.1
Exhibit	31.2
Exhibit	32.1
Exhibit	32.2

 

2

 

Part I.  Financial Information

 

Item 1.  Financial Statements

 

Silicon Image, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

		Three Months Ended June 30						Six Months Ended June 30
		2003			2002			2003			2002
Revenue:
Product		$	19,745		$	18,222		$	39,467		$	34,827
Development, licensing and royalties		4,587			1,050			9,541			1,532
Total revenue		24,332			19,272			49,008			36,359
Cost and operating expenses:
Cost of revenue (1)		10,651			9,088			21,841			17,574
Research and development (2)		9,368			8,205			18,205			15,583
Selling, general and administrative (3)		4,355			4,576			8,663			9,510
Stock compensation expense (benefit)		2,253			(3,066		)	1,891			7,385
Amortization of intangible assets		373			857			373			1,766
Patent defense and acquisition integration costs		583			683			1,796			1,389
Restructuring		—			3,500			986			5,693
In-process research and development		5,482			—			5,482			—
Impairment of goodwill and intangible assets		—			5,200			—			5,200
Total cost and operating expenses		33,065			29,043			59,237			64,100
Loss from operations		(8,733		)	(9,771		)	(10,229		)	(27,741		)
Gain on escrow settlement, net		—			—			4,618			—
Interest income and other, net		67			163			176			433
Net loss		$	(8,666	)	$	(9,608	)	$	(5,435	)	$	(27,308	)
Net loss per share:
Basic and diluted		$	(0.13	)	$	(0.15	)	$	(0.08	)	$	(0.43	)
Weighted average shares		69,012			64,580			68,085			64,011

 

(1) Excludes stock compensation expense (benefit) of $78,000 and $(544,000) for the three months ended June 30, 2003 and June 30, 2002, respectively, and $(57,000) and $379,000 for the six months ended June 30, 2003 and 2002, respectively.

 

(2) Excludes stock compensation expense (benefit) of $1.8 million and $(833,000) for the three months ended June 30, 2003 and June 30, 2002, respectively, and $2.0 million and $5.1 million for the six months ended June 30, 2003 and 2002, respectively.

 

(3) Excludes stock compensation expense (benefit) of $334,000 and $(1.7) million for the three months ended June 30, 2003 and June 30, 2002, respectively, and $(20,000) and $2.0 million for the six months ended June 30, 2003 and 2002, respectively.

 

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements

 

3

 

Silicon Image, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share amounts)

(unaudited)

 

		June 30, 2003			Dec. 31, 2002
Assets