Pixelworks Announces Preliminary First Quarter 2020 Financial Results
April 07 2020 - 8:00AM
Pixelworks, Inc. (NASDAQ: PXLW), a leading provider of innovative
video and display processing solutions, today announced preliminary
financial results for the first quarter ended March 31, 2020.
Revenue for the first quarter of 2020 is expected to be
approximately $13.8 million, which is close to the midpoint of the
Company’s original guidance range of $13.0 million to $15.0
million.
Non-GAAP gross profit margin in the first
quarter of 2020 is expected to be in the higher range of the
original guidance of between 49.0% and 51.0%.
During the quarter, the Company implemented
certain cost containment measures in response to the COVID-19
pandemic, resulting in expected non-GAAP operating expenses that
are below the guidance range of $10.5 million to $11.5 million.
As of March 31, 2020, the Company had cash, cash
equivalents and short-term investments of approximately $20.4
million, which compared to $14.2 million at the end of the fourth
quarter of 2019. The sequential change in cash and equivalents
primarily reflects a reduction in cash used from operations as well
as the drawdown of $5.1 million during the quarter from the
Company’s existing $10.0 million line of credit with Silicon
Valley Bank.
In addition, the Company’s CEO, Todd DeBonis,
has issued a letter to the Shareholders. Please refer to that
letter which was filed along with an 8-K.
All results presented in this press release are
preliminary and unaudited, and they are subject to adjustment
during the standard accounting close process. Pixelworks will
report its complete financial results for the first quarter 2020 as
part of the Company’s quarterly earnings conference call, which is
currently scheduled for April 30, 2020.
About 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. Pixelworks is headquartered in San Jose, CA. For more
information, please visit the company’s web site at
www.pixelworks.com.
Note: Pixelworks and the Pixelworks logo are
registered trademarks of Pixelworks, Inc.
Non-GAAP Financial Measures
This press release makes reference to projected
non-GAAP gross profit margins and projected non-GAAP operating
expenses, which exclude amortization of acquired intangible assets,
stock-based compensation expense and restructuring expenses, which
are all required under GAAP as well as the tax effect of the
non-GAAP adjustments.
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 the
Company 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 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. A reconciliation of non-GAAP guidance measures to
corresponding GAAP measures on a forward-looking basis is not
available due to high variability and low visibility with respect
to the charges which are excluded from these non-GAAP measures.
Safe Harbor StatementThis
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 the Company’s expected revenue,
non-GAAP gross profit margin, non-GAAP operating expense and cash
and cash equivalents for the quarter ended March 31, 2020, and the
timing for the Company’s earnings release. 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: changes as a result of management’s further review of
our actual results in the first quarter, changes made as a result
of the completion of our financial closing procedures for the first
quarter, and changes as a result of risks related to our business
in general. 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, 2019 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.
Contacts:Investor
ContactShelton GroupBrett PerryP: +1-214-272-0070E:
bperry@sheltongroup.com
Company ContactPixelworks, Inc.Elias NaderP:
+1-408-200-9271E: enader@pixelworks.com
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