AUSTIN, Texas—(BUSINESS WIRE)—January 4, 2007— SigmaTel, Inc. (NASDAQ: SGTL), a leader in mixed-signal multimedia semiconductors, today announced that it expects revenue for the quarter ending December 31, 2006 to be approximately $37 to $38 million.
"Two factors negatively impacted the company's revenue for the
fourth quarter. First, demand softened from our major original
equipment manufacturer (OEM) customers. Second, we experienced a
slowdown of sales later in the quarter by our Chinese original design
manufacturers (ODMs) whose customers are European brands," reported
Phil Pompa, interim Chief Executive Officer of SigmaTel. "I look
forward to discussing our future plans along with our fourth quarter
results during our earnings conference call on February 1, 2007."
In addition, SigmaTel today announced that Ronald Edgerton has
resigned as SigmaTel's Chairman of the Board, President and Chief
Executive Officer and from SigmaTel's Board to spend more time with
his family. William Osborne, a member of SigmaTel's Board, has been
elected as Chairman of the Board and Phillip E. Pompa, the Senior Vice
President of the Company's Portable Systems Group, has been appointed
as the interim Chief Executive Officer until such time as Mr.
Edgerton's successor is determined.
Mr. Osborne has served as a director of SigmaTel since September
2001. Since August 2005, Mr. Osborne has served as Dean of the College
of Engineering of Southern Illinois University Carbondale. From April
2003 to July 2005, Mr. Osborne served as Provost and Vice Chancellor
for Academic Affairs of the University of Missouri-Kansas City. From
August 1995 until June 2002, Mr. Osborne served as Dean of the Erik
Jonsson School of Engineering and Computer Science at the University
of Texas at Dallas.
"I would like to thank Ron for his many great contributions to
SigmaTel during his seven years as CEO," said Mr. Osborne. "As a
result of Ron's leadership and dedication SigmaTel emerged as a global
leader in mixed-signal semiconductors, completed a successful IPO and
grew its revenues from $24M in 2001 to $324M in 2005. We will continue
to operate the business with a strong focus on new products, expanding
markets and long-term growth."
Phil Pompa has served as SigmaTel's Senior Vice President of
Portable Systems Group since April 2006. From September 2005 until
April 2006, Mr. Pompa served as our Senior Vice President of
Integrated Components Group. Prior to joining SigmaTel, Mr. Pompa
served as Vice President of Marketing for Advanced Micro Devices Inc.
For more information on SigmaTel, please visit www.sigmatel.com.
About SigmaTel: SigmaTel, Inc. a fabless semiconductor company
headquartered in Austin, Texas, designs, develops, and markets
proprietary, analog intensive, mixed-signal ICs for a variety of
digital multimedia products in the consumer electronics and computing
markets, including portable compressed audio players, such as MP3
players, notebook and desktop PCs, digital video cameras,
multi-function peripheral products, digital televisions, and set-top
boxes. SigmaTel provides complete, system-level solutions that include
highly-integrated ICs, customizable firmware and software, software
development tools, reference designs, and applications support. The
company's focus is on providing system-level solutions that enable
customers to rapidly introduce and offer electronic products that are
small, light-weight, power-efficient, reliable, and cost-effective.
SigmaTel is ISO 9001:2000 certified and is committed to providing
customers with high performance, quality products along with superior
Cautionary Language: This press release contains forward-looking
statements based on current SigmaTel expectations. The words "expect,"
"will," "should," "would," "anticipate," "project," "outlook,"
"believe," "intend," and similar phrases as they relate to SigmaTel or
future events are intended to identify such forward-looking
statements. These forward-looking statements reflect the current views
and assumptions of SigmaTel, but are subject to various risks and
uncertainties that could cause actual results to differ materially
from expectations. A number of important factors could cause actual
results to differ materially from those in the forward-looking
statements, and there will be events in the future that SigmaTel is
not able to accurately predict or control. These risks and
uncertainties include, but are not limited to: the ability of SigmaTel
to execute on its strategy to regain market share by product
differentiation; the ability of SigmaTel to execute on its long-term
growth strategy of targeting consumer electronics; the ability of
SigmaTel to improve corporate gross margins and achieve operating
expense reductions and achieve profitability; and, the risk that the
effects of seasonality on our sales will not be consistent with
expected seasonality. For a more detailed discussion of factors that
could impact SigmaTel's financial results and cause actual results to
differ materially from those in the forward-looking statements, please
refer to recent SigmaTel filings with the SEC, particularly the Form
10-K that was filed on February 24, 2006, and the Form 10-Q filed on
November 6, 2006.
SigmaTel is a registered trademark of SigmaTel, Inc. All other
products and brand names as they appear in this release are trademarks
or registered trademarks of their respective holders. All
specifications may be changed without notice.