|To: DELT1970 who wrote (833)||11/26/2003 12:10:53 PM|
|"Sigma Designs Inc. (NasdaqNM:SIGM - News) sank Wednesday after delays in a customer order caused the Milpitas, Calif., company to miss Wall Street expectations for the third quarter.|
Sigma, which provides digital video encoding and decoding for the personal- computer DVD market, late Tuesday reported earnings of a penny a share, three cents shy of the mean estimate of only two analysts surveyed by Thomson First Call (News - Websites) . The company lost five cents a share in the year-earlier period.
In a research note Wednesday, Needham & Co. analyst Anton Wahlman said he believes a major customer in Europe postponed its order deliveries for an unknown reason. Sigma's third-quarter revenue of $7.5 million fell shy of Mr. Wahlman's estimate of $8.8 million in sales.
Mr. Wahlman, however, said he still has confidence in the business and believes the day's selloff will provide a buying opportunity for investors.
The analyst, who maintained a "hold" rating on the stock, said he is still concerned with the company's near-term revenue "lumpiness," coming from an expected seasonal weakness in Europe.
As a result, Mr. Wahlman is lowering his fourth-quarter earnings per-share estimate to three cents from six cents, and his full-year projection to eight cents from 14 cents. The analyst doesn't own shares in Sigma, but Needham has an investment-banking relationship.
Sigma believes the revenue and earnings shortfall due to the order delay is an "anomaly," said Chairman and Chief Executive Thinh Tran in a late Tuesday conference call transcript provided by CCBN StreetEvents.
The order, which Mr. Tran characterized as significant, was recorded in the fourth quarter.
At about 10:45 a.m. EST, Sigma was down $1.26, or 17%, at $6.07, on volume of 2.2 million shares. Average daily volume is 498,500 shares.
Many consumer-electronics and digital-subscriber-line and cable set-top box makers are expected to adopt MPEG-4 encoding for high-definition television, and Needham's Mr. Wahlman said Sigma could obtain a strong market share in the segment.
In the long run, Sigma is poised to be the leader in the MPEG-4 business, which Mr. Wahlman said could be a billion dollar market in 2005.
The analyst said he would be interested in revisiting his "hold" rating if the market capitalization fell to about $100 million. Based on its recent trading price of $6.07, the stock has a market cap of $123.4 million.
Among its encoding chips for digital video disc players, Sigma saw competition in its low-end DVD market, Mr. Tran said in the call. He acknowledged there were some small price concessions made, but noted the company tends to focus more on the high-end market.
During the same conference call, Chief Financial Officer Kit Tsui said he believes demand for advanced and portable DVD players will increase next year, and noted Sigma has a strong position providing chip sets for the players."
-By Roger Cheng, Dow Jones Newswires; 201-938-5393; firstname.lastname@example.org
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|To: DELT1970 who wrote (834)||1/3/2004 9:49:41 AM|
|From: D. K. G.|
|Sigma Designs (SIGM-NNM)|
by Capstone (6.18, Dec. 23)
Strong Buy. Strong long-term growth strategy. The company is a market leader in sectors of the burgeoning digital-media market. Sigma holds a 75% market share in the IP Video market, which is expected to reach 14 million units in 2006. Its line of semiconductors have won many key accounts recently, including being chosen by Microsoft, for sole use in MSTV, and Sony, to provide decoding for three of Sony's new Plasma Wega line of HDTVs...Sigma doesn't compete on price; it differentiates its DVD products through features that appeal to enthusiasts. The enthusiast market is expected to be around 10% of the total DVD market of approximately 120 million units per year in 2006. Sigma will be first to market with the coming introduction of its new chip, which will be able to decode the Windows Media standard.
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|From: Bob A Louie||8/27/2005 12:37:04 PM|
|SIGM set-top IPTV player|
Tristan Gerra, the Baird analyst that, like Roth, has a $15 price target on the stock, is out with a new report. The following is from Gerra’s report.
