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 o No  ý 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 October 31, 2003 was 71,628,311 shares.

 

 

Silicon Image, Inc.

Quarterly Report on Form 10-Q

Three and Nine Months Ended

September 30, 2003

 

Table of Contents

 

Part I	Financial Information (Unaudited)
Item 1	Financial Statements
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2003 and 2002
	Condensed Consolidated Balance Sheets as of September 30, 2003 and December 31, 2002
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 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 and footnote amounts)

(unaudited)

 

		Three Months Ended September 30						Nine Months Ended September 30
		2003			2002			2003			2002
Revenue:
Product		$	22,447		$	19,855		$	61,914		$	54,682
Development, licensing and royalties		1,743			1,530			11,284			3,062
Total revenue		24,190			21,385			73,198			57,744
Cost and operating expenses:
Cost of revenue (1)		11,501			9,797			33,342			27,371
Research and development (2)		9,054			8,580			27,259			24,163
Selling, general and administrative (3)		4,131			3,982			12,794			13,492
Stock compensation expense		1,106			201			2,997			7,586
Amortization of goodwill and intangible assets		373			859			746			2,625
Patent defense and acquisition integration costs		160			2,775			1,956			4,164
Restructuring		—			—			986			5,693
In-process research and development		—			—			5,482			—
Impairment of goodwill and intangible assets		—			—			—			5,200
Total cost and operating expenses		26,325			26,194			85,562			90,294
Loss from operations		(2,135		)	(4,809		)	(12,364		)	(32,550		)
Gain on escrow settlement, net		—			—			4,618			—
Interest income and other, net		40			164			216			597
Net loss		$	(2,095	)	$	(4,645	)	$	(7,530	)	$	(31,953	)
Net loss per share:
Basic and diluted		$	(0.03	)	$	(0.07	)	$	(0.11	)	$	(0.50	)
Weighted average shares		69,803			65,587			68,431			63,912

 

(1) Excludes non-cash stock compensation expense (benefit) of $(14,000) and $(144,000) for the three months ended September 30, 2003 and 2002, respectively, and $(71,000) and $234,000 for the nine months ended September 30, 2003 and 2002, respectively.

 

(2) Excludes non-cash stock compensation expense of $1.0 million and $687,000 for the three months ended September 30, 2003 and 2002, respectively, and $3.0 million and $5.7 million for the nine months ended September 30, 2003 and 2002, respectively.

 

(3) Excludes non-cash stock compensation expense (benefit) of $94,000 and $(342,000) for the three months ended September 30, 2003 and 2002, respectively, and $74,000 and $1.6 million for the nine months ended September 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 and per share amounts)

(unaudited)

 

		Sept. 30, 2003			Dec. 31, 2002
Assets
Cash and cash equivalents		$	16,247		$	26,263