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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:



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.


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.

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SOURCE: Active Wall Street