SBC Communications announced yesterday it has chosen Scientific-Atlanta and Motorola to deliver next-generation video-on-demand and IP TV services as part of SBC's Project Lightspeed. The set-top boxes will operate Microsoft's TV IP TV Edition software. SBC is planning on an initial rollout late 2005 or early 2006 using Motorola set-top boxes, with a more broadbased rollout beginning mid-2006 featuring DVR and HD capabilities using both Scientific Atlanta and Motorola's set-top boxes.
Sigma's Win At SFA And MOT Set-Top Boxes.
We continue to believe that Sigma Designs' advanced H.264/VC-1 SMP8634 decoder is designed in both SFA and Motorola set-top boxes, and we believe these wins could be announced soon. We expect a meaningful revenue ramp for Sigma Designs in the first half of calendar 2006, specifically in association with the introduction of Project Lightspeed's high-definition capabilities.
The SMP8634, The Only Decoder Optimized To Run With Microsoft's IPTV Software.
Importantly, we believe that Sigma's SMP8634 is the only decoder optimized to run with Microsoft's IPTV software. The Microsoft interface supports VC-1 decoding, which is part of Sigma Design's chip and should be a technology central to the deployment of video-on-demand services. The SMP8634 supports other features of Microsoft's IPTV software including multiple streaming including two at high-definition, and multiple DRM engines. The fact that the Motorola and Scientific-Atlanta set-top boxes will operate Microsoft's TV IPTV Edition software is a positive for Sigma beyond the first rollout wave in our view, given the strong relationship between the two companies. This has been and remains a major hurdle for Sigma Designs' competitors, in our view.
Second-Half Drivers Include DMAs, IPTVs, And DTVs.
In the second half of this year, catalysts for Sigma include digital media adapters, IP TV trial deployments in Europe and in Asia, and ramp into digital TVs. We also expect tier-one OEMs to showcase high-definition DVD players at next CES featuring Sigma's advanced decoders.
SBC's announcement, combined with Sigma's announcement yesterday that its SMP8634 advanced decoder is currently sampling and is slated for volume production in November of this year, should provide investors with a more concrete timetable for Sigma's participation in the deployment of IPTV services worldwide and in SBC's Project Lightspeed. We are reiterating our $15 price target and our Outperform rating on SIGM shares.
IP TV More Than Just TV Over The Internet: The Era Of Interactive TV.
IP TV offers limitless channels with no bandwidth limitations, interactive applications, and personalized guides/options. Unlike cable and satellite, an IP set-top box plugs into a home digital network, enabling the management of video content on the PC, TV, and across multi-room personal video recorders (PVRs.) With IP TV, interactive guides and navigation can be personalized to different users, similar to profiles on Windows XP, with search functions enabling customers to locate the content they want to watch. IPTV services will also offer integrated services including gaming, caller ID on set-top boxes, on-screen notification, TV-based email, address books, billing, video surveillance, customer services, as well as features enabling consumers to integrate their own video and audio content.
We believe the IP TV infrastructure is now largely in place. Costs of streaming, storing, and accessing content have come down. A 2004 Parks Associates study showed that 65% of respondents would switch to IPTV if it saved them money, with the option of purchasing TV channels "a la carte" a second reason for switching. Globally, there were 1.9 million IPTV viewers in 2004, growing to 25 million viewers by 2008, per industry estimates.
Sigma Designs, Pioneer And Leader Into The IPTV Market.
Sigma Designs currently has a leading market share position (above 50%) in the rapidly-growing IP set-top box market worldwide. We believe the company, as a pioneer and leader in IP TV services, is very well positioned to benefit from the pending deployment of HD IPTV services. While competition from Broadcom and STMicroelectronics should materialize starting in the second-half of 2006, in our view, we believe that the market size opportunity of IP TV, combined with Sigma's world-class video engineering team and first-entrant status on the market, should enable the company to sustain strong growth beyond 2006 as it retains a significant market share of the market.
