Silicon Image Inc. (SIMG) filed Quarterly Report for the period ended 2009-09-30.
Silicon Image Inc. designs develops and markets semiconductors includingtransmitters receivers controllers and video processors for applications that require high-bandwidth cost-effective solutions for high-speed data communications. Silicon Image Inc. has a market cap of $181.19 million; its shares were traded at around $2.42 with and P/S ratio of 0.66.
Highlight of Business Operations:
Historically, a relatively small number of customers and distributors have generated a significant portion of our revenue. For instance, our top five customers, including distributors, generated 51.6% and 43.7% of our revenue for the three and nine months ended September 30, 2009, respectively, compared to 52.4% and 54.7% of our revenue for the three and nine months ended September 30, 2008. Additionally, the percentage of revenue generated through distributors tends to be significant, since many OEMs rely upon third party manufacturers or distributors to provide purchasing and inventory management services. For the three and nine months ended September 30, 2009, 22.5% and 33.1% of our revenue, respectively, was generated through distributors, compared to 47.4% and 50.7% in the comparable periods of 2008, respectively. Our licensing revenue is not generated through distributors, and to the extent licensing revenue increases faster than product revenue, we would expect a decrease in the percentage of our total revenue generated through distributors.
A significant portion of our revenue is generated from products sold overseas. Sales to customers in Asia, including distributors, represented 71.6% and 68.4% of our revenue for the three and nine months ended September 30, 2009, respectively and 75.7% and 71.7% for the three and nine months ended September 30, 2008, respectively. The reason for the geographical concentration in Asia is that most of our products are components of consumer electronics, computer and storage products, the majority of which are manufactured in Asia. The percentage of our revenue derived from any country is dependent upon where our end customers choose to manufacture their products. Accordingly, variability in our geographic revenue is not necessarily indicative of any geographic trends, but rather is the combined effect of new design wins and changes in customer manufacturing locations. All revenue to date has been denominated in U.S. dollars except for a relatively insignificant portion generated in Euros through our subsidiary in Germany.
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