Sigma Designs Earnings: Here’s Why Investors Like These Results

Sigma Designs, Inc. (NASDAQ:SIGM) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.4%.

Sigma Designs, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.06 in the quarter versus EPS of $-0.12 in the year-earlier quarter.

Revenue: Decreased 21.23% to $53.76 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sigma Designs, Inc. reported adjusted EPS income of $0.06 per share. By that measure, the company beat the mean analyst estimate of $0.01. It beat the average revenue estimate of $52.98 million.

Quoting Management: “We are very pleased about reaching non-GAAP profitability for the second consecutive quarter. Our Financial results were all positive, with an increase in revenues and gross margin, a decrease in operating expenses, positive pro-forma net income and positive net cash flow. We remain focused on sustaining our non-GAAP profitability in fiscal year 2014 as well as achieving profitable revenue growth throughout the remainder of the fiscal year,” said Thinh Tran, President and CEO of Sigma Designs.

Key Stats (on next page)…

Revenue increased 2.32% from $52.54 million in the previous quarter. EPS increased 500% from $0.01 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.10 to a profit $0.06. For the current year, the average estimate has moved down from a profit of $0.20 to a profit of $0.08 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]