Pixelworks Reports First Quarter 2016 Financial Results; Names Todd DeBonis Chief Executive Officer
The forward-looking statements contained in this release speak as of
the date of this release, and we do not undertake any obligation to
update any such statements, whether as a result of new information,
future events or otherwise.
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PIXELWORKS, INC.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(In thousands, except per share data)
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(Unaudited)
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Three Months Ended
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March 31,
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December 31,
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March 31,
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2016
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|
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2015
|
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2015
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Revenue, net
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|
|
$
|
11,167
|
|
|
|
$
|
13,477
|
|
|
|
$
|
14,392
|
|
Cost of revenue (1)
|
|
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7,575
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|
|
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6,663
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|
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7,425
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Gross profit
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|
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3,592
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6,814
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6,967
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Operating expenses:
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Research and development (2)
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5,675
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6,076
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6,318
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Selling, general and administrative (3)
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3,865
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3,648
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|
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3,887
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Restructuring
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|
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2,538
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|
|
|
|
—
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|
|
|
|
—
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Total operating expenses
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12,078
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|
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9,724
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|
|
|
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10,205
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Loss from operations
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(8,486
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)
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(2,910
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)
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(3,238
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)
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Interest expense and other, net
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(99
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)
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(129
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)
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(107
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)
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Loss before income taxes
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(8,585
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)
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(3,039
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)
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(3,345
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)
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Provision for income taxes
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57
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|
|
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128
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|
|
|
|
19
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Net loss
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|
$
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(8,642
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)
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|
|
$
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(3,167
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)
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|
|
$
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(3,364
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)
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Net loss per share - basic and diluted
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$
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(0.31
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)
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$
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(0.11
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)
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$
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(0.14
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)
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Weighted average shares outstanding - basic and diluted
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|
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27,936
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|
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27,697
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23,328
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——————
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(1) Includes:
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Restructuring
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$
|
1,723
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|
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$
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—
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|
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|
$
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—
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Stock-based compensation
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44
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|
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49
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|
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53
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(2) Includes stock-based compensation
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429
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|
|
|
|
485
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|
|
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|
489
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(3) Includes stock-based compensation
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|
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(107
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)
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|
|
|
397
|
|
|
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|
536
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|
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PIXELWORKS, INC.
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RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL INFORMATION *
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(In thousands, except per share data)
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(Unaudited)
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Three Months Ended
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March 31,
|
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December 31,
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March 31,
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2016
|
|
|
2015
|
|
|
2015
|
Reconciliation of GAAP and non-GAAP gross profit
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GAAP gross profit
|
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$
|
3,592
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|
|
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$
|
6,814
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|
|
|
$
|
6,967
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Restructuring
|
|
|
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1,723
|
|
|
|
|
—
|
|
|
|
|
—
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Stock-based compensation
|
|
|
|
44
|
|
|
|
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49
|
|
|
|
|
53
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Total reconciling items included in cost of revenue
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1,767
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|
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49
|
|
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53
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Non-GAAP gross profit
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$
|
5,359
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|
|
|
$
|
6,863
|
|
|
|
$
|
7,020
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Non-GAAP gross profit margin
|
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48.0
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%
|
|
|
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50.9
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%
|
|
|
|
48.8
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%
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|
|
|
|
|
|
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Reconciliation of GAAP and non-GAAP operating expenses
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|
|
|
|
|
|
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GAAP operating expenses
|
|
|
$
|
12,078
|
|
|
|
$
|
9,724
|
|
|
|
$
|
10,205
|
|
Reconciling item included in research and development:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
429
|
|
|
|
|
485
|
|
|
|
|
489
|
|
Reconciling item included in selling, general and administrative:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
(107
|
)
|
|
|
|
397
|
|
|
|
|
536
|
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Restructuring
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|
|
|
2,538
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|
|
|
|
—
|
|
|
|
|
—
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Total reconciling items included in operating expenses
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|
|
|
2,860
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|
|
|
|
882
|
|
|
|
|
1,025
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Non-GAAP operating expenses
|
|
|
$
|
9,218
|
|
|
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$
|
8,842
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|
|
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$
|
9,180
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|
|
|
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Reconciliation of GAAP and non-GAAP net loss
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
|
$
|
(8,642
|
)
|
|
|
$
|
(3,167
|
)
|
|
|
$
|
(3,364
|
)
|
Reconciling items included in cost of revenue
|
|
|
|
1,767
|
|
|
|
|
49
|
|
|
|
|
53
|
|
Reconciling items included in operating expenses
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|
|
|
2,860
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|
|
|
|
882
|
|
|
|
|
1,025
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|
Tax effect of non-GAAP adjustments
|
|
|
|
(2
|
)
|
|
|
|
—
|
|
|
|
|
(20
|
)
|
Non-GAAP net loss
|
|
|
$
|
(4,017
|
)
|
|
|
$
|
(2,236
|
)
|
|
|
$
|
(2,306
|
)
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Non-GAAP net loss per share - basic and diluted
|
|
|
$
|
(0.14
|
)
|
|
|
$
|
(0.08
|
)
|
|
|
$
|
(0.10
|
)
|
Non-GAAP weighted average shares outstanding - basic and diluted
|
|
|
|
27,936
|
|
|
|
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27,697
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|
|
|
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23,328
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* Our non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP
operating expenses, non-GAAP net loss and non-GAAP net loss per
share differs from GAAP gross profit, GAAP operating expenses, GAAP
net loss and GAAP net loss per share due to the exclusion of
restructuring charges and stock-based compensation expense.
