Wednesday, October 11, 2006

Calls of Note Part 3

- Baird notes Sigma Designs' (NASDAQ:SIGM) lock in Microsoft-based IP STBs is now paying off, with key telcos announcing yesterday their advanced STBs are now ready for volume shipments. Ramps at Motorola, Cisco, Philips, Tatung, including the first U.S.-based ramp with AT&T, should provide significant momentum to Sigma's top line this quarter and next. UWB chipset strategic to further assert Sigma's leading position in advanced media processors.

Key set-top box vendors including Cisco, Motorola, Philips, and Tatung announced yesterday that their advanced IP set-top boxes based on Microsoft's IPTV Edition Software platform are now ready for volume deployment.

All advanced IP set-top boxes supporting Microsoft's IPTV Edition Software platform are based on Sigma Designs' SoC, in firm's view.

Motorola's VIP series set-top boxes (Sigma Designs inside) are now shipping in volume to several telcos worldwide, ahead of firm's estimate, including at AT&T which represents the first U.S.-based IP STB deployment for Sigma. This Motorola IP set-top box will also ship
at a leading Japan-based telco, among other wins.

Philips' IP set-top box will launch this fall at British Telecom, ahead of firm's original expectation. Cisco IP set-top boxes will be deployed by Deutsche Telekom and AT&T. Both set-top box brands are using Sigma Designs' 8634 chip.

Net, they think this quarter and next could see significant revenue momentum for Sigma Designs. Trading at only 13x C2007 GAAP EPS estimate of $1.15, valuation remains compelling. Reiterates Outperform rating, $21 price target.

Notablecalls: Not actionable but good to know category. I don't really have a feel for SIGM, but I think we won't see a big upside move following these comments.

2 comments:

tunemann2003 said...

Wow...I should have bought the open. Did not even gap up and ended up $2+

notablecalls said...

goddamn!