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der report... Jay Srivatsa SIGM in Philips` Set Top Box for British Telecom`s IPTV Service; Reiterate Buy We believe SIGM is designed into Philips` (PHG - $26.04 -NR) set top box,the first set top box slated for British Telecom`s IPTV service. British Telecom (BT) announced yesterday that it had selected Philips Electronics as the set top box supplier for its IPTV service and Microsoft`s (MSFT -$25.11-NR) IPTV platform as the software. Given that Sigma Designs is the only chip supplier that successfully supports Microsoft`s IPTV platform, we believe SIGM`s 8634 chip has been designed into Philips Set Top Box for BT`s IPTV deployment. With ~5 million broadband subscribers , British Telecom could be major revenue driver for SIGM, in our view. We believe initial volumes in CY:06 could be ~300K-500K units. At ~$30 ASP, BT could represent a $9 million-$15 million revenue opportunity for SIGM in CY:06, in our view. We note SBC (SBC-$23.44-NR) confirmed that its IPTV rollout remains on track for launch in late 2005 or early 2006. SBC stated its goal of reaching 18 million households by mid 2008. We note SBC has selected Motorola (MOT-$21.34-NR) and Scientific Atlanta (SFA-$33.52-NR) as its set top box suppliers and SIGM has been designed into both these boxes, in our view. We believe IPTV is gaining momemtum and these announcements are a reflection of the growing interest by telcos worldwide to launch video services. We believe several press announcements related to SIGM`s IPTV design wins could be imminent. Trading at 18x FY:07 P/E and 2.8x EV/FY:07 Sales, we view SIGM as being undervalued. We are reiterating our Buy rating on SIGM with a 12 month price target of $15. |
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| aus der Diskussion: | SigmaDesign - kurz vor break des ATH |
| Autor (Datum des Eintrages): | amorphis (27.10.05 16:28:33) |
| Beitrag: | 507 von 4,073 (ID:18470620) |
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