Needham & Company Maintains a 'Hold' on Sigma Designs (SIGM); Encouraging Signs, But Waiting For Profitability
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Price: $0.14 --0%
Rating Summary:
1 Buy, 4 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 4 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Hold' on Sigma Designs (NASDAQ: SIGM).
Analyst, N. Quinn Bolton, said, "On 5/23, SIGM reported F1Q13 revenue and non-GAAP EPS near the high-end of guidance and above expectations. Revenue climbed 13% Q/Q due to strength in Home Connectivity products that more than offset declines in IPTV, Prosumer and Connected Media Player products. Although core revenue guidance for F2Q13 was slightly below our model, we expect a stronger F2H13 as SIGM deploys with a widening set of carriers in LatAm and North America. Management reiterated its goal of being cash flow positive by the end of FY13, though our model remains more conservative. We are encouraged by the inflection in revenue and believe the company is poised for multiple quarters of recovery driven by the ramp of 2nd-gen IPTV and home connectivity solutions, the integration of Trident’s (OTCBB: TRIDQ) (N/R) DTV business and broader Z-Wave adoption. However, we maintain our Hold rating as the company works toward profitability."
Needham lowers FY13 EPS loss from (1.00) to (1.17) and FY14 from (0.55) to (0.80)
For an analyst ratings summary and ratings history on Sigma Designs click here. For more ratings news on Sigma Designs click here.
Shares of Sigma Designs closed at $5.60 yesterday.
Analyst, N. Quinn Bolton, said, "On 5/23, SIGM reported F1Q13 revenue and non-GAAP EPS near the high-end of guidance and above expectations. Revenue climbed 13% Q/Q due to strength in Home Connectivity products that more than offset declines in IPTV, Prosumer and Connected Media Player products. Although core revenue guidance for F2Q13 was slightly below our model, we expect a stronger F2H13 as SIGM deploys with a widening set of carriers in LatAm and North America. Management reiterated its goal of being cash flow positive by the end of FY13, though our model remains more conservative. We are encouraged by the inflection in revenue and believe the company is poised for multiple quarters of recovery driven by the ramp of 2nd-gen IPTV and home connectivity solutions, the integration of Trident’s (OTCBB: TRIDQ) (N/R) DTV business and broader Z-Wave adoption. However, we maintain our Hold rating as the company works toward profitability."
Needham lowers FY13 EPS loss from (1.00) to (1.17) and FY14 from (0.55) to (0.80)
For an analyst ratings summary and ratings history on Sigma Designs click here. For more ratings news on Sigma Designs click here.
Shares of Sigma Designs closed at $5.60 yesterday.
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