Sigma Designs Reports Fourth Quarter and Fiscal 2010 Results

MILPITAS, Calif. — Sigma Designs®, Inc. (NASDAQ:SIGM), a leading provider of highly integrated system-on-chip, or SoC, solutions used to deliver multimedia entertainment throughout the home, today reported financial results and business highlights for its fourth quarter and fiscal year ended January 30, 2010.

Net revenue for the fourth quarter was $68.1 million, an increase of $32.6 million, or 92%, from $35.5 million reported in the previous quarter and up $20.8 million, or 44%, from $47.3 million reported for the same period last year. Net revenue for fiscal 2010 was $206.1 million, a decrease of $3.1 million, or 1% from $209.2 million reported for fiscal 2009.

GAAP net loss for the fourth quarter was $2.8 million, or $0.09 per share. This compares to GAAP net loss of $2.3 million, or $0.09 per diluted share, for the previous quarter and net income of $6.6 million, or $0.24 per diluted share, in the same period last year. GAAP net income for fiscal 2010 was $2.5 million, or $0.09 per diluted share, compared to $26.4 million, or $0.95 per diluted share reported for fiscal 2009.

Fourth Quarter and More Recent Highlights

• We showcased a wide range of new products and technologies at the CES 2010 show in early January, enabling the emergence of this year’s crop of advanced consumer products. This technology showcase included:
  • 3D video technology that portends the type of premium theatre experience that will grace our living rooms in the near future.
  • 3D graphics technology that will enable a new generation of user interfaces, downloadable applications and games.
  • HomePlug AV chipsets combined with HomePNA chipsets that enable delivery of digital broadcast content over every wire inside the home.
  • NeoVue™ platform design to wirelessly transport audio/video and text content from notebooks or netbooks to televisions or projectors at high definition resolutions up to 1080p.
• We jointly announced with Western Mediabridge (a Celrun company) the demonstration of the world’s first commercially available Android™ set-top box (STB) along with several additional advanced STB solutions.
• We announced the availability of the SD3402 Z-Wave™ chip designed to add Z-Wave wireless control and status capabilities to radio frequency (RF) remote controls, set-top boxes (STB) and consumer electronic (CE) products. Z-Wave provides the added value of an interoperable ecosystem of hundreds of home control devices that can provide energy management, safety and security as well as comfort and convenience solutions.
• We announced that ‘yes’, the leading satellite provider in Israel, has completed a successful commercial pilot of VoD services based upon CopperGate’s HomePNA technology. ‘yes’ has already deployed the VoD solution to hundreds of consumers and has been successfully running the service for several months.
• We announced a partnership with SoftAtHome to deliver the SoftAtHome Operating Platform for hybrid, terrestrial and IP set-top boxes (STBs) on the Sigma Designs’ SMP8654 chipset. The SoftAtHome Operating Platform contains advanced functionality and application programming interfaces (APIs) for creating next-generation applications in the digital home.

More:
• Earnings Release
• Conference Call Transcript