Thu, Feb. 5, 5:55 PM
Tue, Jan. 27, 12:40 PM
Tue, Jan. 27, 9:10 AM
Tue, Jan. 27, 7:45 AM
- Lattice Semiconductor (NASDAQ:LSCC) agrees to acquire Silicon Image (NASDAQ:SIMG) for $7.30/share, representing an equity value of ~$600M and a 23.7% premium to SIMG's closing price on Jan. 26.
- LSCC believes the deal will expand its opportunities in consumer, communications and industrial markets, and expects $32M in synergies that are expected to be immediately accretive to earnings.
- LSCC says it has received a $350M financing commitment from Jefferies to help pay for the deal.
- SIMG +22.3% premarket.
Fri, Jan. 9, 4:05 PM
- Reuters reports Silicon Image (NASDAQ:SIMG) has hired Barclays to explore strategic alternatives, including a potential sale.
- The report comes a month after SIMG crashed in response to weak 2015 guidance, three weeks after activist Engaged Capital called on the company to buy back shares and cut costs, and four days after it announced it's cutting 45 jobs as part of a restructuring meant to bring about a 13% 2015 drop in opex.
- Plenty of chipmakers have been acquired or have merged over the last 15 months, thanks to an industry consolidation wave.
Dec. 18, 2014, 12:47 PM
Dec. 18, 2014, 10:43 AM
- Citing "a reduction in mobile design wins at one of its largest customers," Silicon Image (SIMG -25.4%) expects 2015 revenue to be down 10% Y/Y; consensus is for 6.4% growth.
- The customer in question might be Samsung, with whom SIMG has scored a number of MHL video transmitter IC design wins for high-volume phones.
- Consumer electronics chip sales are expected to remain strong next year, thanks to further MHL penetration within the TV market and growing sales of 4K sets featuring the company's HDMI 2.0/MHL 3.0 ICs.
Dec. 18, 2014, 9:14 AM| 9 Comments
Dec. 5, 2014, 12:50 PM
Dec. 4, 2014, 5:36 PM
Dec. 4, 2014, 5:23 PM
- Silicon Image (NASDAQ:SIMG) has formed Qterics, a subsidiary containing its UpdateLogic device management services business (acquired in May) along with related software and IP assets.
- Qualcomm (NASDAQ:QCOM) had paid $7M for a 7% stake in Qterics, and will partner with SIMG to "explore opportunities to collaborate on promoting the AllJoyn open-source software framework and developing new Internet of Everything (IoE) services."
- UpdateLogic's core service (NetReady) is focused on managing home devices such as TVs, set-tops, tablets, and gaming consoles. However, its offerings can also be applied to managing a variety of outdoor and business devices.
- SIMG: "As the Internet of Everything grows, the task of providing device management services to these connected devices in a secure manner becomes exponentially more difficult. Qterics solves these challenges in a very elegant way."
- SIMG +3% AH.
Dec. 3, 2014, 1:48 PM
- The Philadelphia Semi Index (SOXX +1.7%) is making fresh highs after Microchip (MCHP +4.1%) slightly upped its calendar Q4 guidance, and stated it continues to "see an improvement in our bookings and billings since our earnings call on October 30, 2014."
- Chip stocks had also jumped following that earnings call, during which Microchip said it believed the inventory correction that triggered an Oct. 9 warning (and a major chip stock selloff) was mostly over. While a slew of chipmakers provided soft Q4 guidance after Microchip's warning, fears of a major correction didn't pan out.
- The group outperformed a bit yesterday after Cypress (CY +2.9%) announced it's merging with Spansion (CODE +2.5%), continuing the chip industry's consolidation wave. Several firms have upgraded Cypress and/or Spansion in response, praising the deal's cost synergies.
- Notable gainers include not only chipmakers, but also chip equipment, test/assembly, and IP licensing firms: ARMH +3.8%. AMBA +3%. MX +9%. MXIM +4.2%. AMCC +3.5%. ADI +3.1%. SIMG +3.7%. AMKR +4.2%. SPIL +3.3%. SYNA +2.7%. ATML +3.7%. ENTR +3.8%. AMAT +2.7%. KLAC +2.5%.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
- Last week: Chip stocks rally after ADI's earnings
Oct. 30, 2014, 4:12 PM
Oct. 10, 2014, 1:42 PM
- Following Microchip's warning and related prediction of a chip industry correction, Goldman's James Covello thinks there's 15%-20% downside in industry names.
- Covello, who lowered his industry view to Cautious in August: "The last time Microchip negatively preannounced was October 15, 2012 (3% sales miss). Between October 1 and December 31, Street 2013 sales estimates for the Semi group were revised down 6% on average."
- He adds several datapoints suggest the industry has been overheating. Among them: Semi revenue growth has outpaced end-market growth, and supply chain inventory dollars rose 3% more than their 3-year average in Q2.
- "Nobody will be spared," predicts Hedgeye's Craig Berger. Benchmark's Gary Mobley observes 5 of the 6 chip stocks to have made Q3 pre-announcements have thus done so to the downside.
- Worth noting: Mobile chipmaker Silicon Motion (SIMO -8.9%) is the one chipmaker to have positively pre-announced. It might not be a coincidence that Microchip has relatively low mobile exposure.
- Observing U.S. macro data remains positive even as China and Europe soften, Longbow's JoAnne Feeney remains bullish long-term on select names. However, she has cut her short-term rating on Linear (LLTC -3.8%) to Sell, and removed IDT (IDTI -7.1%) from her trading long list.
- In addition to the names previously mentioned, the following chip stocks are seeing steep losses: AMD -5.1%. FCS -13.6%. NXPI -11.2%. CODE -11%. LSCC -9.6%. SIMG -8.1%. IPHI -7.7%. ISIL -9.5%. CY -6.9%. RMBS -7.1%. QUIK -5.7%. SQNS -5.1%. IMOS -6.5%.
- Foundries and contract manufacturers are also selling off: TSM -3.9%. UMC -2%. SMI -2.4%. SANM -11.7%. FLEX -6.8%. JBL -4%.
- Chip ETFs: SOXX, SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Jul. 30, 2014, 4:53 PM
Jul. 28, 2014, 5:09 PM
- Silicon Image (NASDAQ:SIMG) has hired Raymond Cook, formerly the CFO of SSD vendor sTec (recently acquired by Western Digital), to be its new CFO.
- Cook arrives two months after SIMG announced CFO Noland Granberry is leaving for an opportunity with a private company.
- The chipmaker's Q2 report arrives on Wednesday. It issued a warning on July 8.
SIMG vs. ETF Alternatives
Silicon Image Inc is a provider of wired and wireless video, audio and data connectivity solutions for the mobile, consumer electronics, wireless backhaul and access and personal computer markets via semiconductor and intellectual property products.
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