Net revenue for the first quarter was $51.2 million, up $3.9 million, or 8%, from $47.3 million in the previous quarter and down $5.7 million, or 10%, from $56.9 million reported for the same period last year.
GAAP net income for the first quarter was $2.7 million, or $0.10 per diluted share which includes a charge of $3.5 million, or $0.13 per diluted share, for the write-off of deferred tax assets due to changes in California corporate income tax laws. This compares to GAAP net income of $6.6 million, or $0.24 per diluted share, for the previous quarter which included a tax benefit of $2.4 million, or $0.09 per diluted share, due to Sigma’s reduction of its effective income tax rate for fiscal 2009. GAAP net income was $6.6 million, or $0.22 per diluted share, in the first quarter one year ago.
At the end of Sigma’s first quarter, total cash, cash equivalents and marketable securities totaled $221.3 million, or $8.32 per share outstanding. The increase of $29.1 million, or $1.08 per share, during the quarter was due to the reduction of inventory, an increase in accounts payable and accelerated collections that resulted in a temporary reduction of accounts receivable. Additionally, other operating activities generated $10.1 million, or $0.38 per share outstanding.
Non-GAAP net income for the first quarter was $8.3 million, or $0.30 per diluted share. This compares to non-GAAP net income of $10.1 million, or $0.38 per diluted share for the previous quarter and non-GAAP net income of $13.6 million, or $0.46 per diluted share during the same period one year ago. Non-GAAP adjustments for the first quarter consisted of $832,000 in amortization expense for acquired intangibles related to the Zensys, VXP and Blue7 acquisitions, $1.2 million in non-cash share-based compensation expenses and $3.5 million from the write off of the deferred tax assets associated with the benefits from California state income tax credits no longer expected to be received in future periods. The reconciliation between GAAP and non-GAAP results for all referenced periods is provided in a table immediately following the GAAP financial tables below.
“We are pleased to report a sequential increase in our revenue for the first quarter, which we feel provides continued signs of stabilization and strength in our primary markets. We are continuing to place heavy efforts on bolstering sales as well as expanding the breadth of our market opportunities. The IPTV market is continuing to show resilience to current economic issues and we are confident that it will continue to demonstrate some level of growth for this year. We are also pursuing design activity in the cable industry and helping to drive the transition to Tru2way IP cable solutions, which will substantially increase our addressable market. We are also pushing forward with our consumer products agenda by working with a widening range of vendors for Blu-ray player designs, digital media adapter products and home entertainment connectivity devices. Additionally, we are encouraged about the potential opportunities addressed by our recent acquisition of the Z-Wave brand home control products and anticipate a growing synergy within the set-top box market,” stated Thinh Tran, chairman and chief executive officer, Sigma Designs.
First Quarter Highlights
Investor Conference Call
The conference call relating to Sigma’s first quarter fiscal 2010
results will take place following this announcement at 5:00 PM ET today,
May 27, 2009. Investors will have the opportunity to listen live to the
conference call via the Internet through
Institutional investors can access the call via Thomson StreetEvents at
To listen to the live call, please go to the website at least 15 minutes
early to register and download and install any necessary audio software.
For those who cannot listen to the live broadcast, a replay will be
available shortly after the call via the internet through
The audio replay will be available for one week after the call.