Sigma Designs, Inc. Reports Fourth Quarter and Year-End Results.Business Editors MILPITAS, Calif.--(BUSINESS WIRE)--March 26, 2002 Sigma SIGMA - A scientific visual programming environment from NASA. http://fi-www.arc.nasa.gov/fia/projects/sigma/. Designs(R), Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : SIGM) a leader in IP video streaming See streaming video and video stream. solutions, announced results for its fourth fiscal quarter and the year ended January 31, 2002. Net revenues for the fourth quarter were $3,817,000, up 12% from $3,416,000 for the previous quarter and up 30% from $2,933,000 reported for the same period last year. Sigma reported a net loss of $3,502,000, or $0.21 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a net loss of $1,666,000, or $0.10 per diluted share for the previous quarter, and a net loss of $6,874,000, or $0.42 per diluted share during the same period one-year ago. These results include provisions for the investment write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of approximately $927,000 and for bad debts of approximately $450,000. The sequential increase in revenue is primarily attributable to the increase in sales of Sigma's decoder A hardware device or software that converts coded data back into its original form. See decode and MPEG decoder. chips. For the year ended January 31, 2002, net revenues were $13,437,000, down 54% from $29,476,000 reported for fiscal 2001. Sigma reported a net loss of $10,392,000, or $0.64 per share, diluted, for fiscal 2002 compared to a net loss of $6,868,000, or $0.42 per share, diluted, in fiscal 2001. "Fiscal 2002 was a year of rebuilding for Sigma, and though operating at a lower revenue level, we made substantial progress toward positioning ourselves for future growth. As we end the year, we are pleased to report continuing volume increases in our primary market segments, specifically our MPEG decoder Software or hardware that decompresses and renders MPEG-encoded data. Because MPEG uses lossy compression, the decoded images are not 100% identical to the original. In most cases however, the differences are not easily detectable. See MPEG. chips which provided us with incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. growth in the past two quarters," stated Thinh Tran, Chairman and Chief Executive Officer, Sigma Designs. "Strategically, our industry leading position in MPEG-4 decoders has placed us in the center of a number of important alliances, which we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op will strengthen our market position and revenue growth during the second half of this year." Recent business developments include: -- Initial market penetration of Sigma's EM8470 series MPEG-4 decoder chips, achieving seven new design wins during this quarter. -- Widespread use of Sigma's EM8470 as a current industry benchmark for MPEG-4 decoding, including premier demonstrations by Apple, Sun, iVAST, Envivio, National Semiconductor, and others. -- Announcement of the REALmagic Xcard, the first PC based Home Theatre solution offering support for MPEG-4, along with a partnership with the popular DivXNetworks to jointly promote the widespread use of MPEG-4 based video. -- Continued ramp of EM8400 MPEG-2 decoder chip sales, resulting from the company's base of over 50 set-top box design wins. -- Introduction of the first DVD video renderer for Microsoft's new Windows CE .NET operating system, highlighted through a CES keynote demonstration by Bill Gates. The conference call relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc fourth quarter and year ended January 31, 2002 results will take place following this announcement at 4:45 PM EST EST electroshock therapy. EST abbr. electroshock therapy today, March 26. The dial-in number is (651) 224-7558. Investors will have the opportunity to listen live to the conference call via the Internet through www.vcall.com. To listen to the live call, please go to the Web site at least 15 minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call. About Sigma Designs, Inc. Sigma Designs specializes in silicon-based MPEG (Moving Pictures Experts Group) An ISO/ITU standard for compressing digital video. Pronounced "em-peg," it is the universal standard for digital terrestrial, cable and satellite TV, DVDs and digital video recorders (DVRs). decoding de·code tr.v. de·cod·ed, de·cod·ing, de·codes 1. To convert from code into plain text. 2. To convert from a scrambled electronic signal into an interpretable one. 3. for streaming video A one-way video transmission over a data network. It is widely used on the Web as well as company networks to play video clips and video broadcasts. Computers in home networks stream video to digital media hubs connected to a home theater. , progressive DVD See progressive scan DVD. playback Playback could mean:
Note to Editors: REALmagic and Sigma Designs are registered trademarks of Sigma Designs. All other products and companies referred to herein are trademarks or registered trademarks of their respective companies. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve significant risks and uncertainties regarding the set-top box market, as well as the features and potential growth prospects of certain MPEG products offered by the Company in these markets. Actual results may vary materially due to a number of factors including, but not limited to, the growth of the set-top box market in general and growth of Sigma products specifically in these markets, the ability of the Company's REALmagic MPEG silicon to compete with other technologies in these emerging markets, the risk that such products will not gain widespread acceptance or will be rendered obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. by product offerings of competitors or by alternative technologies and other risks including delays in the manufacturer's deployment of set-top boxes. Other risk factors are detailed from time to time in the Company's SEC reports, including the report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended January 31, 2001 and on Form 10-Q Form 10-Q See 10-Q. for the quarter ended October 31, 2001.
