Sigma Designs To Cut Jobs

(RTTNews) - Sigma Designs, Inc. (SIGM) said that it will reduce headcount of between 200 to 250 positions worldwide and the consolidation of certain facilities.

The Company expects to incur total one-time charges for severance and lease termination of approximately $8 million to $10 million over the third and fourth quarters in the current fiscal year. The company expects all other restructuring and restructuring-related charges to be between $5 million to $7 million, which includes estimated asset impairment charges and other costs.

In addition, the Company is continuing with its strategic alternatives review process.

Sigma Designs announced restructuring activities intended to refocus its operating expenses and accelerate the return to profitability. These actions, which will focus on streamlining the Company's Connected Smart TV Platforms business will commence in the second half of October 2017 and are expected to be fully implemented by the end of the fourth quarter of fiscal year 2018, ending February 3, 2018.

Sigma currently estimates that these actions will result in lowering quarterly non-GAAP operating expenses from approximately $26 million in the second quarter of fiscal 2018, ended July 29, 2017, to an approximate $17 million to $18 million starting in fiscal year 2019. The Company anticipates these activities will reduce annual fiscal year 2019 non-GAAP operating expenses by approximately $34 million from expected fiscal year 2018 levels.