Trident Microsystems, Inc.(fka TRIDQ)

[Wildbilly]

DJ Sigma Designs' 3rd-Quarter Loss Narrows as Revenue Improves


By Debbie Cai

Sigma Designs Inc.'s (SIGM) fiscal third-quarter loss narrowed as an acquisition boosted the chip manufacturer's revenue and as a significant write-down hurt year-earlier results.
The company, which makes chips for television set-top boxes and connected media players, is poised to take advantage of the rising adoption of Internet-based television. In May, Sigma acquired Trident Microsystems Inc.'s (TRIDQ) digital television assets, expanding Sigma's offerings in Internet-enabled television technology and establishing a position in the SmartTV market.
Last month, the company initiated a restructuring effort to save about $45 million in fiscal 2014 and to try to return to profitability on an adjusted basis in the first quarter of next fiscal year. Chief Executive Thinh Tran said Sigma plans to merge its media processor and DTV research and development expenses, and has already cut 44 employees in North America.
"Sigma is strictly focused and committed to returning to profitability in Q1 and to that end we continue to drive our $45 million cost reduction plan to achieve this goal," Mr. Tran said.
For the quarter ended Oct. 27, Sigma Designs reported a loss of $39.5 million, or $1.18 a share, compared with a year-earlier loss of $121.6 million, or $3.78 cents a share. Excluding acquisition-related expenses and other items, the adjusted loss was 27 cents compared with a year-earlier adjusted loss of eight cents. The company last year posted a goodwill write-down of $111.3 million. Analysts polled by Thomson Reuters most recently projected a loss of 17 cents.
Revenue grew 61% to $63.9 million, thanks in part to the digital-TV business acquisition. In September, the company anticipated revenue of $60 million to $64 million.
Gross margin narrowed to 39.9% from 45.3%.
Shares fell a penny at $5.64 in after-hours trading. Through Wednesday's close, the stock was down 17% over the past three months.

Write to Debbie Cai at [e-mail]

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(END) Dow Jones Newswires
December 05, 2012 16:27 ET (21:27 GMT)
Copyright (c) 2012 Dow Jones & Company, Inc.- - 04 27 PM EST 12-05-12

Source: DJ Broad Tape