Revenue Performance - Fourth quarter revenue was $9.1 million, down from $20.1 million in Q4 2023, primarily due to lower mobile business sales, partially offset by a 14% sequential and 5% year-over-year increase in home and enterprise market revenue [6]. - For the full year 2024, total revenue was $43.2 million, down from $59.7 million in 2023, reflecting lower contributions from the mobile business [6]. - Revenue for the three months ended December 31, 2024, was $9,090 million, a decrease of 4.6% from $9,527 million in the previous quarter [24]. Profitability and Loss - The company recorded a GAAP net loss of $5.4 million, or ($0.09) per share, compared to a net loss of $3.7 million, or ($0.07) per share, in Q4 2023 [10]. - Pixelworks, Inc. reported a GAAP net loss of $5,363,000 for the three months ended December 31, 2024, compared to a loss of $3,744,000 for the same period in 2023, reflecting an increase in losses of approximately 43.3% year-over-year [29]. - The company's adjusted EBITDA for the twelve months ended December 31, 2024, was a loss of $20,078,000, compared to a loss of $18,786,000 for the previous year, indicating a year-over-year increase in losses of about 6.9% [29]. Margins and Profitability Metrics - Gross margin for Q4 2024 was 54.6%, an increase from 44.7% in Q4 2023, marking the fourth consecutive quarter of margin expansion [8]. - Non-GAAP gross profit margin for Q4 2024 was 54.8%, up from 44.8% in Q4 2023 [9]. - Non-GAAP gross profit margin improved to 54.8% for the three months ended December 31, 2024, compared to 51.3% in the previous quarter [25]. Expenses and Cost Management - Research and development expenses for the three months ended December 31, 2024, were $6,916 million, compared to $8,405 million in the previous quarter, a decrease of 17.6% [24]. - Total operating expenses for the twelve months ended December 31, 2024, were $53,642 million, slightly down from $54,345 million in the previous year [24]. - Pixelworks aims to achieve profitability for its Shanghai subsidiary in the full year 2025 through cost reduction and new revenue opportunities [5]. Assets and Liabilities - Total current assets decreased to $34,852,000 as of December 31, 2024, down from $64,725,000 in 2023, representing a decline of approximately 46.1% [31]. - Cash and cash equivalents significantly dropped to $23,647,000 in 2024 from $47,544,000 in 2023, a decrease of about 50.3% [31]. - Total liabilities decreased to $24,194,000 in 2024 from $30,957,000 in 2023, reflecting a reduction of approximately 21.8% [31]. - The company’s total assets decreased to $64,072,000 in 2024 from $95,969,000 in 2023, a decline of approximately 33.2% [31]. - The company’s total shareholders' equity turned negative at $(10,568,000) in 2024, down from $12,541,000 in 2023, indicating a significant decline in equity [31]. Government Support and Future Outlook - The Pixelworks Shanghai subsidiary received $1.8 million in cash subsidies as part of China's "Little Giant" program [7]. - The company expects renewed mobile growth to begin in Q1 2025, with an accelerating ramp of production shipments starting in Q2 2025 [4]. - The company is focused on multiple customer programs for new smartphone models utilizing its latest mobile visual processor solutions [4].

