UPDATE 1-Sigma Designs Q3 lags Street view; shares fall

* Q3 adj EPS of 9 cents miss est by 10 cents

* Q3 revenue drops 24 pct

* Shares fall 14 pct in extended trade

Dec 2 (Reuters) - Sigma Designs Inc (SIGM.O), which makes chips for the IPTV set-top box market and Blu-ray players, posted quarterly results that missed Wall Street expectations due to lower IPTV demand, sending its shares down as much as 14 percent.

The company posted third-quarter net loss of $2.3 million, or 9 cents per share, compared with a net profit of $3.7 million, or 14 cents per share, a year earlier.

Excluding items, the company posted earnings of 9 cents a share. Revenue fell 24 percent to $35.5 million.

Analysts expected earnings of 19 cents a share, excluding exceptional items, on revenue of $46 million, according to Thomson Reuters I/B/E/S.

The company, however, said the IPTV market in general has a positive outlook and it expects to see renewed market growth next year.

The company, which recently acquired Israeli home networking chip firm CopperGate Communications for $160 million in cash and shares, expects this business to add over $10 million of quarterly revenue in the near term.

Shares of the company fell 14 percent to $9.94 in after-hours trade. They closed at $11.51 Wednesday on Nasdaq. (Reporting by Shrutika Verma in Bangalore; Editing by Ratul Ray Chaudhuri) ((shrutika.verma@thomsonreuters.com; within US +1 646 223 8780; outside U.S +91 80 4135 5800; Reuters Messaging: shrutika.verma.reuters.com@reuters.net))