Latest news with #TrueCutMotion
Yahoo
14-05-2025
- Business
- Yahoo
Pixelworks Inc (PXLW) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Revenue: $7.1 million for Q1 2025, down from $9.1 million in Q4 2024 and $16.1 million in Q1 2024. Home and Enterprise Revenue: Approximately $5.8 million for Q1 2025. Mobile Revenue: Approximately $1.3 million for Q1 2025. Non-GAAP Gross Profit Margin: 49.9% for Q1 2025, compared to 54.8% in Q4 2024 and 50.7% in Q1 2024. Non-GAAP Operating Expenses: $10.4 million for Q1 2025, down from $12.6 million in Q1 2024. Non-GAAP Net Loss: $6.5 million or $0.11 per share for Q1 2025, compared to $4.3 million or $0.07 per share in Q4 2024. Adjusted EBITDA: Negative $5.8 million for Q1 2025, compared to negative $3.6 million in Q4 2024. Cash and Cash Equivalents: $18.5 million at the end of Q1 2025, down from $23.6 million at the end of Q4 2024. Q2 2025 Revenue Guidance: Expected to be between $8 million and $9 million. Q2 2025 Non-GAAP Gross Profit Margin Guidance: Expected to be between 41% and 43%. Q2 2025 Non-GAAP EPS Guidance: Expected to range between a loss of $0.11 per share and a loss of $0.08 per share. Warning! GuruFocus has detected 6 Warning Signs with PXLW. Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pixelworks Inc (NASDAQ:PXLW) reported first-quarter results consistent with expectations, with sequential growth in the mobile business. The company has significantly reduced operating expenses, down more than $2 million year over year, and expects further reductions in 2025. Pixelworks Inc (NASDAQ:PXLW) is making progress with its TrueCut Motion platform, targeting to double the number of titles from 5 in 2024 to 10 in 2025. The company has formalized a strategic partnership with a market-leading post-production company to expand the TrueCut ecosystem. Pixelworks Shanghai subsidiary is poised to reach profitability in the second half of 2025, with multiple revenue opportunities in play. First-quarter revenue decreased to $7.1 million from $16.1 million in the first quarter of 2024, reflecting anticipated seasonality and lower sales of end-of-life products. Non-GAAP gross profit margin decreased to 49.9% from 54.8% in the previous quarter, due to a shift in product mix and less overhead absorption. The company reported a non-GAAP net loss of $6.5 million for the first quarter of 2025, compared to a net loss of $4 million in the first quarter of 2024. Cash and cash equivalents decreased to $18.5 million from $23.6 million at the end of the fourth quarter. Guidance for the second quarter of 2025 indicates continued challenges, with expected revenue between $8 million and $9 million and a non-GAAP EPS loss between $0.11 and $0.08 per share. Q: Todd, you talked about Pixelworks Shanghai reaching profitability. Can you give us some help with what the revenue levels that might be achieved at? And maybe what portion of the OpEx is attributable to Shanghai so we can understand that operating model? A: Todd DeBonis, President and CEO, explained that OpEx for Pixelworks Shanghai is expected to be around $7 million to $7.5 million per quarter. The revenue mix includes home and entertainment, mobile, IP licensing, and design services. Profitability depends on a combination of these revenue streams, and if all goes as planned, the unit could be profitable in Q3 and Q4. Q: Regarding TrueCut, are your device discussions with Chinese brands or global non-Chinese smartphone OEMs? A: Todd DeBonis clarified that the device discussions for TrueCut are with mobile OEMs, but the one that completed certification testing is not a Chinese OEM. The focus is on bringing TrueCut to premium home entertainment devices, primarily targeting North America and Europe. Q: On the ASIC design services engagements, how would you give a framework for sizing those opportunities and the revenue models associated? A: Todd DeBonis explained that design services can range from partial to full turnkey solutions, with costs for large SoCs in 12-nanometer ranging from $10 million to $20 million. The revenue size depends on the extent of services provided to the customer. Q: For mobile, how are the engagements lining up with the revenue expectations for this year? A: Todd DeBonis indicated that given the Q2 guidance, replicating 2023's $30 million mobile revenue would be challenging. However, an uptick is expected in the second half of the year, with revenue likely closer to 2024 levels or slightly above. Q: Could you expand on the multiple programs with your lead mobile customer and additional engagements? Will any additional engagements generate revenue in 2025? A: Todd DeBonis stated that additional engagements are booked design wins with the X7P. The co-development with the lead customer involves a new solution not yet offered to the market, enhancing graphical experiences. While no designs are in the bag yet, there are opportunities available this year. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
13-02-2025
- Business
- Yahoo
Pixelworks Inc (PXLW) Q4 2024 Earnings Call Highlights: Navigating Revenue Challenges with ...
