Welcome!

.NET Authors: Adine Deford, Srinivasan Sundara Rajan, David Fletcher, Pat Romanski, Tad Anderson

News Feed Item

Sigma Designs, Inc. Reports Third Quarter Fiscal 2013 Results

MILPITAS, CA -- (Marketwire) -- 12/05/12 -- Sigma Designs®, Inc. (NASDAQ: SIGM), a leader in connected media platforms, today reported financial results and business highlights for its third fiscal quarter ended October 27, 2012.

Net revenue for the third quarter of fiscal 2013 was $63.9 million, down $4.4 million, or 6%, from $68.3 million reported in the previous quarter and up $24.2 million, or 61%, from $39.7 million reported for the same period last year.

GAAP net loss for the third quarter of fiscal 2013 was $39.5 million, or $1.18 per diluted share. This compares to GAAP net loss of $13.4 million, or $0.41 per diluted share, for the previous quarter and GAAP net loss of $121.6 million, or $3.78 per diluted share, in the same period last year.

Non-GAAP net loss for the third quarter of fiscal 2013 was $9.1 million, or $0.27 per diluted share. This compares to non-GAAP net loss of $4.1 million, or $0.12 per diluted share, for the previous quarter and non-GAAP net loss of $2.7 million, or $0.08 per diluted share, during the same period one year ago. Non-GAAP adjustments for the third quarter consisted of $2.0 million in amortization expense for acquired intangibles related to acquisitions, $2.5 million in non-cash stock-based compensation expenses, $1.1 million of inventory mark-up, $0.8 million in restructuring expense associated with our cost reduction program, $5.7 million settlement payment, $17.9 million reserve against our deferred income tax assets and $0.4 million in expenses associated with our acquisition of Trident's DTV business. The reconciliation between GAAP and non-GAAP net income (loss) for all referenced periods is provided in a table immediately following the GAAP financial tables below.

Management Comment
"Sigma is strictly focused and committed to returning to profitability in Q1 and to that end we continue to drive our $45 million cost reduction plan to achieve this goal," said Thinh Tran, CEO of Sigma Designs. "Accordingly, the Company has taken and will continue to take the steps necessary to reach profitability in our first quarter of fiscal 2014 including the natural synergies we are pursuing in the merger of our media processor and DTV research and development expenses. We have executed the initial phase of our cost reduction and reorganization plan by reducing headcount by 44 employees in North America resulting in annual savings of $6.3 million. As we proceed with our strategy of combining our media processor development and support teams with the DTV team acquired from Trident, we have identified significant cost efficiencies to be achieved by converging on a single technology platform to serve both markets. As previously announced, additional operating expense reductions of $33.7 million will become effective at the beginning of fiscal 2014. This will be accompanied by product cost reductions totaling $5.0 million for fiscal 2014."

Recent Highlights

  • We announced the launch of our SMP8680 series of media processors with integrated HPNA home connectivity for IPTV and hybrid Set-Top Boxes (STBs). These media processors also feature 3D video, integrated graphics processing, video scaling, DDR3 memory support, customizable UI and a power efficient CPU that can deliver Over-the-Top (OTT) content.
  • We announced a collaboration with European market leader LEA® to provide the first-to-market over-the-top thin client set top box with HomePlug AV powerline connectivity, ensuring Plug and Play installation and unmatched data transfer quality. LEA's new NetPlayer HD® is powered by Sigma Designs' SMP8671 secure media processor and CG2210 chipset HomePlug® AV modem with ClearPath™ technology.
  • We announced that Devolo®, the European leader in Powerline communication (PLC) solutions, has selected Sigma's CG2210 HomePlug AV® as the basis for their new Powerline 200 AV Diversity+ adaptor. The CG2210 chipset with ClearPath™ technology supports diversity technology by enabling the additional use of the protective ground wire, creating multiple transmission channels for improving overall throughput, higher robustness and better coverage.
  • We announced that Comtrend's PG9141s Powerline Single Port Adapter, which is based on Sigma's HomePlug AV® chipset, has won the 2012 Communications Technologies Platinum Award in home networking announced at the 2012 SCTE Cable-Tec Expo in Orlando.

