Revenue during the quarter dropped 26.43 percent to $39.56 million from $53.78 million in the previous year period. Gross margin for the quarter expanded 244 basis points over the previous year period to 47.07 percent. Operating margin for the quarter stood at negative 33.81 percent as compared to a negative 11.19 percent for the previous year period.

Operating loss for the quarter was $13.38 million, compared with an operating loss of $6.02 million in the previous year period.

"Fiscal 2018 will be a transition year in our business as we focus our investments in our IoT solutions, which we expect to be the future growth and profit drivers for the company. In regard to our Mobile IoT business, we are entering LTE network certification, and expect to be in field trials during the summer. Furthermore, we are in the process of finalizing our new generation ZWave System-on-Chip, and expect to start sampling by the end of this fiscal year. This new chipset will provide low power that will allow us to enter the sensor market and expand the number of devices in the home. At the same time, in order to address customer demand, we are in the process of launching new SoC's for the Smart TV market. While we are encouraged by the longer-term trends in our business, and how our solutions address these trends, we are taking actions to lower our expense structure," said Thinh Tran, president and chief executive officer of Sigma Designs, Inc.

Cash conversion cycle (CCC) has decreased to 11 days for the quarter from 60 days for the last year period. Days sales outstanding went up to 66 days for the quarter compared with 58 days for the same period last year.

Days inventory outstanding has decreased to 41 days for the quarter compared with 78 days for the previous year period. At the same time, days payable outstanding went up to 95 days for the quarter from 76 for the same period last year.