Sigma announce earnings. Down from 3Q96, up from 2Q97.............
Sigma Designs Inc. Reports Third Quarter Results
FREMONT, Calif.--(BUSINESS WIRE)--Nov. 24, 1997--Sigma Designs Inc. (NASDAQ:SIGM) today announced results
for its third fiscal quarter ended Oct. 31, 1997.
Revenues for the third quarter of fiscal 1998 were $10,022,000 compared to $12,727,000 reported for the same period in
fiscal 1997 and up 17% from $8,593,000 for the second quarter of fiscal 1998. The company reported a net loss of $64,000
or $0.01 per share in the third quarter of fiscal 1998, compared to net income of $1,062,000 or $0.09 per share in the third
quarter of fiscal 1997. Excluding the mandatory dividend on preferred stock, the company reported income of $293,000 for
the third quarter of fiscal 1998.
Year-to-date revenues for fiscal 1998 were $27,122,000 compared to $31,541,000 in the nine-month period last year. The
net loss for the first nine months of fiscal 1998 was $5,068,000 or $0.46 per share, compared to net income of $1,307,000
or $0.12 per share in the first nine months of fiscal 1997.
Thinh Tran, chairman and chief executive officer, stated, "During the third quarter, demand for MPEG and DVD products
strengthened, and we exited the quarter with sales, order, and product development momentum. While there were early delays
in developing industry standards for the DVD arena, there are now several DVD products -- including DVD upgrade kits
and DVD-enabled PCs using Sigma's REALmagic Hollywood DVD technology -- that are currently available in the market.
"We continue to partner with major training and corporate customers using MPEG-1 in various applications. For example,
our REALmagic MPEG-1 decoder card is being used in breakthrough education programs, as described in Forbes magazine;
and we recently announced that Diebold, Incorporated -- the leading supplier of automated teller machines (ATMs) in the
United States -- has selected Sigma's REALmagic MPEG-1 technology to add multimedia functionality to the ATM
experience.
"We believe this type of MPEG-1 base business could provide a foundation upon which we can build. Our REALmagic
Hollywood DVD/MPEG-2 card was selected by both Sony and Philips -- leaders in multimedia technologies -- for use in
their PC DVD upgrade kits. Following the close of the quarter, we announced that NewCom, a leading supplier of upgrade
peripherals to the retail channel, has also selected the REALmagic Hollywood DVD/MPEG-2 card for inclusion in its PC
DVD upgrade kit.
"In addition, ASE Technologies -- one of the largest notebook exporters in Taiwan -- has chosen Sigma's DVD/MPEG-2
playback solution for integration in ASE's latest line of notebook computers," Tran concluded.
Sigma Designs, headquartered in Fremont, is an acknowledged leader in the fast-growing multimedia market. Sigma entered
the multimedia field in 1993 with products based on the MPEG (Moving Picture Experts Group) standard for compressing
and decompressing digital audio and video signals. Sigma is a driving force in advancement of the MPEG technology used in
most multimedia PCs on the market today.
Sigma Designs' products, marketed under the REALmagic trade name, are sold worldwide through a direct sales force and a
network of manufacturers' representatives, VARs, and distributors. For more information, visit the company's Web site at
sigmadesigns.com .
Except for the historical information contained herein, the matters discussed in this release are forward-looking statements
subject to risks and uncertainties, including the timely introduction and market acceptance of Sigma's MPEG/DVD and other
related products, the development of markets for the Company's products, the impact of competitive products and pricing,
and other risk factors detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the
year ended January 31, 1997 and on Form 10-Q for the quarter ended July 31, 1997.
Following are highlights of the third quarter and first nine month results:
CHARTS DELETED |
