Tue, May 14, 9:20 PM (73 days ago)
Pixelworks, Inc. (PXLW) reported a significant increase in net revenue for Q1 2024, up 61% year-over-year to $16.1 million, driven primarily by a 200% increase in sales to the Mobile market. Gross profit margin improved to 51% from 44% due to higher average selling prices and reduced costs. However, the company still posted a net loss of $5.2 million, narrowing from a $9.7 million loss in the same period last year. Operating expenses decreased by 7%, with research and development costs down due to reduced non-recurring engineering expenses. Selling, general, and administrative expenses also fell by 9%, driven by lower professional fees and foreign currency gains. Cash and cash equivalents decreased slightly to $46.2 million, with a modest cash outflow from operations. Accounts receivable and inventories both declined, reflecting improved cash management. The company continues to prepare its Chinese subsidiary, Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. (PWSH), for a potential IPO on the STAR Market, although current economic conditions in China present challenges. The strategic plan aims to enhance access to capital, customers, and talent in China. However, uncertainties related to regulatory changes and geopolitical tensions pose risks.