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|From: JakeStraw||2/1/2007 11:59:30 AM|
|Japan's Leading Internet Video on Demand GyaO Service From USEN Embraces New Home TV Application|
Thursday February 1, 8:00 am ET
USEN's GyaO Plus Developed by I-O DATA DEVICE and Powered by Sigma Designs' Media Processors
SAN JOSE, Calif.--(BUSINESS WIRE)--I-O DATA DEVICE, INC., a worldwide distributor of PCs and consumer electronics, today announced the GyaO Plus, a "TV connected PC" that can be connected to the GyaO Internet Video on Demand (VOD) free service operated by USEN CORPORATION. GyaO Plus comes with a ten foot interface remote controller and makes it easy for all consumers to access GyaO Internet content on their TV, anytime. Initially available online at tv.gyao.jp, the GyaO Plus has a suggested retail price of Yen 24,800 ($234 USD) which includes all tax, shipping and handling costs.
I-O DATA DEVICE, INC. co-developed GyaO Plus with USEN CORPORATION, I-O DATA DEVICE USA, INC. and Sigma Designs, Inc. The product offering is part of the USEN Group's evolution into a "Media Contents Company" which officially began in 2005 when GyaO became Japan's brand new broadcasting service for the PC. Today, approximately 13 million users enjoy GyaO Internet, TV, movie and music content free of charge as the service is fully operated by advertising revenue.
"We are pleased to work with USEN to help bring the company's GyaO customers, including non-PC holders, a new and exciting free Internet content offering," said Jack Akita, director of business development of I-O DATA DEVICE USA, INC. "The GyaO Plus TV connected PC will strengthen our already number one place in the market three years running with the LinkPlayer series of digital media adapters also powered by Sigma Designs' media processors."
"Our media processors have become the de facto standard for use in consumer electronics products worldwide," said Ken Lowe, vice president of strategic marketing, Sigma Designs. "With the rise in demand for connecting content between the PC to the TV in home consumer electronics, our breadths of technologies offer consumer equipment vendors and service companies a complete development platform for a whole new generation of products."
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|From: Paul Lee||3/14/2008 8:00:58 AM|
|Sigma Designs: Searching For The Bottom|
Posted by Eric Savitz
Sigma Designs (SIGM) shares certainly are having a bad day; but what’s really astonishing is just how much the stock has fallen in the last three months. Since early December, the stock has dropped 70%. This despite the fact that the company remains a dominant chip supplier in both of its key markets: IPTV set-top boxes and Blu-Ray players.
The biggest concern in both cases has been a fear of growing competition. In IPTV, the company has had a near monopoly in chips for the Motorola (MOT) boxes used in AT&T’s U-verse television service, which it has been rolling out aggressively. The stock took a big hit in early January when Broadcom announced that it was being evaluated by Microsoft (MSFT), which makes the IPTV software on which AT&T U-verse is built, as potential competitor for IPTV set-tops. While the company should benefit from the recent news that Blu-Ray has finally knocked out HD-DVD as the industry wide standard for high-def DVDs, it has provided no help for the stock.
Yesterday, the big news was a warning on FY Q1 revenues, which will come in way short due to previous over-ordering by Motorola, which apparently over-estimated the demand for IPTV boxes from AT&T (T). The company said things should normalize later in the year, but investors seem not entirely convinced. The news also raises another obvious question: did Motorola simply produce too many boxes, or is demand or is AT&T rolling out U-verse a little slower than it had expected? Actually, there is another answer, analysts say: AT&T is using Cisco’s (CSCO) Scientific Atlanta unit as a second-source.
N. Quinn Bolton, an analyst at Needham, notes that there are couple of other concerns, as well. One is that gross margin in the fourth quarter fell sharply. Another is that, despite SIGM’s promises, it could take longer than expected to work through the extra box inventory at Motorola. He also says that based on management’s estimates that the overall market this year will be 14 million IPTV STBs and 5 million Blu-Ray players, you get a total addressable market of $342 million. That makes management’s estimate of revenue for the January ‘09 fiscal year of $300 million to $350 million “aggressive,” Bolton says.
