Sigma Designs (SIGM) Reports In-Line Q4 EPS
Sigma Designs (NASDAQ: SIGM) reported Q4 EPS of ($0.16), in-line with the analyst estimate of ($0.16). Revenue for the quarter came in at $42.7 million versus the consensus estimate of $43.27 million.
"We achieved a total of $221 million in revenue, averaged nearly a 50% gross margin, and generated an operating profit of approximately $2 million in fiscal 2017, all on a non-GAAP basis. We also maintained a strong focus on cost controls and are trying to increase near-term demand, while positioning ourselves for longer-term growth," said Thinh Tran, President and CEO of Sigma Designs, Inc. "Although we are pleased with the progress we have made across many fronts, especially in our IoT space, we realize fiscal 2018 will be a transition year in our business as we begin to shift our focus from our historical target markets to an IoT focused company. While we are encouraged by the longer-term trends in our business, and how our solutions address these trends, we believe it is only prudent to take immediate actions to lower our expense structure. The actions include accelerating the transition of our development activities to lower cost regions where we already have a presence and focusing on our core product initiatives. As a result, we have initiated an expense reduction program that is designed to lower our annual operating expenses by approximately 10 percent compared with fiscal 2017."
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