Pixelworks(US:PXLW) Prnewswireยท2024-08-07 20:15Core Insights - Pixelworks, Inc. reported a significant decline in revenue for Q2 2024, with revenue at $8.5 million, down from $16.1 million in Q1 2024 and $13.6 million in Q2 2023, primarily due to challenges in the mobile business [3][2] - The company is implementing cost reduction measures, including a workforce reduction, expected to save approximately $4 million annually starting in Q3 2024 [2][3] - Pixelworks continues to expand its IRX gaming ecosystem through collaborations with major gaming studios, aiming to enhance mobile visual processing capabilities [2][3] Financial Performance - Q2 2024 revenue was $8.5 million, a decrease of 47.1% sequentially and 37.0% year-over-year [3] - GAAP gross profit margin for Q2 2024 was 50.7%, slightly up from 50.5% in Q1 2024 and significantly higher than 40.3% in Q2 2023 [3][6] - The company recorded a GAAP net loss of $10.1 million, or ($0.17) per share, compared to a net loss of $5.1 million, or ($0.09) per share in Q1 2024 [3][7] Operational Developments - Pixelworks launched the X7 Gen 2 visual processor in the OnePlus Ace 3 Pro smartphone, enhancing rendering capabilities [2] - Collaborations with Tencent's TiMi Studio and Seasun Games aim to integrate Pixelworks' rendering acceleration technology into popular mobile games [2] - The company is targeting an expanded market for mid to lower-tier smartphones to drive future growth [2][3] Cash Position - Cash and cash equivalents at the end of Q2 2024 were $37.8 million, down from $47.5 million at the end of 2023 [3][11] - The decline in cash reserves reflects the company's ongoing operational challenges and net losses [3][11] Future Outlook - The company anticipates sequential revenue growth in Q3 2024, supported by the stable performance of its home and enterprise business [2][3] - Pixelworks is focused on strategic execution to navigate current challenges while expanding its mobile visual processor adoption [2][3]