Big Designs for Sigma at Upcoming CES

Includes: MRVL, RVSN, SIGM
by: Shlomi Cohen

In general, at the upcoming Consumer Electronics Show - CES - in Las Vegas (January 6-9, 2011), the attention of the telephone device sector will turn from iPhone imitators to LTE fourth generation devices, which will be launched there for the first time.

The LightReading website counts nine LTE networks which are operating commercially in the US, Europe, and Japan. Their subscribers still do not have specialized phones that work on LTE networks, just what are called "dongles", which connect to USB ports to allow LTE surfing through mobile computers.

The CEO of Verizon (NYSE: VZ), which began to operate its LTE network this month, promised that already at the Las Vegas show LTE devices will be unveiled, apparently by Motorola (MOT) and Korean companies Samsung (OTC:SSNLF) and LG (OTC:LGERF) .

Among the companies whose shares I own in my portfolio tracked by "Globes", Intel (NASDAQ:INTC) will leverage Las Vegas to boost its new processors family called Sandy Bridge, by revealing its full results, and computer makers who are rivals of Apple (NASDAQ:AAPL) are expected to launch tablet computers, powered by Intel's Atom processors, to compete with iPads.

Other chip companies like Marvell Technology Group (Nasdaq: MRVL) and SanDisk Corporation (Nasdaq:SNDK) are expected to release new products. Among the smaller companies in my portfolio, I expect very interesting launches from Sigma Designs.

Sigma-- with the help of Israeli firm CopperGate, which it bought at the end of 2009-- is set to launch complex chips in Las Vegas that are geared to providing advanced solutions for entertainment, communications, and control for the future digital home. As of now they are widely used only in the small niche of WiFi communication.

I assume that the Las Vegas show will be the first public forum to unveil solutions developed in the past year on the basis of Sigma's merger with CopperGate. The merger was considered a success. We'll see integrated solutions on one processor, which neither company had as an independent firm before the merger.

Sigma's strong abilities in video compression, which among other things are implemented at millions of IPTV subscribers around the world, are to be integrated with CopperGate's abilities to carry video content communication at very high quality between rooms in a home, on existing cables, telephone wires, or even electricity wires.

Among others, Sigma's OEM customers are to present at the exhibition systems to control, from a distance, lighting, alarms, and all electrical devices in the home - all based on Sigma's processors.

Another Israeli company that I hold, and which will be present at CES, including through the systems its OEM customers will present there, is Radvision Ltd. (Nasdaq: RVSN). More than a year ago, after the acquisition of Tandberg, Cisco (NASDAQ:CSCO) shifted to a lower gear as Radvision's largest customer for video conference call infrastructure components. Since then, the OEM ties between Radvision and other giants, like Samsung and Microsoft (NASDAQ:MSFT), have tightened. In addition, Radvision developed its own end systems for video communications.

Published by Globes [online], Israel business news - - on December 28, 2010© Copyright of Globes Publisher Itonut (1983) Ltd. 2010. Republished on SeekingAlpha with full permission.