1 Sigma Designs Inc. confidential | Sigma Designs Inc.

Sigma Designs

Q2 FY 17 Corporate Summary

September 6, 2016

2 Sigma Designs Inc.

Safe Harbor Statement

During the course of this presentation, we will provide projections and other forward

looking statements regarding future events or the future financial performance of

Sigma Designs, Inc., including expectations concerning our business strategy and

our Q3 FY17 financial outlook. Such statements are only current expectations and

actual events or results may differ materially. We refer you to Sigma’s filings with the

SEC, particularly our most recent Reports on Forms 10-K, 10-Q and 8-K. These

documents identify important risk factors that could cause actual results to differ

materially from our projections or other forward looking statements.

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Sigma Designs

• Founded in 1982

• 34 Years of Innovation

• HQ in Fremont, CA

• ~725 Employees

• Fabless Manufacturing

•NASDAQ: SIGM

A Leading Supplier Of

Technologies Enabling

Smart Home IoT Convergence

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Mobile IoT

New Business Focus

Smart Home IoT

Smart Streaming Boxes

Video Connectivity

Connected Smart TV Platforms IoT Devices

Two Broad Businesses With Application Synergies

Smart TV

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World Class Customers

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Consumer interest creates demands

Connected Smart TV Platforms

Smart City

LTE & Z-Wave

Smart Televisions

- SoC

- FRC

- OTT Software

4K Smart Streaming Boxes

- SoC

- OTT Software

- IPTV Solutions

Video Connectivity

- Powerline

- Coax

Cloud Platforms

- Roku

- Google CAST TV

- Android

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4K SmartTV Innovator

Source: IHS

Industry First Innovations:

• OS integration with Roku and Google Cast

TVs

• HDR including Dolby Vision

• Single Chip 4K TV SoCs

SmartTV Platforms Leading Revenue

Growth

~40% percent share of US SmartTV market

now

Number of SKU design wins doubled from 16 to

32 models shipping in CY 2016

• Supporting all VIZIO 4K TVs >1 Million

units connected and accessing 4K content

• VIZIO expecting 4K TV to show strong

growth this year with new models entering

the market

• Roku-based 4K TVs ramping

• Roku has already sold >1 Million

Roku Smart TVs

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Next Generation STB Chips

Announced joint collaboration agreement with Telechips, a South Korean

Company, on Sept. 1, 2016

o Will develop and market advanced SoC solutions for the new generation

of ultra-high-definition 4KTV IP streaming set-top boxes

Value Proposition: Provide the lowest power consumption for a

SoC with 4KTV video plus universal HDR support

Integrating individual technology strengths into one product line

Collaboration will bring more products to market faster

o Sample chips available within 30 days

Sharing common development expenses

Capturing additional customers using individual territorial strengths

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Consumer interest creates demands

Global IoT Coverage

Smart City

Mobile Devices

LTE

Mobile IoT

Tracking- Keys

- Pets

- Luggage

- Packages

- Fleet

Sensors- Door/motion

- Smoke/water

- Metering

- Parking

- Retail

LTE–Z-Wave

M-M IoT

Smart City

Smart Home

Z-Wave IoT for the

Smart Home

Controls- Thermostats

- Appliances

- Door locks

- Lighting

- Cameras

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Smart Home Applications

Entertainment

Controller

Siren

Motion

Sensors

Door Window

Sensors

Light Switches

Fan Control

Moisture

Sensor

Temperature

Sensor

Security

Panel

Flood

Sensor

Water Leak

Sensor

Smart

Appliance

Smart

Power Strip

Cabinet

SensorGateway

Curtain

Motors

Smart

Outlet

Smoke

Sensors

Thermostat

Window Break Sensors

Door Lock

Garage Door

Opener

CO2 Sensor

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Z-Wave: The Industry Leader

Over 50 Million Z-Wave Chipsets Deployed

70% market share in smart home

>1500 home devices

>375 Z-Wave device manufacturers and service providers

90% US Market Share in traditional security monitoring providers

10% of US homes have Z-Wave powered products

Large and Growing Addressable Market

$1B in product sales in 2015

(20M units x $50 ASP)

$1B services market in 2015

(4M panels x 12 months x $20/month)

CY2016/2017: New growth coming in Asia

Marketshare and Addressable Market Data is Approximate

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Expanding Into Mobile IoT

Using standard LTE networks – available worldwide

• Most competitors rely on dedicated networks to achieve performance

• Why not use wide area ISM approaches (eg; Sigfox, LoRa)?

