Technology
Pixelworks Reports First Quarter 2025 Financial Results
Published
1 year agoon
By
PORTLAND, Ore., May 13, 2025 /PRNewswire/ — Pixelworks, Inc. (NASDAQ: PXLW), a leading provider of innovative video and display processing solutions, today announced financial results for the first quarter ended March 31, 2025.
First Quarter and Recent Highlights
Total revenue of $7.1 million, with revenue from the mobile market increasing 140% sequentiallyAnnounced joint development with Tencent’s PerfDog and the introduction of new ‘Frame Generation’ benchmarking tool to evaluate and boost mobile gaming performanceFormalized new collaborative partnership with a market-leading post production company, expanding the ecosystem for Pixelworks’ TrueCut Motion platformPixelworks continued to advance discussions with key prospective third-parties related to potential strategic options following previous expressed interest in the Company’s Pixelworks Shanghai subsidiary
“First quarter results were consistent with our expectations, as revenue reflected anticipated first quarter seasonality in the home and enterprise market, partially offset by an initial recovery and sequential growth in mobile business,” commented Todd DeBonis, President and CEO of Pixelworks. “Notably, our reported results demonstrated significant realized benefits from our previous and ongoing actions to streamline our cost structure, with first quarter operating expenses down more than $2 million year-over-year.
“Driving renewed growth in mobile remains among our top priorities, and we continue to be encouraged by the depth of our current program engagements with mobile OEM customers, particularly those targeted at incorporating our new, low-cost mobile graphics accelerator solution in mid- and entry-level smartphones. In addition to our focused efforts in mobile, we are in active discussions with customers on adjacent revenue opportunities, including ASIC design services and IP licensing, which we expect to capitalize on over the coming quarters. Separately, during the quarter we formalized a strategic partnership for TrueCut Motion with a market-leading post production company, further expanding our TrueCut Motion ecosystem and facilitating broader industry adoption.
“Looking ahead, we are focused on executing our strategic and operational objectives in a dynamic global macroeconomic environment, while remaining committed to a streamlined cost structure and maintaining a path for our Pixelworks Shanghai subsidiary reaching profitability in the second half of 2025.”
First Quarter 2025 Financial Results
Revenue in the first quarter of 2025 was $7.1 million, compared to $9.1 million in the fourth quarter of 2024 and $16.1 million in the first quarter of 2024. The sequential decrease in first quarter revenue was driven by a combination of anticipated seasonality in the home and enterprise market as well as the prior quarter including higher sales of end-of-life products, partially offset by sequential revenue growth in the Company’s mobile business.
On a GAAP basis, gross profit margin in the first quarter of 2025 was 48.7%, compared to 54.6% in the fourth quarter of 2024 and 50.5% in the first quarter of 2024. First quarter 2025 GAAP operating expenses were $11.5 million, compared to $11.5 million in the fourth quarter of 2024 and $13.6 million in the year-ago quarter.
On a non-GAAP basis, first quarter 2025 gross profit margin was 49.9%, compared to 54.8% in the fourth quarter of 2024 and 50.7% in the year-ago quarter. First quarter 2025 non-GAAP operating expenses were $10.4 million, compared to $10.4 million in the fourth quarter of 2024 and $12.6 million in the year-ago quarter.
For the first quarter of 2025, the Company recorded a GAAP net loss of $7.8 million, or ($0.13) per share, compared to a GAAP net loss of $5.4 million, or ($0.09) per share, in the fourth quarter of 2024, and a GAAP net loss of $5.1 million, or ($0.09) per share, in the year-ago quarter. Note, the Company refers to “net loss attributable to Pixelworks, Inc.” as “net loss”.
For the first quarter of 2025, the Company recorded a non-GAAP net loss of $6.5 million, or ($0.11) per share, compared to a non-GAAP net loss of $4.3 million, or ($0.07) per share, in the fourth quarter of 2024, and a non-GAAP net loss of $4.0 million, or ($0.07) per share, in the first quarter of 2024.
Adjusted EBITDA in the first quarter of 2025 was a negative $5.8 million, compared to a negative $3.6 million in the fourth quarter of 2024 and a negative $3.2 million in the year-ago quarter.
Business Outlook
The Company’s current business outlook, including guidance for the second quarter of 2025, will be discussed as part of the scheduled conference call.
