Sigma Designs- Up 50% per Month- Why? Message Board

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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: Grantcw who wrote (297)	2/17/1998 2:02:00 AM
From: kaja	Read Replies (1) of 849

Grant: I will try to answer your questions. 1. No coverage and thus no formal estimates. The $1.20 seems very high (everything would have to go right for SGMA...possible, but not realistic). They could be at a quarterly rate of .15-.20 by the third or fourth fiscal quarter 1999 (fiscal year-end is 1/99). 2. The DVD market for PC's (this is SGMA's focus) looks terrific for 1998! However, the consumer market (SGMA is not interested in this market) for DVD's looks to be a disappointment again this year as only 1.5 million units are expected to be shipped, up from 500,000 units in 1997. The DVD market for PC's will be displacing the CD-ROM and the potential is significant. Initially DVD-ROM adoption was delayed because of delays in certain copyright protection licenses were delayed and because Microsoft did not offer an operating system to support the product. PC makers are now fully prepared to adopt DVD in 1998. Sale estimates are for 10 million units in 1998. The above is from various publications (i.e Electronic News and brokerage reports on the industry). 3. SGMA's corporate business (Walmart, Smith Barney) is growing very nicely. I don't have specific numbers, but I estimate that close to half the business is from these type of large companies. I would not be surprised to see other retailers (Sears and Circuit City) follow the Walmart lead. I understand that Merrill Lynch is also evaluating the units. 4. The OEM business has been slow in coming as discussed above, but I expect it to pick up now. They have landed some second and third tier OEM contracts. Getting a first tier OEM would put them on the map. I hope the above is of help. I am not a tech person so I could not address your tech questions.

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