Sigma Designs, Inc. (Sigma Designs), a provider of integrated system-on-chip solutions, has reported net revenues of $209.2 million for the fiscal 2009, down 5%, compared with the net revenues of $221.2 million in the previous year-end. It has also reported net income of $26.4 million, or $0.95 per diluted share, for the fiscal 2009, compared with the net income of $70.2 million, or $2.46 per diluted share, in the previous year-end.
Financial Results:
Revenue for the fourth quarter of fiscal 2009 was $47.3 million and GAAP net income was $6.6 million, or $0.24 per diluted share. Non-GAAP net income in the fourth quarter of 2009 was $10.1 million, or $0.38 per diluted share. Non-GAAP adjustments for the fourth quarter of 2009 consisted of the exclusion of $0.8 million in amortization expense for acquired intangibles related to the acquisitions of Zensys Holding Corporation (Zensys), the VXP Group and Blue7 Communications and $2.7 million in non-cash share-based compensation expenses.
Non-GAAP net income for fiscal 2009 was $43.7 million, or $1.58 per diluted share, a decrease from $69.9 million, or $2.45 per share, for 2008. Non-GAAP adjustments for fiscal 2009 consisted of the exclusion of $3.0 million in amortization expense for acquired intangibles related to the Zensys, VXP and Blue7 acquisitions, $12.7 million in non-cash share-based compensation expenses and $1.6 million for the VXP acquired in-process development costs.
As of the end of the fourth quarter, the company had about 26.6 million shares of common stock outstanding and cash, cash equivalents and marketable securities totaling $192.2 million, or $7.24 per share. During the fourth quarter, total cash and investments decreased $5.1 million, principally due to two strategic investments totaling $3.0 million and the purchase of Zensys for cash. Cash generated during the quarter was about $13.2 million, principally from a reduction in net inventory and the company’s continuing profitability.
Management Comment:
“We are pleased to report a slight sequential increase in our revenue for the fourth quarter, which we feel is a sign of stabilizing demand in our primary markets. We are continuing to place every effort on bolstering sales and expanding the scope of our demand generation activities. The IPTV market is showing resiliency to the current economic turmoil and we are confident that it will continue to demonstrate strength throughout this year. We are also pursuing design activity in the cable industry and helping to drive the transition to Tru2way IP cable solutions which we believe will increase our market opportunities. We are also pushing forward with our consumer products agenda by working with a wide range of vendors for Blu-ray player designs, digital media adapter products and UWB-based devices. Additionally, we are excited about our recent acquisition of the Z-Wave® brand home control products and anticipate a growing synergy within the set-top box market,” said Thinh Tran, chairman and chief executive officer, Sigma Designs.
Fourth Quarter Highlights:
Announced and completed the purchase of Zensys, a wireless start-up developing RF transceivers for home control. During its start-up phase, Zensys developed Z-Wave, an RF solution designed to provide manufacturers with an intelligent and interoperable standard that has been incorporated into over 250 household products. The devices are implemented using a family of low-cost, low-power integrated RF transceiver chips embedded with Z-Wave, which establishes a wireless mesh network for all compatible home devices that can be controlled or monitored wirelessly.
Demonstrated an extensive range of high definition consumer technology solutions powered by the company’s system on chip (SoC) solutions at CES 2009 in Las Vegas. Solutions included industry-leading technology featured in Blu-ray players with best in class VXP® studio video quality and interactive performance; Tru2way™ DOCSIS 3.0-based set-top boxes for IP-Cable; multiple ultra-wideband (UWB)-based connectivity solutions; and Z-Wave home automation wireless technology showcased at the Z-Wave alliance pavilion.
Announced that we will integrate Adobe Flash Lite software, Adobe’s Flash Player for mobile phones and devices, into our SoC solutions for the most advanced digital television and web service capabilities in the digital home.
Announced that our SMP8634 has been selected by Blusens, a leading provider of home digital entertainment products based in Spain, as the main processing unit in the Blusens blu:brain HDTV home entertainment device.