Needham & Company Maintains a 'Hold' on Sigma Designs (SIGM); Remaining on The Sidelines for Product Transitions, Share Loss and Inventory Correction

Needham & Company maintains a 'Hold' on Sigma Designs (NASDAQ: SIGM).
Needham analyst says, "SIGM reported substantially worse than expected financial results driven by a faster than planned ramp-down of first generation Mediaroom IPTV STBs and delays in certain 2nd-gen Mediaroom rollouts. An inventory correction in the connected home business exasperated the shortfall. Further, earnings were adversely impacted by a $7.8MM inventory write-down. SIGM is now not only facing a longer than expected revenue trough as the company awaits second generation Mediaroom rollouts, but also facing lower GM and high levels of OPEX. We are dramatically reducing our estimates and do not forecast a return to pro forma profitability in 2012."

For more ratings news on Sigma Designs click here and for the rating history of Sigma Designs click here.

Shares of Sigma Designs closed at $8.44 yesterday.

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