Silicon Image Inc. (SIMG, Financial) filed Quarterly Report for the period ended 2011-03-31.
Silicon Image Inc. has a market cap of $608.4 million; its shares were traded at around $7.78 with a P/E ratio of 35.4 and P/S ratio of 3.2.
Our consolidated total revenue for the three months ended March 31, 2011 was $49.0 million, an increase of $14.7 million, or 42.8%, from the same period in 2010. Revenue grew across all market categories. The significant increase in revenue was primarily due to increased demand for our CE, Mobile and PC products and the increase in our licensing revenue. Revenue from our CE, Mobile and PC products during the three months ended March 31, 2011 increased by $4.3 million or 19.6%, $5.4 million or 702.5%, and $2.1 million or 57.6%, respectively, compared to the same period in 2010. The $4.3 million or 19.6% increase in CE revenue was primarily driven by an increase in unit shipments. Our unit shipments during the three months ended March 31, 2011 for our CE products increased by 34.9%, compared to the same period in 2010, which was primarily due to increased demand for our port processors from the DTV market because of new products recently introduced in the market. The 34.9% increase in unit shipments for our CE products was partially offset by a 10.6% decrease in average selling price for our CE products during the three months ended March 31, 2011 when compared to the same period in 2010. The $5.4 million increase in Mobile revenue during the three months ended March 31, 2011 compared to the same period in 2010 was primarily due to the successful launch of the MHL technology in the latter part of 2010 which resulted in Mobile product shipments starting in the first quarter of 2011. The $2.1 million or 57.6% increase in PC revenue during the three months ended March 31, 2011 compared to the same period in 2010 was primarily driven by the 45.2% increase in PC product unit shipments during the three months ended March 31, 2011 compared to the same period in 2010, which was primarily driven by the increased demand for our DVI products and SATA controllers. The 8.5% increase in the average selling price of our PC products during the three months ended March 31, 2011 compared to the same period in 2010 also contributed to the 57.6% increase in our PC revenue.
Our licensing activity is complementary to our product sales and helps us to monetize our intellectual property and accelerate market adoption curves associated with our technology. IP licensing continues to represent an important part of our overall business. Revenue from licensing accounted for 22.3% and 23.4% of our total revenue for the three months ended March 31, 2011 and 2010, respectively. Licensing revenue during the three months ended March 31, 2011 increased by $2.9 million or 36.5% when compared to the same period in 2010, primarily due to higher new licensing deals closed during the three months ended March 31, 2011 compared to the same period in 2010.
Cost of revenue consists primarily of costs incurred to manufacture, assemble and test our products, and costs to license our technology which involves modification, customization or engineering services, as well as other overhead costs relating to the aforementioned costs including stock-based compensation expense. Our overall gross profit, as a percentage of revenue, was 58.6% for the three months ended March 31, 2011 and 56.7% for the same period in 2010. Total cost of revenue for the three months ended March 31, 2011 increased by $5.4 million or 36.6%, when compared to the total cost of revenue in the same period in 2010. The increase in the total cost of revenue was primarily due to the growth in revenue volume during the same comparative periods.
Product gross profit margin for the three months ended March 31, 2011 was 47.8%, compared to 43.6% for the same period in 2010. The 4.2% increase in product gross profit margin during the three months ended March 31, 2011 compared to the same period in 2010 was primarily attributable to the 6.3% increase in the gross profit margin due to the wafer, testing and assembly cost reductions during the three months ended March 31, 2011 compared to same period in 2010 and a 3.6% increase in the gross profit margin due to better overhead absorption resulting from our higher revenue volume and effective inventory management, partially offset by the 5.7% decrease in the gross profit margin due to a decrease in our average selling price.
Our licensing gross profit margin for the three months ended March 31, 2011 was 96.3%, compared to 99.7% for the three months ended March 31, 2010. Licensing gross margin during the three months ended March 31, 2011 decreased by 3.4%, compared to the same period in 2010 primarily due to higher mix of IP customization projects during the three months ended March 31, 2011 compared to the same period in 2010.