Core Insights - Pixelworks, Inc. reported financial results for Q4 and the fiscal year 2024, indicating a focus on cost reduction and a return to growth in the mobile business [1][2][3] Financial Performance - Q4 2024 revenue was $9.1 million, down from $9.5 million in Q3 2024 and $20.1 million in Q4 2023, primarily due to lower mobile business sales, partially offset by growth in the home and enterprise market [5][16] - Full year 2024 revenue totaled $43.2 million, a decrease from $59.7 million in 2023, reflecting lower contributions from the mobile sector [5] - Gross margin for Q4 2024 was 54.6%, up from 51.2% in Q3 2024 and 44.7% in Q4 2023, marking the fourth consecutive quarter of margin expansion [6][25] - Operating expenses for Q4 2024 were $11.5 million, down from $13.5 million in Q3 2024 and $13.1 million in Q4 2023 [6][7] Profitability Metrics - The company recorded a GAAP net loss of $5.4 million in Q4 2024, an improvement from a loss of $8.1 million in Q3 2024 but worse than a loss of $3.7 million in Q4 2023 [8] - Non-GAAP net loss for Q4 2024 was $4.3 million, compared to a loss of $7.1 million in Q3 2024 and $2.6 million in Q4 2023 [9] - Adjusted EBITDA for Q4 2024 was a negative $3.6 million, an improvement from a negative $6.3 million in Q3 2024 [10] Strategic Initiatives - The company is focusing on regaining growth in its mobile business, with multiple customer programs for new smartphone models expected to launch in 2025 [3][4] - Engagement with the TrueCut Motion platform is increasing, indicating potential for further commercial traction in 2025 [3] - The Pixelworks Shanghai subsidiary is on track to achieve profitability in 2025, supported by new revenue opportunities including ASIC design services and IP licensing [4] Market Developments - Revenue from the home and enterprise market increased by 14% sequentially and 5% year-over-year, contributing positively to overall performance [16] - The launch of the vivo iQOO Z9 Turbo L smartphone featuring Pixelworks' X5 Turbo visual processor highlights the company's advancements in mobile visual processing technology [16]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or downside risks [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify potential candidates [3] Group 2: Pixelworks (PXLW) Analysis - Pixelworks (PXLW) has shown a four-week price change of 19.5%, indicating strong investor interest and recent price momentum [4] - Over the past 12 weeks, PXLW has gained 11.3%, and its beta of 1.65 suggests it moves 65% more than the market in either direction, indicating fast-paced momentum [5] - PXLW has a Momentum Score of B, suggesting it is an opportune time to invest in the stock for potential success [6] - The stock has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - PXLW is trading at a Price-to-Sales ratio of 0.97, indicating it is relatively undervalued, as investors pay only 97 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides PXLW, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, providing additional avenues for stock selection [9]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Pixelworks due to lower revenues, with a focus on how actual results will compare to estimates to influence stock price [1][2]. Earnings Expectations - Pixelworks is expected to report a quarterly loss of $0.09 per share, reflecting an 80% decrease year-over-year, with revenues projected at $9.5 million, down 52.7% from the previous year [3]. - The earnings report is scheduled for February 12, 2025, and could lead to stock price movement depending on whether results exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised 15.39% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with positive readings being more reliable [6][7]. - Pixelworks currently holds a Zacks Rank of 2, but the combination of a 0% Earnings ESP makes it challenging to predict an earnings beat [11]. Historical Performance - In the last reported quarter, Pixelworks was expected to post a loss of $0.13 per share but delivered a loss of $0.12, resulting in a surprise of +7.69% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [14]. - While Pixelworks does not appear to be a strong candidate for an earnings beat, monitoring additional factors is essential for investment decisions [16].

Core Viewpoint - Pixelworks, Inc. is set to release its fourth quarter and fiscal 2024 financial results on February 12, 2025, after market close, with a conference call scheduled to discuss these results [1]. Company Information - 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].

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 ...

