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SGTL - Has it bottomed? SigmaTel, Inc. Earnings Conference Call (Q4 2005) Scheduled to start Tue, Jan 31, 2006, 4:30 pm Eastern





SigmaTel (nasdaq: SGTL - news - people ) designs analog and mixed-signal integrated circuits for a variety of consumer electronics, including the iPod Shuffle from Apple Computer (nasdaq: AAPL - news - people ). SigmaTel started 2005 well, guiding analysts’ estimates higher, but by midyear a reversal of fortunes led to weaker-than-expected results and downgrades. Further guidance reductions followed in October, pushing the stock below $13, 71% off its 2005 high. The company has no debt, plenty of cash and good cash flow.

http://www.forbes.com/2005/12/23/verizon-tenet-blockbuster-in_gp_1227soapbox_inl.html?partner=yahoot...

SigmaTel 4Q Revenue Seen Near Low End
Wednesday December 7, 1:17 pm ET
SigmaTel Shares Sink As Analyst Estimates 4Q Results Near Low End of Guidance

http://biz.yahoo.com/ap/051207/sigmatel_mover.html?.v=1

NEW YORK (AP) -- SigmaTel Inc. shares plunged Wednesday after a Thomas Weisel Partners analyst said the chip maker's fourth-quarter results could fall near the low end of estimates.
The company, whose sound processors are used in cell phones and media players, is facing weak manufacturer demand as a flash-memory shortage continues hurting the industry, analyst Jason Pflaum said in a report. He added that increased competition and pressure from Apple Computer Inc.'s popular iPod on its customers are weighing on SigmaTel's results.

Based on his updates with customers, suppliers and competitors, Pflaum said SigmaTel's quarterly revenue is likely headed for the lower end of its internal forecast for $81 million to $91 million.

Pflaum cut SigmaTel to "Peer Perform" from "Outperform," and slashed his earnings estimates, significantly lowering 2006 projections. SigmaTel shares sank $1.86, or 12 percent, to $13.82 on the Nasdaq.

While the company has shifted more of its products to the low-end value segment and could see strong growth next year, that corner of the market will be crowded with a number of new competitors, Pflaum also said.

He said SigmaTel is shipping modest volumes of its new 3600 chip, but probably will not gain broader penetration until mid- to late 2006. Significant adoption of its FM tuner product in 2006 is unlikely, the analyst added.

Pflaum now expects SigmaTel's fourth-quarter earnings at 14 cents per share on $81.5 million in revenue, compared with the company's forecast for income of 14 cents to 20 cents. Earlier, the analyst had pegged the company to earn a higher 17 cents per share for the quarter, with sales of $86.5 million.

For the year, Pflaum scaled back his estimate by 2 cents to $1.31 per share. For 2006, however, he cut his forecast by 15 cents to 70 cents per share.

Analysts surveyed by Thomson Financial currently predict quarterly earnings of 16 cents per share on $85.7 million in revenue. Profit in 2005 is seen at $1.32 per share and 90 cents per share in 2006.

http://finance.yahoo.com/q/ks?s=SGTL