Sigma Designs results beat analyst expectations; revenue jumps 43 percent

Sigma Designs profit beats analyst expectations

MILPITAS, Calif. — Chip designer Sigma Designs Inc. said on Wednesday that its second-quarter profit fell sharply as it wrote off an investment in another company, but adjusted results were better than analysts had expected.

Sigma’s profit was $496,000, or 2 cents per share, for the quarter that ended July 31. That was down from $4.8 million, or 18 cents per share, during the quarter that ended Aug. 1, 2009. Writing off it investment reduced its profit by $5.2 million, or 10 cents per share, the company said.

Not counting the write-off and other one-time items, the company said it would have earned $11.6 million, or 36 cents per share. On that basis, analysts surveyed by Thomson Reuters were expecting a profit of 34 cents per share.

Revenue rose 43 percent to $73.3 million, from $51.3 million a year earlier. Analysts were expecting $70.6 million.

The company said revenue rose in all three of its segments. The biggest gain was in sales of its IPTV media processor segment, which accounted for the bulk of the quarter’s growth, the company said.

The company’s shares had risen 26 cents, or 2.5 percent, to close at $10.53 before the results were announced.