Financial Performance - Net revenue for Q3 2024 was $9.5 million, a decrease of 41% compared to $16.0 million in Q3 2023, and for the first nine months of 2024, it was $34.1 million, down 14% from $39.6 million in the same period of 2023[105]. - Integrated circuit (IC) product sales in Q3 2024 decreased by approximately $6.3 million or 76% in the Mobile market due to decreased units sold[105]. - Gross profit margin increased to 51% in Q3 2024 from 43% in Q3 2023, attributed to higher average selling prices in the Home & Enterprise market and decreased costs on Mobile products[109]. - Total cost of revenue for Q3 2024 was $4.6 million, representing 49% of revenue, compared to $9.2 million or 57% of revenue in Q3 2023[107]. - Selling, general and administrative expenses decreased by $0.8 million, or 13%, in Q3 2024 compared to Q3 2023, primarily due to reduced accounting fees and compensation expenses[115]. Research and Development - Research and development expenses for Q3 2024 were $8.4 million, a decrease of 4% from $8.8 million in Q3 2023, primarily due to reduced headcount and cost control measures[113]. - The company recorded negligible benefits from the reversal of previously recorded foreign tax contingencies during the first nine months of 2024[117]. - The company has 263 patents and 13 pending patent applications as of September 30, 2024, to protect its significant technologies[235]. Cash and Liquidity - Total cash and cash equivalents decreased by $18.7 million to $28.8 million as of September 30, 2024, from $47.5 million at December 31, 2023, due to operating activities and capital expenditures[119]. - The company anticipates that existing working capital will be adequate to fund operations for at least the next twelve months, but may seek additional financing if necessary[126]. - The company received net proceeds of $42.3 million from a Capital Increase Agreement related to its subsidiary PWSH[123]. - An Equity Transfer Agreement resulted in net proceeds of $10.7 million for a 2.73% equity interest in PWSH[125]. Market and Sales - Sales into the Home & Enterprise market decreased by approximately $0.2 million or 3% in Q3 2024 compared to Q3 2023[105]. - Sales outside the U.S. accounted for approximately 97.9%, 99.7%, and 95.1% of revenue for the nine months ended September 30, 2024, and the years ended December 31, 2023, and 2022, respectively[171]. - Revenue from the top five end customers accounted for 88%, 87%, and 76% of revenue for the nine months ended September 30, 2024, and the years ended December 31, 2023 and 2022, respectively[156]. - The company relies on a limited number of customers and distributors, increasing credit risk and potential revenue volatility[155]. Operational Challenges - The company has experienced difficulty in hiring and retaining qualified engineering personnel, particularly in its Shanghai design center[148]. - The company faces challenges in managing its supply chain due to dependence on distributors and integrators, which may result in excess inventory or inventory shortages[186]. - The company is dependent on third-party technology licenses, which may not be available on acceptable terms, potentially harming product competitiveness[233]. - The company does not own semiconductor fabrication facilities and relies on foundries, which may lead to delays in satisfying customer demand and increased costs[204]. Strategic Initiatives - The strategic plan aims to qualify Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. for an initial public offering on the STAR Market, although market conditions remain unfavorable[103]. - The company continues to evaluate acquisition opportunities to leverage its technology into high-value markets[102]. - The Company’s strategic plan aims to transform PWSH into a profit center to improve access to capital, customers, and talent in China, but success is uncertain due to regulatory risks and geopolitical tensions[258]. Risks and Compliance - The company is exposed to risks from fluctuations of foreign currencies, primarily those of Japan, Taiwan, China, and Canada, which could lead to a reduction in revenue[175]. - The company faces legal and operational risks related to the evolving PRC legal system, which may limit legal protections and adversely affect business operations[250][251]. - The effective income tax rate is subject to unanticipated changes and complex forecasting, which could materially affect future results of operations[194]. - The company is subject to the Foreign Corrupt Practices Act and other anti-corruption laws, which could result in penalties if violated[179]. Future Outlook - The company may seek additional financing, which could dilute existing shareholders and impose restrictions on operations[164]. - The company’s inability to expand PRC operations could materially limit revenue growth and overall business performance[261]. - Regulatory changes in China can occur quickly, potentially impacting the Company’s ability to conduct business and accept foreign investments[253]. - The STAR Market is relatively new, making it difficult to predict the effects of the proposed Listing on stock prices[269]. Stock and Shareholder Impact - The company received a Bid Price Deficiency Notice from Nasdaq on September 11, 2024, indicating non-compliance with the minimum bid price requirement of $1.00 per share[283]. - The company must meet at least one of the Nasdaq continued listing requirements, including a minimum of $50 million in total asset value or revenues[284]. - Future sales of equity could result in significant dilution to existing shareholders and depress the market price of common stock[279]. - The company completed a private placement of 3,200,000 shares at a price of $2.071 per share, which had a dilutive impact on existing shareholders[280].