Sigma Designs, Inc. (
SIGMA DESIGNS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(GAAP)
(In thousands)
November 2, February 2,
2013 2013
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Assets
Current Assets:
Cash and cash equivalents $ 50,326 $ 51,218
Short-term marketable securities 11,412 17,455
Restricted cash 1,771 1,769
Accounts receivable, net 39,256 21,648
Inventory 19,176 24,929
Deferred tax assets 4,683 5,868
Prepaid expenses and other current assets 8,845 13,578
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Total current assets 135,469 136,465
Long-term marketable securities 24,574 14,253
Software, equipment and leasehold
improvements, net 16,398 17,106
Intangible assets, net 31,696 36,573
Deferred tax assets, net of current portion 43 2,681
Long-term investments and notes receivable,
net of current portion 4,144 8,943
Other non-current assets 4,803 4,810
-------------- --------------
Total assets $ 217,127 $ 220,831
============== ==============
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 12,580 $ 11,046
Accrued compensation and related benefits 8,381 8,773
Accrued liabilities 19,749 20,018
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Total current liabilities 40,710 39,837
Other long-term liabilities 20,210 18,976
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Total liabilities 60,920 58,813
Shareholders' equity 156,207 162,018
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Total liabilities and shareholders' equity $ 217,127 $ 220,831
============== ==============
SIGMA DESIGNS, INC
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(GAAP)
(In thousands, except per share data)
Three months ended Nine months ended
---------------------------- ------------------
November August October November October
2, 2013 3, 2013 27, 2012 2, 2013 27, 2012
-------- -------- -------- -------- --------
Net revenue $ 54,394 $ 53,762 $ 63,905 $160,696 $172,414
Cost of revenue 23,311 25,696 38,423 74,601 95,257
-------- -------- -------- -------- --------
Gross profit 31,083 28,066 25,482 31,083 77,157
Gross margin percent 57.1% 52.2% 39.9% 19.3% 44.8%
Operating expenses:
Research and development 17,555 18,769 26,741 56,528 76,505
Sales and marketing 5,608 5,527 12,774 16,817 27,457
General and
administrative 5,212 4,937 6,007 14,911 21,874
Gain on acquisition - - - - (1,417)
Restructuring charges 1,104 680 821 1,994 821
Impairment of IP, mask
sets and design tools 150 - - 338 -
-------- -------- -------- -------- --------
Total operating
expenses 29,629 29,913 46,343 29,629 125,240
Income (loss) from
operations 1,454 (1,847) (20,861) 1,454 (48,083)
Gain on sale of
development project - - - 1,079 -
Interest and other income
(expense), net (254) 121 299 558 1,032
-------- -------- -------- -------- --------
Income (loss) before
income taxes 1,200 (1,726) (20,562) 3,091 (47,051)
Provision for income taxes 4,178 3,065 18,889 9,446 19,520
-------- -------- -------- -------- --------
Net loss $ (2,978) $ (4,791) $(39,451) $ (6,355) $(66,571)
======== ======== ======== ======== ========
Net loss per share:
Basic $ (0.09) $ (0.14) $ (1.18) $ (0.19) $ (2.02)
Diluted $ (0.09) $ (0.14) $ (1.18) $ (0.19) $ (2.02)
Shares used in computing
net loss per share:
Basic 34,518 34,259 33,383 34,129 33,032
Diluted 34,518 34,259 33,383 34,129 33,032
SIGMA DESIGNS, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME (LOSS)
(Unaudited)
(In thousands, except per share data)
Three months ended Nine months ended
---------------------------- ------------------
November August October November October
3, 3, 27, 3, 27,
2013 2013 2012 2013 2012
-------- -------- -------- -------- --------
GAAP net loss $ (2,978) $ (4,791) $(39,451) $(12,302) $(66,571)
Items reconciling GAAP net
loss to non-GAAP net
income (loss):
Stock-based compensation
expenses 1,668 1,686 2,503 5,387 8,078
Amortization of acquired
intangibles 1,782 1,783 1,985 5,380 5,858
Impairment of purchased
IP, mask sets, designs
tools and other assets 561 - - 749 -
Restructuring charges,
net 1,104 680 821 2,027 821
Mark-up on inventory
acquired in business
combinations sold
during the period
during the period - 176 1,078 436 3,607
Realized gain on sale of
development project - - - (1,079) -
Gain on acquisition - - - - (1,417)
Facility exit legal
expenses 8 288 - 296 -
Settlement expenses 100 - 5,700 100 5,700
Impairment of
investments, net 163 - - 163 -
Acquisition expenses - - 352 - 4,276
Income tax adjustments 901 2,222 17,548 4,466 17,421
-------- -------- -------- -------- --------
Total GAAP to Non-GAAP
adjustments 6,287 6,835 29,987 17,925 44,344
-------- -------- -------- -------- --------
Non-GAAP net income (loss) $ 3,309 $ 2,044 $ (9,464) $ 5,623 $(22,227)
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Diluted net income (loss)
per share $ 0.10 $ 0.06 $ (0.28) $ 0.16 $ (0.67)
======== ======== ======== ======== ========
Shares used in calculating
diluted net income (loss)
per share: 34,564 34,135 33,383 34,176 33,032
======== ======== ======== ======== ========
Diluted net income (loss)
per share:
Diluted GAAP net loss per
share $ (0.09) $ (0.14) $ (1.18) $ (0.36) $ (2.02)
Diluted GAAP to non-GAAP
adjustments $ 0.19 $ 0.20 $ 0.90 $ 0.52 $ 1.35
-------- -------- -------- -------- --------
Diluted Non-GAAP net
income (loss) per share $ 0.10 $ 0.06 $ (0.28) $ 0.16 $ (0.67)
======== ======== ======== ======== ========
Reconciliation of shares
used in calculating non-
GAAP net income (loss)
per share:
Shares used in calculating
basic net income (loss)
per share 34,518 34,259 33,383 34,129 33,032
Adjustment for dilutive
securities 46 (124) - 47 -
-------- -------- -------- -------- --------
Non-GAAP shares used in
calculating diluted net
income (loss) per share 34,564 34,135 33,383 34,176 33,032
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SIGMA DESIGNS, INC.