• Only limited areas of coverage with many years to build-out networks

• Network limitations for real-time response, 2-way links, and security

• Why not use modified LTE networks designed for IoT (eg; LTE-M, NB-IoT)?

• Limited carriers adopting them with some taking take 1-3 years to complete

• Imposes limitations of bandwidth and spectrum efficiency.

Sigma’s unique patented architecture is designed for:

• An order of magnitude lower power for very long battery life

• Ultra-sensitive geo-location ability – for short range uses

• Smaller size and lower cost – to suit any tracking application

Product introductions

• Formal market entry targeted for early CY 2017

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Design concepts

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Mobile IoT Applications

Tracking

Vehicles, Bikes, People, Pets,

Parking, Luggage, Packages

IoT Backhaul

Security Panels, Utilities

Resource, Traffic

Sensor-Actuators

Temperature, Pressure,

Moisture, Chemical

WearablesFitness, Watches, PERS

Medical, Diagnostics

Telematics to reach over US

$80 billion by 2020

Initial Focus

Future Opportunities

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Sigma Designs Inc.Financial Summary

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Q2 FY17 Results Summary(Non-GAAP)

Revenue

• $61.3M compared with $53.8M in Q1 FY17

• Connected SmartTV $51.7M or 84.3%

• IoT Devices $9.5M or 15.5%

• Other $0.2M or 0.2%

Non-GAAP Gross Margin

• 49.9% vs. 46.6% in Q1 FY17

Non-GAAP Operating Income (Loss)

• $3.4M vs. ($2.5)M in Q1 FY17

Non-GAAP EPS

• $0.07 vs. ($0.12) in Q1 FY17

Outlook

• Q3 revenue to increase with continued profitability

Reported September 6, 2016

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Trended Revenue By Market(GAAP)

$44.9$51.0

$39.5$43.7

$51.7

$13.0

$10.2

$11.3$9.9

$9.5$0.4

$0.4

$0.6$0.2

$0.2

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

Q2'16 Q3'16 Q4'16 Q1'17 Q2'17

Connected Smart TV Platforms IoT Devices License & Other

$53.8M

$58.3M

$61.6M

$51.5M

$61.3M

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$5.3 $5.8

($1.9)($2.5)

$3.4

-$4

-$2

$0

$2

$4

$6

Q2'16 Q3'16 Q4'16 Q1'17 Q2'17

Operating Income ($M)

Trended Financial Performance(Non-GAAP)

50.5%

51.7%

49.6%

46.6%

49.9%

44.0%

48.0%

52.0%

Q2'16 Q3'16 Q4'16 Q1'17 Q2'17

Gross Margin %

$0.12 $0.13

$0.02

($0.12)

$0.07

($0.15)

$0.00

$0.15

Q2'16 Q3'16 Q4'16 Q1'17 Q2'17

EPS

$9.1$9.7

$3.1

$1.5

$8.1

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

Q2'16 Q3'16 Q4'16 Q1'17 Q2'17

EBITDA ($M)

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Trended Non-GAAP P&L

FY 2015 FY 2016 Q1 2017 Q2 2017Long-Term

Model

Revenue 100% 100% 100% 100% 100%

Gross Profit 53% 51% 47% 50% 47%-50%

Research & Development 34% 29% 33% 29% 23%-25%

Selling, General & Admin. 20% 16% 18% 16% 12%-16%

Total Operating Expense 54% 45% 51% 45% 35%-41%

Operating Income (1%) 6% (5%) 6% ~7%-13%

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Balance Sheet Highlights

Q2 FY16

$ MillionsMetrics

Q2 FY17

$ MillionsMetrics

Cash and Marketable Securities $83.2 $74.0*

Accounts Receivable $38.4 60 days $45.9 68 days

Inventory $30.7 3.6 turns $21.5 5.6 turns

Accounts Payable $27.4 $23.1

* The change was primarily due to the purchase of Bretelon, Inc. on November 4, 2015

