Sigma Designs Fiscal 2Q Profit Falls By 50 Percent

MILPITAS, Calif. (AP) — Sigma Designs Inc. said Wednesday its fiscal second-quarter profit fell 50 percent as revenue dropped, but the chip designer's adjusted earnings met analyst expectations.

In the quarter that ended Aug. 1, the chip designer earned $4.8 million, or 18 cents per share, down from $9.6 million, or 35 cents per share, in the year-ago quarter.

When excluding one-time items, Sigma Designs earned 28 cents per share, matching expectations of analysts polled by Thomson Reuters.

Revenue fell 12 percent to $51.3 million from $58.2 million, just shy of analyst estimates for $51.5 million.

In a statement, CEO Thinh Tran, said the company believes its main markets "have shown continued stability in the face of a difficult economy."

"We are continuing to pursue consumer opportunities on multiple fronts, including Blu-ray players, digital media adapters and home entertainment connectivity devices," he later added.

Sigma Designs shares lost $1.19, or 7 percent, to $15.93 in after-hours trading, having finished regular trading at $17.12.