Pixelworks ( (PXLW) ) has released its Q4 earnings. Here is a breakdown of the information Pixelworks presented to its investors.
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Pixelworks, Inc. is a leading provider of video and display processing solutions, delivering innovative technology across various screens to enhance visual experiences. In its latest earnings report, Pixelworks revealed a total revenue of $9.1 million for the fourth quarter of 2024, with a notable increase in revenue from the home and enterprise market. The company also highlighted a significant milestone with its Shanghai subsidiary receiving cash subsidies from China’s ‘Little Giant’ program. The launch of vivo’s iQOO Z9 Turbo L smartphone featuring Pixelworks’ X5 Turbo visual processor marked an expansion into the mid-tier device market.
Key financial metrics from the report indicate a gross profit margin expansion for the fourth consecutive quarter, reaching nearly 55%. Despite a decrease in overall revenue compared to previous periods, the company managed to reduce operating expenses significantly, reflecting its strategic cost-cutting measures. However, Pixelworks still reported a GAAP net loss of $5.4 million for the quarter and a full-year net loss of $28.7 million.
Pixelworks is actively engaging with multiple customer programs to incorporate its mobile visual processor solutions into upcoming smartphone models, aiming to rejuvenate growth in its mobile business. Management anticipates renewed mobile growth to commence in the first quarter of 2025, with an acceleration expected in the second quarter. The company is also optimistic about its TrueCut Motion platform’s traction and anticipates further commercial success.
Looking forward, Pixelworks plans to continue optimizing its cost structure while pursuing new revenue opportunities, particularly through ASIC design services and IP licensing. The company remains committed to achieving profitability for its Pixelworks Shanghai subsidiary in 2025, supported by these strategic initiatives.
