Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $9.1 million, down from $9.5 million in Q3 2024 and $20.1 million in Q4 2023, primarily due to expected headwinds in mobile [30] - Non-GAAP gross profit margin expanded 350 basis points sequentially to 54.8% from 51.3% in Q3 2024 and increased 1,000 basis points from 44.8% in Q4 2023 [31] - Non-GAAP operating expenses decreased to $10.4 million in Q4 2024 from $12.4 million in Q3 2024 and $12 million in Q4 2023 [31] - Non-GAAP net loss for Q4 2024 was $4.3 million or a loss of $0.07 per share, compared to a net loss of $7.1 million or a loss of $0.12 per share in Q3 2024 and a net loss of $2.6 million or a loss of $0.05 per share in Q4 2023 [31] Business Line Data and Key Metrics Changes - Home and enterprise revenue was approximately $8.5 million in Q4 2024, while mobile revenue was approximately $550,000 [30] - The home and enterprise business was effectively flat for the full year, reflecting stable market dynamics and end demand for digital projectors [23] - Mobile revenue continued to reflect headwinds, but new smartphone programs are expected to drive growth in 2025 [20][21] Market Data and Key Metrics Changes - The company is entering 2025 with momentum across filmmakers and studios, targeting to double commitments on major theatrical releases by year-end [13] - The Pixelworks Shanghai subsidiary received $1.8 million in cash subsidies as part of its certified status in China's Little Giant program, which serves as reimbursement for certain purchases [32] Company Strategy and Development Direction - The long-term plan is to bring TrueCut Motion to the mass market through home entertainment devices, with active discussions with three major device brands [14] - The company is pursuing new opportunities in ASIC design services and licensing specific intellectual property to enhance revenue [15][17] - A strategic review process is underway for the Pixelworks Shanghai subsidiary to evaluate potential ownership and collaboration structures [27] Management Comments on Operating Environment and Future Outlook - Management expects mobile revenue to grow throughout 2025, with a sequential increase each quarter [39] - The company anticipates a slower start to 2025 in terms of total revenue but expects a rebound starting in Q2 due to multiple growth drivers [24][28] - The Pixelworks Shanghai subsidiary is expected to achieve profitability for the full year of 2025 [26] Other Important Information - The company is implementing additional cost reduction measures, expecting a total year-over-year decrease in operating expenses of approximately $10 million for 2025 [31][25] - The company ended Q4 2024 with cash and cash equivalents of $23.6 million, down from $28.8 million at the end of Q3 2024 [33] Q&A Session Summary Question: What is the visibility for mobile revenues in the second half of 2025 and 2026? - Management expects growth throughout the year, with higher mobile revenue than in 2024, progressing sequentially [39][40] Question: Can you elaborate on the new opportunities mentioned? - The legacy product refers to the transcoding ViXS product, and discussions are ongoing with leading device manufacturers for TrueCut partnerships [43][44] Question: How does the China subsidiary benefit impact COGS and gross margin? - A portion of the subsidies received impacts COGS and gross margin related to mass purchases [46] Question: What is the timeline for the strategic review process? - Management does not expect the process to take two years and is encouraged by the progress made [68] Question: Can you provide more details on ASIC design services and IP licensing? - The company is pursuing high-margin IP licensing opportunities, focusing on display and motion processing IP [70][73] Question: What is the outlook for the digital projector segment? - The home and enterprise business is expected to be similar to 2024, with potential upside from a legacy product order [75]

Company Performance - Pixelworks reported a quarterly loss of $0.07 per share, better than the Zacks Consensus Estimate of a loss of $0.09, but worse than a loss of $0.05 per share a year ago, indicating an earnings surprise of 22.22% [1] - The company posted revenues of $9.09 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 4.32%, and a significant decline from year-ago revenues of $20.07 million [2] - Over the last four quarters, Pixelworks has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - Pixelworks shares have increased approximately 15.3% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] - The current consensus EPS estimate for the coming quarter is -$0.09 on revenues of $9.5 million, and -$0.23 on revenues of $56 million for the current fiscal year [7] - The estimate revisions trend for Pixelworks is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Electronics - Semiconductors industry, to which Pixelworks belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

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 (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 ...