The Company’s expectations for the second quarter of 2016 include:
- Revenue to be between $11.5 million and $12.5 million;
- Gross profit margin of approximately 48% to 50% on a GAAP basis and non-GAAP basis; and
- Operating expenses of $8.5 million to $9.5 million on a GAAP basis and $7.5 million to $8.5 million on a non-GAAP basis.
Conference Call Information
Pixelworks will host a conference call today at 2:00 p.m. Pacific Time, which can be accessed by calling 877-359-9508 and using passcode 84838280. A Web broadcast of the call can be accessed by visiting the Company's investor page at www.pixelworks.com. For those unable to listen to the live Web broadcast, it will be archived for approximately 30 days. A replay of the conference call will also be available through Thursday, May 5, 2016, and can be accessed by calling 855-859-2056 and using passcode 84838280.
About Pixelworks, Inc.
Pixelworks creates, develops and markets video display processing technology for digital video applications that demand the very highest quality images. At design centers around the world, Pixelworks engineers constantly push video performance to keep manufacturers of consumer electronics and professional displays worldwide on the leading edge. The Company is headquartered in San Jose, CA.
For more information, please visit the Company’s Web site at www.pixelworks.com.
Note: Pixelworks and the Pixelworks logo are registered trademarks of Pixelworks, Inc.
Non-GAAP Financial Measures
This earnings release makes reference to non-GAAP gross profit margins, non-GAAP operating expenses, non-GAAP net loss and non-GAAP net loss per share, which excludes restructuring charges and stock-based compensation expense, which are both required under GAAP. The press release also reconciles GAAP net loss and adjusted EBITDA, which Pixelworks defines as GAAP net loss before interest expense and other, net, income tax provision, depreciation and amortization, as well as the specific items listed above. The Company believes these non-GAAP measures provide a meaningful perspective on the Company's core operating results and underlying cash flow dynamics, but cautions investors to consider these measures in addition to, not as a substitute for, its consolidated financial results as presented in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial measures is included in this earnings release which is available in the investor relations section of the Company's website.
Safe Harbor Statement
This release contains forward-looking statements, including, without
limitation, statements with respect to the Company’s growth
opportunities, product shipments, product demand, customer engagements,
and the Company’s potential and position for the future, statements with
respect to the Company’s restructuring plan, including the Company’s
expected cost savings, the achievement of cash flow break-even, and
future charges, and statements with respect to the business outlook for
the second quarter of 2016, including revenue, gross margin and
operating expenses, within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These statements may be identified by use of terms
such as “begin,” “continue,” “will,” “believe,” “expect” and similar
terms or the negative of such terms. All statements other than
statements of historical fact are forward-looking statements for
purposes of this release, including any projections of revenue or other
financial items or any statements regarding the plans and objectives of
management for future operations. Such statements are based on
management's current expectations, estimates and projections about the
Company's business. These statements are not guarantees of future
performance and involve numerous risks, uncertainties and assumptions
that are difficult to predict. Actual results could vary materially from
those contained in forward-looking statements due to many factors,
including, without limitation: our ability to deliver new products in a
timely fashion; our new product yield rates; changes in estimated
product costs; product mix; supply of products from third-party
foundries; failure or difficulty in achieving design wins; timely
customer transition to new product designs; competitive factors, such as
rival chip architectures, introduction or traction by competing designs,
or pricing pressures; risks related to licensing our intellectual
property; the success of our products in expanded markets; current
global economic challenges; levels of inventory at distributors and
customers; changes in the digital display and projection markets;
changes in customer ordering patterns or lead times; seasonality in the
consumer electronics market; our efforts to achieve profitability from
operations; insufficient, excess or obsolete inventory and variations in
inventory valuation; the outcome of any litigation related to our
intellectual property rights; our limited financial resources and our
ability to attract and retain key personnel; and risks related to our
restructuring plan, including whether the expected amount of the costs
associated with the restructuring program will differ from or exceed the
Company's forecasts and whether the Company will be able to realize the
full amount of estimated savings from the restructuring program or in
the timeframe expected. More information regarding potential factors
that could affect the Company's financial results and could cause actual
results to differ materially is included from time to time in the
Company's Securities and Exchange Commission filings, including our
Annual Report on Form 10-K for the year ended December 31, 2015 as well
as subsequent SEC filings.
