Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

Expanded Frame Rate Capability and Enriched Visual Effect Options Offer Compelling yet Affordable Visual Quality Upgrades SHANGHAI, Dec. 26, 2024 /PRNewswire/ -- Pixelworks, Inc. (NASDAQ: PXLW), a leading provider of visual processing solutions, announced that the newly released iQOO Z9 Turbo L smartphone is equipped with Pixelworks' X5 Turbo visual processor. The integration solution provides targeted frame rate optimization for multiple popular mobile games, extending the play time for high-frame-rate gam ...

Pixelworks, Inc. (NASDAQ:PXLW) Q3 2024 Earnings Conference Call November 12, 2024 5:00 PM ET Company Participants Brett Perry - Shelton Group Investor Relations Todd DeBonis - President and CEO Haley Aman - CFO Conference Call Participants Nick Doyle - Needham & Company Richard Shannon - Craig-Hallum Operator Good day, ladies and gentlemen, and welcome to Pixelworks, Inc.'s Third Quarter 2024 Earnings Conference Call. I will be your operator for today's call. At this time, all participants are in a listen o ...

Pixelworks (PXLW) came out with a quarterly loss of $0.12 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.69%. A quarter ago, it was expected that this maker of chips used in high-end digital video devices would post a loss of $0.15 per share when it actually produced a loss of $0.13, delivering a surprise of 13.33%.Over the last ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 000-30269 _______________________________ ...

Exhibit 99.1 Pixelworks Reports Third Quarter 2024 Financial Results Third Quarter and Recent Highlights PORTLAND, Ore., November 12, 2024 – Pixelworks, Inc. (NASDAQ: PXLW), a leading provider of innovative video and display processing solutions, today announced financial results for the third quarter ended September 30, 2024. • Total revenue increased 12% sequentially • GAAP gross margin expanded more than 50 basis points sequentially and 800 basis point year-overyear to 51.2%, primarily driven by favorabl ...

PORTLAND, Ore., Nov. 12, 2024 /PRNewswire/ -- Pixelworks, Inc. (NASDAQ: PXLW), a leading provider of innovative video and display processing solutions, today announced financial results for the third quarter ended September 30, 2024.Third Quarter and Recent Highlights Total revenue increased 12% sequentially GAAP gross margin expanded more than 50 basis points sequentially and 800 basis point year-over-year to 51.2%, primarily driven by favorable product mix and lower overhead expenses Entered into multi-ye ...

PORTLAND, Ore., Oct. 24, 2024 /PRNewswire/ -- Pixelworks, Inc. (NASDAQ: PXLW), a leading provider of innovative video and display processing solutions, will release its third quarter 2024 financial results on Tuesday, November 12, 2024, after market close. Todd DeBonis, 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 following information ...

Premium Screens Worldwide Take Advantage of Pixelworks' Award-Winning Motion Technology LOS ANGELES, Sept. 26, 2024 /PRNewswire/ -- Pixelworks announced today that The Wild Robot from DreamWorks Animation will be presented with TrueCut Motion™ technology on premium screens worldwide. Working closely with, and under the direction of the filmmakers, the Pixelworks motion grading team utilized advanced TrueCut Motion technology to bring stunning motion clarity to the highly reviewed movie. Pixelworks' TrueCut ...

