Sigma Designs Inc. (SIGM, Financial) filed Quarterly Report for the period ended 2010-07-31.
Sigma Designs Inc. has a market cap of $304.5 million; its shares were traded at around $9.79 with a P/E ratio of 15.1 and P/S ratio of 1.5. SIGM is in the portfolios of Chuck Royce of Royce& Associates, Paul Tudor Jones of The Tudor Group, John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
IPTV media processor: For the three and six months ended July 31, 2010, net revenue from sales of our SoC solutions, primarily our SMP8630 SoC series, into the IPTV set top box market decreased $4.0 million, or 9%, and $7.4 million, or 10%, respectively, from the corresponding periods in the prior fiscal year. These declines were attributable to a decline in both units shipped and ASP as a result of reduced demand in the IPTV media processor market that we have experienced since the beginning of the second half of fiscal 2009 due to general economic downturn and the impact of declining ASP which was primarily caused by certain customers achieving cumulative volume pricing discounts on purchases of our products. As a result of these factors as well as the strong increase in revenue in our connected home technologies market, our revenue from the IPTV media processor market as a percentage of our total net revenue decreased by 31% and 25%, respectively, for the three and six months ended July 31, 2010 compared to the corresponding periods in the prior fiscal year
Connected home technologies: Prior to the second quarter of fiscal 2010, we referred to our connected home technologies target market as our wireless target market. We believe the connected home technologies market that we currently address with our CopperGate, Z-Wave and UWB product lines more accurately describes our target market. For the three and six months ended July 31, 2010, net revenue from sales of our products into the connected home technologies market increased $20.7 million and $41.0 million, respectively, from the corresponding periods in the prior fiscal year. These increases were primarily the result of our acquisition of CopperGate in November 2009. For the same reason, our percentage of net revenue from sales into the connected home technologies market increased to 30% and 31%, respectively, as a percentage of our total net revenue for the three and six months ended July 31, 2010. We expect revenue from our connected home technologies market to fluctuate in future periods based on changes in ASP and inventory levels at contract manufacturers who manufacture equipment incorporating our products for deployment by telecommunication providers, and competitive market pressures.
Connected media players: For the three and six months ended July 31, 2010, net revenue from sales of our products to the connected media players market increased $4.6 million, or 83%, and $0.5 million, or 2%, respectively, from the corresponding periods in the prior fiscal year. The increases were primarily attributable to an increase in units shipped partially offset by a decrease in ASP for sales of our SoCs to customers who incorporate our SoCs into digital media adapters due primarily to the timing of our customers product launches and our customers achievement of cumulative
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Sigma Designs Inc. has a market cap of $304.5 million; its shares were traded at around $9.79 with a P/E ratio of 15.1 and P/S ratio of 1.5. SIGM is in the portfolios of Chuck Royce of Royce& Associates, Paul Tudor Jones of The Tudor Group, John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Our net revenue for the three months ended July 31, 2010 increased $22.0 million, or 43%, compared to the corresponding period in the prior fiscal year. The increase was due primarily to a 123% increase in units shipped partially offset by a 36% decrease in average selling price, or ASP. Our net revenue for the six months ended July 31, 2010 increased approximately $36.0 million, or 35%, compared to the corresponding period in the prior fiscal year. This increase was primarily due to a 114% increase in units shipped partially offset by a 37% decrease in ASP across all product lines. Both the increase in units shipped and the decline in ASP for the three and six months ended July 31, 2010 were primarily the result of shipments of our CopperGate products which we added to our product line in the fourth quarter of fiscal 2010 and which have lower ASP than our media processor and VXP products.IPTV media processor: For the three and six months ended July 31, 2010, net revenue from sales of our SoC solutions, primarily our SMP8630 SoC series, into the IPTV set top box market decreased $4.0 million, or 9%, and $7.4 million, or 10%, respectively, from the corresponding periods in the prior fiscal year. These declines were attributable to a decline in both units shipped and ASP as a result of reduced demand in the IPTV media processor market that we have experienced since the beginning of the second half of fiscal 2009 due to general economic downturn and the impact of declining ASP which was primarily caused by certain customers achieving cumulative volume pricing discounts on purchases of our products. As a result of these factors as well as the strong increase in revenue in our connected home technologies market, our revenue from the IPTV media processor market as a percentage of our total net revenue decreased by 31% and 25%, respectively, for the three and six months ended July 31, 2010 compared to the corresponding periods in the prior fiscal year
Connected home technologies: Prior to the second quarter of fiscal 2010, we referred to our connected home technologies target market as our wireless target market. We believe the connected home technologies market that we currently address with our CopperGate, Z-Wave and UWB product lines more accurately describes our target market. For the three and six months ended July 31, 2010, net revenue from sales of our products into the connected home technologies market increased $20.7 million and $41.0 million, respectively, from the corresponding periods in the prior fiscal year. These increases were primarily the result of our acquisition of CopperGate in November 2009. For the same reason, our percentage of net revenue from sales into the connected home technologies market increased to 30% and 31%, respectively, as a percentage of our total net revenue for the three and six months ended July 31, 2010. We expect revenue from our connected home technologies market to fluctuate in future periods based on changes in ASP and inventory levels at contract manufacturers who manufacture equipment incorporating our products for deployment by telecommunication providers, and competitive market pressures.
Connected media players: For the three and six months ended July 31, 2010, net revenue from sales of our products to the connected media players market increased $4.6 million, or 83%, and $0.5 million, or 2%, respectively, from the corresponding periods in the prior fiscal year. The increases were primarily attributable to an increase in units shipped partially offset by a decrease in ASP for sales of our SoCs to customers who incorporate our SoCs into digital media adapters due primarily to the timing of our customers product launches and our customers achievement of cumulative
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