Pixelworks Reports Fourth Quarter 2012 Financial Results
SAN JOSE, Calif., January 31, 2013 -- Pixelworks, Inc. (NASDAQ:PXLW), a pioneer in innovative video and display processing technology, today announced financial results for the fourth quarter ended December 31, 2012.
Fourth quarter 2012 revenue was $13.6 million, compared to $16.3 million reported in the third quarter of 2012 and $16.8 million in the fourth quarter of 2011. The decline in revenue was primarily due to a weak macro environment across the Company's product lines.
On a GAAP basis, gross profit margin in the fourth quarter of 2012 was 48.6%, compared to 47.8% in the third quarter of 2012 and 47.1% in the fourth quarter of 2011. Fourth quarter 2012 GAAP operating expenses were $9.8 million, compared with $8.3 million in the previous quarter and $9.5 million in the fourth quarter of 2011. For the fourth quarter of 2012, the Company recorded a GAAP net loss of $3.6 million, or $0.19 per share, compared to a GAAP net loss of $0.4 million, or $0.02 per share, in the third quarter of 2012 and GAAP net loss of $2.0 million, or $0.11 per share, in the fourth quarter of 2011.
On a non-GAAP basis, fourth quarter 2012 gross profit margin was 49.9%, compared to 49.0% in the third quarter of 2012 and 48.0% in the fourth quarter of 2011. The improvement in gross margin was largely the result of a favorable product mix. Fourth quarter 2012 operating expenses on a non-GAAP basis were $9.2 million, compared to $7.7 million in the previous quarter and $9.0 million in the fourth quarter of 2011. Operating expenses in the third quarter of 2012 were positively impacted by a reimbursement credit to research and development expense related to a co-development partnership with a major customer, based on the achievement of certain milestones. Fourth quarter 2012 research and development expense did not include a reimbursement credit, however future reimbursement credits to research and development expense are anticipated in 2013 as additional milestones associated with the co-development partnership are achieved. The Company expects the product being developed under this co-development project to begin contributing significant revenue in 2014.
On a non-GAAP basis, net loss in the fourth quarter of 2012 was $2.8 million, or $0.15 per share, compared with net income of $0.3 million, or $0.02 per diluted share, in the third quarter of 2012 and a net loss of $1.3 million, or $0.07 per share, in the fourth quarter of 2011. Adjusted EBITDA in the fourth quarter of 2012 was negative $1.3 million, compared with positive $1.4 million in the previous quarter and positive $0.4 million in the fourth quarter of 2011.
“During 2012, we demonstrated the value of Pixelworks' video display technology and expertise through significant licensing engagements with key customers and partners” said Bruce Walicek, President and CEO of Pixelworks. “The recent introduction of our next-generation Video Display Processor, the PA168 for Ultra HD Displays, positions us to address the explosive growth opportunity as displays transition to higher resolutions. During the course of 2013, we are focused on taking advantage of the growth in video consumption by applying our industry leading video display processing technology to deliver the highest quality video experience to displays of all sizes."
The Company will discuss the details of its business outlook for the first quarter of 2013 during its conference call scheduled for today, January 31, 2013, at 2:00 p.m. Pacific Time.
The following information was filed by Pixelworks, Inc (PXLW) on Thursday, January 31, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.