Why Sigma Designs (SIGM) Is Lower on Thursday

NEW YORK (TheStreet) -- Sigma Designs (SIGM) is tumbling on Thursday after posting a net loss and lower revenue in its year-ending quarter.

By midday, shares had slipped 8.8% to $4.38.

The servers and systems chipmaker reported a net loss of 13 cents a share in the three months to January. Analysts surveyed by Thomson Reuters had expected profits of a penny a share.

Revenue of $38.5 million fell short of expectations for $42.62 million.

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TheStreet Ratings team rates SIGMA DESIGNS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate SIGMA DESIGNS INC (SIGM) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself."

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