SECHEDULE OF SELECTED GAAP TO NON-GAAP ADJUSTMENTS
(Unaudited)
(In thousands, except per share data)
The following schedule reconciles selected line items from the GAAP basic
statements of operations to non-GAAP statements of operations:
Three months ended Nine months ended
---------------------------- ------------------
November August October November October
3, 3, 27, 3, 27,
2013 2013 2012 2013 2012
-------- -------- -------- -------- --------
GROSS PROFIT:
GAAP gross profit $ 31,083 $ 28,066 $ 25,482 $ 86,095 $ 77,157
Stock-based compensation
expenses 64 67 131 214 380
Amortization of acquired
intangibles 1,403 1,403 1,591 4,241 4,676
Acquisition expenses - - 101 - 101
Restructuring charges,
net - - - 33 -
Mark-up on inventory
acquired in business
combinations sold
during the period
during the period - 176 1,078 436 3,607
-------- -------- -------- -------- --------
Non-GAAP gross profit $ 32,550 $ 29,712 $ 28,383 $ 91,019 $ 85,921
======== ======== ======== ======== ========
OPERATING EXPENSES:
GAAP operating expenses $ 29,629 $ 29,913 $ 46,343 $ 90,588 $125,240
Stock-based compensation
expenses (1,604) (1,619) (2,372) (5,173) (7,698)
Amortization of acquired
intangibles (379) (380) (394) (1,139) (1,182)
Impairment of purchased
IP, mask sets, designs
tools and other assets (561) - - (749) -
Restructuring charges,
net (1,104) (680) (821) (1,994) (821)
Gain on acquisition - - - - 1,417
Facility exit legal
expenses (8) (288) - (296) -
Settlement expenses (100) - (5,700) (100) (5,700)
Acquisition expenses - - (251) - (4,175)
-------- -------- -------- -------- --------
Non-GAAP operating
expenses $ 25,873 $ 26,946 $ 36,805 $ 81,137 $107,081
======== ======== ======== ======== ========
INCOME TAX EXPENSE:
GAAP income tax expenses $ 4,178 $ 3,065 $ 18,889 $ 9,446 $ 19,520
Income tax adjustments (901) (2,222) (17,548) (4,466) (17,421)
-------- -------- -------- -------- --------
Non-GAAP income tax
expenses $ 3,277 $ 843 $ 1,341 $ 4,980 $ 2,099
======== ======== ======== ======== ========
RESEARCH AND DEVELOPMENT:
GAAP research and
development $ 17,555 $ 18,769 $ 26,741 $ 56,528 $ 76,505
Stock-based compensation
expenses (778) (853) (1,375) (2,721) (4,346)
Amortization of acquired
intangibles (33) (33) (34) (99) (100)
Acquisition expenses - - - - (1,417)
-------- -------- -------- -------- --------
Non-GAAP research and
development $ 16,744 $ 17,883 $ 25,332 $ 53,708 $ 70,642
======== ======== ======== ======== ========
SALES AND MARKETING:
GAAP sales and marketing $ 5,608 $ 5,527 $ 12,774 $ 16,817 $ 27,457
Stock-based compensation
expenses (365) (315) (458) (1,029) (1,412)
Amortization of acquired
intangibles (346) (347) (360) (1,040) (1,082)
Settlement expenses (100) - (5,700) (100) (5,700)
Acquisition expenses - - - - (257)
-------- -------- -------- -------- --------
Non-GAAP sales and
marketing $ 4,797 $ 4,865 $ 6,256 $ 14,648 $ 19,006
======== ======== ======== ======== ========
GENERAL AND
ADMINISTRATIVE:
GAAP general and
administrative $ 5,212 $ 4,937 $ 6,007 $ 14,911 $ 21,874
Stock-based compensation
expenses (461) (451) (539) (1,423) (1,940)
Impairment of purchased
IP, mask sets, designs
tools and other assets (411) - - (411) -
Acquisition expenses - - (251) - (2,501)
Facility exit legal
expenses (8) (288) - (296) -
-------- -------- -------- -------- --------
Non-GAAP general and
administrative $ 4,332 $ 4,198 $ 5,217 $ 12,781 $ 17,433
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