Tristan Gerra, an analyst with Robert W. Baird, advises staying out of the stock “until we get more visibility about the timing of a return to normal orders patterns in IPTV, as well as an update on potential new developments regarding the competition landscape.” He cut his target on the stock to $30 from $50.
Other analysts are more optimistic, though most cut targets:
RBC Capital’s Mark Sue cut his target to $30 from $35. He maintains his Outperform rating, but says that “the outlook is not pretty.”
UBS’ Uche Orji keeps his Buy rating, but cuts his target to $48 from $75. He blames the MOT issue on AT&T’s ramp up of Scientific Atlanta set-tops.
Roth Capital’s Jay Srivatsa keeps his Buy rating, but cuts his target to $45 from $58. He says the stock is cheap, with $6.91 a share in cash and no debt, and trading at just 10x FY 2010 estimates.
ThinkEquity’s Anton Wahlman likewise maintains his Buy rating. He snipped his target to $73 from $74. “Fundamentally, the story continues unchanged, in the sense that it keeps getting better and better,” he writes. Hard to believe he is writing about the same stock as everyone else.
Sigma Designs today is down $4.04, or 16%, at $21.22.
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|From: Paul Lee||3/31/2008 12:08:25 PM|
|Sigma's Media Processor Is Selected to Power the Comcast/Panasonic Unique AnyPlay(TM) Portable DVR|
Monday March 31, 9:01 am ET
MILPITAS, Calif.--(BUSINESS WIRE)--Sigma Designs (Nasdaq:SIGM - News), a leader in digital media processing System-on-a-Chip Solutions (SoCs) for consumer electronics, today announced that its highly integrated EM8622L media processor was selected by Panasonic (NYSE:MC - News), the market leader in high-end portable DVD players and Plasma HDTVs, to power the new AnyPlay™ P-DVR being jointly developed with Comcast Corporation (Nasdaq: CMCSA - News, CMCSK - News), the nation's leading provider of entertainment, information and communications products and services.
The Comcast/Panasonic co-branded AnyPlay P–DVR Model TZ-LC100 is the industry’s first portable DVR player powered by tru2way™ technology and will allow Comcast cable customers to record programming at home and take it with them wherever they go. Powered by Sigma’s EM8622L, the AnyPlay P-DVR incorporates digital video recording functionality into a Panasonic portable DVD player platform and features 60GB of digital video recording capacity, an 8.5” folding LCD display screen, and integrated stereo speakers. Dual audio headphone jacks are included to support personal viewing. Comcast and Panasonic announced at CES 2008 that the P-DVR will be available beginning in early 2009.
“We’re pleased that Sigma’s advanced EM8622L SoC is powering the video processing of such an innovative Panasonic product,” said Ken Lowe, VP of strategic marketing at Sigma Designs. “This announcement highlights the breadth of consumer electronics products powered by Sigma from HDTVs and Blu-ray Disc players in the living room to mobile devices that can offer consumers the best video experience everywhere they go.”
“We’ve been pleased to work with Sigma Designs while developing the portable DVR platform,” said Dr. Paul Liao, Chief Technology Officer, Panasonic Corporation of North America, the principal North American subsidiary of Matsushita Electric Industrial Co., Ltd. (NYSE: MC - News). “The company’s chips enable our product to give customers a reliable and sharp, crisp video viewing experience wherever and whenever they want it.”
When placed onto a companion docking station that functions as a standard DVR set-top box, the AnyPlay P-DVR lets viewers watch and record their favorite television programs from their television sets. However, unlike a traditional set-top box, it can be taken out of its docking station, so recorded programs can be watched anywhere in or out of the home on the AnyPlay P-DVR. It also can play back DVDs and audio CDs.