Conference Call Information
Pixelworks will host a conference call today, May 13, 2025, at 2:00 p.m. Pacific Time. Analysts and investors are invited to join the Company’s conference call using the following information:
First Quarter 2025 Conference Call
Date: Tuesday, May 13, 2025
Time: 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)
Live Webcast Link: Click Here
Dial-in Participation Registration Link: Click Here
Advanced registration is required for dial-in participants. Please complete the linked registration form above to receive a dial-in number and dedicated PIN for accessing the conference call by phone. A live and archived audio webcast of the conference call will also be accessible via the investors section of Pixelworks’ website: www.pixelworks.com.
Pixelworks, Inc.
Pixelworks provides industry-leading content creation, video delivery and display processing solutions and technology that enable highly authentic viewing experiences with superior visual quality, across all screens – from cinema to smartphone and beyond. The Company has a 20-year history of delivering image processing innovation to leading providers of consumer electronics, professional displays, and video streaming services. For more information, please visit the company’s web site at www.pixelworks.com.
Note: Pixelworks, TrueCut Motion and the Pixelworks logo are trademarks of Pixelworks, Inc.
Non-GAAP Financial Measures
This earnings release makes reference to non-GAAP gross profit margins, non-GAAP operating expenses, non-GAAP net loss and non-GAAP net loss per share, which exclude stock-based compensation expense and restructuring expense which are both required under GAAP. The press release also makes reference to and reconciles GAAP net loss and adjusted EBITDA, which Pixelworks defines as GAAP net loss attributable to Pixelworks before interest income and other, net, income tax provision, depreciation and amortization, as well as the specific items listed above.
Pixelworks management uses these non-GAAP financial measures internally to understand, manage and evaluate the business and establish its operational goals, review its operations on a period-to-period basis, for compensation evaluations, to measure performance, and for budgeting and resource allocation. Pixelworks management believes it is useful for management and investors to review, as applicable, both GAAP information and non-GAAP financial measures to help assess the performance of Pixelworks’ continuing business and to evaluate Pixelworks’ future prospects. These non-GAAP measures, when reviewed together with the GAAP financial information, provide additional transparency and information for comparison and analysis of operating performance and trends. These non-GAAP measures exclude certain items to facilitate management’s review of the comparability of our core operating results on a period-to-period basis.
Because the Company’s non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be read only in conjunction with the Company’s consolidated financial results as presented in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial measures is included in this earnings release which is available in the investor relations section of the Pixelworks website.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by use of terms such as “begin,” “continue,” “will,” “expect”, “believe,” “anticipate” and similar terms or the negative of such terms, and include, without limitation, statements about potential strategic options with respect to Pixelworks Shanghai, adjacent revenue opportunities, the adoption of our TrueCut Motion technology, and the potential for Pixelworks Shanghai reaching profitability in the second half of 2025. All statements other than statements of historical fact are forward-looking statements for purposes of this release, including any projections of revenue or other financial items or any statements regarding the plans and objectives of management for future operations. Such statements are based on management’s current expectations, estimates and projections about the Company’s business. These statements are not guarantees of future performance and involve numerous risks, uncertainties and assumptions that are difficult to predict. Actual results could vary materially from those contained in forward looking statements due to many factors, including, without limitation: the actual adoption of TrueCut Motion platform; the actual performance of the smartphone market; our ability to execute on our strategy; competitive factors, such as rival chip architectures, introduction or traction by competing designs, or pricing pressures; the success of our products in new or expanding markets; current global economic challenges, including the trade dispute and negotiations between the United States and other nations, including China; changes in the digital display and projection markets; seasonality in the consumer electronics market; our efforts to achieve profitability from operations; our limited financial resources; and our ability to attract and retain key personnel. More information regarding potential factors that could affect the Company’s financial results and could cause actual results to differ materially from those discussed in the forward-looking statements is included from time to time in the Company’s Securities and Exchange Commission filings, including its Annual Report on Form 10-K for the year ended December 31, 2024, as well as subsequent SEC filings.
The forward-looking statements contained in this release are as of the date of this release, and the Company does not undertake any obligation to update any such statements, whether as a result of new information, future events or otherwise.
