Sigma Designs Tops Q1 Views, Shares Jump

Shares of

jumped over 5 percent in after-hours trading after the company reported stronger-than-expected results for its first quarter. The Milpitas, California-based company posted a quarterly loss of $382,000, or $0.01 per share, compared to a year-ago loss of $9.9 million, or $0.29 per share. Excluding one-time items, the company earned $0.09 per share. Its GAAP net revenue jumped 51.6 percent year-over-year to $55.9 million from $36.9 million, while non-GAAP net revenue surged to $55.1 million from $36.9 million. However, analysts were expecting earnings of $0.01 per share on revenue of $53.48 million. GAAP gross margin in the first quarter narrowed to 52.5 percent, from 54.9 percent in the year-ago quarter. Its operating expenses slipped to $27.9 million from $28.7 million. "We had a solid first quarter with revenue increasing for the fourth straight quarter. In addition, we increased our non-GAAP profitability for the third quarter in a row," said Thinh Tran, president and CEO of Sigma Designs, Inc. "Our higher revenue resulted primarily from a combination of increased customer volumes for both our Smart TV chipsets and IoT Devices. We are committed to sustaining this positive momentum." Sigma Designs shares surged 5.59 percent to $9.44 in the after-hours trading session.