Sigma Designs Inc. (SIGM, Financial) filed Quarterly Report for the period ended 2010-10-30.
Sigma Designs Inc. has a market cap of $387.9 million; its shares were traded at around $12.39 with a P/E ratio of 11.8 and P/S ratio of 1.9. SIGM is in the portfolios of Chuck Royce of Royce& Associates, John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Jim Simons of Renaissance Technologies LLC.
IPTV media processor: For the three and nine months ended October 30, 2010, net revenue from sales of our SoC solutions, primarily our SMP8630 and SMP8650 SoC series, into the IPTV set top box market increased $13.3 million, or 59%, and $6.0 million, or 6%, respectively, from the corresponding periods in the prior fiscal year. These increases were attributable to an increase in units shipped primarily as a result of increased shipments of our SMP8650 SoC series due to increased orders from our existing customers in the IPTV set top box market. The increase in units shipped was partially offset by a decline in ASP primarily due to certain customers achieving cumulative volume pricing discounts on purchases of our products. As a result of 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 17% and 23%, respectively, for the three and nine months ended October 30, 2010 compared to the corresponding periods in the prior fiscal year. We expect our revenue from the IPTV media processor market to fluctuate in future periods based on IPTV service deployments by telecommunication service providers, changes in inventory levels at the contract manufacturers that supply them and competitive market pressures.
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 nine months ended October 30, 2010, net revenue from sales of our products into the connected home technologies market increased $26.9 million and $67.9 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 36% and 33%, respectively, as a percentage of our total net revenue for the three and nine months ended October 30, 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 nine months ended October 30, 2010, net revenue from sales of our products to the connected media players market decreased $0.9 million, or 9%, and $0.5 million, or 2%, from the corresponding periods in the prior fiscal year. The decreases were primarily attributable to a decrease in ASP for sales of our SoCs to customers who incorporate our SoCs into digital media adapters due primarily to our customers achievement of cumulative volume pricing discounts on purchases of our products. Our revenue from the connected media players market as a percentage of our total net revenue for the three and nine months ended October 30, 2010 compared to the corresponding periods in the prior fiscal year decreased by 16% and 8%, respectively, primarily as a result of the increase in revenue from our connected home technologies market.
Prosumer and industrial audio/video: For the three and nine months ended October 30, 2010, net revenue from sales of our products into the prosumer and industrial audio/video market increased $3.2 million, or 183%, and $5.6 million, or 114%, respectively, from the corresponding periods in the prior fiscal year. The increases were attributable to an increase in units shipped primarily due to strengthening demand from our existing customers and our continued effort to expand into this market. Our revenue from sales into the prosumer and industrial audio/video market as a percentage of total net revenue increased by 1%, for the three and nine months ended October 30, 2010 compared to the corresponding periods in the prior fiscal year.
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Sigma Designs Inc. has a market cap of $387.9 million; its shares were traded at around $12.39 with a P/E ratio of 11.8 and P/S ratio of 1.9. SIGM is in the portfolios of Chuck Royce of Royce& Associates, John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Our net revenue for the three months ended October 30, 2010 increased $42.3 million, or 119%, compared to the corresponding period in the prior fiscal year. The increase was due primarily to a 256% increase in units shipped partially offset by a 38% decrease in average selling price, or ASP. Our net revenue for the nine months ended October 30, 2010 increased $78.3 million, or 57%, compared to the corresponding period in the prior fiscal year. This increase was primarily due to a 151% increase in units shipped partially offset by a 37% decrease in ASP across all product lines. The increase in units shipped for the three and nine months ended October 30, 2010 was primarily the result of shipments of our CopperGate products which we added to our product line in the fourth quarter of fiscal 2010 and increased shipments of our IPTV media processor due to increased orders from our existing customers in the IPTV set top box market. The decline in ASP for the three and nine months ended October 30, 2010 was primarily the result of shipments of our CopperGate products which have lower ASP than our media processor and VXP products.IPTV media processor: For the three and nine months ended October 30, 2010, net revenue from sales of our SoC solutions, primarily our SMP8630 and SMP8650 SoC series, into the IPTV set top box market increased $13.3 million, or 59%, and $6.0 million, or 6%, respectively, from the corresponding periods in the prior fiscal year. These increases were attributable to an increase in units shipped primarily as a result of increased shipments of our SMP8650 SoC series due to increased orders from our existing customers in the IPTV set top box market. The increase in units shipped was partially offset by a decline in ASP primarily due to certain customers achieving cumulative volume pricing discounts on purchases of our products. As a result of 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 17% and 23%, respectively, for the three and nine months ended October 30, 2010 compared to the corresponding periods in the prior fiscal year. We expect our revenue from the IPTV media processor market to fluctuate in future periods based on IPTV service deployments by telecommunication service providers, changes in inventory levels at the contract manufacturers that supply them and competitive market pressures.
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 nine months ended October 30, 2010, net revenue from sales of our products into the connected home technologies market increased $26.9 million and $67.9 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 36% and 33%, respectively, as a percentage of our total net revenue for the three and nine months ended October 30, 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 nine months ended October 30, 2010, net revenue from sales of our products to the connected media players market decreased $0.9 million, or 9%, and $0.5 million, or 2%, from the corresponding periods in the prior fiscal year. The decreases were primarily attributable to a decrease in ASP for sales of our SoCs to customers who incorporate our SoCs into digital media adapters due primarily to our customers achievement of cumulative volume pricing discounts on purchases of our products. Our revenue from the connected media players market as a percentage of our total net revenue for the three and nine months ended October 30, 2010 compared to the corresponding periods in the prior fiscal year decreased by 16% and 8%, respectively, primarily as a result of the increase in revenue from our connected home technologies market.
Prosumer and industrial audio/video: For the three and nine months ended October 30, 2010, net revenue from sales of our products into the prosumer and industrial audio/video market increased $3.2 million, or 183%, and $5.6 million, or 114%, respectively, from the corresponding periods in the prior fiscal year. The increases were attributable to an increase in units shipped primarily due to strengthening demand from our existing customers and our continued effort to expand into this market. Our revenue from sales into the prosumer and industrial audio/video market as a percentage of total net revenue increased by 1%, for the three and nine months ended October 30, 2010 compared to the corresponding periods in the prior fiscal year.
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