This week we’re focusing our ZenMoney analysis on the broad line sector of the semi-conductor industry. If you’re a tech geek, early adopter, or just strain your home or work bandwidth, you’ll want to hear about these guys.
Recent Price $6.26
Market Cap $497 m
Shares Outstanding 79.5 m
Average Volume 356,866
Dividend Yield N/A
Silicon Image (SIMG) designs and markets hardware that enables high-definition (HD) content in a variety of devices. You’ll find their semiconductors in home theaters, personal computers, mobile devices, DTVs, and Blu-ray players.
The company also brings in revenue from licensing their intellectual property.
This Sunnyvale, California Company has also been a driving force behind industry standardization of HDMI and DVI formats.
Silicon Image’s financials are steadily improving.
For the first quarter, revenue jumped to $49 million, up from $34.3 million a year earlier. The company continues to improve on their net income, posting a slight loss of $0.8 million this most recent quarter… compared to a $7.2 million loss a year earlier.
When the company turns the corner on earnings and is able to stay consistently profitable, it could be a boon for the stock.
Management was kind enough to provide guidance for the Second quarter of 2011. They’re looking for revenue of $51 to $53 million. But, they didn’t give earnings guidance which is a bit of a disappointment.
KEY METRICS ANALYSIS
Trailing P/E 35.1x
Price / Sales 2.4x
Return on Assets 4.6%
Insider ownership 0.9%
Short Ratio 5.6x
Current Ratio 4.7x
Total Debt To Equity N/A
Silicon Image recently reached a purchase agreement with SiBeam Inc, another fabless semi-conductor company. The $25.5 million purchase will be paid for with $14 million in cash and $11.5 million in stock options.
Silicon’s management had been looking to acquire good complementary technology companies.
Camillo Martino – CEO
Noland Granberry – CFO
Edward Lopez – Chief Legal and Administrative Officer
Chart courtesy of stockcharts.com
A few days ago we saw a very negative indicator for this stock… the 50-day crossed below the 200-day moving average.
SIMG’s 52-week low was $3.10 and the 52-week high was $10.20. Right now the stock is trading at $6.26. The 50-day moving average is near $6.67 a share and the 200-day moving average is at $7.68. The company has a market cap of $497 million and 79.5 million shares outstanding.
All stock prices, charts, and figures updated as of July 11 2011.