[Financial Tables Follow]
PIXELWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
December 31,
March 31,
2025
2024
2024
Revenue, net
$ 7,094
$ 9,090
$ 16,054
Cost of revenue (1)
3,642
4,124
7,940
Gross profit
3,452
4,966
8,114
Operating expenses:
Research and development (2)
6,523
6,916
8,073
Selling, general and administrative (3)
4,632
4,425
5,534
Restructuring
393
115
—
Total operating expenses
11,548
11,456
13,607
Loss from operations
(8,096)
(6,490)
(5,493)
Interest income and other, net
97
141
434
Government subsidies received
13
1,100
—
Total other income, net
110
1,241
434
Loss before income taxes
(7,986)
(5,249)
(5,059)
Provision for income taxes
34
216
105
Net loss
(8,020)
(5,465)
(5,164)
Less: Net loss attributable to non-controlling interests and redeemable non-controlling interests
259
102
98
Net loss attributable to Pixelworks Inc.
$ (7,761)
$ (5,363)
$ (5,066)
Net loss attributable to Pixelworks Inc. per share – basic and diluted
$ (0.13)
$ (0.09)
$ (0.09)
Weighted average shares outstanding – basic and diluted
60,587
59,228
57,472
——————
(1) Includes:
Restructuring
75
—
—
Stock-based compensation
10
12
18
(2) Includes stock-based compensation
222
266
330
(3) Includes stock-based compensation
519
638
727
PIXELWORKS, INC.
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL INFORMATION *
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
December 31,
March 31,
2025
2024
2024
Reconciliation of GAAP and non-GAAP gross profit
GAAP gross profit
$ 3,452
$ 4,966
$ 8,114
Restructuring
75
—
—
Stock-based compensation
10
12
18
Total reconciling items included in gross profit
85
12
18
Non-GAAP gross profit
$ 3,537
$ 4,978
$ 8,132
Non-GAAP gross profit margin
49.9 %
54.8 %
50.7 %
Reconciliation of GAAP and non-GAAP operating expenses
GAAP operating expenses
$ 11,548
$ 11,456
$ 13,607
Reconciling item included in research and development:
Stock-based compensation
222
266
330
Reconciling items included in selling, general and administrative:
Stock-based compensation
519
638
727
Restructuring
393
115
—
Total reconciling items included in operating expenses
1,134
1,019
1,057
Non-GAAP operating expenses
$ 10,414
$ 10,437
$ 12,550
Reconciliation of GAAP and non-GAAP net loss attributable to Pixelworks, Inc.
GAAP net loss attributable to Pixelworks Inc.
$ (7,761)
$ (5,363)
$ (5,066)
Reconciling items included in gross profit
85
12
18
Reconciling items included in operating expenses
1,134
1,019
1,057
Non-GAAP net loss attributable to Pixelworks Inc.
$ (6,542)
$ (4,332)
$ (3,991)
Non-GAAP net loss attributable to Pixelworks Inc. per share – basic and diluted
$ (0.11)
$ (0.07)
$ (0.07)
Non-GAAP weighted average shares outstanding – basic and diluted
60,587
59,228
57,472
*Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP
financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure
prepared in accordance with GAAP, and the reconciliations from GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to “Non-
GAAP Financial Measures” in this document for an explanation of the adjustments made to the comparable GAAP measures, the ways management
uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.
PIXELWORKS, INC.
RECONCILIATION OF GAAP AND NON-GAAP NET LOSS PER SHARE *
(Figures may not sum due to rounding)
(Unaudited)
Three Months Ended
March 31,
December 31,
March 31,
2025
2024
2024
Dollars per share
Dollars per share
Dollars per share
Basic
Diluted
Basic
Diluted
Basic
Diluted
Reconciliation of GAAP and non-GAAP net loss attributable to Pixelworks, Inc.
GAAP net loss attributable to Pixelworks Inc.
$ (0.13)
$ (0.13)
$ (0.09)
$ (0.09)
$ (0.09)
$ (0.09)
Reconciling items included in gross profit
0.00
0.00
0.00
0.00
0.00
0.00
Reconciling items included in operating expenses
0.02
0.02
0.02
0.02
0.02
0.02
Non-GAAP net loss attributable to Pixelworks Inc.
$ (0.11)
$ (0.11)
$ (0.07)
$ (0.07)
$ (0.07)
$ (0.07)
*Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the
company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the reconciliations from GAAP to
Non-GAAP actuals should be carefully evaluated. Please refer to “Non-GAAP Financial Measures” in this document for an explanation of the adjustments made to the comparable
GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.