Investor Conference Call
The conference call relating to Sigma's third quarter fiscal 2013 results will take place following this announcement at 5:00 PM ET today, December 5, 2012. Investors will have the opportunity to listen live to the conference call via the Internet through www.sigmadesigns.com/IR or www.earnings.com. Institutional investors can access the call via Thomson StreetEvents at www.streetevents.com. To listen to the live call, please go to the website at least 10 minutes early to register and download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call via the internet through www.sigmadesigns.com/IR or www.earnings.com. The audio replay will be available for one week after the call.

Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Sigma reports non-GAAP net income, which excludes amortization of acquired intangibles and developed technologies, stock-based compensation, the mark-up on purchased inventory sold during the period, acquisition-related expenses, restructuring charges, a settlement payment, write-down of acquisition-related goodwill and intangible assets, the reserve of deferred income tax assets and the gain upon acquisition of the DTV business that Sigma recognized in accordance with GAAP. Sigma believes that its non-GAAP net income provides useful information to management and investors regarding financial and business trends relating to its financial condition and results of operations. Sigma also believes the non-GAAP measures provide useful supplemental information for investors to evaluate its operating results in the same manner as the research analysts that follow Sigma, all of whom present non-GAAP projections in their published reports. As such, the non-GAAP measures provided by Sigma facilitate a more direct comparison of its performance with the financial projections published by the analysts as well as its competitors, many of whom report financial results on a non-GAAP basis. The economic substance behind its decision to use such non-GAAP measures is that such measures approximate its controllable operating performance more closely than the most directly comparable GAAP financial measures. For example, Sigma's management has no control over certain variables that have a major influence in the determination of stock-based compensation such as the volatility of its stock price and changing interest rates. Sigma believes that all of these excluded expenses do not accurately reflect the underlying performance of its continuing operations for the period in which they are incurred, even though some of these excluded items may be incurred and reflected in Sigma's GAAP financial results in the foreseeable future.

The material limitation associated with the use of the non-GAAP financial measures is that the non-GAAP measures do not reflect the full economic impact of Sigma's activities. Sigma's non-GAAP net income is not prepared in accordance with GAAP, is not an alternative to GAAP financial information, and may be calculated differently than non-GAAP financial information disclosed by other companies. Accordingly, investors are cautioned not to place undue reliance on non-GAAP information.

Safe Harbor Statement
This press release contains 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, including statements about taking the steps necessary to reach profitability in the first quarter of fiscal 2014, becoming profitable in the first quarter of fiscal 2014, the amount of the anticipated savings from Sigma's expense reduction efforts and the anticipated features, benefits and market acceptance of Sigma's products. Actual results may vary materially due to a number of factors including, but not limited to, the risk that, upon completion of further closing procedures, the financial results for the third quarter of fiscal 2013 are different than the results set forth in this press release, general economic conditions, including continuance of the current economic conditions specific to the semiconductor industry, the ability to recognize the anticipated savings from our restructuring efforts, the rate of growth of the IPTV, connected home technologies, digital TV, connected media player and prosumer and industrial audio/video markets in general, Sigma's integration of the assets and employees related to the DTV business it recently acquired from Trident Microsystems, Inc., the ramp in demand from Sigma's set-top box, television and telecommunication customers, Sigma's ability to deploy and achieve market acceptance for Sigma products in these markets, the ability of Sigma's SoCs to compete with other technologies or products in these emerging markets, the risk that such products will not gain widespread acceptance, or will be rendered obsolete, by product offerings of competitors or by alternative technologies, the risk that anticipated design wins will not materialize and that actual design wins will not translate into launched product offerings, and other risks detailed from time to time in Sigma's SEC reports, including Sigma's quarterly report on Form 10-Q as filed with the SEC on September 10, 2012. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Sigma undertakes no obligation to publicly release or otherwise disclose the result of any revision to these forward-looking statements that may be made as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

About Sigma Designs, Inc.
Sigma Designs, Inc. (NASDAQ: SIGM) is a leader in connected media platforms. The company designs and builds the essential semiconductor technologies that serve as the foundation for the world's leading IPTV set-top boxes, connected televisions, connected media players, residential gateways, home control systems and more. For more information about Sigma Designs, please visit www.sigmadesigns.com.


