Sigma Designs, Inc. F3Q 2009 (Qtr End 11/1/2008) Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2008-12-02 18:38:10.0

Tags: Revenue, Analyst, Call Transcript, Earnings, Pricing Strategy, Blu-ray, RBC Capital Markets, Pricing, Outsourcing, Marketing Research, Operational Accounting, Marketing, It Operations, Business Operations, Outsourcing & Subcontracting, Finance, Seeking Alpha, Sigma Designs

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from [Unidentified Analyst] - RBC Capital Markets.

[Unidentified Analyst] - RBC Capital Markets

As you mentioned, Blu-ray players are now below $200.00 and our price checks specifically show as low as $149.00 to $199.00. If you could give us a sense of your product’s roadmap and what growth assumptions you’ve included as well as the pricing.

Kenneth Lowe

Well, as we indicated, the Blu-ray market right now is – our short term visibility is fairly limited. We are still participating in the market with various different customers and we’re looking to gain additional sockets as we move forward. This industry, as it develops, is adding more and more players coming into the market and there are more and more socket opportunities coming. So we’re broadening our impact on that.

We’ve got new products we’re rolling out, including our 8644 that we introduced, and we’ve got additional lower cost parts coming out as well. We also have a big push into China and Taiwan, where we received a lot of success with our turnkey solutions. One of the noteworthy things about the Sigma offering is we have a – we own the entire software suite that goes with our Blu-ray chipsets. So we uniquely can offer turnkey solutions to many of the emerging vendors that have never done these types of products before.

That said, the timing and impact of the various new consumer vendors we’re working with is a little bit hard to predict at this point in time. So the amount of Blu-ray business that’s factored into the next quarter is at this point in time no more than what we’ve had in the current quarter.

[Unidentified Analyst] - RBC Capital Markets

Do you expect pricing to stabilize where it is right now or continue to go down over the next quarter or two?

Kenneth Lowe

I think we expect pricing to be relatively stable for the short term, but it will go down over time. This is getting more and more competitive.

Operator

Your next question comes from John Vinh - Collins Stewart LLC.

John Vinh - Collins Stewart LLC

Just first a clarification, Tom you mentioned the drop-off in Cisco revenues was partly due to the fact that they had started outsourcing to two sub-cons and so is the way to think about that is they outsourced with their revenues were 12%, but they also outsourced another 12% to another sub-con, so together Cisco was 24% of your revenues?

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement
Click Here