Thursday, August 26, 2010

Sigma Designs Reports Revenue of $73M, up 12%

Sigma Designs, which provides silicon solutions for set-top boxes, reported Q2 revenue of $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 Q2, 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.

"We are pleased to report over $73 million in revenue for the second quarter, representing more than 12% growth over our first quarter, with contributions from all three of our primary business segments. Our largest increase came from sales in our IPTV media processor segment, representing the bulk of this quarter's growth, and reflecting a fundamentally strong market. Connected media players were also up this quarter and continue to provide a substantial revenue contribution, demonstrating the popularity of consumer products such as network players that enable Internet access for playback of over-the-top content. Likewise, revenues from our Home Connectivity Business Group were up, largely a result of our continued leadership in all-wire network solutions. Moving forward, we are continuing to pursue major design wins in our current market segments with special initiatives for penetrating the hybrid IP Cable set-top box industry and the increased adoption of Z-Wave based home control solutions," stated Thinh Tran, chairman and chief executive officer, Sigma Designs.

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