Some bits from the SIGM conference call
Our revenue break outs for the quarter are as follows. I'll cover this by target markets and percentage of total revenues. DTV $6.1 million, or 16%, set-top box $5.7 million, or 15%, home networking $16.1 million, or 44%, home control $6.1 million, or 16%, license and other $2.9 million, or 9%. Revenues declined in the first quarter by $1.6 million, primarily due to a decrease in sales of set-top box by $2.4 million, a decrease in license and other by $3.4 million, which was offset by an increase in home networking by $2.3 million and home control by $2 million. The year to year revenue decline was mainly driven by the sales of legacy products that declined faster than the ramp up of new products.
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Non-GAAP gross margins were 58.1% for the first quarter compared to 61.1% in the preceding quarter and 54.7% in the same period last year. Our gross margins will fluctuate over time due to a variety of factors including product mix, the initial yields of new products and the contribution of IP licensing revenues. Our gross margin in the first quarter of fiscal 2015 was particularly strong, primarily as a result of increased shipments of
home networking products with higher margins and strong IP licensing revenue.
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Cash, cash equivalents, restricted cash and marketable securities totaled $81.8
million at the end of the first quarter, a decrease of $7.6 million compared to the end of last quarter.
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Our $36.9 million in revenue is expected to be our lowest point of revenue for the foreseeable future due to the issued reliance on older legacy products and the anticipated ramp of our newer trend-setting products.
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Translating this into formal guidance for the second quarter, we expect total revenues to grow in the second quarter of fiscal 2015 to be between $41 million to $43 million as we begin to rollout our deployment of our new products which will continue throughout our second half, driving further growth. We expect pro forma gross margins for the quarter to be between 51% to 53% because our product mix and our expected initial
yield cost of our new products. We expect pro forma operating expenses for the second quarter of fiscal 2015 to be between $25 and $25.5 million.
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Quinn Bolton - Needham & Company - Analyst
Okay, on those ultra high-def TV models, can you give us some sense of what your dollar content is if you have both the SX6 and the FRXC solution?
Elias Nader - Sigma Designs Inc - CFO
North of $20.
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Quinn Bolton - Needham & Company - Analyst
Great, and just lastly for Elias. Elias, can you give us some sense on the IP licensing business, what you expect to see over next couple quarters? If I remember, I think there was a fairly large multi-media license that hit revenues over the past couple quarters but that may be tailing off. Do you expect new either Z-Wave or multimedia licenses in the next couple of quarters or you think that that declines over the next couple of quarters?
Elias Nader - Sigma Designs Inc - CFO
Well, in the next quarter, I expect license of IP revenue to be flat over this quarter, then it tails off, but we're also expecting widely sporadic and early to tell we are expecting other license revenue to happen some time, we just can't predict when.
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And two other things (in my writing)
1. Last Q they guided to $200m in revenues over the next four quarters. When asked if that number still holds they answered that they expect to be profitable in Q3 and Q4, but they can't say whether they'll hit $200m for the fiscal year or not.
2. When asked about share repurchases the SIGM CEO said that they had no open window to purchase shares in the just completed quarter. He said the last conference call was so late in the quarter that there was no open window in the entire quarter. This is a bit tough for me to understand - I was under the impression that a company can repurchase their own stock 3 days after the release the quarterly results. |
