Sigma Designs reports 3rd-quarter loss as revenue drops 24 percent

Sigma Designs reports 3Q loss

MILPITAS, Calif. — Sigma Designs Inc. reported a third-quarter loss Wednesday, citing a drop in demand for its Internet protocol television products for a drop in revenue.

The chip designer’s shares fell $1.46, or 12.7 percent, to $10.05 in after-hours trading, having finished regular trading down 14 cents at $11.51.

Sigma reported a loss of $2.3 million, or 9 cents per share, compared with a profit of $3.7 million, or 14 cents per share, in the same quarter last year.

When excluding one-time items, Sigma earned 9 cents per share. Analysts polled by Thomson Reuters expected 19 cents per share.

Revenue fell 24 percent to $35.5 million from $46.8 million in the year-ago quarter. Analysts were expecting $46 million.

Sigma CEO Thinh Tran said in a statement that the company is “disappointed” by the revenue drop.

“This shortfall is due to a number of factors affecting our IPTV demand, some of which are believed to be one-time events,” he said, adding that Sigma believes the IPTV market will see growth next year.