About Sigma SoCs
Sigma provides advanced media processor silicon and software that constitute a system-on-a-chip (SoC) solution for designing HDTVs, IPTV set-top boxes, Blu-ray Disc players, Digital Media Adapters (DMA), portable and mobile devices, enabling customers to focus on software development and value-added features that extend far beyond basic operations. The next-generation technology contained in Sigma’s EM8622L media processor enables consumer electronic devices to offer stunning, precise pictures and remarkably beautiful sound as well as intelligent interactive features.
About Sigma Designs, Inc.
Sigma Designs is a leading fabless provider of highly integrated system-on-chip, or SoC, solutions that are used to deliver multimedia entertainment throughout the home. Sigma’s SoC solutions combine its semiconductors and software and are a critical component of multiple high-growth, consumer applications that process digital video and audio content, including internet protocol TV, or IPTV, high definition DVD players, high definition TVs, or HDTVs, and portable media players. Headquartered in Milpitas, Calif., Sigma Designs also has sales representatives in the United States, Belgium, China, Japan and Taiwan and sells its products through a third-party distributor in Korea. For more information, please visit Sigma Designs’ web site at www.sigmadesigns.com.
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|To: Paul Lee who wrote (841)||3/31/2008 12:14:49 PM|
|From: Paul Lee|
|Sigma aims for upper end of sales forecast|
Fri Mar 28, 2008 4:49am EDT
By Jennifer Tan
SINGAPORE (Reuters) - U.S. chipmaker Sigma Designs Inc (SIGM.O: Quote, Profile, Research) may reach the upper end of its $300-$350 million revenue forecast for the fiscal year ending January 2009, thanks to new customers in Internet-Protocol television
Sigma, which competes with Broadcom Corp (BRCM.O: Quote, Profile, Research) and STMicroelectronics (STM.PA: Quote, Profile, Research), makes chips that are used in set-top boxes which allows users to watch TV shows over the Internet, and Blu-ray high-definition DVD players.
"To get to $300 million is conservative expectations for a lot of people -- getting to $300 million does not seem to be a very big leap of faith," Sigma Vice President Ken Lowe told Reuters in a telephone interview on Friday.
"To get to the next level -- $350 million -- means we've got some market developments going on, means we've got some new customers we need to bring online. If new customers come online, we obviously have an opportunity to go above the 300 level."
Lowe added that Sigma expects to sign on "a handful" of IPTV customers later this year, and was in talks with France Telecom (FTE.PA: Quote, Profile, Research), U.S-based Verizon Communications Inc (VZ.N: Quote, Profile, Research) and India's Reliance Communications (RLCM.BO: Quote, Profile, Research).
"We see a strong year for IPTV -- we see unit volumes continuing to increase in each of the continents," he said.
"France is the strongest by far in Europe, AT&T (T.N: Quote, Profile, Research) in North America, and Korea is leading the pack in Asia Pacific."
Sigma, with a market value of nearly $700 million, derives more than 70 percent of group revenues from the IPTV segment and about 15 percent of sales from Blu-ray players.
Industry shipments of IPTV set-top boxes are expected to surge 75 percent to 14 million units in 2008 from last year, while Blu-ray players are likely to jump five-fold this year, according to company estimates.
Blu-ray technology recently won out over rival format HD DVD in a battle to become the next generation industry standard, a move analysts expect to spur a jump in demand for Blu-ray players.
Sigma holds about 80 percent of the global IPTV chipset market, while its share for Blu-ray stand-alone players is about 75 percent.
"We continue to believe that Sigma is well-positioned to benefit from accelerating deployments of IPTV worldwide. Blu-ray should also become an important revenue contributor in the second half of the year, driven by seasonality and increased availability of low-cost players from Chinese and Taiwanese manufacturers," said UBS Investment Research analyst Uche Orji in a recent client note. He has a buy call on the stock.
Earlier this month, Sigma reported fourth-quarter earnings that slightly missed Wall Street estimates, due to a drop in its gross margins, and forecast a sequential decline in first-quarter revenue. It said it expects the sequential revenue growth to resume in the second quarter.
