Thu, Sep. 10, 12:44 PM
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, 5:43 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
Fri, Jun. 26, 2:48 PM
- Chip stocks are seeing outsized losses (SOXX -2.6%) amid a 0.8% drop for the Nasdaq following DRAM/NAND flash giant Micron's FQ3 miss and weak FQ4 guidance - the numbers were blamed on a mixture of soft PC demand, associated DRAM price pressure, and a manufacturing process transition. Some analysts have argued Micron's issues are at least partly company-specific and/or that PC and DRAM demand will improve in 2H15.
- The Philadelphia Semi Index is now down 7% from a June 1 peak of $101.80. It's still up 2% YTD, and (thanks partly to an industry M&A wave) roughly 2x from its fall 2012 lows.
- In addition to PC-exposed Intel and AMD, chip stocks sporting large declines include Qorvo (QRVO -4.9%), Sigma Designs (SIGM -5.7%), MoSys (MOSY -7.9%), Anadigics (ANAD -10.8%), Silicon Motion (SIMO -6.5%), Inphi (IPHI -5.3%), PMC-Sierra (PMCS -3.8%), ON Semi (ON -4.2%), AppliedMicro (AMCC -3.7%), and Vimicro (VIMC -5.3%).
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Thu, Jun. 18, 11:33 AM
- Benchmark has launched coverage on Sigma Designs (SIGM +2.3%) with a Buy rating and $15 target. The firm expects continued rapid growth and above-consensus sales on the back 4K TV SoC share gains and market growth, and a growing market/ecosystem for Sigma's Z-Wave home automation/security chips and modules.
- Shares +38% since Sigma beat FQ1 estimates and provided strong FQ2 guidance on June 9. Smart TV chip sales accounted for 38% of Sigma's FQ1 revenue and IoT product sales 22%.
Mon, Jun. 15, 3:50 PM
- Sigma Designs (NASDAQ:SIGM) is now up 35% since last Tuesday's FQ1 beat and strong FQ2 guidance. Today's gains have come on volume of 1.48M shares, over 3x the smart TV/home automation chipmaker's 3-month daily average of 443K.
- No major news has arrived. Given the chip industry's state of affairs over the last 18 months, M&A hopes could be providing a lift.
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, 5:37 PM
Mon, May 11, 2:48 PM
Thu, Apr. 16, 1:44 PM
- Sigma Designs (NASDAQ:SIGM) has sold off after filing its FY15 10-K yesterday afternoon.
- The video processor/home automation chipmaker closed yesterday just $0.18 away from a 52-week high of $8.49. Excluding $95M in cash/investments, shares for just 0.8x estimated FY16 (ends Jan. '16) sales.
- Previously: Sigma posts 3.9% drop in spite of FQ4 beat, strong guidance
Mon, Apr. 6, 3:15 PM
- Today's notable tech gainers include German 3D printer maker Voxeljet (VJET +5.6%), Chinese online real estate firm SouFun (SFUN +5.3%), software outsourcing firm EPAM Systems (EPAM +8.4%), voice processor developer Audience (ADNC +6.3%), smart TV/home automation chipmaker Sigma Designs (SIGM +4.9%), #2 Chinese online travel firm Qunar (QUNR +6.7%), and international e-commerce services firm Borderfree (BRDR +7.2%). The Nasdaq is up 0.7%.
- Notable decliners include FPGA maker Altera (ALTR -4.5%), optical component vendor NeoPhotonics (NPTN -11%), big data/analytics software provider Hortonworks (HDP -4%), and online family care marketplace Care.com (CRCM -4.4%).
- EPAM has joined other Russia-exposed names in rallying, as oil prices and the ruble both move higher. Sigma is reversing Thursday's post-earnings losses. Qunar has surged to new highs yet again, and is now up 58% since its March 16 Q4 report.
- Altera is returning some of the huge March 27 gains it saw on reports of Intel buyout talks. NeoPhotonics, a recent high-flyer, is down 15% over the last 2 trading days; on Friday, the company filed an 8-K making customary exec. compensation disclosures.
- Previously covered: GoPro, Sony, Geospace, SanDisk, Voltari, VMware, Resonant, 500.com
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
Thu, Apr. 2, 5:38 PM
Wed, Apr. 1, 4:18 PM
Wed, Mar. 11, 3:08 PM
- A day after equity markets tumbled (with many high-beta names especially hard-hit), major tech gainers are outnumbering major decliners, though the Nasdaq is nearly flat.
- Today's notable tech gainers include RF backhaul hardware vendors DragonWave (DRWI +15.6%) and Aviat (AVNW +8%), LED lighting provider Revolution Lighting (RVLT +5.4%) online textbook rental/learning services provider Chegg (CHGG +3.8%), auto site TrueCar (TRUE +5.3%), loan-shopping site owner Lendingtree (TREE +6.9%), telecom equipment vendor Calix (CALX +2.7%), TV/set-top SoC provider Sigma Designs (SIGM +4.9%), and VoIP hardware/software provider Mitel (MITL +3.8%).
- Notable decliners include supercomputer maker SGI (SGI -2.9%), 3D printing software vendor Materialise (MTLS -5.5%), security hardware/software provider KEYW Holding (KEYW -2.9%), and Chinese online game developer Changyou (CYOU -2.9%).
- DragonWave and Aviat are reversing yesterday's big losses. Materialise is making fresh 52-week lows a week after posting mixed Q4 results; KEYW is also seeing new 52-week lows. Revolution's gains continue a volatile post-earnings ride: Shares soared last week after the company posted its Q4 results, but gradually gave back their gains.
- Previously covered: SanDisk, Intel, EMC, SunEdison, Resonant, Immersion, Logitech, VeriFone, Mobileye, Dangdang, InvenSense
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