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Silicon Image Inc. has a market cap of $608.4 million; its shares were traded at around $7.78 with a P/E ratio of 35.4 and P/S ratio of 3.2.
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 57.7% of our revenue for the three months ended March 31, 2011 and 50.0% of our revenue for the three months ended March 31, 2010. 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 months ended March 31, 2011 and 2010, 58.5% and 44.4% of our revenue, respectively, was generated through distributors.Our consolidated total revenue for the three months ended March 31, 2011 was $49.0 million, an increase of $14.7 million, or 42.8%, from the same period in 2010. Revenue grew across all market categories. The significant increase in revenue was primarily due to increased demand for our CE, Mobile and PC products and the increase in our licensing revenue. Revenue from our CE, Mobile and PC products during the three months ended March 31, 2011 increased by $4.3 million or 19.6%, $5.4 million or 702.5%, and $2.1 million or 57.6%, respectively, compared to the same period in 2010. The $4.3 million or 19.6% increase in CE revenue was primarily driven by an increase in unit shipments. Our unit shipments during the three months ended March 31, 2011 for our CE products increased by 34.9%, compared to the same period in 2010, which was primarily due to increased demand for our port processors from the DTV market because of new products recently introduced in the market. The 34.9% increase in unit shipments for our CE products was partially offset by a 10.6% decrease in average selling price for our CE products during the three months ended March 31, 2011 when compared to the same period in 2010. The $5.4 million increase in Mobile revenue during the three months ended March 31, 2011 compared to the same period in 2010 was primarily due to the successful launch of the MHL technology in the latter part of 2010 which resulted in Mobile product shipments starting in the first quarter of 2011. The $2.1 million or 57.6% increase in PC revenue during the three months ended March 31, 2011 compared to the same period in 2010 was primarily driven by the 45.2% increase in PC product unit shipments during the three months ended March 31, 2011 compared to the same period in 2010, which was primarily driven by the increased demand for our DVI products and SATA controllers. The 8.5% increase in the average selling price of our PC products during the three months ended March 31, 2011 compared to the same period in 2010 also contributed to the 57.6% increase in our PC revenue.
Our licensing activity is complementary to our product sales and helps us to monetize our intellectual property and accelerate market adoption curves associated with our technology. IP licensing continues to represent an important part of our overall business. Revenue from licensing accounted for 22.3% and 23.4% of our total revenue for the three months ended March 31, 2011 and 2010, respectively. Licensing revenue during the three months ended March 31, 2011 increased by $2.9 million or 36.5% when compared to the same period in 2010, primarily due to higher new licensing deals closed during the three months ended March 31, 2011 compared to the same period in 2010.
Cost of revenue consists primarily of costs incurred to manufacture, assemble and test our products, and costs to license our technology which involves modification, customization or engineering services, as well as other overhead costs relating to the aforementioned costs including stock-based compensation expense. Our overall gross profit, as a percentage of revenue, was 58.6% for the three months ended March 31, 2011 and 56.7% for the same period in 2010. Total cost of revenue for the three months ended March 31, 2011 increased by $5.4 million or 36.6%, when compared to the total cost of revenue in the same period in 2010. The increase in the total cost of revenue was primarily due to the growth in revenue volume during the same comparative periods.
Product gross profit margin for the three months ended March 31, 2011 was 47.8%, compared to 43.6% for the same period in 2010. The 4.2% increase in product gross profit margin during the three months ended March 31, 2011 compared to the same period in 2010 was primarily attributable to the 6.3% increase in the gross profit margin due to the wafer, testing and assembly cost reductions during the three months ended March 31, 2011 compared to same period in 2010 and a 3.6% increase in the gross profit margin due to better overhead absorption resulting from our higher revenue volume and effective inventory management, partially offset by the 5.7% decrease in the gross profit margin due to a decrease in our average selling price.
Our licensing gross profit margin for the three months ended March 31, 2011 was 96.3%, compared to 99.7% for the three months ended March 31, 2010. Licensing gross margin during the three months ended March 31, 2011 decreased by 3.4%, compared to the same period in 2010 primarily due to higher mix of IP customization projects during the three months ended March 31, 2011 compared to the same period in 2010.
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