Sigma Designs Reports Second Quarter Fiscal 2011 Results

Wednesday, August 25th, 2010
Sigma Designs logo

MILPITAS, Calif. — Sigma Designs®, Inc. (NASDAQ:SIGM) (“Sigma”), 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 second fiscal quarter ended July 31, 2010.

Net revenue for the second quarter was $73.3 million, up $8.1 million, or 12%, from $65.2 million reported in the previous quarter and up $22.0 million, or 43%, from $51.3 million reported for the same period last year.

GAAP net income for the second quarter was $0.5 million, or $0.02 per diluted share. This compares to GAAP net income of $1.1 million, or $0.04 per diluted share, for the previous quarter and $4.8 million, or $0.18 per diluted share, in the same period last year. In the second quarter, Sigma wrote off $5.2 million associated with a strategic investment in a privately held company which reduced Sigma’s net income after taxes for the quarter by approximately $0.10 per diluted share.

Second Quarter Highlights

  • We announced the availability of the first low-cost Microsoft Mediaroom™ compatible set top box platform based on Sigma’s SMP8652 media processor SoC. SMP8652-based set top box designs have completed integration with Mediaroom client software and are anticipated to begin deployment with leading carriers in the second half of 2010. The first to market will be Tatung, with its recently approved SMP8652-based set top boxes.
  • We announced the industry’s first MIMO (multiple input, multiple output) features over power line communications chipsets. Early MIMO functionality will first deploy in the Sigma CG2110 HomePlug AV solution and is designed to deliver up to twice the performance of existing power line solutions when later used in conjunction with the new ITU standard,
  • We jointly announced that ViewSonic’s new VMP74 and VMP75 Media Players, supporting a host of new entertainment features, are based on Sigma’s SMP8650 series media processor SoC products.
  • We announced that leading French broadband provider, Free Inc., using Sigma’s SMP8634 Secure Media Processor, was delivering 3D broadcasts of World Cup soccer and ongoing 3D broadcast content in its industry-leading Freebox triple-play set-top boxes. Free’s 3D broadcast was the very first 3D television broadcast in France and one of the first in Europe.
  • We announced that Sigma’s HomePNA-based chips have been selected to deliver broadband networking solutions to MDU residents — spanning apartment buildings, condominiums and townhomes — using Mototech equipment. Sigma chips, using Fast EoC™ (Ethernet over Coax) technology, enable Mototech to deliver broadband services to MDU residents on what Sigma believes to be a more cost effective basis than any other EoC solution available.

More: Earnings Release; Earnings Call Transcript