Pixelworks(PXLW) - 2024 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2024 was $9.5 million, a 12% increase sequentially from $8.5 million in Q2 2024, but a decrease from $16.0 million in Q3 2023[5] - GAAP gross margin improved to 51.2%, up 50 basis points sequentially and 800 basis points year-over-year from 42.9% in Q3 2023[6] - GAAP operating expenses decreased to $13.5 million in Q3 2024, down from $15.1 million in Q2 2024 and $14.5 million in Q3 2023[6] - The company recorded a GAAP net loss of $8.1 million, or ($0.14) per share, compared to a net loss of $10.1 million, or ($0.17) per share in Q2 2024[8] - Adjusted EBITDA for Q3 2024 was a negative $6.3 million, an improvement from a negative $7.0 million in Q2 2024[9] - GAAP gross profit for the three months ended September 30, 2024, was $4,879 million, compared to $4,326 million for the same period in 2023, representing a 12.7% increase[20] - Non-GAAP net loss attributable to Pixelworks Inc. for the three months ended September 30, 2024, was $(7,083) million, compared to $(7,731) million for the same period in 2023[24] - Adjusted EBITDA for the nine months ended September 30, 2024, was $(16,512) million, compared to $(16,841) million for the same period in 2023[24] - Non-GAAP net loss per share for the three months ended September 30, 2024, was $(0.12), compared to $(0.13) for the same period in 2023[21] Cost Management - The company anticipates continued cost reduction actions will lead to improved operating results and renewed top-line momentum in mobile[4] - Total reconciling items included in operating expenses for the three months ended September 30, 2024, were $1,119 million, down from $2,318 million in the same period last year[20] - Stock-based compensation for the three months ended September 30, 2024, was $1,042 million, compared to $925 million for the same period in 2023[24] - GAAP operating expenses for the three months ended September 30, 2024, were $13,511 million, down from $15,068 million in the same period last year[20] Assets and Liabilities - Total current assets decreased from $64,725 thousand in December 2023 to $39,734 thousand in September 2024, a decline of approximately 38.7%[25] - Cash and cash equivalents dropped significantly from $47,544 thousand to $28,830 thousand, representing a decrease of about 39.5%[25] - Total liabilities decreased from $30,957 thousand in December 2023 to $26,968 thousand in September 2024, a reduction of approximately 12.8%[26] - Total shareholders' equity fell from $36,798 thousand to $15,649 thousand, a decline of about 57.5%[26] - Current liabilities decreased from $12,297 thousand to $9,896 thousand, a reduction of approximately 19.5%[26] - Accounts receivable decreased from $10,075 thousand to $4,497 thousand, a decline of about 55.4%[25] - Inventories increased from $3,968 thousand to $4,398 thousand, an increase of approximately 10.8%[25] - Operating lease liabilities decreased from $2,567 thousand to $2,065 thousand, a reduction of about 19.6%[26] - The company reported a net loss in shareholders' equity, indicating potential challenges in financial performance and stability[26] - Goodwill remained unchanged at $18,407 thousand, indicating no impairment or changes in this asset category[25] Strategic Partnerships and Developments - The company has entered into a multi-year agreement with Universal Pictures to utilize TrueCut Motion technology for future theatrical releases[2] - Production qualification of the next-generation mobile visual processor has been completed, with multiple customer engagements for upcoming smartphone programs[3] - Pixelworks Shanghai subsidiary received recognition with the "Little Giant" certification, indicating significant growth potential[2] Profitability Metrics - Non-GAAP gross profit margin for Q3 2024 was 51.3%, compared to 51.0% in Q2 2024 and 43.1% in Q3 2023[7] - Non-GAAP gross profit margin for September 30, 2024, was 51.3%, up from 43.1% in September 30, 2023[23] - GAAP net loss attributable to Pixelworks Inc. for the nine months ended September 30, 2024, was $(23,356) million, compared to $(22,432) million for the same period in 2023[24]