Following are highlights of the fourth quarter and year-end
results of fiscal 2002:
Quarter ended January 31, 2002 2001
------------------------------- ------------ ------------
Net revenues $ 3,817,000 $ 2,933,000
Net (loss) $ (3,502,000) $ (6,874,000)
Basic net (loss) per share $ (0.21) $ (0.42)
Basic weighted average shares 16,334,000 16,302,000
Diluted net (loss) per share $ (0.21) $ (0.42)
Diluted weighted average shares 16,334,000 16,302,000
Year ended January 31, 2002 2001
------------------------------- ------------ ------------
Net revenues $ 13,437,000 $ 29,476,000
Net (loss) $(10,392,000) $ (6,868,000)
Basic net (loss) per share $ (0.64) $ (0.42)
Basic weighted average shares 16,317,000 16,262,000
Diluted net (loss) per share $ (0.64) $ (0.42)
Diluted weighted average shares 16,317,000 16,262,000
SIGMA DESIGNS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
January 31, January 31,
2002 2001(1)
--------------------
Assets
Current assets:
Cash and cash equivalents $ 5,056 $ 5,422
Short-term investments 943 4,907
Accounts receivable - net 2,168 5,122
Inventories 4,482 8,159
Restricted cash 12,000 12,000
Prepaid expenses & other 521 296
-------- --------
Total current assets 25,170 35,906
Equipment, net 831 1,346
Other assets 273 1,082
-------- --------
Total $ 26,274 $ 38,334
-------- --------
Liabilities and shareholders' equity
Current liabilities:
Bank line of credit $ 12,000 $ 12,000
Accounts payable 1,115 2,423
Accrued liabilities and other 1,336 1,448
Current portion of
capital lease obligations 244 329
-------- --------
Total current liabilities 14,695 16,200
Capital lease obligations 113 349
Other - long term liabilities -- 4
Shareholders' equity:
Common stock 67,884 67,785
Shareholder note receivable -- (1)
Accumulated other
comprehensive income 31 54
Accumulated deficit (56,449) (46,057)
-------- --------
Total shareholders' equity 11,466 21,781
-------- --------
Total $ 26,274 $ 38,334
-------- --------
(1) Derived from audited balance sheet included in the Company's
annual report on Form 10-K for the year ended January 31, 2001.
SIGMA DESIGNS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three months ended Year ended
January, 31 January, 31
2002 2001 2002 2001
-------- -------- -------- --------
Net revenues $ 3,817 $ 2,933 $ 13,437 $ 29,476
Costs and expenses:
Costs of revenues 2,170 4,044 7,909 20,661
Research and
development 2,263 2,021 8,123 7,384
Sales and marketing 981 1,133 4,318 4,152
General and
administrative 984 2,693 2,758 4,511
-------- -------- -------- --------
Total costs and
expenses 6,398 9,891 23,108 36,708
-------- -------- -------- --------
Net (loss) from
operations (2,581) (6,958) (9,671) (7,232)
Interest and other
income (expense), net (921) 84 (717) 366
-------- -------- -------- --------
Net (loss) before
income taxes (3,502) (6,874) (10,388) (6,866)
Provision for
income taxes -- -- 4 2
-------- -------- -------- --------
Net (loss) $ (3,502) $ (6,874) $(10,392) $ (6,868)
-------- -------- -------- --------
Basic net (loss)
per share $ (0.21) $ (0.42) $ (0.64) $ (0.42)
Shares used in
computing per
share amount 16,334 16,302 16,317 16,262
Diluted net (loss)
per share-diluted $ (0.21) $ (0.42) $ (0.64) $ (0.42)
Shares used in
computing per
share amount 16,334 16,302 16,317 16,262
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