Sigma Designs Reports Third Quarter Fiscal 2009 Results

MILPITAS, Calif. — Sigma Designs®, Inc. (NASDAQ: SIGM) (“Sigma” or “the Company”), 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 third fiscal quarter ended November 1, 2008.

Third Quarter 2009 Financial Results

Revenue for the third quarter of fiscal 2009 was $46.8 million and GAAP net income was $3.7 million or $0.14 per diluted share. Non-GAAP net income in the third quarter of 2009 was $7.2 million, or $0.27 per diluted share. Non-GAAP adjustments for the third quarter of 2009 consisted of the exclusion of $0.7 million in amortization expense for acquired intangibles related to the VXP and Blue7 acquisitions and $2.8 million in non-cash share-based compensation expenses.

Net revenue (In thousands):

             Three months ended     Nine months ended
-------------------------------  --------------------
  Nov. 1,    Aug. 2,    Nov. 3,    Nov. 1,    Nov. 3,
     2008       2008       2007       2008       2007
---------  ---------  ---------  ---------  ---------
 $ 46,760   $ 58,212   $ 66,244  $ 161,854  $ 144,808

As of the end of the third quarter, Sigma had approximately 26.4 million shares of common stock outstanding and cash, cash equivalents and marketable securities totaling $197.3 million, or $7.48 per share. During the third quarter, total cash and investments increased $17.6 million, principally due to a reduction in accounts receivable and the Company’s continuing profitability.

Third Quarter Highlights

• Announced the availability and conducted product demonstrations of its new SMP8644 media processor system-on-chip (SoC), designed for feature-rich consumer products including next generation IPTV set-top boxes, IP cable set-top boxes, and Blu-ray players. The SMP8644 provides substantial improvements in performance coupled with a broad array of interface capabilities required to support greater interactivity, extended system features and studio level image quality typically associated with high end consumer products.
• Announced the availability of the Wireless Home Theater Audio Development Kit based on the company’s Windeo® Ultra wideband (UWB) chipset. Sigma also demonstrated the Wireless Home Theater Audio Development Kit along with its new CoAir™ solution, the industry’s first UWB chipset with combined wireless, coax and Ethernet capabilities.
• Demonstrated a wide range of consumer technology solutions at IBC 2008 in Amsterdam. These solutions included the SMP8654 SoC media processor which increases system performance while decreasing overall set-top box costs, multiple UWB connectivity solutions including CoAir, the industry’s first UWB chipset with combined wireless, coax and gigabit Ethernet capabilities, and Sigma’s new DOCSIS 3.0 set-top box reference design featuring Tru2way middleware for next generation cable deployments.

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