Net revenue in the second quarter of 2007 was $70.6 million, an increase of 23.4 percent from $57.2 million reported in the second quarter of 2006. Net revenue in the first six months of 2007 was $137.9 million, an increase of 25.5 percent from $109.9 million reported in the first six months of 2006. Gross margin in the second quarter of 2007 was 54.6 percent, as compared to 56.3 percent in the second quarter of 2006. Gross margin in the first six months of 2007 was 54.6 percent, as compared to 55.7 percent in the first six months of 2006.

Net income for the second quarter of 2007 was $2.1 million, or $0.04 per diluted share, based on 56.5 million diluted weighted average shares outstanding. This compares with net income of $1.7 million, or $0.03 per diluted share, based on 56.0 million diluted weighted average shares outstanding in the second quarter of 2006.

Net income for the first six months of 2007 was $4.9 million, or $0.09 per diluted share, based on 56.4 million diluted weighted average shares outstanding. This compares with net loss of $9.3 million, or $0.18 per diluted share, based on 50.7 million diluted weighted average shares outstanding in the first six months of 2006. The increase in net income for the first six months of 2007 as compared to the first six months of 2006 is primarily attributable to a one-time charge related to acquired in-process research and development associated with the acquisition of TrueSpan during the first six months of 2006, with no similar charge during the first six months of 2007.

SiRF reports net income (loss) and basic and diluted net income (loss) per share in accordance with GAAP and additionally on a non-GAAP basis. Non-GAAP net income, where applicable, excludes the effect of employee stock compensation expense, amortization of acquisition-related intangible assets, expenses related to acquisition-related contingent payments, and acquired in-process research and development. Non-GAAP net income for the second quarter of 2007 was $12.7 million, or $0.23 per diluted share, as compared to non-GAAP net income of $11.0 million, or $0.20 per diluted share for the second quarter of 2006. Non-GAAP net income for the second quarter of 2007 excludes $8.8 million in employee stock compensation expense, $1.0 million in amortization of acquisition-related intangibles, and $0.7 million of expenses related to acquisition-related contingent payments. Non-GAAP net income for the second quarter of 2006 excludes $6.9 million in employee stock compensation expense, $1.4 million in amortization of acquisition-related intangibles, and $1.1 million in expenses related to acquisition-related contingent payments. Weighted average shares outstanding used in computing diluted non-GAAP net income per share for the second quarter of 2007 were 56.5 million, compared to 56.0 million for the second quarter of 2006. Refer to the itemized reconciliation between net income on a GAAP basis and non-GAAP basis for the second quarter of 2007 and 2006 below.

Non-GAAP net income for the first six months of 2007 was $24.7 million, or $0.44 per diluted share, as compared to non-GAAP net income of $19.8 million, or $0.39 per diluted share for the first six months of 2006. Non-GAAP net income for the first six months of 2007 excludes $16.1 million in employee stock compensation expense, $2.1 million in amortization of acquisition-related intangibles, and $1.5 million of expenses related to acquisition-related contingent payments. Non-GAAP net income for the first six months of 2006 excludes $11.6 million in employee stock compensation expense, $2.7 million in amortization of acquisition-related intangibles, $1.5 million in expenses related to acquisition-related contingent payments and $13.3 million of charges recorded for acquired in-process research and development. Weighted average shares outstanding used in computing diluted non-GAAP net income per share for the first six months of 2007 were 56.4 million, compared to 50.7 million for the second quarter of 2006. Refer to the itemized reconciliation between net income on a GAAP basis and non-GAAP basis for the first six months of 2007 and 2006 below.

Total cash, cash equivalents and short-term investments were $211.0 million at June 30, 2007, compared with $170.2 million at December 31, 2006. Long-term investments were $2.0 million at June 30, 2007, compared with $26.4 million at December 31, 2006.
“This was another good quarter for SiRF. The momentum behind GPS location technology continues to accelerate with SiRF-based new product announcements coming from customers in all our market segments,” said Dr. Michael Canning, President and CEO.-SiRF release