Silicon Images (ticker: SIMG), maker of ICs for the digital display and storage markets, reported strong 3Q05 earnings and forward guidance this week, prompting a 15% jump in its stock. Key data and quotes from the SIMG conference call:
- Earnings: $15.7 million (up 90.8% year-over-year and 47% sequentially)
- Revenue: $56.0 million (up 17% year-over-year and 10.4% sequentially)
- Licensing revenue increased 65% from the prior quarter to $5.6 million
- Guidance for 4Q05: Revenue $58-62 million
Of particular note in the conference call was Silicon Images' impressive book-to-bill for this quarter -- from CEO Steve Tirado:
order growth was extremely strong with a record of over $75 million in net bookings, giving the company a 1.5 book-to-bill on a product-only basis. This has led to better visibility of the business for Q4 and Q1. However, it is also an indication of tightening wafer capacity and our channel partners ordering more to ensure supply to their customers. Please bear in mind that we only recognize sales on a sell-through basis with our partners.
Tirado also commented on the gradual emergence of integrated IC system solutions for the display industry:
There is some integration coming into the market this year, but not nearly what I'm expecting in 2007, but there has been some. Those integrated solutions that you do see actually are licensees of ours, companies like Trident. But the integrateds are getting a much smaller percentage of the market than I thought they were going to get and the other big factor is the market's get much larger, not just with respect to TVs and source devices but these other platforms like game consoles, camcorders and cameras now are coming in pretty big time and there's some new products that we've put together to address those markets, both from a product and a licensing standpoint.
(Quotes are from the CCBN StreetEvents transcript.)
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