Revenue and Sales Performance - Net revenue decreased by $5.1 million (37%) in Q2 2024 compared to Q2 2023, but increased by $1.0 million (4%) in the first half of 2024 compared to the first half of 2023[103] - Mobile market sales decreased by $4.8 million (70%) in Q2 2024 due to reduced units sold, while Home & Enterprise market sales decreased by $0.3 million (4%)[103] - The company's Mobile market sales increased by $1.3 million (13%) in the first half of 2024 compared to the first half of 2023, driven by higher unit sales in Q1 2024[103] - Pixelworks' revenue from its top distributor represented 44% of total revenue for the first six months of 2024[153] - Sales to the top distributor accounted for 48% and 29% of revenue for the years ended December 31, 2023 and 2022, respectively[153] - Revenue from the top five end customers represented 88%, 87%, and 76% of total revenue for the six months ended June 30, 2024, and the years ended December 31, 2023 and 2022, respectively[153] - Pixelworks' revenue is subject to seasonality, with higher revenue typically in the third quarter and lower revenue in the first quarter[156] - Sales outside the U.S. accounted for approximately 97.2%, 99.7%, and 95.1% of revenue for the six months ended June 30, 2024, and the years ended December 31, 2023, and 2022, respectively[168] Gross Profit and Margins - Gross profit margin increased to 51% in Q2 2024 from 40% in Q2 2023, and to 51% in the first half of 2024 from 42% in the first half of 2023[107] - The company's gross profit margin is influenced by factors such as revenue levels, product mix, average selling prices, and manufacturing ramp timing[107] - Licensing revenue has a higher margin compared to product sales, potentially causing disproportionate impact on gross profit and operational results[165] Expenses and Costs - Research and development expense increased by $1.4 million (22%) in Q2 2024 compared to Q2 2023, and by $0.8 million (6%) in the first half of 2024 compared to the first half of 2023[110] - Selling, general and administrative expenses increased by $0.3 million (5%) in Q2 2024 compared to Q2 2023, driven by foreign currency fluctuations and stock-based compensation changes[112] - Selling, general and administrative expenses decreased by $0.3 million (2%) in the first half of 2024 compared to the same period in 2023, primarily due to reduced professional fees related to strategic planning with subsidiary PWSH[112] - The company executed a restructuring plan in June 2024, resulting in a 16% workforce reduction and $1.4 million in restructuring expenses for Q2 and H1 2024[114] - Compliance with conflict minerals regulations may increase costs and affect the sourcing, supply, and pricing of materials used in the company's products[189] - Compliance with environmental laws and regulations may require significant expenditures, and noncompliance could result in penalties or customer refusal to purchase products[195][196] - Increasing attention on ESG matters may negatively impact the company's business, impose additional costs, and expose it to risks such as unfavorable investor sentiment and reputational damage[197][198][199] Intellectual Property and Technology - Pixelworks holds an intellectual property portfolio of 265 patents related to visual display technology as of June 30, 2024[100] - Pixelworks' core visual processing technology is applied across cinema, mobile, and home & enterprise markets, with a focus on improving quality and reducing system power and cost[100] - The company's product strategy focuses on visual display processing and high-quality video and digital image quality, targeting high-resolution markets[138] - Rapid technological changes and evolving industry standards could render the company's products less desirable or obsolete, impacting revenue and market acceptance[214][215] - Transition to newer manufacturing processes may require significant R&D costs and time, potentially leading to discontinuation of older technologies and inability to place last-time buy orders[222] - Product development cycles can take up to 18 months or more, including 9 months for customer testing and evaluation, and an additional 9 months before volume shipments commence[224] Strategic Initiatives and Subsidiaries - The company's strategic plan includes qualifying its Chinese subsidiary, PWSH, for an IPO on the Shanghai Stock Exchange's STAR Market, though market conditions remain unfavorable[101] - Pixelworks entered a co-development agreement in Q3 2021, with $5.8 million paid upfront and additional milestone payments totaling $5.7 million[109] - The company's Chinese subsidiary PWSH received net proceeds of RMB 279.7 million ($42.3 million USD) and RMB 99.0 million ($14.6 million USD) from capital increase agreements[121] - The company received $10.7 million in net proceeds from an equity transfer agreement involving a 2.73% equity interest in PWSH[122] - The company's strategic plan to list PWSH on the STAR Market may face delays or denials due to PRC regulatory approvals, geopolitical tensions, or profitability requirements under China GAAP[255] - PWSH is not currently profitable under China GAAP standards, which may delay its ability to file for an IPO on the STAR Market[256] - The STAR Market's relatively new status and differing accounting standards between PRC and US markets could lead to investor confusion and stock price volatility[268] - Potential conflicts of interest may arise between Pixelworks and PWSH post-listing, as PWSH will be managed by a separate board with fiduciary duties to other stakeholders[264] - Future capital-raising activities by PWSH could dilute Pixelworks' ownership interest in the subsidiary[265] Financial Position and Liquidity - Cash and cash equivalents decreased by $9.7 million to $37.8 million as of June 30, 2024, primarily due to $6.4 million used in operating activities and $2.9 million for property and equipment purchases[117] - Accounts receivable decreased to $4.9 million as of June 30, 2024, with days sales outstanding reduced to 52 days from 56 days at the end of 2023[118] - Inventories increased to $5.0 million as of June 30, 2024, with inventory turnover decreasing to 4.0 from 8.6 at the end of 2023 due to lower revenue and cost of goods sold[119] - The company anticipates its existing working capital of $37.8 million will be sufficient to fund operations for the next 12 months, but may pursue additional financing if needed[123] - Pixelworks had an accumulated deficit of $477.0 million as of December 31, 2023[150] - The company has incurred operating losses each fiscal year since 2010[150] - As of December 31, 2023, the company had federal, state, and foreign net operating loss carryforwards of approximately $154.5 million, $16.3 million, and $89.0 million, respectively, which began expiring in 2024[166] - If the company fails to negotiate extensions, it may need to repurchase shares from investors under the August 