Silcon Image Completes Acquisition of SiBEAM
SUNNYVALE, Calif., May 16, 2011 – Silicon Image, Inc. (NASDAQ: SIMG), a provider of advanced, interoperable wired and wireless HD connectivity solutions, today announced that it has completed the acquisition of SiBEAM, Inc., a developer of 60GHz multi-gigabit wireless communication technology for consumer electronics and personal computer applications, and a founding member of the WirelessHD® Consortium.
Silicon Image acquired SiBEAM for $25.5 million, consisting of approximately $14.9 million in cash and approximately 1.3 million shares of Silicon Image common stock. The acquisition is expected to be dilutive to Silicon Image’s non-GAAP earnings in 2011 by approximately $0.06 - $0.08 and to be neutral to non-GAAP earnings in 2012.
“The SiBEAM acquisition supports our long-term growth strategy to offer a full range of HD connectivity options based on wired and wireless industry standards,” said Camillo Martino, chief executive officer of Silicon Image, Inc. “SiBEAM’s 60GHz Radio Frequency (RF) technology complements our HD connectivity portfolio by adding WirelessHD-compliant semiconductor products that deliver the highest throughput of any mass market wireless solution available today.”
As a result of the acquisition, Silicon Image’s headcount will increase by approximately 50 people to a total worldwide headcount of approximately 500 employees. SiBEAM’s high-speed wireless communication products will be integrated into Silicon Image’s newly formed Wireless Division, headed by John LeMoncheck, former president and chief executive officer of SiBEAM and Silicon Image’s new vice president and general manager, Wireless Division, reporting to Mr. Martino.
“We are excited to be part of the Silicon Image team and are looking forward to delivering a world class wireless product portfolio that combines the strengths of SiBEAM’s 60GHz technology with Silicon Image’s leadership in HD connectivity products,” said John LeMoncheck.
About Silicon Image, Inc.
Silicon Image is a provider of advanced, interoperable wired and wireless connectivity solutions that enable the reliable distribution and presentation of high-definition (HD) content for consumer electronics, mobile, and PC markets. The company delivers its technology via semiconductor and intellectual property (IP) products that are compliant with global industry standards and also feature industry leading Silicon Image innovations such as InstaPort™. Silicon Image’s products are deployed by the world’s leading electronics manufacturers in devices such as desktop and notebook PCs, DTVs, Blu-ray Disc™ players, audio-video receivers, as well as mobile phones, tablets and digital cameras. Silicon Image has driven the creation of the highly successful HDMI® and DVI™ industry standards, as well as the latest standards for mobile devices - SPMT™ (Serial Port Memory Technology) and MHL™ (Mobile High-Definition Link). Via its wholly-owned subsidiary, Simplay Labs, Silicon Image offers manufacturers comprehensive standards interoperability and compliance testing services.
This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, the role and fit of the SiBEAM acquisition in Silicon Image’s long-term growth strategy, the technical characteristics and merits of SiBEAM’s Wireless-HD-compliant semiconductor products and the anticipated impact of the SiBEAM acquisition on Silicon Image’s non-GAAP earnings in 2011 and 2012. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements, including, but not limited to, the success of Silicon Image’s long-term growth strategy, the extent of the market adoption, if any, of the Wireless HD standard and acceptance, if any, of products incorporating SiBEAM’s wireless technology, the ability of Silicon Image to achieve anticipated revenue goals from the sale of products incorporating SiBEAM’s wireless technology and to successfully integrate SiBEAM’s operations and realize anticipated synergies and cost savings, as well as the other risks and uncertainties identified in Silicon Image’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, and Silicon Image’s most recent Quarterly Reports on Form 10-Q, each as filed with the SEC, which contain and identify important factors that could cause the actual results to differ materially from those contained in the forward-looking statements. Silicon Image assumes no obligation to update any forward-looking statement contained in this press release.