Business
Pixelworks Reports Second Quarter 2020 Financial Results
Announces Restructuring to Reduce Operating Expenses by $3.2 Million Annually Anticipates Additional Smartphone Wins to Drive Mobile Revenue Growth in Second
About this update from Pixelworks, Inc.
[{"type":"text","content":"Announces Restructuring to Reduce Operating Expenses by $3.2 Million Annually\n Anticipates Additional Smartphone Wins to Drive Mobile Revenue Growth in Second Half SAN JOSE, Calif., Aug. 10, 2020 (GLOBE NEWSWIRE) -- Pixelworks, Inc. (NASDAQ: PXLW), a leading provider of innovative video and display processing solutions, today announced financial results for the second quarter ended June 30, 2020. Second Quarter and Recent Highlights Mobile revenue for the first half of 2020 grew 24% year-over-year, driven by increased shipments of Iris visual processing solutions in support of 12 smartphones launched across six OEM customersGAAP gross margin expanded to 54.6% and non-GAAP gross margin increased to 59.2%, reflecting a combination of ongoing product cost reduction initiates and a favorable product mixRestructuring plan implemented in August to further reduce operating expenses and minimize cash used from operations, while focusing resources on Mobile growth initiativesASUS ROG Phone 3 leverages Pixelworks’ patented high-efficiency color calibration, HDR tone mapping and brightness smoothing features to deliver an exceptional visual experience to mobile gamersBlack Shark incorporated Pixelworks’ 5th generation visual processor with dual-channel MIPI support and color calibration software in the latest cutting-edge gaming smartphone, the Tencent Black Shark 3SContinued to advance TrueCut® platform initiatives in North America with expanded Hollywood presence and newly opened office in Burbank, California and installation of on-premises TrueCut evaluation toolsCompleted successful tape-out of 6th generation Iris visual processor for mobile in advance of planned product introduction during the second half of 2020Ended the quarter with $21.4 million in cash and short-term investments President and CEO of Pixelworks, Todd DeBonis, commented, “Our second quarter results reflected the broad economic impact from the COVID-19 pandemic on all of our target end markets. While our team has continued to do an excellent job of operating effectively in the current environment, the pandemic has significantly impacted customer demand and our business in the Projector and Video Delivery markets. As a result of this negative impact, we have implemented a restructuring to further reduce operating expenses, preserve cash and focus available resources ...