Sigma Designs, Inc. (NASDAQ:SIGM) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05 Costs Associated with Exit or Disposal Activities.
On October 10, 2017, the Board of Directors of Sigma Designs, Inc. (the “Company”) approved a restructuring plan intended to reduce its operating expenses and accelerate its return to profitability. The restructuring plan will focus on streamlining the Company’s Connected Smart TVPlatforms business. The restructuring plan will commence in the second half of October 2017, and is expected to be completed by the end of the fourth quarter of fiscal 2018, ending February 3, 2018. The restructuring plan is currently expected to result in approximately $8 million of cost savings per quarter, startingin fiscal 2019. The primary element of the Company’s restructuring plan is a workforce reduction, and includes other restructuring activities, such as real estate consolidation.
As part of the restructuring plan, the Company expects to reduce its workforce by between 200 and 250 employees by February 3, 2018. The changes to the workforce may vary by country, based on local legal requirements, as appropriate. 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.
The Company issued a press release on October 11, 2017 with additional details of the restructuring plan, a copy of which is attached hereto as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits
SIGMA DESIGNS INC ExhibitEX-99.1 2 ex_96517.htm EXHIBIT 99.1 ex_96517.htm Exhibit 99.1 Sigma Designs,…To view the full exhibit click here
About Sigma Designs, Inc. (NASDAQ:SIGM)
Sigma Designs, Inc. is a provider of global integrated semiconductor solutions. The Company offers media platforms for use in the home entertainment and home control markets. The Company sells its products into markets, including smart television, media connectivity, set-top box and Internet of Things (IoT) devices. The Company’s media processor product line consists of a range of functionally similar platforms that are based on integrated chips, embedded software and hardware reference designs. The Company’s media connectivity product line consists of wired home networking controller chipsets that are designed to provide connectivity solutions between various home entertainment products and incoming video streams. The Company’s IoT devices product line consists of its wireless Z-Wave chips and modules. The Company is engaged in the license of its internally developed intellectual property. It also offers legacy products that are sold into prosumer and other industrial applications.
