SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

ý QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2004

 

OR

 

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                    to                   .

 

Commission file number:  000-26887

 

Silicon Image, Inc.

(Exact name of registrant as specified in its charter)

 

 

1060 East Arques Avenue
Sunnyvale, California 94085

(Address of principal executive offices and zip code)

 

(408) 616-4000

(Registrant’s telephone number, including area code)

 

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 30, 2004 was 75,238,552 shares.

 

 

Silicon Image, Inc.
Quarterly Report on Form 10-Q
Three and Six Months Ended
June 30, 2004

 

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, 2004 and 2003
				Condensed Consolidated Balance Sheets as of June 30, 2004 and December 31, 2003
				Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2004 and 2003
				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
	Certifications

 

 

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
		2004			2003			2004			2003
Revenue:
Product		$	36,826		$	19,745		$	68,876		$	39,467
Development, licensing and royalties		6,535			4,587			10,343			9,541
Total revenue		43,361			24,332			79,219			49,008
Cost and operating expenses:
Cost of revenue (1)		17,695			10,729			32,210			21,784
Research and development (2)		16,245			11,209			33,043			20,172
Selling, general and administrative (3)		10,067			4,689			21,718			8,644
Amortization of intangible assets		357			373			713			373
Patent defense costs		98			583			263			1,796
Restructuring		—			—			—			986
In-process research and development		—			5,482			—			5,482
Total cost and operating expenses		44,462			33,065			87,947			59,237
Loss from operations		(1,101		)	(8,733		)	(8,728		)	(10,229		)
Gain on escrow settlement, net		—			—			—			4,618
Interest income and other, net		104			67			188			176
Gain on derivative investment security		990			—			990			—
Loss before provision for income taxes		(7		)	(8,666		)	(7,550		)	(5,435		)
Provision for income taxes		255			—			572			—
Net loss		$	(262	)	$	(8,666	)	$	(8,122	)	$	(5,435	)
Net loss per share:
Basic and diluted		$	(0.00	)	$	(0.13	)	$	(0.11	)	$	(0.08	)
Weighted average shares		73,352			69,012			72,934			68,085

 

(1)          Includes stock compensation expense (benefit) of $849,000 and $78,000 for the three months ended June 30, 2004 and 2003, respectively, and $2,000,000 and ($57,000) for the six months ended June 30, 2004 and 2003, respectively.

 

(2)          Includes stock compensation expense of $4,776,000 and $1,841,000 for the three months en