SigmaTel Inc. (NASDAQ: SGTL) announced today a revision in its financial outlook for June 2007. SigmaTel expects that revenue for the second quarter will now be in the range of $30 million to $31 million, which is higher than previously expected amounts of $24 million to $28 million.Although the original revenue expectations were greater than last month’s generated revenue, in the last quarter SigmaTel was able to generate about $22.02 million. The new expectations will increase second-quarter revenues by about $8 million dollars, an increase from last quarter of about 36 percent.
This news has helped project the company’s stock price higher this morning. SigmaTel experienced an increase of about 15 percent, up 45 cents to $3.39 with volume of 2.149 million.
Phil Pompa, CEO of SigmaTel said in a press release this morning, “We attribute our higher than forecast revenue sales improvement across the board and improved execution throughout the company.”
SigmaTel was founded in 1993 and headquarters out of Austin, Texas. They are a semiconductor company that designs, develops and markets a variety of digital multimedia products that enables a full multimedia experience.
Among its products are processing chips for portable media devices, TV audio equipment, digital picture frames and multi-function printers.
Three different types of processing chips are manufactured for portable media devices. These chips have the ability to provide longer battery life due to improvement energy management techniques. Also, they provide these devices with the availability of Bluetooth connectivity, transparent menus and instant playlist creation.
The TV Audio processors offer the most integrated and highest feature solutions for LCD, Plasma’s and all HDTVs. By reducing 35 different functions into one chip, costs and board space are reduced drastically and given the ability to handle all types of audio inputs such as HDMI or SPDIF.
The revision in expected revenues generated over the second quarter will help provide some momentum for SigmaTel in the upcoming third quarter. This momentum can already be seen in the stock price as the company has rebounded from a recent downtrend and is making a move towards a new high over the last month.
