Sigma Designs reports first quarter FY2016 results

Tuesday, June 9th, 2015 
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Sigma Designs, Inc. Reports First Quarter Fiscal 2016 Financial Results
Quarterly Revenues Up 52% Year-Over-Year

MILPITAS, CA — Sigma Designs® (NASDAQ: SIGM), a leading provider of intelligent system-on-chip (SoC) solutions for Smart TV, Internet of Things Devices for Smart home, IP-based set-top-boxes and Media Connectivity, today reported financial results for its first quarter of fiscal 2016, which ended May 2, 2015.

Financial Results

GAAP net revenues for the first quarter of fiscal 2016 were $55.9 million, up $1.1 million, or 1.9%, from $54.8 million reported in the previous quarter, and up $19.0 million, or 51.6%, from $36.9 million reported for the same period in fiscal 2015.

Non-GAAP net revenues for the first quarter of fiscal 2016, which excludes $0.8 million for the reversal of accrued rebates, were $55.1 million. This compares with non-GAAP net revenues of $54.8 million reported in the previous quarter, and $36.9 million reported for the same period in fiscal 2015.
GAAP gross margin in the first quarter of fiscal 2016 was 52.5%. This compares with a GAAP gross margin of 48.7% in the previous quarter, and 54.9% for the same period in fiscal 2015.

Non-GAAP gross margin in the first quarter of fiscal 2016 was 53.8%. This compares with a non-GAAP gross margin of 50.8% in the previous quarter, and 58.1% for the same period in fiscal 2015.

GAAP operating expenses in the first quarter of fiscal 2016 were $27.9 million, compared with GAAP operating expenses of $29.1 million in the previous quarter, and $28.7 million for the same period in fiscal 2015.
Non-GAAP operating expenses in the first quarter of fiscal 2016 were $25.4 million, compared with non-GAAP operating expenses of $26.1 million in the previous quarter, and $25.5 million for the same period in fiscal 2015.

GAAP net loss for the first quarter of fiscal 2016 was $0.4 million, or $0.01 per diluted share. This compares with a GAAP net loss of $3.6 million, or $0.10 per diluted share in the previous quarter, and a GAAP net loss of $9.9 million, or $0.29 per diluted share, for the same period in fiscal 2015.
Non-GAAP net income for the first quarter of fiscal 2016 was $3.2 million, or $0.09 per diluted share. This compares with non-GAAP net income of $1.5 million, or $0.04 per diluted share, for the previous quarter, and a non-GAAP net loss of $5.0 million, or $0.14 per diluted share, during the same period in fiscal 2015.

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

“We had a solid first quarter with revenue increasing for the fourth straight quarter. In addition, we increased our non-GAAP profitability for the third quarter in a row,” said Thinh Tran, president and CEO of Sigma Designs, Inc. “Our higher revenue resulted primarily from a combination of increased customer volumes for both our Smart TV chipsets and IoT Devices. We are committed to sustaining this positive momentum.”

Recent Highlights

  • We demonstrated the breadth of our Z-Wave ecosystem at the ISC West conference with a number of leading vendors demonstrating their compliant products.
  • We released our new Z-Wave protocol 6.6 and ZIP stack, providing an enriched feature set.
  • We demonstrated our Dolby Vision High Dynamic Range television on our STV7700 series at this year’s NAB show and also began production of this new chipset.
  • We jointly announced the introduction of a new G.hn powerline adaptor by Tecom that includes a 3G/4G add-on for distribution of mobile broadband access.