Pixelworks Streamlines Organization Following Recent Acquisition of ViXS Systems
September 14 2017 - 4:05PM
Business Wire
Positioned to Capitalize on Significant
Synergies with Increased Focus on OTA Market
Pixelworks, Inc. (NASDAQ: PXLW), a leading provider of visual
processing solutions, today announced actions to streamline the
organization as part of planned integration efforts following the
Company’s acquisition of ViXS Systems Inc. (“ViXS”) in August. The
restructuring eliminates redundant and non-strategic expenses,
which include an approximate 15% reduction in total workforce in
the areas of development, operations, sales and administration.
Pixelworks expects to realize approximately $4.0 million of
annualized compensation expense savings, beginning in the fourth
quarter of 2017, in addition to achieving other significant revenue
and operational synergies as result of combining the two
companies.
Todd Debonis, Pixelworks’ president and CEO, commented, “This
realignment further streamlines the organization, reflecting
continued execution on our ViXS integration plan and increased
focus on the rapidly emerging OTA market. In addition to these
initial cost savings, we also expect to achieve significant revenue
and operational synergies by leveraging the sales channels, product
development and customers of the combined company. Today’s
announced actions appropriately align Pixelworks’ operating
expenses and strategic initiatives, as we aggressively pursue our
near- to intermediate-term growth and profitability objectives. The
integration process is expected to be completed by year-end, which
we believe will result in further cost benefits, and we remain
fully committed to the transaction being accretive in 2018.”
The Company expects to incur total charges of approximately $2
million related to employee severance and benefits, which will
largely be recognized in the third quarter of 2017. The
organizational changes and any associated severance charges are
anticipated to be substantially completed by the end of Pixelworks’
fourth quarter ending December 31, 2017.
About Pixelworks, Inc.
Pixelworks creates, develops and markets high efficiency
visual display processing and advanced video delivery solutions for
the highest quality display and streaming applications. The
Company enables worldwide manufacturers to provide leading edge
consumer electronics and professional displays, as well as video
delivery and streaming solutions. The company is headquartered in
San Jose, CA.
For more information, please visit the company’s Web site at
www.pixelworks.com.
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,” and similar terms or the
negative of such terms, and include, without limitation, the
restructuring and reduction in workforce, the components and the
impact thereof, the charges and cash expenditures and timing
related thereto, the annual savings as a result of the
restructuring, the effect on the Company’s strategy, business and
approach, expected synergies and that the ViXS transaction will be
accretive in 2018. 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: whether the
Company will be able to implement the restructuring program as
planned, whether the expected amount of the costs associated with
the restructuring program will differ from or exceed the Company's
estimates and whether the Company will be able to realize the full
amount of estimated savings from the restructuring program or
within the timeframe expected; our ability to execute on our
strategy, including the integration of ViXS; competitive factors,
such as rival chip architectures, introduction or traction by
competing designs, or pricing pressures; the success of our
products in expanded markets; current global economic challenges;
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 our Annual Report on Form
10-K for the year ended December 31, 2016 as well as subsequent SEC
filings.
The forward-looking statements contained in this release speak
as of the date of this release, and Pixelworks does not undertake
any obligation to update any such statements, whether as a result
of new information, future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20170914006280/en/
Company Contact:Pixelworks, Inc.Steven Moore,
+1-408-200-9221smoore@pixelworks.comorInvestor
Contact:Shelton GroupBrett L Perry,
+1-214-272-0070bperry@sheltongroup.com
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