Sigma Designs Reports Second Quarter Fiscal 2012 Results

MILPITAS, CA — Sigma Designs®, Inc. (NASDAQ: SIGM), the world’s leader in connected media platforms, today reported financial results and business highlights for its second fiscal quarter ended July 30, 2011.

Net revenue for the second quarter of fiscal 2012 was $46.7 million, down $13.9 million, or 23%, from $60.6 million reported in the previous quarter and down $26.6 million, or 36%, from $73.3 million reported for the same period last year.

Management Comment

“We are disappointed to report $46.7 million in revenue for the second quarter. This sequential decrease is primarily due to the steeper than expected ramp-down of first generation set-top box deployments incorporating our IPTV media processors while certain second generation telco rollouts were delayed unexpectedly. Overall, we remain heavily engaged with service providers and OEMs and are securing future business for our media processor, home networking and home control products. We continue to invest in new technologies and are confident that our long-term strategy to build the leading connected media platform company will result in strong growth for Sigma,” stated Thinh Tran, chairman and chief executive officer, Sigma Designs.

Recent Highlights

During the second quarter, we continued to make progress in many business areas:

• We unveiled an ultra-thin set-top box reference design that integrates media processing, home connectivity and home control technologies. This new class of integrated set-top box enables plug-and-play simplicity for whole-home streaming of high-definition content via networking through AC power wiring.
• We announced that our Z-Wave technology has been integrated into the Best Buy Insignia brand’s new cTV line of broadband-connected televisions. The new Insignia televisions will provide Best Buy customers with an exceptional, intuitive user experience for controlling their TVs by utilizing the latest Z-Wave technology in the Insignia remote and TV.
• We announced that the SMP 8653 secure media processor has been selected by D-Link for use in its MainStage™ for Intel® Wireless DisplayTV adapter, allowing consumers to wirelessly project content up to 1080p from Intel Wireless Display notebook PCs to big screen HDTVs.
• We announced that our G.hn home networking technology has been awarded Connected Home Global Summit’s prestigious award for Best Enabling Product/Technology for the Connected Home. Our G.hn technology was selected by a panel of experts from close to a hundred technologies covering every home networking category.
• We demonstrated a full line of hybrid IP set-top box solutions for cable, satellite and the Brazilian International Standard Digital Broadcast – Television (ISDB-T), also called SBTVD. These solutions are designed to help service providers deliver the best combination of broadcast services over cable, satellite or terrestrial with Sigma’s world renowned IP-optimized media processors.

More: Earnings Release; Conference Call Transcript