2021 Capital Increase Agreement, negatively impacting cash position[253] Risks and Challenges - The company relies heavily on a limited number of customers and distributors, increasing credit risk and potential revenue volatility[152][153] - The company faces intense competition in its target markets, which could lead to decreased demand for its products and technologies[135] - Pixelworks' ability to achieve profitability depends on factors such as product development, market acceptance, and effective inventory management[150] - The company's operations in Asia are exposed to risks such as health epidemics, political instability, and natural disasters, which could disrupt manufacturing and supply chains[168][170] - Fluctuations in foreign currencies, particularly the Japanese yen, Taiwanese dollar, Chinese yuan, and Canadian dollar, could negatively impact revenue and operating expenses[172][173] - The company may engage in financial hedging techniques to address foreign currency exchange rate fluctuations, but these may not be successful and could increase costs[175] - The company is subject to the Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws, with potential liabilities for violations by third-party intermediaries[176] - The company's effective income tax rate is subject to changes in tax laws, interpretations, and the mix of earnings across jurisdictions, which could affect future results[191] - The company faces challenges in managing inventory due to reliance on distributors and integrators, which could lead to excess inventory or shortages[184][185] - The company relies on critical information systems, and any failure or security breach could harm its business operations, reputation, and financial results[193][194] - The company depends on a limited number of third-party manufacturers, exposing it to risks such as supply shortages, price increases, and delays in product delivery[200][201] - Shortages of critical materials and components could increase costs, delay shipments, and harm the company's ability to meet customer demand[203][204] - The company's highly integrated and mixed-signal products are difficult to manufacture without defects, which could lead to increased costs, delays, and potential liability claims[206][207][208] - Intense competition in the semiconductor industry may reduce sales, market share, and gross profit, with competitors having greater resources and operating histories[213] - The company's reliance on customer-owned tooling for manufacturing exposes it to risks of poor yields and higher product costs, potentially affecting competitiveness and gross margins[218][219] - Co-development agreements may limit the company's ability to sell developed products to other customers, increasing dependence on individual customers[225] - Declines in average selling prices (ASPs) for products could negatively impact financial results unless offset by increased sales volumes, cost reductions, or new higher-margin products[238] - The semiconductor industry's cyclical nature leads to significant demand fluctuations, impacting financial results due to changes in industry-wide conditions[240] - Natural disasters or man-made disruptions (e.g., earthquakes, cyberattacks, geopolitical unrest) could materially impact operations, supply chains, and financial targets[243] - Operations in China face risks from political, economic, and social changes, as well as U.S.-China relations, potentially harming financial performance and securities value[245] - Liquidity risks in China include difficulties converting RMB to foreign currencies and potential restrictions on transferring funds raised by subsidiaries to the parent company[246] - Legal and operational risks in China, including uncertainties in law enforcement and sudden regulatory changes, could adversely affect the company's business and securities value[247] - The PRC legal system's rapid evolution and inconsistent enforcement may limit legal protections for the company's Chinese subsidiaries, potentially impacting business operations and results[248] - Chinese subsidiaries require permits and licenses from PRC government agencies, and failure to obtain or maintain these could lead to investigations, fines, or operational suspensions[249] - Recent PRC regulatory actions, including enhanced supervision of overseas-listed companies and expanded anti-monopoly enforcement, could impact the company's business and ability to list on the STAR Market[250] Stock and Market Performance - The company's stock price has recently fallen below the Nasdaq Global Market's minimum requirement of $1.00 per share, risking potential delisting[280] - The company must maintain at least 400 total shareholders and meet one of three financial standards to remain listed on the Nasdaq Global Market[281] - As of June 30, 2024, the company was in compliance with Nasdaq listing requirements but remains susceptible to falling below the $50.0 million market value threshold for listed securities[281] - Delisting from Nasdaq could negatively impact the company's stock liquidity, trading volume, and price, as well as its ability to attract talent and raise capital[283] - The company's articles of incorporation and Oregon law include anti-takeover provisions that could delay or prevent mergers or acquisitions, potentially limiting shareholder value[285] - A supermajority (67%) shareholder vote is required to approve certain fundamental transactions, further complicating potential changes in control[285] - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2024[287] - The company completed a private placement of 3,200,000 shares of common stock at $2.071 per share in December 2020, resulting in shareholder dilution[277] - The company sold 4,900,000 shares of common stock in a registered offering at $2.45 per share in December 2020, with an additional 735,000 shares issued under an over-allotment option[277] - The company sold 1,808,484 shares of common stock under its "at the market" equity offering program, raising up to $25.0 million through June 30, 2024[277] - The company's stock price may fluctuate due to low trading volume, market conditions, and external factors such as economic changes or competitor announcements[271] Corporate Governance and Compliance - The company's disclosure controls and procedures were deemed effective as of June 30, 2024, based on evaluations by the CEO and CFO[125] - The company is subject to the Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws, with potential liabilities for violations by third-party intermediaries[176] - The company's effective income tax rate is subject to changes in tax laws, interpretations, and the mix of earnings across jurisdictions, which could affect future results[191] - The company's income tax expense is complex and based on forecasted tax rates, which may differ materially from actual results due to numerous assumptions and forward-looking financial projections[192]