Once these most recent quarterly results are finalized, they will be run through TheStreet.com Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit TheStreet.com Ratings Screener. Sigma Designs ( SIGM) reported on March 4, 2009 that its Q4 FY09 earnings dropped 81.4%, hurt by lower revenue and higher operating expenses. Net income plummeted to $6.58 million or $0.24 per share from $35.30 million or $1.12 per share in Q4 FY08. Non-GAAP net income decreased 60.2% to $10.13 million or $0.38 per share, exceeding the consensus estimate of $0.18 per share. Net revenue fell 38.1% to $47.31 million from $76.40 million in the year-ago quarter. The cost of revenue dropped 33.4% to $25.95 million from $38.95 million, but gross margin fell to 45.14% from 49.02%. Research and development costs surged 18.5% to $11.19 million and sales and marketing expenses rose 42.0% to $3.58 million. General and administrative expenses fell 18.9% to $3.77 million. Total operating expenses spiked 11.6% to $18.54 million from $16.60 million, and operating margin declined to 5.96% from 27.29% in Q4 FY08. Sigma Designs acquired Zensys Holdings, a wireless start-up company developing RF transceivers for home control. The company secured an order from Spain-based Blusens for its SMP8634 (Secure Media Processor) and from Lung Hwa Electronics for its CoAir Ultra Wideband chipset. DivX signed a license agreement with Sigma to incorporate its technology in a range of integrated circuit solutions for consumer electronics products. FY08 revenue decreased 5.4% to $209.16 million from $221.21 million in FY07. Higher operating expenses and lower revenue caused a 62.4% drop in earnings to $26.42 million or $0.95 per share from $70.21 million or $2.46 per share in FY07.