STOCKREPORTS		 Sigma Designs, Inc. NASDAQ Symbol SIGM
28-JUN-97 Industry:
Computers (Peripherals)		 Summary: This company designs, manufactures and markets multimedia and imaging display systems for use with personal computers.

Recent Price 4.25
52 Wk Range 11.50 - 2.75		 Yield Nil
12-Mo. P/E 42.5

Quantitative Evaluation:
Outlook (1 Lowest - 5 Highest)
NA
Fair Value
NA
Risk
HIGH
Earn/Div Rank
C
Technical Evaluation:
BULLISH since 05/97
Rel. Strength Rank (1 Lowest - 99 Highest)
12
Insider Activity
NA

Business Profile 26-MAR-97

In 1993, this company undertook a restructuring involving substantially increased emphasis on multimedia products and technology, and a reduction in operations related to the graphics board, imaging and display systems product lines. SIGM's decision in FY 96 (Jan.) to market MPEG and 2D/3D graphic chipsets to both computer and add-on card manufacturers has resulted in increased penetration for the company's REALmagic products, improving its leading position in the multimedia marketplace for both desktop and notebook computers.

Operation Review 26-MAR-97

Based on a preliminary report, revenues in FY 97 rose 56% from those of FY 96, aided by a change in the company's strategy to focus on REALmagic multimedia chipsets and other MPEG products. Operating costs declined, as a result of measures taken to streamline overall overhead structure. In the absence of $8.3 million of restructuring and other charges, net income of $1,529,000 ($0.14 a share, on 44% more shares) contrasted with a net loss of $14,610,000 ($1.87).

Stock Performance 27-JUN-97n

In the past 30 trading days, SIGM's shares have increased 10%, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 100,980 shares, compared with the 40-day moving average of 163,518 shares.

Key Stock Statistics

Dividend Rate/Share Nil
Shs. outstg. (M) 11.1
Avg. daily vol. (M) 0.091
Tang. Bk. Value/Share 1.84
Beta 2.92
Shareholders 300
Market cap. (B) $0.047
Inst. holdings 15%
Value of $10,000 invested 5 years ago:$ 5,762

Fiscal Year Ending Jan. 31

Revenue (Million $)
1998 1997 1996 1995 1994 1993
Q1 8.51 8.74 8.01 11.00 9.97 5.30
Q2 NA 10.08 4.89 9.34 5.50 6.40
Q3 NA 12.74 6.21 12.31 8.22 7.30
Q4 NA 9.67 7.26 11.00 11.30 8.05
Year NA 41.21 26.37 43.70 34.99 27.06

Earning Per Share ($)
1998 1997 1996 1995 1994 1993
Q1 -0.05 0.04 -0.89 -0.01 -0.67 -0.27
Q2 NA 0.03 -0.79 -0.23 -4.72 -0.27
Q3 NA 0.09 -0.17 Nil -0.17 -0.43
Q4 NA 0.02 Nil -0.96 0.01 -0.39
Year NA 0.14 -1.81 -1.20 -5.15 -1.37

Dividend Data: No cash dividends have been paid.

Business Summary 26-MAR-97

Sigma Designs, Inc. is the world's leading provider of interactive MPEG solutions. Since entering the market in 1993, the company has been the driving force in the advancement of MPEG technology used in most of today's multimedia personal computers. Prior to 1993, SIGM was primarily engaged in the development, manufacture and sale of graphics boards and high-resolution display systems used for desktop publishing and imaging.

MPEG (The Moving Pictures Expert Group) sets the standard for compressing and decompressing audio and video data, allowing an interactive television experience to be economically achieved via the desktop PC. In 1995, Microsoft endorsed the MPEG standard, and it planned to incorporate MPEG compatibility into future versions of Windows 95 and NT.

SIGM's products include affordable MPEG chipsets, MPEG encoding and decoding hardware and a broad line of MPEG software titles. Through its acquisition of E-Motions, Inc., the company developed a proprietary multimedia technology known as REALmagic. In October 1993, SIGM began shipping the REALmagic multimedia card, which enables PCs using 386, 486 or Pentium microprocessors and running DOS or Windows to play back full-motion, full-screen video and 16-bit stereo sound from an industry standard CD-ROM drive.

REALmagic, priced at $349, is the first affordable playback card on the market, and has become the hardware solution of choice within the business community. In addition, since major personal computer makers are racing to implement MPEG technology into their multimedia and notebook PCs, SIGM has created a line of MPEG chipsets to help them meet the growing demand.

