20-Year Media and Entertainment Executive to Drive Expanded Partnerships and Industry Adoption of TrueCut Motionâ"¢ Platform SOURCE Pixelworks, Inc. "I'm excited to join the Pixelworks team and lead business development efforts for TrueCut Motion," said Sevan Brown, EVP of Business Development. "With the industry's ongoing shift toward premium theatrical experiences, I look forward to spearheading expanded partnership with studios, exhibitors and other key stakeholders to position TrueCut Motion as the indu ...

PORTLAND, Ore., Jan. 29, 2026 /PRNewswire/ -- Pixelworks, Inc. (NASDAQ: PXLW), a provider of innovative cinematic and enhanced visualization solutions, will release its fourth quarter and fiscal 2025 financial results on Thursday, March 12, 2026, after market close. Todd DeBonis, Chairman, President and CEO, and Haley Aman, CFO, will host a conference call at 2:00 p.m. Pacific Time to discuss the Company's financial results. Analysts and investors are invited to join the Company's conference call using the ...

Core Viewpoint - Pixelworks, Inc. has successfully completed the sale of its shares in Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. to a special purpose entity led by VeriSilicon Microelectronics, resulting in significant cash proceeds for the company [1]. Group 1: Transaction Details - The transaction involved the transfer of all outstanding capital stock in Pixelworks Shanghai to the Buyer, yielding cash proceeds of approximately RMB 357 million, or about $51 million USD, net of transaction costs and withholding taxes [1]. - An additional amount of approximately RMB 8.7 million, or about $1.2 million USD, is being held in an escrow account pending the resolution of certain tax matters in China [1]. - All previous repurchase rights held by other prior shareholders of Pixelworks Shanghai were fully released upon the closing of the transaction [1]. Group 2: Company Overview - Pixelworks provides innovative video and display processing solutions, enhancing viewing experiences across various screens, including cinema and smartphones [2]. - The company has over 20 years of experience in delivering image processing innovations to leading providers in consumer electronics, professional displays, and video streaming services [2].

Meeting Overview - The special meeting of Pixelworks was convened on November 26, 2025, and has been reconvened multiple times, with the latest being on December 19, 2025 [1] - The meeting is chaired by the Chief Financial Officer of Pixelworks, Haley Green [1] Agenda Items - The agenda includes a vote on Proposal 1 regarding the sale of common stock of Pixelworks Semiconductor Technology (Shanghai) Co. Ltd. held by a subsidiary [2] - An advisory vote on Proposal 2 concerning compensation for executive officers related to the sale in Proposal 1 is also included [2] - The agenda will conclude with a vote count and formal adjournment of the meeting [2] Proposal Details - Proposal 1 focuses on the sale of common stock of Pixelworks Shanghai, which is held indirectly by the company [3] - Proposal 2 is an advisory vote on the compensation that may be paid to executive officers in connection with the sale referenced in Proposal 1 [4]

Core Viewpoint - Pixelworks, Inc. is seeking shareholder approval for the sale of its subsidiary, Pixelworks Semiconductor Technology (Shanghai), with the Special Meeting of Stockholders adjourned to December 31, 2025, to allow more time for voting on Proposal 1 [1][2]. Proposal Details - Proposal 1 aims to authorize the sale of all shares of Pixelworks Shanghai held indirectly by the Company [1]. - As of December 19, 2025, approximately 98% of the proxies received voted in favor of Proposal 1, but this only accounted for about 61% of the outstanding shares on the record date [2]. - The Board of Directors, along with leading independent proxy voting advisory groups, recommends shareholders vote FOR Proposal 1 [2]. Meeting Logistics - The adjourned Special Meeting will be held virtually, allowing shareholders of record on October 17, 2025, to participate and vote [4]. - Votes must be received by 11:59 p.m. Eastern time on December 30, 2025, to be counted, with additional voting options available during the reconvened meeting [5]. Purchase Agreement Terms - The Purchase Agreement allows either party to terminate the agreement if the sale does not close by December 15, 2025; however, neither party has sought termination to date [3]. Company Overview - Pixelworks provides innovative video and display processing solutions, enhancing viewing experiences across various screens, including cinema and smartphones [10].

Meeting adjourned because the approval by 67% of outstanding common shares on Proposal 1 was not received Votes must be received by 11:59 p.m. Eastern time on December 18, 2025, to be counted. After this time, votes can only be cast by record holders as of October 17, 2025, during the adjourned Special Meeting on December 19, 2025, at 9:00 a.m. Pacific time at 1-855-206-1342 or via email at [email protected]. Forward-Looking Statements This press release contains "forward-looking statements" that involve su ...

