Silicon Image tops estimates, sets stock split

Silicon Imag, Inc. (Nasdaq: SIMG) said Monday revenue for the second quarter of 2000 was $12.4 million, and pro-forma income was 2 cents a share, in line with expectations. The company also announced a stock-split and entry into the data storage market.

Revenue was up 23 percent over the $10.1 million reported in the previous quarter and a 194 percent increase over the $4.2 million reported for the comparable period the prior year.

Shares in the company, which went public in October, closed at 71 5/16

Pro-forma net income, excluding stock compensation and warrant expense, was $1.3 million, or 5 cents per diluted share. First Call was expecting a profit of 2 cents a share, level with the previous quarter. For the comparable quarter in 1999, Silicon Images had a loss of 13 cents a share. This is the third sequential quarter of pro-forma net income and the first quarter of pro-forma income from operations, the company said.

Net loss was $1.6 million, or 6 cents a share. This compares to a loss of $1.8 million, or 8 cents a share in the previous quarter and a loss of $2.3 million, or 38 cents a share for the comparable quarter in 1999.

Silicon Image also announced a two-for-one stock split Monday. The split will have a record date of July 28, and be enacted around August 18.

Silicon Image also announced plans to enter the data storage market. The company said it will broaden its technology reach and market focus by using its core high-bandwidth, low-cost semiconductor technology for storage. Intitially, the company said it will to address the system interface between the CPU and the internal hard disk, an area receiving increased attention by PC makers and disk drive manufacturers alike.

During the second quarter, Silicon Image bought Zillion Technologies, a developer of high-speed transmission technology for data storage applications, to help execute the first prong of its storage strategy. Financial terms of the acquisition were not been disclosed.

The company competes with Analog Devices (NYSE: ADI) and Texas Instruments (Nasdaq: TXN), according to Hoover's Online.