In the fourth quarter, the company's net income jumped to $35.3 million from $4.6 million a year ago. Gross margins fell to 49 percent in the quarter, from 51.3 percent a year ago.
Lowe said he expected gross margins to remain in the 50 percent range as the company focuses on advanced chips with new features and on lowering the cost of production.
Sigma's shares have lost nearly 60 percent in the last three months.
(Editing by Jan Dahinten and Lincoln Feast)
SIGM.O-E for stories on Sigma
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|From: Paul Lee||4/16/2008 6:36:26 AM|
|NAB 2008 Serves as Successful Launch Pad for Sigma's Next Generation IPTV Media Processor|
Wednesday April 16, 6:00 am ET
Sigma feels well positioned to maintain its leadership position and future revenue goals
LAS VEGAS--(BUSINESS WIRE)--Sigma Designs (Nasdaq:SIGM - News), a leader in digital media processing SoCs for consumer electronics, today announced the successful demonstration and customer reception of its new SMP8654 media processor system-on-chip (SoC) at this week’s NAB show. Sigma demonstrated the power of the new SMP8654 running the Microsoft Mediaroom client in a side by side showing of the only other SoC to publicly demonstrate its Mediaroom support, Sigma’s own SMP8634.
“We are very pleased with the response we received at NAB and for the rapid adoption by the industry of our new generation media processor, the SMP8654,” said Ken Lowe, vice president of strategic marketing. “Based on initial feedback that we have received, we believe the combination of the SMP8654’s performance, its wealth of legacy IPTV software, and demonstrated support as a Microsoft Mediaroom platform will propel it quickly into deployments while other next generation chips struggle to achieve a shippable solution. As the clear leader in the IPTV market, now offering perhaps the industry’s best price/performance product, we feel confident that we remain on track to achieve our goal of $300 million in revenue for this fiscal year.”
The SMP8654 is a new generation media processor SoC that integrates a complete complement of next-generation capabilities, including a multi-core architecture that can provide a 50% increase in performance while reducing sub-system costs by around 30 percent compared to its predecessor, Sigma’s industry leading SMP8634. The SMP8654 comes with a legacy of software compatibility that enables set-top box customers to rapidly move into production and build on the capabilities established in their previous generation products. Sigma also announced a collaboration to enable the Microsoft Mediaroom™ Internet Protocol Television (IPTV) and multimedia platform to operate on next-generation set-top boxes using the new Sigma SMP8654 SoC.
As a demonstration of the rapid success of this new SoC, Sigma’s SMP8654 has already received endorsements and planned developments from many of the world’s largest set-top box providers, including UT Starcom, Tatung, Netgem, and Celrun.
About Sigma’s SMP8654 System-on-a-Chip Solution
Sigma’s SMP8654 media processor integrates a complete complement of next-generation capabilities for a single-chip system-on-chip (SOC) solution with a multi-core architecture, powerful multimedia processing, robust content security system, and a full complement of peripherals. The SMP8654 features a powerful 500-Mhz Mips host CPU, a second processor called the IPU for offloading burdensome real-time tasks, and a third processor dedicated to managing security functions. Its advanced decoder engines support high definition video decoding of H.264 (MPEG-4 part 10), Windows Media® Video 9, VC-1, MPEG-2 and MPEG-4 (part 2), the new AVS standard, and can support up to 16 independent streams on screen in different formats. High-performance graphics acceleration, multi-standard audio decoding, advanced display processing capabilities, and HDMI 1.3 output round out its multimedia core. Powerful content security is ensured through a dedicated secure processor, on-chip flash memory, and a range of digital rights management (DRM) engines for high-speed payload decryption. Additional functions include dual 32-bit DDR-2 memory controllers, dual Gigabit Ethernet controller, dual USB 2.0 controller, NAND flash controller, and SATA controller provide for a single-chip solution for most set-top boxes and consumer players.
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