Second Quarter and Recent Highlights
- Total revenue increased 15% sequentially and 36% year-over-year, driven by double-digit growth in both mobile and projector end markets
- Mobile revenue increased 33% sequentially and expanded to 40% of total revenue, driven by another consecutive quarter of record sales of hardware-based visual processor solutions for smartphones
- OPPO affiliate, realme, launched the realme GT2 Explorer Master, the first smartphone to incorporate Pixelworks' X7 visual processor, featuring ultra-low latency MotionEngine ® and low power super-resolution technology
- Pixelworks' Rendering Accelerator SDK incorporated by ByteDance's game studio Nuverse and CMGE Group into One Piece Fighting Path, the industry's first game leveraging ecosystem collaboration to achieve optimized visual performance for high frame rate mobile gaming
- vivo S15 Pro smartphone launched with Pixelworks' X5 Plus visual processor to elevate visual quality for superior gaming performance, including the introduction of new user-customizable game display filters
- ASUS launched the ROG Phone 6 series integrating Pixelworks' advanced visual processing technology, including industry-leading HDR, professional color calibration, DC Dimming and superior eye-comfort
- Lightstorm and Pixelworks partner in multi-title license agreement for TrueCut Motion™ platform, enabling remastered versions of Avatar and Titanic to be released in cinematic high frame rate
"Second quarter revenue increased sequentially and grew 36% year-over-year, marking another consecutive quarter of strong double-digit growth and highlighted by record quarterly revenue in our mobile business," stated Todd DeBonis, President and CEO of Pixelworks. "We also experienced sustained customer demand outside of mobile, with revenue in our Projector business reaching the highest quarterly level in more than two years.
"Complementing our strong topline results, we continue to achieve notable milestones on our strategic initiatives to cultivate synergistic ecosystems for both our mobile and TrueCut Motion solutions. During the quarter, we expanded Pixelworks' collaborative engagements in mobile gaming, including our first-ever partnership with an industry-leading gaming studio to optimize their latest release of One Piece Fighting Path for high-efficiency 120 fps gaming on mobile devices. This was followed by the launch of the realme GT2 Explorer Master Edition, the first announced smartphone to incorporate our ground-breaking X7 visual processor, featuring Pixelworks' proprietary ultra-low latency MotionEngine® and low power super-resolution technology. Additionally, we announced in partnership with Lightstorm that our TrueCut Motion platform is being used to remaster two iconic films, Avatar and Titanic, in high frame rate for theatrical release later this year.
"Acknowledging the broadly accepted uncertainty related to the current macroeconomic environment, including global consumer demand and evolving supply chain dynamics, we continue to see exceptional customer interest and expanding market opportunities for Pixelworks' leading-edge video and motion processing solutions."
Second Quarter Fiscal 2022 Financial Results
Revenue in the second quarter of 2022 was $19.1 million, compared to $16.6 million in the first quarter of 2022 and $14.1 million in the second quarter of 2021. The sequential and year-over-year increase in second quarter revenue reflected strong growth and record revenue in the mobile market, combined with a sustained recovery of demand in the projector market.
On a GAAP basis, gross profit margin in the second quarter of 2022 was 49.0%, compared to 52.7% in the first quarter of 2022 and 50.6% in the second quarter of 2021. Second quarter 2022 GAAP operating expenses were $14.5 million, compared to $12.6 million in the first quarter of 2022 and $11.6 million in the year-ago quarter.
On a non-GAAP basis, second quarter 2022 gross profit margin was 49.3%, compared to 53.2% in the first quarter of 2022 and 52.7% in the year-ago quarter. Second quarter 2022 non-GAAP operating expenses were $12.9 million, compared to $11.6 million in the first quarter of 2022 and $10.1 million in the year-ago quarter.
For the second quarter of 2022, the Company recorded a GAAP net loss of $5.0 million, or ($0.09) per share, compared to a GAAP net loss of $4.6 million, or ($0.09) per share, in the first quarter of 2022, and a GAAP net loss of $4.4 million, or ($0.08) per share, in the year-ago quarter. Note, the Company refers to "net loss attributable to Pixelworks Inc." as "net loss".
For the second quarter of 2022, the Company recorded a non-GAAP net loss of $3.3 million, or ($0.06) per share, compared to a non-GAAP net loss of $3.5 million, or ($0.06) per share, in the first quarter of 2022, and a non-GAAP net loss of $2.6 million, or ($0.05) per share, in the second quarter of 2021.
Adjusted EBITDA in the second quarter of 2022 was a negative $2.4 million, compared to a negative $2.2 million in the first quarter of 2022 and a negative $1.8 million in the year-ago quarter.
