Thu, Sep. 10, 11:19 AM
- Sigma Designs (NASDAQ:SIGM) has tumbled below $9.50 in spite of beating FQ2 estimates and guiding on its earnings call (transcript) for FQ3 revenue of $60M-$63M, above a $58.8M consensus. With shares up 44% YTD going into earnings, expectations were somewhat high.
- One possible area of concern: Sigma forecasts sales of its Z-Wave home automation chips/modules (sold to security service providers and to a lesser extent telecom carriers) will drop Q/Q due to an inventory adjustment, after growing strongly for several quarters. However, sales are expected "pick up again quite dramatically" in FQ4.
- Also: 1) Days sales outstanding (DSO) rose by 9 days Q/Q to 60. Sigma states customers are requesting extended payments terms. 2) The company expects a mix shift towards smart TV SoC sales will lead to gross margin (non-GAAP) remaining in the 48%-50% range in the near-term: FQ2 GM was 50.5%, down 330 bps Q/Q and 320 bps Y/Y, but in-line with guidance of 49%-52%. FQ3 GM guidance is at 48%-51%.
- Smart TV chip sales rose 146% Y/Y, and made up 42% of FQ2 revenue. IoT (Z-Wave) sales rose 97%, and were 22% of revenue. Media connectivity chips fell 21%, and were 24% of revenue. Set-top chips made up 11% of revenue, and license/other 1%.
- FQ2 results, PR
Wed, Sep. 9, 4:08 PM
Tue, Sep. 8, 5:35 PM
Tue, Sep. 8, 3:25 PM
- The Philadelphia Semi Index (SOXX +3.9%) has risen to its highest levels since mid-August on a day the Nasdaq is posting a 2.3% gain.
- Likely helping out: Microchip (MCHP +8.4%), still often seen as an industry bellwether (though its commentary accompanying last fall's warning sparked criticism), has adjusted its FQ2 (calendar Q3) revenue and EPS guidance to $545M-$563M ($554M midpoint) and $0.60-$0.66 from a prior $$532M-$569M ($550.5M midpoint) and $0.58-$0.66. The outlook comes after many chipmakers (Microchip included) offered below-consensus calendar Q3 guidance amid an inventory correction, weak PC demand, and slowing Chinese smartphone growth.
- Microchip's core ops are said to be tracking in-line with prior expectations, and recently-acquired Micrel's above expectations. The 8.6M shares issued in the Micrel deal have been repurchased.
- Also: Various Taiwanese chipmakers and supply chain firms have reported August sales. Chip packaging/testing firms ASE (ASX +5.9%) and Siliconware (SPIL +4.1%) respectively reported sales were up 5.8% and 5.7% M/M, and up 9.5% and down 4.2% Y/Y.
- Big gainers include Microchip peers NXP (NXPI +6.8%), Freescale (FSL +5.8%), Silicon Labs (SLAB +4.4%), and Cypress (CY +4.4%). Others include Avago (AVGO +5.8%), Xilinx (XLNX +5.7%), Cavium (CAVM +5.5%), Analog Devices (ADI +6.3%), Synaptics (SYNA +5.4%), Linear (LLTC +4.6%), Cirrus Logic (CRUS +4.7%), IDT (IDTI +4.6%), Sigma Designs (SIGM +4.9%), and chip equipment maker Axcelis (ACLS +8%).
- SanDisk, ON Semi, and Silicon Motion are benefiting from upgrades/bullish coverage. Apple holds its iPhone event at 1PM ET tomorrow.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Wed, Jun. 10, 6:56 PM
- Sigma Designs (NASDAQ:SIGM) rose 14.2% in regular trading after beating FQ1 estimates on the back of 49% Y/Y revenue growth, and issuing strong guidance on its CC (transcript). The smart TV/home automation chipmaker expects FQ2 revenue of $54M-$57M, above a $53.7M consensus.
- CFO Elias Nader stated Sigma's smart TV chip sales (38% of revenue) rose by $15.4M Y/Y in FQ1 to $21.5M, and its IoT sales (22% of revenue, includes Z-Wave home automation chips/modules) by $6.3M to $12.5M. Set-top chip sales rose by $900K to $6.5M; media connectivity chip sales fell by $1M to $15.1M; and license/other revenue fell by $2.6M to $300K.
- Smart TV and IoT sales are expected to rise Q/Q in FQ2. Set-top sales are expected to be flat, and media connectivity sales down slightly.
- FQ1 results, PR
Tue, Jun. 9, 4:08 PM
Mon, Jun. 8, 5:35 PM
Thu, Apr. 2, 6:12 PM
- In addition to beating FQ4 estimates, Sigma Designs (NASDAQ:SIGM) guided on its CC (transcript) for FQ1 revenue of $52M-$55M, above a $49.8M consensus. However, with Sigma having gone into earnings near their 52-week high, expectations were elevated. Shares fell to $7.92 in regular trading today. AH, they're down 0.5% to $7.88.
- One possible area of concern: Sigma is guiding for an FQ1 gross margin of 48%-51% vs. FQ4's 50.8%, which (though near the high end of guidance) was down from FQ3's 51.4% and the year-ago period's 61.1%. When asked about margins, Sigma suggested product mix changes were to blame.
- The Z-Wave wireless home automation chip/module business remains a strong point: Z-Wave sales were up 50% Y/Y over the whole of FY14, and Sigma states there were 35M Z-Wave-enabled devices in existence at the end of calendar 2014. Samsung and LG recently gave their support for the platform.
- BWS Financial's Hamed Khorsand (Buy) hiked his Sigma target by $2 to $11. "The growth in Z-Wave is accelerating with service providers making the push and the consumer being more educated on the technology. Z-Wave now seems poised to serve as the growth catalyst we have been writing about for the last several quarters."
- FQ4 results, PR
Wed, Apr. 1, 4:18 PM
Tue, Mar. 31, 5:35 PM
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Dec. 9, 2014, 5:35 PM
Sep. 10, 2014, 4:18 PM
Sep. 9, 2014, 5:35 PM
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Jun. 10, 2014, 5:35 PM
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