PIXELWORKS, INC.
RECONCILIATION OF GAAP AND NON-GAAP GROSS PROFIT MARGIN *
(Figures may not sum due to rounding)
(Unaudited)
Three Months Ended
March 31,
December 31,
March 31,
2025
2024
2024
Reconciliation of GAAP and non-GAAP gross profit margin
GAAP gross profit margin
48.7 %
54.6 %
50.5 %
Restructuring
1.1 %
— %
— %
Stock-based compensation
0.1 %
0.1 %
0.1 %
Total reconciling items included in gross profit
1.2 %
0.1 %
0.1 %
Non-GAAP gross profit margin
49.9 %
54.8 %
50.7 %
*Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure
disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and
the reconciliations from GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to “Non-GAAP Financial Measures” in this document for an explanation
of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the
non-GAAP measures provide useful information for investors.
PIXELWORKS, INC.
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL INFORMATION *
(In thousands)
(Unaudited)
Three Months Ended
March 31,
December 31,
March 31,
2025
2024
2024
Reconciliation of GAAP net loss attributable to Pixelworks Inc. and adjusted EBITDA
GAAP net loss attributable to Pixelworks Inc.
$ (7,761)
$ (5,363)
$ (5,066)
Stock-based compensation
751
916
1,075
Restructuring
468
115
—
Non-GAAP net loss attributable to Pixelworks Inc.
$ (6,542)
$ (4,332)
$ (3,991)
EBITDA adjustments:
Depreciation and amortization
$ 828
$ 691
$ 1,109
Interest income and other, net
(97)
(141)
(434)
Non-GAAP provision for income taxes
34
216
105
Adjusted EBITDA
$ (5,777)
$ (3,566)
$ (3,211)
*Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure
disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and
the reconciliations from GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to “Non-GAAP Financial Measures” in this document for an explanation
of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the
non-GAAP measures provide useful information for investors.
PIXELWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31,
2025
December 31,
2024
ASSETS
Current assets:
Cash and cash equivalents
$ 18,504
$ 23,647
Accounts receivable, net
5,371
5,804
Inventories
5,004
4,210
Prepaid expenses and other current assets
1,714
1,191
Total current assets
30,593
34,852
Property and equipment, net
5,860
6,500
Operating lease right of use assets
2,907
3,368
Other assets, net
693
945
Goodwill
18,407
18,407
Total assets
$ 58,460
$ 64,072
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND SHAREHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$ 1,655
$ 1,400
Accrued liabilities and current portion of long-term liabilities
7,043
6,581
Current portion of income taxes payable
136
365
Total current liabilities
8,834
8,346
Long-term liabilities, net of current portion
217
375
Deposit liability
12,998
13,109
Operating lease liabilities, net of current portion
1,123
1,450
Income taxes payable, net of current portion
824
914
Total liabilities
23,996
24,194
Redeemable non-controlling interest
27,533
27,396
Total Pixelworks, Inc. shareholders’ equity
(15,975)
(10,568)
Non-controlling interest
22,906
23,050
Total shareholders’ equity
6,931
12,482
Total liabilities, redeemable non-controlling interest and shareholders’ equity
$ 58,460
$ 64,072
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SOURCE Pixelworks, Inc.
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STONY BROOK, N.Y., Oct. 25, 2026 /PRNewswire/ — Following Starlink’s announced entry into the mobile communications space, Haloid’s consulting team polled government and business land mobile radio (LMR) administrators on whether Starlink could replace, or complement, their LMR systems. We found that most radio administrators were receptive to the nascent technology but did not see it as a replacement for their LMR networks.
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From Better Gameplay to a Richer Ecosystem: How World Models Could Redefine Social Gaming on TopTop
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Meanwhile, the company also continued to invest across the AI ecosystem, backing projects in areas including world models, AI companionship, AI Agents and AI interactive gaming. These investments have further enriched its AI application ecosystem, with Viggle among the AI companies previously backed by Newborn Town.
“Slap Showdown” represents an early step in bringing world models into social gaming. For Newborn Town and Viggle, the next challenge is to turn increasingly sophisticated AI capabilities into experiences that users find genuinely engaging — and compelling enough to keep coming back.
