Light Reading
Is it time? News that Broadcom might have won a major IPTV deal sends Sigma stock down by 20%

Sigma Sinks on Broadcom Scare

Craig Matsumoto
LR Cable News Analysis
Craig Matsumoto
4/15/2008
50%
50%

Shares of Sigma Designs Inc. (Nasdaq: SIGM) are down 20 percent midday on word that Broadcom Corp. (Nasdaq: BRCM) may have won a key IPTV deal with Motorola Inc. (NYSE: MOT).

Motorola, which accounted for 23 percent of Sigma's revenues in the fiscal year ending Feb. 2, is building prototype second-generation IPTV set-tops that use a Broadcom processor, Robert W. Baird & Co. Inc. analyst Tristan Gerra wrote in a research note this morning.

Sigma shares were down $4.26 (20.2%) at $16.77 in early afternoon trading.

The reaction might seem extreme, but some investors have been poised for any news that Broadcom or STMicroelectronics NV (NYSE: STM) might be ready to break Sigma's near-monopoly in IPTV set-top boxes. Sigma's chip has been the only processor certified for the Mediaroom, the Microsoft IPTV platform. Just yesterday, it put out an updated version, also tailored toward Mediaroom. (See Sigma Enters IPTV Round 2.)

Even a hint of Broadcom working with Microsoft was enough to drag Sigma's stock down recently. (See Sigma's Luck Goes Omega and Sigma Bounces Back.)

But Sigma isn't convinced that Motorola has made any decisions on its next generation of boxes, considering Broadcom's relatively recent entry into the market. "Decisions like that are not usually made in that way," says Ken Lowe, Sigma vice president of business development.

Even if Motorola has decided it likes Broadcom, Sigma probably wouldn't lose all its business there. "The type of position somebody like Motorola would take is that they want to offer as many options as they can," Lowe says. "As far as I'm concerned, we're in very good position with our next-generation product."

Investors do sense something's at stake, though. Broadcom's supposed arrival could affect Sigma's business with carriers, including AT&T Inc. (NYSE: T), BT Group plc (NYSE: BT; London: BTA), and KDDI Corp. , Gerra writes. But the ramifications wouldn't hit until next year.

The companies involved weren't immediately available for comment.

— Craig Matsumoto, West Coast Editor, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 3:43:24 PM
re: Sigma Sinks on Broadcom Scare
Actually, they had no comment, but a spokesman did review the chip situation for me. Broadcom has indeed completed Mediaroom certification.

As for ST's certification status or lack thereof, Microsoft has no comment. ST is "still a strategic partner of ours, but the two chipsets that are part of the Microsoft Mediaroom ecosystem are Broadcom and Sigma," the spokesman says.
Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 3:43:24 PM
re: Sigma Sinks on Broadcom Scare
I should mention -- Sigma's future isn't predicated on just IPTV; it also sells chips into DVD players. Gerra is forecasting some weakness there, too.

Gut feeling is that it's the IPTV side that's really moving the stock, though.
Flash Poll
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Hot Topics
Rogers, Shaw Take Aim at Netflix
Mari Silbey, Independent Technology Editor, 8/26/2014
Utilities to Pump $11.2B Into Smart Grid – Study
Jason Meyers, Senior Editor, Utility Communications/IoT, 8/26/2014
Verizon Launches QR Code Security Solution
Carol Wilson, Editor-at-large, 8/26/2014
Fiber Revival at Deutsche Telekom
Iain Morris, 8/25/2014
M2M's In Fashion: Wearables Play the US Open
Sarah Reedy, Senior Editor, 8/25/2014
Like Us on Facebook
Twitter Feed