Sigma Designs, Inc. Reports Fourth Quarter and Fiscal Year 2018 Financial Results

Sigma Designs Inc (NASDAQ:SIGM), a developer of technology for use in the mobile Internet of Things (IoT) market reported its financial results for fourth quarter and fiscal year 2018, which ended February 3, 2018.

The company’s net revenue for fourth quarter was $26.5 million as compared with net revenue of $33.9 million in the previous quarter. The company had a GAAP net loss of 73.4 million or $1.88 per share in the fourth quarter of fiscal 2018.

As quoted in the press release:

Fourth Quarter Fiscal 2018 Financial Results

GAAP gross margin in the fourth quarter of fiscal 2018 was 42.1%.  This compares with GAAP gross margin of 50.5% in the previous quarter, and GAAP gross margin of 50.1% for the same period in fiscal 2017.

Non-GAAP gross margin in the fourth quarter of fiscal 2018 was 38.0%.  This compares with non-GAAP gross margin of 54.7% in the previous quarter, and non-GAAP gross margin of 50.6% for the same period in fiscal 2017.

GAAP operating expenses in the fourth quarter of fiscal 2018 were $80.0 million, which includes impairment charges of $40.8 million and restructuring charges of $6.8 million. This compares with GAAP operating expenses of $36.0 million in the previous quarter, and GAAP operating expenses of $28.6 million for the same period in fiscal 2017.

Non-GAAP operating expenses in the fourth quarter of fiscal 2018 were $28.3 million. This compares with non-GAAP operating expenses of $27.8 million in the previous quarter, and non-GAAP operating expenses of $26.0 million for the same period in fiscal 2017.

Non-GAAP net loss in the fourth quarter of fiscal 2018 was ($21.6) million, or ($0.55) per share.  This compares with a non-GAAP net loss of ($9.6) million, or ($0.25) per share, in the previous quarter, and a non-GAAP net loss of ($5.9) million, or ($0.16) per diluted share, for the same period in fiscal 2017.

Cash and cash equivalents at the end of the fourth quarter of fiscal 2018 were $40.6 million.

Fiscal Year 2018 Financial Results

Net revenue in fiscal 2018 was $139.5 million, compared with $220.5 million in the previous fiscal year, prior to Assets held for sale adjustments of ($73.6 million) in fiscal 2018 and ($86.1 million) in fiscal 2017.   The Assets held for sale adjustments consist of the financial results of Sigma’s Z-Wave business and Media Connectivity business, each of which were deemed to be held for sale as of February 3, 2018.

GAAP gross margin from continuing operations in fiscal 2018 was 47.1%, compared with 48.1% in fiscal 2017, prior to Assets held for sale adjustments.

Non-GAAP gross margin from continuing operations in fiscal 2018 was 37.4%, compared with 41.5% in fiscal 2017, which is after adjusting for Assets held for sale.

GAAP operating expenses from continuing operations in fiscal 2018 were $179.0 million, compared with $117.3 million in fiscal 2017, prior to Assets held for sale adjustments of $37.2 million in fiscal 2018 and $34.7 million in fiscal 2017.

Included in the fiscal 2018 results were impairment charges of $50.4 million and restructuring charges of $9.3 million.

Non-GAAP operating expenses from continuing operations in fiscal 2018 were $73.1 million, compared with $74.9 million in fiscal 2017, which is after adjusting for Assets held for sale.

GAAP net loss from continuing operations in fiscal 2018 was ($120.0) million, or net loss of ($3.12) per basic share, which is the same result after adjusting for Assets held for sale. This compares with a GAAP net loss of ($18.3) million, or a net loss of ($0.49) per diluted share, in fiscal 2017, which is the same result after adjusting for Assets held for sale.

Non-GAAP net loss in fiscal 2018 was ($51.3) million, or net loss of ($1.31) per share, after adjusting for Assets held for sale.  This compares with a non-GAAP net loss of ($9.5) million, or a net loss of ($0.66) per share, in fiscal 2017, after adjusting for Assets held for sale.

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