Sigma Designs, Inc. Reports Second Quarter Results
MILPITAS, Calif.--(BUSINESS WIRE)--Aug. 22, 2000--Sigma Designs®, Inc. (Nasdaq: SIGM - news) today announced results for its second fiscal quarter ended July 31, 2000. Sigma reported net income of $482,000, or $0.03 per diluted share in the second quarter of fiscal 2001, an increase from $189,000, or $0.01 per diluted share for the first quarter of fiscal 2001 and a decrease from $673,000, or $0.04 per diluted share during the same period one-year ago. Net sales for the second quarter of fiscal 2001 were $10,663,000, up 3% from $10,401,000 for the first quarter of fiscal 2001 and down 25% from $14,134,000 reported for the same period last year.
``Revenues for the quarter reflect a greater than anticipated decline in our PC-DVD board product sales. We indicated previously that revenues from these products would begin to decrease later this year and into 2001,'' stated Thinh Tran, President and Chief Executive Officer, Sigma Designs. ``At the same time, we experienced exceptional quarterly sales for our NetStream products resulting in an increase to our gross margin and net income as compared to the previous quarter.''
``We also realized several key milestones--as well as a number of important design wins--in our strategy to penetrate new growth markets. We made initial shipments of our MPEG-2 decoder chip, the REALmagic EM8400, to Fujitsu Siemens for inclusion in its ACTIVY interactive set-top box. In addition, we made initial shipments to several Asia Pacific manufacturers who exhibited Web-DVD Internet appliances utilizing our silicon at the Computex trade show, and Panasonic demonstrated the results of a collaborative effort with Sigma on a PC-DVD RAM authoring system,'' said Tran.
The Company continues to increase its presence in the growing interactive Internet appliance market having secured several design wins with manufacturers commanding a global market presence. In addition to Fujitsu Siemens, they include Acer, Eagle Wireless, and Inprimis. Additionally, several manufacturers focused on the Asia Pacific markets have selected Sigma silicon, including Lung Hwa Electronics, Allwell Technology Corporation, and Toptrend Technology (for Microsoft's Venus 1.0+ project).
In looking at the balance of the year, the Company has received indications from several manufacturers that development and field trials of set-top boxes are taking longer than anticipated. This delay in deployments by set-top box manufacturers combined with the decline in PC-DVD board products will affect revenues through the balance of fiscal 2001. ``We expect earnings per share for fiscal 2001 to be in the range similar to fiscal 2000 due to the growth in higher margin products. However, we anticipate revenues for fiscal 2001 will be in the $43 million to $48 million range,'' added Tran.
``We continue to work with several new design opportunities and anticipate additional wins in the coming months. As is true of new technology products, these new Internet appliances must be extremely dependable to gain consumer acceptance quickly. Sigma continues to win designs by providing the dependability manufacturers require, thereby establishing a competitive foothold in this exciting new market,'' Tran concluded.
Sigma reported net income for the first six months of fiscal 2001 of $671,000, or $0.04 per share, diluted, compared to net income of $1,185,000, or $0.07 per share, diluted, in the comparable period of fiscal 2000. Sales for the first six months of fiscal 2001 were $21,064,000, down 25% from $27,917,000 in the same six-month period last year.
Sigma specializes in digital video decoding for DVD playback applications, as well as for streaming video over corporate intranets and extranets, and for the emerging interactive digital Set-Top Box market. Sigma's products are designed to advance digital video technology in high-speed, high-bandwidth transmission for business, home, and education markets. Sigma Designs' products, marketed under the REALmagic trade name, are sold worldwide through a direct sales force, distributors, and original equipment manufacturers (OEMs). For additional information, visit the Company's web site at sigmadesigns.com. |