                             SIGMA DESIGNS, INC.
         PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (GAAP)
                               (In thousands)
                                                     October 27, January 28,
                                                         2012        2012
                                                     ----------- -----------
Assets

Current Assets:
  Cash and cash equivalents                          $    49,331 $    44,283
  Short-term marketable securities                        17,366      42,134
  Restricted cash                                          1,768       1,769
  Accounts receivable, net                                37,872      21,180
  Inventories                                             30,529      22,037
  Deferred tax assets                                      2,170       4,832
  Prepaid expenses and other current assets               23,515       7,234
                                                     ----------- -----------
    Total current assets                                 162,551     143,469

Long-term marketable securities                           30,403      62,022
Software, equipment and leasehold improvements, net       21,699      19,609
Intangible assets, net                                    44,349      45,656
Deferred tax assets, net of current portion                  874      16,595
Long-term investments                                      6,445       6,443
Other non-current assets                                   6,112       3,430
                                                     ----------- -----------

    Total assets                                     $   272,433 $   297,224
                                                     =========== ===========

Liabilities and Shareholders' Equity

Current Liabilities:
  Accounts payable                                   $    22,482 $     8,438
  Accrued liabilities                                     42,116      24,081
                                                     ----------- -----------
    Total current liabilities                             64,598      32,519

  Other long-term liabilities                             15,096      16,230
                                                     ----------- -----------
    Total liabilities                                     79,694      48,749

Shareholders' equity                                     192,739     248,475
                                                     ----------- -----------

    Total liabilities and shareholders' equity       $   272,433 $   297,224
                                                     =========== ===========



                            SIGMA DESIGNS, INC.
   PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (GAAP)
                   (In thousands, except per share data)

                             Three months ended          Nine months ended
                      -------------------------------  --------------------
                       October   July 28,    October    October    October
                       27, 2012     2012     29, 2011   27, 2012   29, 2011
                      ---------  ---------  ---------  ---------  ---------
Net revenue           $  63,905  $  68,251  $  39,725  $ 172,414  $ 147,051
Cost of revenue          38,422     37,671     21,723     95,256     86,263
                      ---------  ---------  ---------  ---------  ---------
Gross profit             25,483     30,580     18,002     77,158     60,788
Gross margin percent       39.9%      44.8%      45.3%      44.8%      41.3%


Operating expenses:
  Research and
   development           26,741     27,975     21,633     76,505     65,034
  Sales and marketing    12,774      7,795      8,545     27,457     25,475
  General and
   administrative         6,007      9,489      4,828     21,875     15,460
  Gain on acquisition       ---     (1,417)       ---     (1,417)       ---
  Restructuring
   charges                  821        ---        ---        821        ---
  Write-down of
   goodwill,
   intangible assets
   and acquired in-
   process R&D              ---        ---    111,278        ---    111,278
                      ---------  ---------  ---------  ---------  ---------
    Total operating
     expenses            46,343     43,842    146,284    125,241    217,247

Loss from operations    (20,860)   (13,262)  (128,282)   (48,083)  (156,459)
Interest and other
 income (expense),
 net                        299        242        542      1,032      2,095
                      ---------  ---------  ---------  ---------  ---------


Loss before income
 taxes                  (20,561)   (13,020)  (127,740)   (47,051)  (154,364)
Provision for
 (benefit from)
income taxes             18,890        398     (6,165)    19,520     (5,157)
                      ---------  ---------  ---------  ---------  ---------

Net loss              $ (39,451) $ (13,418) $(121,575) $ (66,571) $(149,207)
                      =========  =========  =========  =========  =========

Net loss per share:
  Basic               $   (1.18) $   (0.41) $   (3.78) $   (2.02) $   (4.67)
  Diluted             $   (1.18) $   (0.41) $   (3.78) $   (2.02) $   (4.67)

