Sigma Designs Inc (NASDAQ:SIGM) a leading provider of intelligent SoC solutions for Connected Smart TV Platforms and IoT devices, posted fiscal report for its 3Q2017, which closed October 29, 2016. Net revenue in the reported period came at $62.7 million compared to $61.3 million posted in the previous quarter, and jumped $1.1 million from the same period in FY2016.
The financial performance
GAAP gross margin in 3Q2017 was 49.4%, which compares to 48.2% in the preceding quarter, and a GAAP gross margin of 50% for the same period in FY2016. Non-GAAP gross margin came at 51% compared to 49.9% in the preceding quarter. It was 51.7% for the same period in FY2016. GAAP operating expenses in 3Q2017 came at $28.8 million against GAAP operating costs of $29.9 million in the preceding quarter, while it stood at $29.3 million for the same quarter in fiscal 2016.
Non-GAAP operating costs in the third quarter of FY2017 were $26.7 million, versus non-GAAP operating costs of $27.2 million in the preceding quarter. Non-GAAP operating costs of $26 million for the same quarter in FY2016.
Sigma Designs reported that GAAP Operating income in 3Q2017 was $2.2 million, against a GAAP operating loss of $0.3 million in the preceding quarter. In the same period of FY2016, GAAP operating income was $1.5 million.
Non-GAAP operating income in 3Q2017 was $5.3 million, against non-GAAP operating income of $3.4 million recorded in the preceding quarter, while it was $5.8 million for the same quarter in FY2016.
Thinh Tran, the CEO and President of Sigma Designs, said that the profitable third quarter was driven by a strong rebound in Internet-of-Things sales on top of company’s seasonally robust Smart TV operations, lower operating expenses and strong gross margin performance. They remain thrilled by their outlook for the Internet-of-Things operations, which should continue to surge as customer adoption of Z-Wave enabled offerings improves. For the long-term, they project to cash on the multitude of new prospects across their business to grow revenue, and combine this implementation with cost declines, in order to achieve stronger earnings.