Sigma Designs Sees 3Q Profit Below Analyst Views

MILPITAS, Calif. (AP) — Chip designer Sigma Designs Inc. said Wednesday that it expects its fiscal third-quarter revenue to drop 5 percent to 10 percent from the second quarter — a forecast that is much lower than what analysts expect.

Sigma Designs shares fell $1.57, or 9.2 percent, to $15.55 in after-hours trading. The shares finished regular trading at $17.12.

The company gave the outlook during a conference call with analysts late Wednesday. Based on the $51.3 million in second-quarter revenue that Sigma Designs reported, it expects third-quarter sales between $48.7 million and $46.2 million.

Analysts polled by Thomson Reuters are looking for $53.4 million in revenue.

In the third quarter of last year, Sigma Designs reported $46.5 million in revenue.