Sigma Designs, Inc. (
SIGMA DESIGNS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(GAAP)
(In thousands)
May 3, February 1,
2014 2014
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Assets
Current Assets:
Cash and cash equivalents $ 63,431 $ 64,326
Short-term marketable securities 6,920 7,791
Restricted cash 1,540 1,775
Accounts receivable, net 23,776 27,647
Inventory 19,473 20,403
Deferred tax assets 4,270 4,144
Prepaid expenses and other current assets 7,180 8,069
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Total current assets 126,590 134,155
Long-term marketable securities 9,864 15,505
Software, equipment and leasehold improvements,
net 23,991 27,089
Intangible assets, net 28,617 29,780
Deferred tax assets, net of current portion 253 439
Long-term investments and notes receivable, net of
current portion 3,872 3,873
Other non-current assets 4,945 4,934
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Total assets $ 198,132 $ 215,775
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Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 11,596 $ 16,184
Accrued compensation and related benefits 6,315 6,288
Accrued liabilities 15,064 19,813
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Total current liabilities 32,975 42,285
Other long-term liabilities 14,317 15,099
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Total liabilities 47,292 57,384
Shareholders' equity 150,840 158,391
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Total liabilities and shareholders' equity $ 198,132 $ 215,775
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SIGMA DESIGNS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(GAAP)
(In thousands, except per share data)
Three months ended
-------------------------------------
May 3, February 1, May 4,
2014 2014 2013
----------- ----------- -----------
Net revenue $ 36,873 $ 38,497 $ 52,540
Cost of revenue 16,648 16,451 25,594
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Gross profit 20,225 22,046 26,946
Gross margin percent 54.9% 57.3% 51.3%
Operating expenses:
Research and development 17,103 16,634 20,204
Sales and marketing 5,450 4,820 5,682
General and administrative 5,031 4,729 4,762
Restructuring and impairment
charges 1,084 942 398
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Total operating expenses 28,668 27,125 31,046
Loss from operations (8,443) (5,079) (4,100)
Gain on sale of development project - - 1,079
Interest and other income (expense),
net (52) (164) 691
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Loss before income taxes (8,495) (5,243) (2,330)
Provision (benefit) for income taxes 1,419 (6,496) 2,203
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Net income (loss) $ (9,914) $ 1,253 $ (4,533)
=========== =========== ===========
Net income (loss) per share:
Basic $ (0.29) $ 0.04 $ (0.13)
Diluted $ (0.29) $ 0.04 $ (0.13)
Shares used in computing net income
(loss) per share:
Basic 34,367 34,421 33,912
Diluted 34,367 34,502 33,912
SIGMA DESIGNS, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(Unaudited)
(In thousands, except per share data)
Three months ended
----------------------------------------
May 3, February 1, May 4,
2014 2014 2013
------------ ------------ ------------
GAAP net income (loss) $ (9,914) $ 1,253 $ (4,533)
Items reconciling GAAP net income
(loss) to non-GAAP net income
(loss):
Stock-based compensation
expenses 1,488 1,427 2,033
Amortization of acquired
intangibles 1,441 1,772 1,815
Restructuring and impairment
charges 1,135 954 438
Mark-up on inventory acquired in
business combinations sold
during the period during the
period - - 260
Realized gain on sale of
development project - - (1,079)
Facility exit legal expenses 190 91 -
Settlement expenses 107 - -
Impairment of investments, net - 270 -
Income tax adjustments 582 (10,292) 1,343
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Total GAAP to Non-GAAP adjustments 4,943 (5,778) 4,810
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Non-GAAP net income (loss) $ (4,971) $ (4,525) $ 277
============ ============ ============
Diluted net income (loss) per
share $ (0.14) $ (0.13) $ 0.01
============ ============ ============
Shares used in calculating diluted
net income (loss) per share: 34,367 34,421 33,937
============ ============ ============
Diluted net income (loss) per
share:
Diluted GAAP net income (loss) per
share $ (0.29) $ 0.04 $ (0.13)
Diluted GAAP to non-GAAP
adjustments $ 0.15 $ (0.17) $ 0.14
------------ ------------ ------------
Diluted Non-GAAP net income (loss)
per share $ (0.14) $ (0.13) $ 0.01
============ ============ ============
Reconciliation of shares used in
calculating non-GAAP net income
(loss) per share:
Shares used in calculating basic
net income (loss) per share 34,367 34,421 33,912
Adjustment for dilutive securities - - 25
------------ ------------ ------------
Non-GAAP shares used in
calculating diluted net income
(loss) per share 34,367 34,421 33,937
============ ============ ============
SIGMA DESIGNS, INC.
SCHEDULE 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
------------------------------------
May 3, February 1, May 4,
2014 2014 2013
---------- ------------ ----------
GROSS PROFIT:
GAAP gross profit $ 20,225 $ 22,046 $ 26,946
Stock-based compensation expense 50 53 83
Amortization of acquired intangibles 1,095 1,403 1,435
Restructuring and impairment charges 51 12 40
Mark-up on inventory acquired in
business combinations sold during
the period - - 260
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Non-GAAP gross profit $ 21,421 $ 23,514 $ 28,764
========== ============ ==========
OPERATING EXPENSES:
GAAP operating expenses $ 28,668 $ 27,125 $ 31,046
Stock-based compensation expense (1,438) (1,374) (1,950)
Amortization of acquired intangibles (346) (369) (380)
Restructuring and impairment charges (1,084) (942) (398)
Facility exit legal expenses (190) (91) -
Settlement expenses (107) - -
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Non-GAAP operating expenses $ 25,503 $ 24,349 $ 28,318
========== ============ ==========
INCOME TAX EXPENSE:
GAAP income tax expense $ 1,419 $ (6,496) $ 2,203
Income tax adjustments (582) 10,292 (1,343)
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Non-GAAP income tax expense $ 837 $ 3,796 $ 860
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RESEARCH AND DEVELOPMENT:
GAAP research and development $ 17,103 $ 16,634 $ 20,204
Stock-based compensation expense (691) (660) (1,090)
Amortization of acquired intangibles - (22) (33)
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Non-GAAP research and development $ 16,412 $ 15,952 $ 19,081
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SALES AND MARKETING:
GAAP sales and marketing $ 5,450 $ 4,820 $ 5,682
Stock-based compensation expense (240) (246) (349)
Amortization of acquired intangibles (346) (347) (347)
Settlement expenses (107) - -
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Non-GAAP sales and marketing $ 4,757 $ 4,227 $ 4,986
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GENERAL AND ADMINISTRATIVE:
GAAP general and administrative $ 5,031 $ 4,729 $ 4,762
Stock-based compensation expense (507) (468) (511)
Facility exit legal expenses (190) (91) -
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Non-GAAP general and administrative $ 4,334 $ 4,170 $ 4,251
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