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SOURCE Newborn Town
Technology
HKICEC Launches First-Ever Global Mobile Exchange Pavilion at Mobile Electronics Show
Published
10 minutes agoon
October 26, 2026By
Charting a New Milestone with Outstanding Achievements
HONG KONG, Oct. 26, 2026 /PRNewswire/ — The Hong Kong International Communications Electronic Chamber (HKICEC) made a landmark debut at the Global Sources Mobile Electronics Show, held from October 18-21, 2026, with the inaugural launch of the HKICEC Global Mobile Exchange Pavilion. Spanning 600 square meters, the pavilion brought together nearly 60 industry leaders from mainland China, Hong Kong, India, Japan, the UAE, the US and the UK. As the largest themed pavilion in the mobile electronics sector and a premier highlight of the exhibition, this event marks a new developmental milestone for HKICEC. The pavilion underscores the chamber’s dedication to bridging global markets and serving the communications and electronics industry, injecting vital new momentum into the synergy between Hong Kong’s technology sector and international trade.
The grand opening ceremony on October 18 marked the official launch of the first B2B pavilion in Hong Kong and Asia dedicated exclusively to mobile communications equipment. The milestone event was officiated by a distinguished lineup of devices global business, including Dr. the Hon. Starry Lee Wai King, GBS, JP, Member of the Standing Committee of the National People’s Congress and President of the Legislative Council; Mr. Zhu Xiaodong, Director of the Kowloon Affairs Department of the Liaison Office of the Central People’s Government in the HKSAR; Dr. the Hon. Horace Cheung Kwok Kwan SBS JP, Deputy Secretary for Justice, HKSAR; Mr. Liu Maozhou, Level 1 Bureau Rank Official, the Economic and Financial Department II, Liaison Office of the Central People’s Government in the HKSAR; Mr. Ho Lap Ki, Denny, JP, District Officer (Kwun Tong), Home Affairs Department; Mr James Liu, CEO of Global Sources; and Mr. Jacky Tse, Chairman of HKICEC, alongside HKICEC Management team. Together, they witnessed the official launch of the first B2B pavilion in Hong Kong and Asia dedicated to mobile communications equipment. The ceremony drew over a hundred political and business leaders, industry representatives, international exhibitors, and major media outlets, reflecting the event’s importance and the industry’s green trading development. Following the inauguration, officials toured the pavilion for high-level discussions with global exhibitors, signaling robust institutional backing for the industry and HKICEC’s strategic expansion.
During the four-day exhibition, the pavilion experienced a continuous flow of visitors. Communications and electronics suppliers and global buyers from overseas visited specifically for business matchmaking and negotiations, unlocking numerous commercial opportunities. Notably, the pavilion also featured a retrospective exhibit of 16 classic mobile phones, tracing the industry’s evolution from early ‘brick’ devices to Mainland China’s first official Apple release, the iPhone 3GS. The historical display proved to be a standout attraction, gathering large crowds throughout the event.
Beyond the exhibition floor, the chamber partnered with Global Sources to co-host an international forum on October 19. Under the theme ” From New Devices to New Life: Building a Global Mobile Device Lifecycle Ecosystem”, the event gathered experts from ecoATM, PCS Wireless, Cenwood, Our Hong Kong Foundation, and the Global Mobile Association. They engaged in profound discussions on cutting-edge topics including the global economic landscape, inventory management, ESG development, the circular ecology of new and used devices, and AI technology. Attended by over 200 international representatives, the forum successfully catalyzed cross-border collaboration and established a new standard for sustainability discourse in the global mobile industry.
As a capstone to the comprehensive four-day events, HKICEC convened over 500 industry leaders, VIPs, and exhibitors for a high-profile networking banquet designed to accelerate cross-border business alliances. The gathering provided a premier platform for delegates to solidify collaborative ties and exchange strategic insights initiated from the pavilion. Ahead of the exhibition’s conclusion, a special ” Pearl Of The Orient • Victoria Harbour Cruise Party” was organized to showcase Hong Kong’s unique charm as a cosmopolitan city to global guests, providing a memorable networking experience against Hong Kong’s iconic skyline to formally cap off the week’s successes.
High-resolution images: https://bit.ly/3WqHMxu
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SOURCE The Hong Kong International Communications Electronic Chamber (HKICEC)
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