Sigma Designs Earnings Update 6/12/14

SIGM announced Q1 2014 earnings (quarter ended Mary 3, 2014) on June 11th. Revenues were $36.9 million down from $38.5 million last year. GAAP net loss was $.29 a share, compared to a loss of $.13 per share last year. Non-GAAP loss was $.14 per share compared to a $.01 profit last year. Our valuation fell to $8.24 down from $9.16 last quarter. Net cash per share was $2.38.

Only forecast in the press release was that this should be the lowest revenue quarter for the foreseeable future. The market seems to like the results as the stock is up about 25% over the last few days.

CSI Update: HOLD Synacor Inc.

SYNC announced Q1 2014 earnings after the close on May 13. Revenues were $25.2 million down from $29.1 million last year. Net loss was $.07 per share compared to break even last year. Adjusted EBITDA was a loss of $.7 million compared to positive adjusted EBITDA of $1.8 million last year. Not a great quarter.

Our valuation fell to $5.44 from $5.94 last quarter. Cash was $1.17 per share, more than 50% of the current market cap.

SYNC is trading at about 42% of our valuation. We will HOLD for now and see how the next couple of quarters look. Any signs of a turnaround and we think this stock will soar. A buy out is always a possibility.

It’s earnings season! I will be updating the blog more frequently during this time. If you don’t want to miss out, be sure to click the “follow” button on the left side of the page.