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Q3 FY17 Financial Guidance

* Guidance ranges provided on September 6, 2016 for the period ending October 30, 2016

$ Millions Guidance Ranges*

Revenues $62 million - $65 million

Non-GAAP Gross Margin % 47% – 50%

Non-GAAP Operating Expenses Under $28.0 million

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Continued Financial Improvement

Multiple Growth Drivers In PlaceConnected Smart TV Platform

• Common Smart TV, Connectivity and Set-Top Box ecosystem to drive growth

• Capitalizing on rapid 4K UHDTV adoption; market growing at 30% CAGR

• Doubled the number of TV SKUs for CY 2016

• Supplier of all 4K SoCs supporting VIZIOs product lines

• Leading provider of SoCs for Roku and Google Cast TVs

IoT Devices

• Z-Wave is THE undisputed standard in Smart home applications

• Penetrating worldwide market for Telco-based IoT services

Continued Financial Improvement

• FY 2017 total revenue to be higher than FY 2016

• Expecting multiple growth drivers to deliver higher revenue

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Enabling Smart Home and IoT Convergence

Thank You

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Reconciliation of GAAP Net Income/(Loss) to Non-GAAP Net Income/(Loss) 1 of 2

July 30, April 30, August 1,

2016 2016 2015

GAAP Net Revenue $ 61,316 $ 53,775 $ 58,307

Items reconciling GAAP Net Revenue to Non-GAAP:

Reversal of rebate - - (221)

GAAP to Non-GAAP adjustments - - (221)

Non-GAAP Net Revenue $ 61,316 $ 53,775 $ 58,086

GAAP Cost of Revenue $ 31,734 $ 29,774 $ 29,783

Items reconciling GAAP Cost of Revenue to Non-GAAP:

Stock based compensation expense (74) (104) (44)

Amortization of acquired intangibles (940) (949) (968)

GAAP to Non-GAAP adjustments (1,014) (1,053) (1,012)

Non-GAAP Cost of Revenue $ 30,720 $ 28,721 $ 28,771

GAAP Gross Profit $ 29,582 $ 24,001 $ 28,524

GAAP Gross Margin % 48.2% 44.6% 48.9%

Non-GAAP Gross Profit $ 30,596 $ 25,054 $ 29,315

Non-GAAP Gross Margin % 49.9% 46.6% 50.5%

(Unaudited)

(In thousands, except per share data)

Three months ended

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Reconciliation of GAAP Net Income/(Loss) to Non-GAAP Net Income/(Loss) 2 of 2

GAAP Operating Expenses $ 29,895 $ 30,016 $ 27,316

Items reconciling GAAP Operating Expenses to Non-GAAP:

Stock based compensation expense (1,677) (1,788) (1,211)

Amortization of acquired intangibles (696) (699) (316)

Impairment of IP, mask sets and design tools (300) - (955)

One time legal fee expenses - (11) (747)

GAAP to Non-GAAP adjustments (2,673) (2,498) (3,229)

Non-GAAP Operating Expenses $ 27,222 $ 27,518 $ 24,087

GAAP Other Income (Expense) and Tax $ (1,409) $ (2,083) $ (912)

Items reconciling GAAP Other Income (Expense) and Tax to Non-GAAP:

Impairment (gain on sale) of privately held instruments, net 584 300 126

Income tax adjustments - - 20

GAAP to Non-GAAP adjustments 584 300 146

Non-GAAP Other Income (Expense) and Tax $ (825) $ (1,783) $ (766)

Non-GAAP Net Income (Loss) $ 2,549 $ (4,247) $ 4,462

Non-GAAP Net Income (Loss) per share:

Basic 0.07$ (0.12)$ 0.13$

Diluted 0.07$ (0.12)$ 0.12$

Shares used in computing Non-GAAP net income (loss) per share:

Basic 37,182 36,872 35,604

Diluted 37,527 36,872 36,602