#USA #Portland #fiscal year 2024 #Pixelworks #X5 Turbo

Pixelworks Financial Results for Q4 and Fiscal Year 2024

Pixelworks, Inc. (NASDAQ: PXLW), renowned for its cutting-edge video processing solutions, recently disclosed its financial results for the fourth quarter and the entire fiscal year ending December 31, 2024. The company reported total revenues of $9.1 million in the fourth quarter, demonstrating a sequential decline from the previous quarter but a challenging year-over-year comparison.

Key Highlights

During Q4 2024, Pixelworks experienced a significant drop in total revenue compared to both Q3 2024 and Q4 2023, attributed largely to a downturn in its mobile business segment. This was partially countered by a promising increase in revenue from the home and enterprise market, which grew 14% sequentially and 5% year-over-year. Overall, the total revenue for fiscal year 2024 amounted to $43.2 million, down from $59.7 million in 2023, primarily due to reduced contributions from mobile sector sales.

Q4's gross profit margin rose to 54.6%, reflecting a strong performance compared to the prior quarters and indicating effective cost management practices. The company's operational expenses have also decreased significantly, culminating in lower yearly expenses than the previous year.

Mobile Business Strategy

Todd DeBonis, President and CEO of Pixelworks, stated, "Our fourth quarter outcomes align with our expectations, with major financial indicators within our forecast range." The company is actively pursuing avenues to revitalize growth in its mobile business, engaging in several projects aimed at the launch of new smartphone models utilizing the latest visual processing technologies. One such highlight was the launch of the vivo iQOO Z9 Turbo L smartphone, powered by Pixelworks' X5 Turbo processor, which allows for enhanced gaming performance while maintaining energy efficiency.

Moreover, Pixelworks' subsidiary in Shanghai received $1.8 million in cash subsidies through its participation in China's 'Little Giant' program, highlighting the company's commitment to expanding its market presence in critical regions.

Financial Overview

In the fourth quarter, Pixelworks recorded a GAAP net loss of $5.4 million, or $(0.09) per share, which is an improvement over the loss incurred in the third quarter and the same quarter of the prior year. For the entire fiscal year, the net loss was $28.7 million, amounting to a per-share loss of $(0.49).

The company also provided adjusted EBITDA figures, revealing a fourth-quarter adjusted EBITDA loss of $3.6 million, again indicating a reduction in losses compared to previous quarters. The non-GAAP net loss was reported at $4.3 million, signaling some improvement as well.

Looking Ahead

The company emphasized its ongoing commitment to cost reduction while reopening new growth channels, particularly within mobile and licensing opportunities for its technology innovations. As 2025 unfolds, Pixelworks aims to spearhead a renewed focus on profitability, especially for its Shanghai subsidiary, with an optimistic outlook for upcoming product launches and market engagement strategies.

Pixelworks will host a conference call to discuss these results and future strategic outlooks and invites analysts and investors to join the conversation on February 12, 2025.

In summary, while Pixelworks faces challenges in its mobile business, the shift toward enterprise markets, strategic cost management, and promising technological advancements could set the stage for a brighter fiscal outlook ahead. An emphasis on adapting to industry changes showcases Pixelworks' resilience in the competitive landscape of video processing solutions.