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Technology Stocks : Sigma Designs- Up 50% per Month- Why?
SIGM 0.280-0.2%Aug 17 5:00 PM EST

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To: ggscott who wrote (433)6/22/1998 6:58:00 PM
From: John Rieman   of 849
 
Sigma's chip is compatible with all graphics interfaces, but requires a companion chip. Except for running AC-3 through the CPU, it was very integrated, and was schedule to ship in March.................

realmagic.com

C-cube's chip doesn't require the GUE, and has on chip AC-3 decoding, but you couldn't buy it until June.........................

realmagic.com

And, Sigma has this API, they hope to make the industry standard...............................

freeedgar.com

Research and Development
As of January 31, 1997, the Company had a staff of 43 research and development
personnel, which conducts all the Company's product development. The Company is
focusing its development efforts primarily on MPEG multimedia products,
including new and improved versions of REALmagic MPEG chipsets and cost
reduction processes.
To achieve and maintain technological leadership, the Company must continue to
make technological advancements in the areas of MPEG video and audio compression
and decompression. These advancements include compatibility with emerging
standards and multiple platforms, improvements to the REALmagic architecture,
and enhancements to the REALmagic API. There can be no assurance that the
Company will be able to make any such advancements in the REALmagic MPEG
technology of, if they are made, that the Company will be able to market such
advancements to maintain profitability and its technological leadership.
During fiscal 1997, fiscal 1996, and fiscal 1995, the Company's research and
development expenses were $ 4,688,000, $4,499,000, and $4,349,000, respectively.
The Company plans to continue to devote substantial resources to research and
development of future generations of MPEG and other multimedia products.
Competition
The market for MPEG multimedia products is highly competitive. Although the
Company does not believe that any products sold by a third party are in direct
competition with the REALmagic decoding card in terms of price and performance,
the possibility that other companies with more marketing and financial resources
may develop a competitive product may inhibit the wide acceptance of REALmagic
technology. The Company believes that many computer product manufacturers are
developing MPEG products that 4
will compete directly with REALmagic products in the near future.
The Company believes that the principal competitive factors in the market for
MPEG multimedia hardware products include time for market for new product
introductions, product performance, compatibility to industry standards, price,
and marketing and distribution resources. The Company believes that it competes
most favorably with respect to time to market, product performance, and price of
its REALmagic products. Moreover, the Company believes that the acceptance of
the REALmagic API as an industry standard for software development could provide
a significant competitive advantage for the Company. However, there can be no
assurance that the Company's lead time in product introduction will be
sustained.
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