About Sigma Designs, Inc.
Sigma Designs, Inc.® (
SIGMA DESIGNS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(GAAP)
(In thousands)
October 29, January 30,
2016 2016
------------ ------------
Assets
Current Assets:
Cash and cash equivalents $ 64,833 $ 63,790
Short-term marketable securities 4,794 4,805
Restricted cash 316 900
Accounts receivable, net 49,619 30,362
Inventory 20,184 26,709
Prepaid expenses and other current assets 8,451 14,085
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Total current assets 148,197 140,651
Long-term marketable securities - 3,527
Software, equipment and leasehold improvements, net 19,562 14,086
Intangible assets, net 31,465 37,050
Goodwill 10,594 11,068
Deferred tax assets 958 911
Long-term investments 2,000 2,884
Other non-current assets 6,056 6,492
------------ ------------
Total assets $ 218,832 $ 216,669
============ ============
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 20,559 $ 26,181
Accrued compensation and related benefits 10,287 7,360
Accrued liabilities 15,152 14,632
------------ ------------
Total current liabilities 45,998 48,173
Other long-term liabilities 22,861 15,691
------------ ------------
Total liabilities 68,859 63,864
Shareholders' equity 149,973 152,805
------------ ------------
Total liabilities and shareholders' equity $ 218,832 $ 216,669
============ ============
SIGMA DESIGNS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(GAAP)
(In thousands, except per share data)
Three months ended Nine months ended
---------------------------------- -----------------------
October 29, July 30, October 31, October 29, October 31,
2016 2016 2015 2016 2015
----------- ---------- ----------- ----------- -----------
Net revenue $ 62,729 $ 61,316 $ 61,581 $ 177,820 $ 175,800
Cost of revenue 31,734 31,734 30,794 93,242 87,141
----------- ---------- ----------- ----------- -----------
Gross profit 30,995 29,582 30,787 84,578 88,659
Gross margin
percent 49.4% 48.2% 50.0% 47.6% 50.4%
Operating
expenses:
Research and
development 18,264 18,836 17,339 56,255 49,754
Sales and
marketing 5,984 5,939 5,875 17,646 16,940
General and
administrative 4,578 4,820 5,314 14,536 16,100
Impairment of
IP, mask sets
and design
tools - 300 795 300 1,783
----------- ---------- ----------- ----------- -----------
Total
operating
expenses 28,826 29,895 29,323 88,737 84,577
Income (loss) from
operations 2,169 (313) 1,464 (4,159) 4,082
Gain on sale of
development
project - - 7,551 - 7,551
Interest and other
income (expense),
net 179 415 37 (157) 821
----------- ---------- ----------- ----------- -----------
Income (loss)
before income
taxes 2,348 102 9,052 (4,316) 12,454
Provision for
income taxes 2,127 1,824 2,617 5,283 6,105
----------- ---------- ----------- ----------- -----------
Net income (loss) $ 221 $ (1,722) $ 6,435 $ (9,599) $ 6,349
=========== ========== =========== =========== ===========
Net income (loss)
per share:
Basic $ 0.01 $ (0.05) $ 0.18 $ (0.26) $ 0.18
Diluted $ 0.01 $ (0.05) $ 0.17 $ (0.26) $ 0.17
Shares used in
computing net
income (loss) per
share:
Basic 37,666 37,182 36,046 37,241 35,670
Diluted 38,001 37,182 36,785 37,241 36,515
SIGMA DESIGNS, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(Unaudited)
(In thousands, except per share data)
Three months ended Nine months ended
----------------------------------- -----------------------
October 29, July 30, October 31, October 29, October 31,
2016 2016 2015 2016 2015
----------- ----------- ----------- ----------- -----------
GAAP Net Revenue $ 62,729 $ 61,316 $ 61,581 $ 177,820 $ 175,800
Items reconciling
GAAP Net Revenue
to Non-GAAP:
Reversal of
rebate - - - - (1,027)
----------- ----------- ----------- ----------- -----------
GAAP to Non-GAAP
adjustments - - - - (1,027)
Non-GAAP Net
Revenue $ 62,729 $ 61,316 $ 61,581 $ 177,820 $ 174,773
GAAP Cost of
Revenue $ 31,734 $ 31,734 $ 30,794 $ 93,242 $ 87,141
Items reconciling
GAAP Cost of
Revenue to Non-
GAAP:
Stock based
compensation
expense (61) (74) (78) (239) (158)
Amortization of
acquired
intangibles (938) (940) (965) (2,827) (2,995)
----------- ----------- ----------- ----------- -----------
GAAP to Non-GAAP
adjustments (999) (1,014) (1,043) (3,066) (3,153)
Non-GAAP Cost of
Revenue $ 30,735 $ 30,720 $ 29,751 $ 90,176 $ 83,988
GAAP Gross
Profit $ 30,995 $ 29,582 $ 30,787 $ 84,578 $ 88,659
GAAP Gross
Margin % 49.4% 48.2% 50.0% 47.6% 50.4%
Non-GAAP Gross
Profit $ 31,994 $ 30,596 $ 31,830 $ 87,644 $ 90,785
Non-GAAP Gross
Margin % 51.0% 49.9% 51.7% 49.3% 51.9%
GAAP Operating
Expenses $ 28,826 $ 29,895 $ 29,323 $ 88,737 $ 84,577
Items reconciling
GAAP Operating
Expenses to Non-
GAAP:
Stock based
compensation
expense (1,432) (1,677) (1,814) (4,897) (4,723)
Amortization of
acquired
intangibles (692) (696) (318) (2,087) (979)
Impairment of
IP, mask sets
and design
tools - (300) (795) (300) (1,783)
One time legal
fee expenses - - (357) (11) (1,611)
----------- ----------- ----------- ----------- -----------
GAAP to Non-GAAP
adjustments (2,124) (2,673) (3,284) (7,295) (9,096)
Non-GAAP
Operating
Expenses $ 26,702 $ 27,222 $ 26,039 $ 81,442 $ 75,481
GAAP Other Income
(Expense) and
Tax $ (1,948) $ (1,409) $ 4,971 $ (5,440) $ 2,267
Items reconciling
GAAP Other
Income (Expense)
and Tax to Non-
GAAP:
Impairment (gain
on sale) of
privately held
instruments,
net 1 584 - 885 (392)
Gain on sale of
development
project - - (7,551) - (7,551)
Income tax
adjustments - - 1,494 - 2,696
----------- ----------- ----------- ----------- -----------
GAAP to Non-GAAP
adjustments 1 584 (6,057) 885 (5,247)
Non-GAAP Other
Income
(Expense) and
Tax $ (1,947) $ (825) $ (1,086) $ (4,555) $ (2,980)
Non-GAAP Net
Income $ 3,345 $ 2,549 $ 4,705 $ 1,647 $ 12,324
=========== =========== =========== =========== ===========
Non-GAAP Net
Income (Loss)
per share:
Basic $ 0.09 $ 0.07 $ 0.13 $ 0.04 $ 0.35
Diluted $ 0.09 $ 0.07 $ 0.13 $ 0.04 $ 0.34
Shares used in
computing Non-
GAAP net income
(loss) per
share:
Basic 37,666 37,182 36,046 37,241 35,670
Diluted 38,001 37,527 36,785 37,626 36,515
