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Lower forecast worries Silicon Image

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CIOL Bureau
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SAN JOSE, USA: As if in a fall out of a lower forecast for the current quarter numbers, Silicon Image, the supplier of semiconductors and intellectual property for the secure distribution, presentation and storage of high-definition content, woe up on Monday with the news of the resignation of its president and chief executive, Steve Tirado. The exit comes coinciding with lower forecast for the quarter.

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Silicon Image said it expects revenue for fiscal third quarter 2009 to be below the financial guidance previously provided on July 23. It added that the third quarter revenue is expected to be around $39 million. This, in fact, is against the previous guidance of around $46 million.

The lower forecast has come as a major concern for the company, with Hal Covert, chief financial officer, who will be taking over as president and chief operating officer, saying that the company is disappointed at the revised revenue outlook.

EETimes, in a report, quoted Covert as stating that "during the third quarter of 2009 we continued to experience the impact of the product transition the company has been undergoing since 2008, in particular its effect on legacy products' declining average selling prices. This factor, combined with our customers' shift in production from high-end products to mid-range and low-end products, has put more pressure than anticipated on Silicon Image's goal of improving revenue generation.''

Even as measures towards trouble shooting are being undertaken, the Sunnyvale-based company has kicked off steps to find a new CEO. Reports said that it has employed the services of an executive search firm to find a new man at the helm. Covert will hold charge until then.

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