Pixelworks' management believes the presentation of non-GAAP gross
profit, non-GAAP operating expenses, non-GAAP net loss and non-GAAP
net loss per share provides useful information to investors
regarding Pixelworks' results of operations by allowing investors to
better evaluate underlying cash flow dynamics. Pixelworks'
management also uses each of these non-GAAP measures internally to
better evaluate underlying cash flow dynamics. Pixelworks, however,
cautions investors to consider these non-GAAP financial measures in
addition to, and not as a substitute for, our GAAP financial
measures.
|
|
|
PIXELWORKS, INC.
|
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL INFORMATION *
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
Reconciliation of GAAP net loss and adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
|
$
|
(8,642
|
)
|
|
|
$
|
(3,167
|
)
|
|
|
$
|
(3,364
|
)
|
Restructuring
|
|
|
|
4,261
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Stock-based compensation
|
|
|
|
366
|
|
|
|
|
931
|
|
|
|
|
1,078
|
|
Tax effect of non-GAAP adjustments
|
|
|
|
(2
|
)
|
|
|
|
—
|
|
|
|
|
(20
|
)
|
Non-GAAP net loss
|
|
|
$
|
(4,017
|
)
|
|
|
$
|
(2,236
|
)
|
|
|
$
|
(2,306
|
)
|
EBITDA adjustments:
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|
|
|
|
|
|
|
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Depreciation and amortization
|
|
|
$
|
990
|
|
|
|
$
|
1,038
|
|
|
|
$
|
1,098
|
|
Interest expense and other, net
|
|
|
|
99
|
|
|
|
|
129
|
|
|
|
|
107
|
|
Non-GAAP provision for income taxes
|
|
|
|
59
|
|
|
|
|
128
|
|
|
|
|
39
|
|
Adjusted EBITDA
|
|
|
$
|
(2,869
|
)
|
|
|
$
|
(941
|
)
|
|
|
$
|
(1,062
|
)
|
* Adjusted EBITDA differs from GAAP net loss due to the exclusion of
restructuring charges, stock-based compensation expense, interest
expense and other, net, income tax provision and depreciation and
amortization. Pixelworks' management believes the presentation of
adjusted EBITDA provides useful information to investors regarding
Pixelworks' results of operations by allowing investors to better
evaluate underlying cash flow dynamics and core operating results
and are used by Pixelworks' management for these purposes.
Pixelworks, however, cautions investors to consider these non-GAAP
financial measures in addition to, and not as a substitute for, our
GAAP financial measures.
|
|
|
|
|
|
|
|
|
|
|
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|
|
PIXELWORKS, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
March 31,
2016
|
|
|
December 31,
2015
|
ASSETS
|
|
|
|
|
|
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Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
22,935
|
|
|
$
|
26,591
|
Accounts receivable, net
|
|
|
|
5,694
|
|
|
|
5,988
|
Inventories
|
|
|
|
2,197
|
|
|
|
3,266
|
Prepaid expenses and other current assets
|
|
|
|
681
|
|
|
|
644
|
Total current assets
|
|
|
|
31,507
|
|
|
|
36,489
|
Property and equipment, net
|
|
|
|
4,320
|
|
|
|
6,543
|
Other assets, net
|
|
|
|
756
|
|
|
|
810
|
Total assets
|
|
|
$
|
36,583
|
|
|
$
|
43,842
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
1,179
|
|
|
$
|
2,944
|
Accrued liabilities and current portion of long-term liabilities
|
|
|
|
11,471
|
|
|
|
8,528
|
Current portion of income taxes payable
|
|
|
|
164
|
|
|
|
221
|
Short-term line of credit
|
|
|
|
3,000
|
|
|
|
3,000
|
Total current liabilities
|
|
|
|
15,814
|
|
|
|
14,693
|
Long-term liabilities, net of current portion
|
|
|
|
629
|
|
|
|
831
|
Income taxes payable, net of current portion
|
|
|
|
1,860
|
|
|
|
1,942
|
Total liabilities
|
|
|
|
18,303
|
|
|
|
17,466
|
Shareholders’ equity
|
|
|
|
18,280
|
|
|
|
26,376
|
Total liabilities and shareholders’ equity
|
|
|
$
|
36,583
|
|
|
$
|
43,842
|
|