SIGM
PERIOD ENDING ....2-Feb-08 3-Nov-07. 4-Aug-07 .5-May-07
Retained Earnings .3,587.. (31,717) .(52,667) .(61,255) <---
Total Revenue ....76,398.. .66,244... 42,548 ...36,016 <====
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Sale(buy) Stock... 3,319 ..201,937 . 2,588 ... 1,574
Net Borrowings ......0...... (133).....(56)......(24) <----
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Qtrly Revenue Growth (yoy):. 144.60% <------xlnt
Qtrly Earnings Growth (yoy): 660.50% <-------xlnt
Total Debt (mrq):................ 0 <-----xlnt
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Shares Short (feb08): 10.56M
Shares Short (as of 26-Mar-08): 10.75M
Short % of Float (as of 26-Mar-08): 41.50% <<=========SHORTS
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Trailing P/E (ttm, intraday): 7.66 <----
Price/Sales (ttm): 2.19 <---
Price/Cash Flow (TTM): 6.60 <-----------------
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Sigma Designs, Inc. operates as a fabless provider of integrated
system-on-chip solutions (SoC) that offer digital media processing
solutions for consumer entertainment products primarily in Asia, Europe,
and North America. It offers semiconductors with a suite of real-time
software that enables synchronous processing of video, audio, and
graphics streams for various applications; and software available under
Microsoft WinCE and Linux operating systems with sup****t for
applications, such as Internet protocol (IP) video streaming, video-on-
demand, DVD navigation, personal-video-recording, multi-window video, and
terrestrial broadcast reception. The company's products include digital
media processor SoCs, ultra-wideband dual chip solutions, and dual
channel image processors that are used for applications in IPTVs, Blu-ray
players/recorders, digital media adapters, personal computers and
peripherals, high definition TVs, and audio-video receivers. It also
provides software elements, such as multimedia library that performs
video decoding, graphics acceleration, display output, audio decoding,
trans****t demultiplexing, and sample playback applications; security
management software for protecting the application incor****ating SoC and
the digital content processed through the application from external
attack; and ****ting adaptations, which includes operating system kernel,
peripheral hardware drivers, and a bootloader that contains system
initialization and related utilities. In addition, the company offers PC-
based solutions, under the NetStream and REALmagic Xcard
brand names, that are sold into the commercial streaming and PC add-in
markets. It sells its products to designers and manufacturers, as well as
to distributors. The company was founded in 1982 and is headquartered in
Milpitas, California.
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www.sec.gov/sigm = http://tinyurl.com/5vk5ns
-------------FROM THE 10K ANNUAL RE****T-----------
IPTV is emerging as an im****tant consumer multimedia application as it
allows telecommunications carriers to deliver advanced video services to
consumers using existing telecommunications infrastructure. These
carriers are actively pursuing the deployment of IPTV because it enables
them to offer attractive video, voice and data, or triple play, services
and increase their revenue per subscriber. According to Infonetics
Research, the worldwide IPTV subscriber base is expected to grow from
12.7 million in 2007 to 97.2 million in 2011, representing a compound
annual growth rate of 66%
..
According to research firm iSuppli, 6.6 million Blu-ray players will ****p
this year, rising to 17.4 million in 2009, 28.7 million in 2010 and 45.4
million in 2011 (© 2008 by Investor’s Business Daily, Inc. Reprinted with
permission). These devices have previously been based on two standards,
Blu-ray and high definition DVD. However, since To****ba, as the primary
proponent of HD-DVD, has withdrawn its sup****t for that standard, Blu-ray
is now considered by many the only viable standard for high definition
DVD players moving forward.
..
we are currently the only provider qualified to ****p digital media
processing solutions based on the Microsoft IPTV platform
..
For the year ended February 2, 2008, MTC Singa****e, Uniquest and Macnica
accounted for 23%, 19% and 12%, respectively, of our net revenue. For
fiscal 2007, Freebox and Uniquest accounted for 20% and 17%,
respectively, of our net revenue. For fiscal 2006, Uniquest accounted
for 26% of our net revenue. Our distributor customers, such as Macnica
and Uniquest, in turn sell our products to multiple designers and
manufacturers that produce our target applications.
Substantially all of our product ****pments are to customers outside of
North America. In fiscal 2008, 2007 and 2006, ****pments to customers
outside of North America accounted for 95%, 89% and 88% of our net
revenue, respectively. Revenue from our customers in Asia accounted for
69%, 53% and 82% of our net revenue in fiscal 2008, 2007 and 2006,
respectively.
..
our competitors include AMD (ATI Technologies), Analog Devices, Broadcom,
Conexant Systems, Genesis Microchip, Mediatek, NXP Semiconductors,
Pixelworks, ST Microelectronics, Texas Instruments and Tzero.
..
Included in our marketable securities ****tfolio at February 2, 2008 were
auction rate securities that we purchased for $43.9 million. These
securities have failed to trade at recent auctions due to insufficient
bids from buyers. If these auctions continue to fail and the credit
ratings of these investments deteriorate, the fair value of these auction
rate securities may decline and we may incur impairment charges in
connection with these securities, which would negatively affect our
re****ted earnings cash flow and financial condition
..
