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Silicon Image, Inc. Message Board

  • digdeepsimg123 digdeepsimg123 Jan 19, 2012 1:38 PM Flag

    Something is wrong

    down with quite a volume. This stock has been lagging among peers. Warning coming?

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    • Every Day i place on the Floor of my Laundry room all seven of my "Stock Certificates" that i hold for the week.

      Today my Analyst knowledgeable dog "Rufus" took a dump on my SIMG Certificate again for the 3 straight trading day this week..

      Tomorrow i'm selling! I think we were better off with the last CEO! ( so does Rufus )..

    • Some negatives have been coming out in the past couple of presentations:

      1) At the Needham conference, Noland Granberry said:

      "We would like to get our CE business flat to slightly up. We think that will be a challenge."

      The CE business has been the laggard in 2011 and it looks like that might continue eventhough HDMI device shipments will hit 800 million units in 2012. The problem is that consumers are buying less highend HDTVs (SIMG's market) and downshifting for more affordable units. The way Noland describes it, a couple of years ago anything above 32 inches was higher end but today a 50 inch HDTV may not be feature rich and in need of SIMG's highend features. The HDMI is increasingly integrated into the SOC.

      2) Camillo disclosed something at the CES presentation which took me by surprise. The royalty sharing formula for MHL is a little more than 50%. The HDMI formula took 8 years to get down to 50%. The last revision happened at the end of 2010 when the HDMI formula was changed from 62% going to SIMG down to 50%. I would think that the MHL formula would start out with 80 or 90 percent going to SIMG, but that is not the case. At the current moment, since SIMG is the only seller of MHL products this is not an issue, but going forward it would have been nice if MHL royalties were higher than HDMI's.

      3) Headcount is at 575 versus 400 when Camillo took over. This is almost a 50% increase. Over the past two years, Camillo has averaged less than $1 million in quarterly net income. In contrast, Steve Tirado was averaging $11 million per quarter when he began his expansion.

      Shareholders are definitely shouting EARNINGS MATTER. You don't make acquisitions, diversify, massively increase headcount without first stoking the earnings furnace into a white hot blaze.

      4) Let's face it, the CES 2012 response to WirelessHD was muted at best. This was no coming out party. Barely anyone mentioned it eventhough 140,000 industry professionals and journalists attended.

      5) I believe shareholders are tired of seeing Silicon Image not match the fantastic gains of HDMI and MHL.

      Two years ago, when Camillo took over, the installed base for HDMI was 1 billion with 400 million HDMI units shipped.

      Today, the installed base for HDMI is 2.3 billion and over 600 million HDMI units were shipped. On top of that, we have over 50 million MHL devices shipped and SIMG is the ONLY supplier.

      Despite this, SIMG has ZERO NET INCOME for the first nine months of 2011. And as I said earlier, the average net income per quarter since Camillo took over is less than $1 million per quarter.

      Given this backdrop of stupendous growth in both HDMI and MHL, is the performance of Camillo Martino adequate? Is it justified that he make non-core acquisitions and wrench the company away from HDMI/MHL? Has he demonstrated negotiating prowess in dealing with the consortiums with the HDMI formula lowered to 50% and the MHL formula starting out near 50%?

      • 4 Replies to flying_nobodaddy
      • "Two years ago, when Camillo took over, the installed base for HDMI was 1 billion with 400 million HDMI units shipped.

        Today, the installed base for HDMI is 2.3 billion and over 600 million HDMI units were shipped. On top of that, we have over 50 million MHL devices shipped and SIMG is the ONLY supplier.

        Despite this, SIMG has ZERO NET INCOME for the first nine months of 2011. And as I said earlier, the average net income per quarter since Camillo took over is less than $1 million per quarter."

        Nothing new here. Same old story with the same old crappy business model - Spend, invent, waste cash and give the technolgy away. Just like HDMI, MHL is a winner for everyone, but SIMG. When it comes down to it, Camillo is no better than Tirado.

      • Hard to believe that Camillo messed up so badly within the past year after being handed a company that was painfully restructured and set for earnings growth. What a shame!

      • Good points!
        Looks like will test 52wk low tomorrow. Economy is wacky. QE3 is coming. Highend ones won't be sold. It doesn't work. Better buy gold.

      • Tuesday, 25 Oct 2011 04:00pm EDT
        Silicon Image, Inc. announced that for the fourth quarter of 2011, it expects revenue of $57-$59 million. According to I/B/E/S Estimates, analysts were expecting the Company to report revenues of $58 million for the fourth quarter of 2011.

        WHO IS BUYING ALL THOSE CHEAP SHRs?

 
SIMG
4.600.00(0.00%)Oct 24 4:00 PMEDT

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