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Pixelworks Announces Strategic Equity Investment in Shanghai Subsidiary
Reaffirms Revenue Guidance for Fourth Quarter 2022 PORTLAND, Ore., Dec. 28, 2022 /PRNewswire/ -- Pixelworks, Inc. (NASDAQ: PXLW) (the "Company"), a leading
About this update from Pixelworks, Inc.
[{"type":"text","content":"Reaffirms Revenue Guidance for Fourth Quarter 2022\nPORTLAND, Ore., Dec. 28, 2022 /PRNewswire/ -- Pixelworks, Inc. (NASDAQ: PXLW) (the \"Company\"), a leading provider of innovative video and display processing solutions, today announced the Company's majority owned subsidiary, Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. (\"PWSH\"), entered into an agreement with a group of private equity and strategic investors based in China, as well as with entities owned by PWSH employees, under which committed investments will be made in exchange for equity interest in PWSH.\nIn aggregate, the capital increase agreements consist of the commitment by employee entities to pay amounts in RMB equating to approximately $1.4 million in exchange for total equity interest of 0.54% in PWSH, reflecting a pre-money valuation of the RMB equivalent of approximately $250.7 million, and by non-employee investors to pay amounts in RMB equivalent to approximately $14.3 million in exchange for total equity interest of 2.76% in PWSH, reflecting a pre-money valuation of the RMB-equivalent of approximately $501.4 million. Following the anticipated closing of these transactions, Pixelworks, Inc. will continue to hold an approximately 78.2% equity interest in PWSH.\nPresident and CEO of Pixelworks, Todd DeBonis, commented, \"This latest transaction to secure additional capital investment in our PWSH subsidiary is a testament to the recognized value of our visual processing technology in China as well as the associated growth opportunity for this portion of our business. In addition to this new capital further solidifying PWSH's overall financial position, it provides increased flexibility in support of executing on our growth and operational objectives as we continue to prepare PWSH to apply for a local listing in coming year.\"\nAdditionally, the Company reaffirmed its previously provided financial guidance for fourth quarter total revenue of between $16 million and $18 million.\nFurther details about the capital increase agreements are available in the Company's filings with the Securities and Exchange Commission, including the Form 8-K filed by today, December 28, 2022.\nSafe Harbor Statement\nThis release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securit...