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Last Update: 14-Mar-13 07:48 ET
Sigma Designs shares spike 6% after hours following beat on revenues and in line with guidance
Sigma Designs (SIGM $4.70 +0.28) reported a fourth quarter loss of $0.54 per share, incl items, may not be comparable to the Capital IQ consensus of ($0.25), while revenues rose 24.2% year/year to $44.2 mln vs the $43.43 mln consensus. The company issued in-line guidance for the first quarter with revenues of $49-52 million versus the $51.71 million consensus Estimate. "Moving into Q1 of FY14, based on better visibility into our backlog, we believe revenue will rise sequentially from Q4 levels to between $49-52 million. We expect to see revenue increases in all of our business segments along with improved non-GAAP gross margins to a range of 52-53% driven by higher margin product mix and continued worldwide cost savings. In addition, we expect our proforma operating expenses in Q1 to be between $25.6-26.1 million which includes $2.7 million of depreciation and amortization," said Thinh Tran, CEO of Sigma." "Sigma remains focused on returning to profitability in Q1 FY14 as well as achieving profitable revenue growth throughout the coming fiscal year. By the end of Q4 FY13, the Company had taken the actions required to achieve the $45 million cost reduction plan for fiscal 2014. As a result of these cost reductions and our expected revenue levels, we believe the Company will experience profitability starting in the first quarter. We have restructured our organization from the top to bottom, reducing our headcount by 15.0%. This reduction was principally achieved in our higher cost locations." "We also have sharply reduced our usage of external contract labor in R&D. We are converging on a single SoC platform to deliver our next generation solutions for both set-top box and digital TV markets, which should lead to significant cost efficiencies. In Q4, we achieved $44.2 million in revenue at a 44.0% non-GAAP gross margin. Without a $3.4 million write-down of inventory, non-GAAP gross margin would have been 52.0%, which represents a 3.0% increase above our guidance."
