WASHINGTON (dpa-AFX) - Sigma Designs Inc. (SIGM), on Wednesday reported a swing to profit for the second quarter from a loss last year, as revenues surged and operating costs dropped. Both earnings and revenues for the quarter trumped Wall Street estimates, sending its shares up 7 percent in the after-hours trading.
Fremont, California-based Sigma reported second-quarter profit of $296 thousand or $0.01 per share, compared to last year's loss of $7.6 million or $0.22 per share.
Adjusted earnings for the quarter were $4.5 million or $0.12 per share, compared to a loss of $2.0 million or $0.06 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.06 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the second quarter surged 36.2 percent to $58.3 million $42.8 million last year. Analysts had a consensus revenue estimate of $55.69 million for the quarter.
Gross margin for the quarter dropped to 48.9 percent from 51.1 percent last year. Operating costs dropped slightly to $27.3 million from $27.7 million a year ago.
'We generated our fifth consecutive quarter of revenue growth, led by continued improvement in our two fastest growing target markets, SmartTV and Internet of Things,' said CEO Thinh Tran. 'We expect this revenue growth trend to continue in the third quarter.'
SIGM closed Wednesday's trading at $10.63, down $0.25 or 2.30%, on the Nasdaq. The stock, however, gained $0.77 or 7.24% in the after-hours trade.
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