Pixelworks Reports Fourth Quarter and Fiscal Year 2024 Financial Results

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$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]