Sigma Designs, Inc. | $SIGM Stock | Shares Spike Down on Poor Earnings Numbers


Sigma Designs, Inc. (NASDAQ: SIGM)



Sigma Designs, Inc. (SIGM), a semiconductor solutions company yesterday reported their first quarter fiscal year 2017 financial results. Sigma reported first quarter earnings of a loss of $0.12 per share which fell short of analyst expectations of a loss of $0.05 per share. Sigma reported first quarter revenues decreased 3.8% year over year to $53.8 million which fell short of analyst expectations of $53.9 million


Sigma Designs, Inc. CEO’s Comments

“I am pleased with the revenue growth we achieved in the first quarter which was consistent with the guidance we provided last quarter. Our Connected Smart TV Platforms business grew nearly 10% over last quarter and we are confident that its underlying strength will continue to fuel our revenue growth this year,” said Thinh Tran, President and CEO of Sigma Designs, Inc. “We are executing on strategies designed to build long-term momentum for each of these businesses and continue to see evidence of this success in our partnerships, design wins, and technology achievements. We are confident the overall revenue trends for our businesses are positive and will drive us back to profitability.”  Market Wired


SIGM Technical Analysis

SIGM Chart

SIGM opened trading yesterday at $7.25 which was exactly were the previous days trading closed. SIGM closed trading yesterday at $7.44 and spiked down after market to $7.20, equivalent to a 3% decrease from the closing price. Taking a look at the daily chart we can see that the last time SIGM traded below this price level was on May 26th when it traded at $7.19. Taking a closer look at the daily chart we can see that SIGM has been on an overall upward trend dating back to May 13th when it traded at $6.31. SIGM has a float of 33.51 million shares and traded over 1.6 times the normal daily trading volume on Monday. For trading purposes, I would like to see SIGM open trading on Tuesday below $7.25 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.10 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


Company Profile

Sigma Designs, Inc., an integrated semiconductor solutions provider, provides intelligent media platforms for use in the home entertainment and home control markets. The company’s media processor product line includes a range of platforms that are based on integrated chips, embedded software, and hardware reference designs. Its media connectivity product line comprises wired home networking controller chipsets that provide connectivity solutions between various home entertainment products and incoming video streams. The company’s Internet of things devices consist of wireless Z-Wave chipsets and modules that enable home security, and environmental and energy control and monitoring in new and existing homes. It also offers legacy products; and software development kits, engineering support services for hardware and software, engineering development for customization of chipsets, and other accessories. The company markets and sells its products through direct sales force, manufacturer representatives, distributors, and resellers to end-product manufacturers, original equipment manufacturers, and original design manufacturers in Asia, North America, Europe, and internationally. Sigma Designs, Inc. was founded in 1982 and is headquartered in Fremont, California.  Yahoo Finance