Sigma Designs, Inc. Reports Second Quarter Fiscal 2013 Results
MILPITAS, CA, Sep 05, 2012 (MARKETWIRE via COMTEX) -- Sigma Designs(R), Inc.
(NASDAQ: SIGM), a leader in connected media platforms, today reported financial
results and business highlights for its second fiscal quarter ended July 28,
2012.
Net revenue for the second quarter of fiscal 2013 was $68.3 million, up $28.0
million, or 70%, from $40.3 million reported in the previous quarter and up
$21.6 million, or 46%, from $46.7 million reported for the same period last
year. The primary reason for the increase over the previous quarter was the
addition of DTV revenues of $26.6 million as a result of the acquisition of the
DTV business from Trident Microsystems.
GAAP net loss for the second quarter of fiscal 2013 was $13.3 million, or
($0.40) per diluted share. This compares to GAAP net loss of $13.7 million, or
($0.42) per diluted share, for the previous quarter and GAAP net loss of $22.0
million, or ($0.69) per diluted share, in the same period last year.
Non-GAAP net loss for the second quarter of fiscal 2013 was $4.1 million, or
($0.12) per diluted share. This compares to non-GAAP net loss of $8.5 million,
or ($0.26) per diluted share, for the previous quarter and non-GAAP net loss of
$14.0 million, or ($0.44) per diluted share, during the same period one year
ago. Non-GAAP adjustments for the second quarter consisted of $2.0 million in
amortization expense for acquired intangibles related to acquisitions, $2.7
million in non-cash stock-based compensation expenses, $2.5 million of inventory
mark-up, $1.6 million of gain associated with the valuation of the assets
acquired from Trident and $3.5 million in expenses associated with our
acquisition of Trident's DTV business. 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.
At the end of our second fiscal quarter of 2013, cash, cash equivalents,
restricted cash and marketable securities totaled $106.4 million, or $3.19 per
share outstanding, a decrease of $43.8 million, or $1.41 per share outstanding
compared to the beginning of the fiscal year. This decrease was primarily due to
the payment of $42.2 million for Trident's DTV assets.
Management Comment "We are pleased to report $68 million in revenue for the
second quarter, in line with the upper end of our previous guidance. This is our
first quarter to recognize revenue from our digital TV (DTV) business, recently
acquired from Trident, which accounted for over $26 million this quarter. During
this quarter, home connectivity revenue increased, primarily due to emerging
deployments in Latin America and extended deployments in North America. Our IPTV
set-top box revenue was relatively stable, where we are maintaining our existing
IPTV accounts while positioning ourselves for increased demand in the emerging
hybrid IPTV space. Z-Wave home control opportunities are increasing, as
evidenced by our licensing of the Z-Wave software stack in exchange for an
aggregate license fee of $16.8 million. Overall, we feel we are in exciting
markets and are confident in our ability to deliver technological innovation
that will enable future growth," said Thinh Tran, CEO of Sigma Designs.
Mr. Tran continued, "Following Sigma's annual meeting of shareholders, which
effectively elected a new board of directors, our management team has been
heavily engaged with the new board in an extensive effort to evaluate the
fundamentals of our business segments, set a firm direction, and align costs
with our revenue to generate profits. We understand the renewed emphasis we must
place on profitability and are excited to move forward with our new directors
and in alignment with our shareholders."
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