We currently lease an approximately 66,000 square foot facility in
Milpitas, California that is used as our headquarters. The lease on this
facility commenced on June 30, 2007 and will expire in September 2012.
Our former lease of approximately 40,000 square feet in Milpitas,
California expired in September 2007 and our headquarters were relocated
to the new facility. We also lease facilities for a sales office and
warehouse in Hong Kong and a research and development office in France
and in ****tland.
..
In May 2007, the IRS began an employment tax audit for our fiscal 2004
and 2005. The Company has also requested that fiscal 2006 be included in
this audit cycle. The focus of the IRS employment tax audit relates to
tax issues connected to our granting stock options with exercise prices
per share that were less than the fair market value per share of the
common stock underlying the option on the option's measurement date for
financial re****ting purposes. The IRS has not yet proposed any tax
deficiency, interest or penalty amounts in respect of these audits.
In August 2007, the IRS began an income tax audit for our fiscal 2005.
The IRS has not yet proposed any tax deficiency, interest or penalty
amounts in respect of this audit.
..
In October 2007, we completed a follow-on public offering in which we
sold and issued 4,600,000 shares of our common stock at an issue price of
$46.00 per share
..
IPTV: For fiscal 2008, revenue from sales of our SoC solutions into the
IPTV market increased $102.6 million, or 167%. This was in part
attributable to our customers in the IPTV market continuing to increase
sales of their products that incor****ate our SoCs, primarily our SMP8630
SoC series. Our revenue from the IPTV market as a percentage of our
total revenue for fiscal 2008 as compared to fiscal 2007 increased by 7%
..
For fiscal 2008, revenue from sales of our products to the high
definition DVD and other media players market increased $24.4 million, or
99%, from fiscal 2007. This increase was primarily attributable to
increased sales volume of our customers’ products incor****ating our SoCs,
including an increase in Blu-ray and digital media adapter applications.
However, for this period our percentage of net revenue from sales into
the high definition DVD and other media players market decreased 5% as a
percentage of our total revenue, primarily due to a dispro****tionate
increase in the sales of our products into the IPTV market. For fiscal
2007, revenue from sales of our products to the high definition DVD and
other media player market increased $13.5 million, or 120%, from fiscal
2006. This increase was primarily attributable to increased sales of our
customers’ products, including an increase in Blu-ray and digital media
adapter applications. However, for this period our percentage of net
revenue from sales into the high definition DVD and other media players
market decreased 7% as a percentage of our total revenue, primarily due
to a dispro****tionate increase in the sales of our products into the IPTV
market.
..
On August 12, 2005, we entered into a Loan and Security Agreement, or the
Loan Agreement, with United Commercial Bank. On August 30, 2007, we paid
off the balance owed and terminated the Loan Agreement. As of February
2, 2008, we have no outstanding debt.
..
On February 16, 2006, the Company completed the acquisition of Blue7 for
$11.9 million. Blue7's results of operations are included in the
Company’s statement of operations from the acquisition date. Prior to
the acquisition, the Company held approximately 17% of the outstanding
shares of Blue7 and provided loans totaling $900,000 to Blue7. Blue7
focuses on the development of advanced wireless technologies and Ultra-
Wideband (UWB) semiconductor products.
As of February 2, 2008 and February 3, 2007, goodwill of $5.0 million was
re****ted in connection with the February 2006 acquisition of Blue7
..
On February 11, 2008, the Company announced that it had completed the
acquisition of certain assets of the VXP® Image Processing business from
Gennum Cor****ation. The Company acquired assets of the VXP group
including, but not limited to, products and intellectual property. Forty
four employees joined the Company as part of the purchase. The Company
made a cash payment of $18.2 million for the acquisition and assumed
specified liabilities
..
On February 20, 2008, the Company entered into a lease agreement for a
15,000 square foot facility in Burlington, Ontario, Canada. This lease
will commence on June 1, 2008 and expire on May 31, 2018.
..
On March 5, 2008, the Company and plaintiffs reached an agreement to
settle shareholder derivative litigation that had been filed in
connection with historic stock-option grants. The settlement will result
in dismissal of both federal and state derivative lawsuits. The
agreement does not contain any admission of fault or wrongdoing on the
part of the Company or the individual defendants and all amounts due
under this settlement agreement had been accrued as of February 2, 2008.
The settlement is subject to execution of definitive settlement do***ents
and approval by the United States District Court for the Northern
District of California.
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http://stockcharts.com/charts/gallery.html?sigm
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WOW! this stock has just taken a long step off a steep cliff!
it's found firm sup****t on it's 5yr SMA, yet below the EMA
FIRM SUP****T: 6YR SMA at $15, the low legdown of $15.31 will be tested
where the short sellers will begin to buy to cover
Short % of Float (as of 26-Mar-08): 41.50% <<=========SHORTS
RESISTANCE : will become $20 in the nearterm[1yrma] $25 longer term
[2yrma]
might be waiting on resolution of IRS audit
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