U.S. Markets closed

Post Earnings Coverage as Sigma Designs Earnings Surpassed Expectations

Upcoming AWS Coverage on Trina Solar Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 14, 2016 / Active Wall St. announces its post-earnings coverage on Sigma Designs, Inc. (NASDAQ: SIGM). The Company posted its third quarter fiscal 2017 earnings results on December 06 2016. The maker of chips used for Internet TV, Blu-Ray players, and other media platforms posted a y-o-y increase in revenue which nonetheless fell short of market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Sigma Designs' competitors within the Semiconductor - Specialized space, Trina Solar Ltd. (NYSE: TSL), reported on November 23, 2016, its unaudited financial results for the quarter ended September 30, 2016. AWS will be initiating a research report on TSL in the coming days.

Today, AWS is promoting its earnings coverage on SIGM; touching on TSL. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=SIGM

http://www.activewallst.com/registration-3/?symbol=TSL

Earnings Reviewed

For the three months ended on October 29, 2016, Sigma reported that net revenue totaled $62.7 million, up $1.4 million, or 2.3% compared to $61.3 million reported in the previous quarter, and up $1.1 million, or 1.9% from the $61.6 million reported in Q3 FY16. The company's revenue numbers came in below analysts' expectation $63.4 million.

The company's revenue from Connected Smart TV platform, which includes its smart TV, media connectivity and set-top box product lines, was $50 million, representing a decline of $4.7 million from Q2 FY17 and a drop of $1.4 million from Q3 FY16. Revenue from Sigma's IoT devices business was $12.7 million, which surged $2.2 million, or 34% from the $9.5 million reported in Q2 FY17 and an increase of $2.5 million from $10.2 million in Q3 FY16.

Sigma's GAAP gross margins in Q3 FY17 was 49.4% compared to a GAAP gross margin of 38.2% in Q2 FY17, and 50% for Q3 FY16. Non-GAAP gross margin in Q3 FY17 was 51.0% compared to a non-GAAP gross margin of 49.9% in Q2 FY17, and a non-GAAP gross margin of 51.7% for Q3 FY16.

Sigma's GAAP operating income in Q3 FY17 was $2.2 million compared to a GAAP operating loss of ($0.3) million in Q2 FY17 and GAAP operating income of $1.5 million for Q2 FY16. The company's non-GAAP operating income in the reported quarter was $5.3 million compared to non-GAAP operating income of $3.4 million in the previous quarter, and non-GAAP operating income of $5.8 million for Q3 FY 2016.

For Q3 FY17, Sigma reported GAAP net income of $0.2 million, or $0.01 per diluted share, as compared to GAAP net loss of ($1.7) million, or ($0.05) per diluted share, in Q2 FY17, and GAAP net income of $6.4 million, or $0.17 per diluted share, for Q3 FY16. The company's non-GAAP net income for the reported quarter was $3.3 million, or $0.09 per diluted share, compared to non-GAAP net income of $2.5 million, or $0.07 per diluted share, in previous quarter, and non-GAAP net income of $4.7 million, or $0.13 per diluted share, for last year's comparable quarter. Sigma's earnings numbers outperformed analysts' expectations of $0.6 per share.

Liquidity and Capital Resources

As of October 29, 2016, Sigma reported that cash, cash equivalence, restricted cash, and marketable securities of $69.9 million compared to $75 million at the end of Q2 FY17. The decrease of $4.1 million was primarily due to an increase in accounts receivable related to the timing of customer shipments and consequently the requisition of revenue and timing of collections. The company's working capital was $102.2 million at the end of Q3 FY17, an increase of $4.4 million from the end of the prior quarter. Net accounts receivable was $49.6 million at the end of the reported quarter, an increase of $3.7 million when compared to $45.9 million in Q2 FY17 and an increase of $18.6 million compared to $31 million in Q3 FY16. The average days sales outstanding for our receivables for Q3 FY17 was 72 days, which represents an increase of approximately four days on sequential basis and an increase of approximately 26 days compared to Q3 FY16.

Outlook

For Q4 FY17, Sigma is expecting total revenues to be in the range of $42 million to $45 million, non-GAAP gross margins to be in the range of 47% to 50%, and non-GAAP operating expenses to be under $28 million.

Stock Performance

At the close of trading session on December 13, 2016, Sigma Designs' stock price was slightly up by 0.88% to end the day at $5.75. A total volume of 707.13 thousand shares were exchanged during the session, which was above the 3-month average volume of 393.03 thousand shares. The stock currently has a market cap of $217.18 million.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com
Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street