Shares used in
 computing net loss
 per share:
  Basic                  33,383     33,052     32,139     33,032     31,928
  Diluted                33,383     33,052     32,139     33,032     31,928



                            SIGMA DESIGNS, INC.
RECONCILIATION OF PRELIMINARY GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME
                                   (LOSS)
                                (Unaudited)
                   (In thousands, except per share data)

                             Three months ended          Nine months ended
                      -------------------------------  --------------------
                       October   July 28,    October    October    October
                       27, 2012     2012     29, 2011   27, 2012   29, 2011
                      ---------  ---------  ---------  ---------  ---------
GAAP net loss         $ (39,451) $ (13,418) $(121,575) $ (66,571) $(149,207)

Items reconciling
 GAAP net loss to
 non-GAAP net loss:
  Included in cost of
   revenue:
    Stock-based
     compensation          (130)      (133)      (123)      (380)      (352)
    Amortization of
     acquired
     intangibles         (1,591)    (1,590)    (2,701)    (4,676)    (8,066)
    Acquisition
     expenses              (101)       ---        ---       (101)       ---
    Mark-up on
     inventory
     acquired in
     business
     combinations
     sold during the
     period              (1,078)    (2,529)        (3)    (3,607)       (71)
                      ---------  ---------  ---------  ---------  ---------
      Total related
       to cost of
       revenue           (2,900)    (4,252)    (2,827)    (8,764)    (8,489)

  Included in operating
   expenses:
    Research and
     development:
      Stock-based
       compensation      (1,375)    (1,508)    (1,544)    (4,346)    (4,760)
      Amortization of
       acquired
       intangibles          (34)       (33)       (31)      (100)       (98)
      Acquisition
       expenses             ---     (1,417)       ---     (1,417)       ---
    Sales and
     marketing:
      Stock-based
       compensation        (457)      (483)      (475)    (1,412)    (1,634)
      Amortization of
       acquired
       intangibles         (360)      (360)    (2,033)    (1,082)    (6,086)
      Settlement
       Payment           (5,700)       ---        ---     (5,700)       ---
      Acquisition
       expenses             ---       (257)       ---       (257)       ---
    General and
     administrative:
      Stock-based
       compensation        (539)      (626)      (664)    (1,940)    (2,387)
      Acquisition
       expenses            (251)    (1,781)       ---     (2,501)       (89)

    Restructuring
     charges               (821)       ---        ---       (821)       ---
    Gain on
     acquisition            ---      1,417        ---      1,417        ---
    Write-down of
     acquisition
     related goodwill
     and intangible
     assets                 ---        ---   (111,278)       ---   (111,278)
                      ---------  ---------  ---------  ---------  ---------
        Total related
         to operating
         expenses        (9,537)    (5,050)  (116,025)   (18,159)  (126,332)
                      ---------  ---------  ---------  ---------  ---------

    Deferred tax
     assets             (17,932)       ---        ---    (17,932)       ---
    Net effect of
     non-GAAP
     adjustments        (30,369)    (9,302)  (118,852)   (44,855)  (134,821)
                      ---------  ---------  ---------  ---------  ---------

Non-GAAP net loss     $  (9,082) $  (4,116) $  (2,723) $ (21,716) $ (14,386)
                      =========  =========  =========  =========  =========

Non-GAAP net loss per
 diluted share        $   (0.27) $   (0.12) $   (0.08) $   (0.66) $   (0.45)

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nigeria has the largest economy in Africa, at more than US$500 billion, and ranks 23rd in the world. A recent re-evaluation of Nigeria's true economic size doubled the previous estimate, and brought it well ahead of South Africa, which is a member (unlike Nigeria) of the G20 club for political as well as economic reasons. Nigeria's economy can be said to be quite diverse from one point of view, but heavily dependent on oil and gas at the same time. Oil and natural gas account for about 15% of Nigera's overall economy, but traditionally represent more than 90% of the country's exports and as...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...