REALmagic API (application programming interface), the industry's first affordable MPEG authoring solution, has become the de facto standard for creating fully interactive software MPEG titles. At the end of FY 96, there were more than 1,200 authorized REALmagic software developers worldwide, up from only 50 two years earlier. There are currently mor than 500 business applications involving interactive training, business presentation and interactive kiosks; and, more than 60 interactive consumer titles in the areas of games, education, music and reference.

Important Developments

Mar. '97 Sigma announced that it had signed a contract with Smith Barney to provide REALmagic MPEG decoder boards to more than 11,000 brokerage professionals in 475 remote locations.

Capitalization

Long Term Debt: $69,000 (10/96).
Warrants: To purchase 416,000 com. shs. at $7.62 a share.

Per Share Data ($)
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
Tangible Bk. Val. 1.89 1.33 2.50 2.65 7.18 8.59 9.35 8.74 7.18 3.47
Cash Flow 0.23 -1.64 -1.09 -5.04 -1.22 -0.54 0.43 1.60 1.59 1.18
Earnings 0.14 -1.81 -1.20 -5.15 -1.37 -0.67 0.32 1.50 1.52 1.15
Dividends Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Payout Ratio Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Cal. Yrs. 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Prices - High 14 3/4 8 15 1/2 20 8 11 1/4 10 3/4 20 1/4 22 1/4 22 1/4
- Low 6 5/8 3 5/8 4 3/8 3 4 5 4 1/2 7 1/2 10 1/2 8 1/2
P/E Ratio - High NM NM NM NM NM NM 34 14 15 19
- Low NM NM NM NM NM NM 14 5 7 7

Income Statement Analysis (Million $)
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
Revs. 41.2 26.4 43.7 35.0 27.1 27.6 36.0 76.2 73.0 46.0
Oper. Inc. 2.5 -13.6 -9.4 -16.1 -9.7 -6.2 1.3 13.0 13.1 9.6
Depr. 1.1 1.3 0.8 0.6 0.8 0.6 0.7 0.6 0.4 0.2
Int. Exp. 0.5 0.4 NA Nil Nil NM NM NM 0.0 0.0
Pretax Inc. 1.5 -13.9 -8.8 -29.7 -9.3 -5.3 2.6 13.9 13.6 9.8
Eff. Tax Rate NM NM NM NM NM NM 34% 34% 35% 42%
Net Inc. 1.5 -1.5 -8.8 -29.5 -7.2 -3.4 1.8 9.2 8.8 5.6

Balance Sheet & Other Fin. Data (Million $)
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
Cash 18.7 14.8 8.2 5.3 19.4 28.8 28.9 29.7 17.6 5.1
Curr. Assets 36.6 22.4 31.0 23.7 40.2 45.1 47.7 52.6 50.3 23.2
Total Assets 37.9 23.4 33.4 26.6 44.3 49.0 51.8 56.3 53.6 24.4
Curr. Liab. 16.5 11.3 13.6 8.6 6.5 3.5 3.0 4.7 11.8 8.1
LT Debt 0.1 Nil Nil Nil Nil Nil 0.0 0.1 0.1 Nil
Common Eqty. 21.0 11.6 18.7 16.5 37.8 44.8 47.8 51.3 41.3 15.9
Total Cap. 21.0 11.6 18.7 16.5 37.8 45.5 48.8 51.6 41.8 16.3
Cap. Exp. 0.3 0.2 0.7 0.6 0.8 0.7 0.5 0.8 0.9 0.6
Cash Flow 2.6 -12.6 -8.0 -28.9 -6.4 -2.8 2.5 9.8 9.2 5.8

Curr. Ratio 2.2 2.0 2.3 2.8 6.2 12.7 15.7 11.3 4.3 2.9
% LT Debt of Cap. Nil Nil Nil Nil Nil Nil 0.1 0.1 0.2 Nil
% Net Inc.of Revs. 3.7 NM NM NM NM NM 5.0 12.1 12.0 12.3
% Ret. on Assets 4.9 NM NM NM NM NM 3.5 16.6 20.8 27.5
% Ret. on Equity 9.2 NM NM NM NM NM 3.9 19.8 28.7 43.6

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--46501 Landing Parkway, Fremont, CA 94538. Tel--(510) 770-0100. Website--http://www.sigmadesigns.com Chrmn & CEO--T. Q. Tran. CFO & Secy--K. Tsui. Dirs--W. J. Almon, J. Nguyen, T. Q. Tran, Q. B. Trinh, W. Wang. Transfer Agent & Registrar--ChaseMellon Shareholder Services, SF. Incorporated--in California in 1982. Empl-- 60. S&P Analyst: Adam Penn


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