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

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Sigma Designs- Up 50% per Month- Why?

SIGM 0.280

-0.2%

Aug 17 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Glenn Holbert who wrote (449)	7/2/1998 4:33:00 PM
From: John Rieman	of 849

I know about the accumulated losses, that's why I used a 16% tax rate(alternative minimum tax). In my experience, carry-forward losses don't equal a zero tax rate. Most companies(at least techs) end up close to an effective 16% tax rate. Sigma needs over $12M in sales to report $.02 EPS. Their gross margins will improve with volume, and the use of their own chip. I only gave them a 1% increase this Q, they may do a little better. Longer term, board makers like Sigma, need to target a mid 30s gross margin. It will take time and better volumes to achieve. I still think $4M in DVD is doable. They introduced their own chip in March. That gave them the whole Q to ship them. C-Cube has been plaged in DVD by the high inventories of their customers of DVD drive kits and not much sell through. The last 9 months for them have seen lower sales of DVD decoder chips. Sigma's markets look fresher(no inventory).

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next