Revenue: $9.1 million in Q4 2024, down from $9.5 million in Q3 2024 and $20.1 million in Q4 2023. Home and Enterprise Revenue: Approximately $8.5 million in Q4 2024. Mobile Revenue: Approximately $550,000 in Q4 2024. Non-GAAP Gross Margin: 54.8% in Q4 2024, up from 51.3% in Q3 2024 and 44.8% in Q4 2023. Non-GAAP Operating Expenses: $10.4 million in Q4 2024, down from $12.4 million in Q3 2024 and $12 million in Q4 2023. Non-GAAP Net Loss: $4.3 million or $0.07 per share in Q4 2024, compared to $7.1 million or $0.12 per share in Q3 2024 and $2.6 million or $0.05 per share in Q4 2023. Adjusted EBITDA: Negative $3.6 million in Q4 2024, compared to negative $6.3 million in Q3 2024 and negative $1.9 million in Q4 2023. Cash and Cash Equivalents: $23.6 million at the end of Q4 2024, down from $28.8 million at the end of Q3 2024. Q1 2025 Revenue Guidance: Expected to be between $7 million and $8 million. Q1 2025 Non-GAAP Gross Margin Guidance: Expected to be between 49% and 51%. Q1 2025 Non-GAAP Operating Expenses Guidance: Expected to be between $10 million and $11 million. Q1 2025 Non-GAAP EPS Guidance: Expected to range between a loss of $0.13 per share and a loss of $0.10 per share. Warning! GuruFocus has detected 7 Warning Signs with PXLW. Release Date: February 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pixelworks Inc (NASDAQ:PXLW) achieved significant improvement in gross margin, expanding over 340 basis points sequentially and nearly 1,000 basis points year over year. The company has secured multiyear agreements with major studios like Walt Disney Studios and Universal Pictures for its TrueCut Motion platform. Pixelworks Inc (NASDAQ:PXLW) is in active discussions with three major device brands for potential incorporation of TrueCut Motion capability into future devices. The company has established a new framework for providing ASIC design services, which could contribute to revenue growth by mid-year. Pixelworks Inc (NASDAQ:PXLW) expects its Shanghai subsidiary to achieve profitability for the full year of 2025, aided by cost reductions and subsidies. Revenue for the fourth quarter of 2024 decreased to $9.1 million from $20.1 million in the fourth quarter of 2023, primarily due to headwinds in the mobile sector. The company reported a non-GAAP net loss of $4.3 million for the fourth quarter of 2024, compared to a net loss of $2.6 million in the same quarter of 2023. Pixelworks Inc (NASDAQ:PXLW) anticipates a slower start to 2025 in terms of total revenue, with a forecasted range of $7 million to $8 million for the first quarter. The strategic review process for the Pixelworks Shanghai subsidiary is ongoing, with no definitive timeframe for completion, creating uncertainty. The company is not expecting to be fully profitable at the top level in 2025, although it aims to be close by the end of the year. Q: Hi, Todd. Hi, Haley. Regarding mobile revenues for the second half of '25 and '26, what's your visibility on program recovery and potential run rate compared to past levels? Specifically, how does the X5 product factor into this? A: Todd DeBonis, President and CEO: We expect growth throughout the year, ending with higher mobile revenue than in 2024. Progress will be sequential, likely more back-end loaded. On the high side, we could match 2023 numbers; on the low side, we'll still see growth over 2024. The new graphics acceleration solution for mid- to low-end markets is expected to contribute over 50% of the revenue. Q: You mentioned several new opportunities, including TrueCut device partnerships and ASIC support. Can you elaborate on these, particularly the geographies and end devices involved? A: Todd DeBonis, President and CEO: The legacy product is a ViXS transcoding product. As for other opportunities, I won't specify device manufacturers or regions, but they are leading global brands. The IP opportunities span several markets, indicating broad-based excitement. Q: Regarding the China subsidiary benefits, do these impact COGS and gross margin, or are they all operating expense-related? A: Haley Aman, CFO: A portion of the subsidies impacted COGS and gross margin, specifically related to subsidies received for mask purchases in the past. Q: You mentioned getting around 10 films out this year. How many films would it take for streaming services to broadly adopt this technology? A: Todd DeBonis, President and CEO: It's not just about the number of titles. Having a history and quantity of key titles helps, but tentpole titles are crucial. Streaming services and device manufacturers need to see commitment from each other. We're approaching critical mass with tentpole titles, but other factors are also important. Q: Can you provide an update on the breakeven model for Pixelworks, whether it's a '25 or '26 story? A: Todd DeBonis, President and CEO: We expect the Shanghai subsidiary to be profitable in 2025. For the whole company, it depends on the strategic review process and progress with both the Shanghai subsidiary and TrueCut. We may not be fully profitable at the top level, but probably close, possibly exiting the year. Q: Is there a timeline for the strategic process, and could it take up to two years? A: Todd DeBonis, President and CEO: I doubt it will take two years. If it were to take that long, we would likely shut down the current process and restart. I'm encouraged by the progress, but I don't have a specific timeline yet. Q: Can you expand on the ASIC design services and IP licensing, particularly what you're offering and to whom? A: Todd DeBonis, President and CEO: We're under confidentiality agreements, but the IP discussions involve our display and motion processing expertise. Historically, we've avoided licensing due to resource constraints, but now we're pursuing it vigorously as it's high-margin business and easier to transfer. Q: Regarding the digital projector, you started shipping the next-gen SoC last quarter. Is the segment expected to be flattish for the year? A: Todd DeBonis, President and CEO: The home and enterprise business is expected to be similar to 2024, excluding the potential upside from the transcoding opportunity. The newest co-developed product will ramp but won't be the major revenue portion in 2025. It may take until 2026 to become the largest portion of projector revenue. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
