Welcome!

Microsoft Cloud Authors: Elizabeth White, Mihai Corbuleac, Pat Romanski, David Bermingham, Steven Mandel

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
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT's direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.