stockshakers93 (< 20)

SIGM still dropping?

June 08, 2008 – Comments (0) | RELATED TICKERS: RMTR , ZRAN , SIGM

SIGM below the 200Day SMA

PEER GROUP: Semiconductors & Semiconductor Equipment

Recent Market Price/ Net Sales Net Income

Ticker Company Name Price ($) Cap ($M) Earnings TTM ($M) TTM ($M)

SIGM SIGMA DESIGNS INC 23.58 626 9.99 221.21 70.21

Sigma is top rated in REVENUE GROWTH AND EARNINGS YIELD

However this sector is under presure. This economy is a mess.

 In February, the company completed the $18.00 million acquisition of VXP Image processing business from
Gennum Corp. to expand into the professional video market and add broadcast studio quality capability for
high-volume consumer applications in set-top boxes for IPTV, high-definition DVD players and HDTVs. In
addition, Sigma’s board of directors approved an additional repurchase of 3.00 million shares, on top of the
previously approved 2.00 million shares, resulting in a total share repurchase program of 5.00 million shares.
Recently, the company announced, its collaboration with Fujitsu Microelectronics America, Inc. (FMA), to
deliver Wireless HDAV technology solutions for consumer electronics manufacturers serving the
High-Definition (HD), A/V, and cable replacement markets.
For FY08, the company’s net income climbed to $70.21 million or $2.46 per share from $6.24 million or $0.24 per
share in FY07, primarily driven by strong revenue growth. Furthermore, revenue jumped 142.5% to $ 221.21
million from $91.22 million reported last year.
Looking ahead to Q1 FY09, the company expects its revenue to be $60.00 million, while it anticipates full-year
sales to be in the range of $300.00 million to $350.00 million

So technical indications are for chop to continued downside.

Fundamentals say we can expect an improvement or this company may become a takeover target.

The CEO needs to buy here and stop selling shares.