First Quarter and Recent Highlights
- Total revenue increased 79% year-over-year with strong growth across all target end markets
- Mobile revenue included another consecutive quarterly record for hardware-based sales of mobile visual processors, reflecting expanded customer adoption and the ramp of new programs at targeted mobile OEMs
- OPPO launched its newest flagship Find X5 series, comprised of three smartphone models, each utilizing Pixelworks' software and patented high-efficiency color and brightness calibration technology
- HONOR Magic4 series launched with two models in the series becoming the first HONOR smartphones to incorporate Pixelworks technology, and each leveraging Pixelworks' X5 Plus advanced visual processor
- OPPO affiliate launched the realme GT Neo3, the first realme smartphone to incorporate Pixelworks technology and the first ever smartphone built on MediaTek platform to feature a Pixelworks visual processor, the X5 series
- vivo launched the iQOO Neo6, its latest premium smartphone designed for high-performance mobile gaming and incorporating Pixelworks' X5 Plus visual processor to deliver a highly differentiated visual experience
- Pixelworks confirmed as a Unity Verified Solutions Partner (VSP), making an optimized version of Pixelworks' Rendering Accelerator SDK available to developers that utilize Unity's industry-leading gaming engine platform
- OnePlus Ace smartphone launched with multiple cutting-edge technologies, including Pixelworks' X5 Plus visual processor together with MediaTek's Dimensity 8100-MAX flagship-light 5G mobile platform
- Announced expansion of TrueCut® Motion ecosystem, with Pixelogic joining as certified service partner and to offer TrueCut Motion post-processing capabilities for future theatrical and streaming films and releases
"The first quarter represented a great start to 2022 with strong year-over-year growth, driven by expanded adoption of our mobile visual processors and an ongoing recovery in the projector market," stated Todd DeBonis, President and CEO of Pixelworks. "Gross margin for the quarter exceeded expectations, and when combined with well-managed operating expenses, contributed to bottom-line results that were at the high-end of guidance.
"Our mobile growth strategy, including the alignment of our visual processing solutions with key market trends, continues to gain tangible momentum, particularly related to high frame rate mobile gaming. During the quarter, HONOR became our third tier-one mobile OEM customer with the launch of the HONOR Magic4 series, including multiple models that incorporate our X5 Plus visual processor. Additionally, we announced our first win with OPPO's realme brand on the realme GT Neo3, which also represented the first-ever smartphone built on MediaTek's Dimensity platform to incorporate our visual processor. Having established a recognized position with leading mobile OEMs as an enabler of differentiated visual quality and performance on smartphones, we are continuing to aggressively cultivate expanded partnerships and a more synergistic ecosystem in support of driving accelerated adoption. As a notable example, we recently advanced our collaborative ecosystem engagement with Unity Technology to become designated as a Unity VSP, making Pixelworks' high frame rate rendering accelerator readily available to leading mobile game developers and studios that utilize Unity's gaming engine platform.
"Looking to the second quarter, we are well positioned with robust bookings and have secured allocation of supply in support our expectations for continued growth."
First Quarter Fiscal 2022 Financial Results
Revenue in the first quarter of 2022 was $16.6 million, compared to $16.6 million in the fourth quarter of 2021 and $9.3 million in the first quarter of 2021. The year-over-year increase in first quarter revenue reflected strong growth across all of the Company's target end markets.
On a GAAP basis, gross profit margin in the first quarter of 2022 was 52.7%, compared to 53.5% in the fourth quarter of 2021 and 40.2% in the first quarter of 2021. First quarter 2022 GAAP operating expenses were $12.6 million, compared to $12.6 million in the fourth quarter of 2021 and $11.6 million in the year-ago quarter.
On a non-GAAP basis, first quarter 2022 gross profit margin was 53.2%, compared to 55.0% in the fourth quarter of 2021 and 43.7% in the year-ago quarter. First quarter 2022 non-GAAP operating expenses were $11.6 million, compared to $11.0 million in the fourth quarter of 2021 and $10.2 million in the year-ago quarter.
For the first quarter of 2022, the Company recorded a GAAP net loss of $4.6 million, or ($0.09) per share, compared to a GAAP net loss of $3.3 million, or ($0.06) per share, in the fourth quarter of 2021, and a GAAP net loss of $8.1 million, or ($0.16) per share, in the year-ago quarter. Note, the Company refers to "net loss attributable to Pixelworks Inc." as "net loss".
For the first quarter of 2022, the Company recorded a non-GAAP net loss of $3.5 million, or ($0.06) per share, compared to a non-GAAP net loss of $1.4 million, or ($0.03) per share, in the fourth quarter of 2021, and a non-GAAP net loss of $6.4 million, or ($0.12) per share, in the first quarter of 2021.