Core Points - Pixelworks, Inc. has adjourned its Special Meeting of Stockholders to December 8, 2025, due to insufficient votes for Proposal 1, which seeks to authorize the sale of its subsidiary, Pixelworks Semiconductor Technology (Shanghai) [1][2] - Approximately 98% of the votes cast were in favor of Proposal 1, but this only accounted for about 57% of the total outstanding shares required for approval [2] - The Board of Directors believes that the approval of Proposal 1 is in the best interests of the Company and its shareholders, with recommendations from leading independent proxy voting advisory groups to vote in favor [2] Voting Information - Shareholders who have not yet voted are encouraged to do so by December 7, 2025, at 11:59 p.m. Eastern time [4][6] - The adjourned Special Meeting will be held virtually, allowing shareholders to participate and vote by dialing a designated number [3] - Votes must be received by the specified deadline to be counted, and record holders can vote during the reconvened meeting [6] Company Background - Pixelworks, Inc. specializes in video and display processing solutions, providing technology that enhances viewing experiences across various screens [12]

Core Viewpoint - Pixelworks (PXLW) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Pixelworks Earnings Outlook - For the fiscal year ending December 2025, Pixelworks is expected to earn -$3.63 per share, unchanged from the previous year, but analysts have raised their earnings estimates by 6% over the past three months [8]. - The upgrade to Zacks Rank 2 reflects an improvement in Pixelworks' underlying business, which is likely to drive the stock price higher as investors respond to this trend [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Core Viewpoint - Pixelworks, Inc. is actively engaging with investors by participating in the ROTH Technology Conference, indicating a focus on investor relations and potential growth opportunities in the video and display processing sector [1][2]. Company Overview - Pixelworks, Inc. specializes in innovative video and display processing solutions, providing technology that enhances viewing experiences across various screens, including cinema and smartphones [3]. - The company has over 20 years of experience in delivering image processing innovations to major players in consumer electronics, professional displays, and video streaming services [3]. Event Participation - Todd DeBonis, President and CEO of Pixelworks, will host one-on-one investor meetings at the ROTH Technology Conference on November 19, 2025, in New York [1]. - Investors interested in meeting with the company can request a meeting through the conference event website or by contacting their ROTH representative [2].

Financial Performance - Net revenue for Q3 2025 was $8.8 million, a decrease of 8% from $9.5 million in Q3 2024, and for the first nine months of 2025, it was $24.1 million, down 29% from $34.1 million in the same period of 2024[119] - Integrated circuit (IC) product sales in Q3 2025 were $8.5 million, while engineering services and other revenue contributed $0.2 million; in Q3 2024, IC sales were $9.5 million with $0.1 million from other sources[120] - The decrease in IC revenue was primarily due to a 43% decline in Mobile market sales in Q3 2025 compared to Q3 2024, and a 74% decrease in the first nine months of 2025 compared to the same period in 2024[122] - Gross profit margin for Q3 2025 was 50%, down from 51% in Q3 2024, and for the first nine months of 2025, it was 48%, compared to 51% in the same period of 2024[123] Expenses and Cost Management - Research and development expenses for Q3 2025 were $5.7 million, a decrease of 32% from $8.4 million in Q3 2024, and for the first nine months of 2025, expenses were $18.2 million, down 25% from $24.4 million in the same period of 2024[128] - Selling, general and administrative expenses decreased by $0.7 million, or 15%, in Q3 2025 compared to Q3 2024, and by $2.9 million, or 18%, in the first nine months of 2025 compared to the same period in 2024[131] - The company executed a restructuring plan in May 2025, resulting in a 4% reduction in workforce, primarily in research and development[133] - The company recorded a restructuring expense of $1.1 million for the nine months ended September 30, 2025, related to the May and February 2025 restructuring plans[135] Cash Flow and Liquidity - Total cash and cash equivalents decreased by $9.0 million to $14.6 million as of September 30, 2025, primarily due to $14.1 million used in operating activities[137] - As of September 30, 2025, the company had cash and cash equivalents of $14.6 million, which is expected to be adequate to fund operating needs for at least the next twelve months[149] Strategic Initiatives - Pixelworks plans to focus on cinematic visualization solutions, including its TrueCut Motion platform, following the anticipated sale of its subsidiary PWSH for an equity value of RMB 950 million (approximately $133 million USD)[114] - The company entered into a loan agreement allowing PWSH to borrow up to RMB 10 million (approximately $1.4 million USD), with the full amount borrowed as of September 30, 2025[117] - The company has an intellectual property portfolio of 201 patents related to visual display technology as of October 22, 2025[114] - The company has restructured its Mobile and Home & Enterprise businesses to better serve Asia-centered customers, operating as a full profit-and-loss center under PWSH[113] - The company anticipates pursuing acquisitions that may require additional capital, which could dilute existing shareholders[150] Inventory and Receivables - Accounts receivable, net decreased to $5.7 million as of September 30, 2025, with the average days sales outstanding increasing to 58 days from 48 days[139] - Inventories decreased to $3.1 million as of September 30, 2025, with inventory turnover decreasing to 4.8 from 5.1[140] Capital Raising - The company raised approximately $3.0 million in net proceeds from the sale of 347,559 shares under the 2024 ATM Program during the first nine months of 2025[142] - The company received net proceeds of approximately $1.3 million from a registered direct offering of 164,176 shares at a price of $8.832 per share[143] Revenue Trends - Pixelworks experienced seasonal revenue fluctuations, with higher revenue typically in Q3 for digital projectors and in Q4 for the mobile market[118]