The forward-looking statements contained in this release speak as of the date of this release, and we do not undertake any obligation to update any such statements, whether as a result of new information, future events or otherwise.
| PIXELWORKS, INC. | ||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
| 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
| Revenue, net | $ | 16,570 | $ | 15,078 | $ | 17,111 | $ | 46,040 | $ | 45,818 | ||||||||||||||||
| Cost of revenue (1) | 8,292 | 7,844 | 8,545 | 23,561 | 21,596 | |||||||||||||||||||||
| Gross profit | 8,278 | 7,234 | 8,566 | 22,479 | 24,222 | |||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Research and development (2) | 6,145 | 6,105 | 6,634 | 18,568 | 18,906 | |||||||||||||||||||||
| Selling, general and administrative (3) | 3,334 | 3,584 | 3,900 | 10,805 | 11,658 | |||||||||||||||||||||
| Total operating expenses | 9,479 | 9,689 | 10,534 | 29,373 | 30,564 | |||||||||||||||||||||
| Loss from operations | (1,201 | ) | (2,455 | ) | (1,968 | ) | (6,894 | ) | (6,342 | ) | ||||||||||||||||
| Interest expense and other, net | (105 | ) | (105 | ) | (123 | ) | (317 | ) | (375 | ) | ||||||||||||||||
| Loss before income taxes | (1,306 | ) | (2,560 | ) | (2,091 | ) | (7,211 | ) | (6,717 | ) | ||||||||||||||||
| Provision (benefit) for income taxes | (63 | ) | 236 | 209 | 192 | 472 | ||||||||||||||||||||
| Net loss | $ | (1,243 | ) | $ | (2,796 | ) | $ | (2,300 | ) | $ | (7,403 | ) | $ | (7,189 | ) | |||||||||||
| Net loss per share - basic and diluted | $ | (0.05 | ) | $ | (0.12 | ) | $ | (0.10 | ) |
$ |
(0.31 | ) |
$ |
(0.32 | ) | |||||||||||
| Weighted average shares outstanding - basic and diluted | 25,735 | 23,539 | 23,007 | 24,210 | 22,629 | |||||||||||||||||||||
|
_________ |
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| (1) Includes: | ||||||||||||||||||||||||||
| Stock-based compensation | $ | 52 | $ | 42 | $ | 61 | $ | 147 | $ | 191 | ||||||||||||||||
| Additional amortization of non-cancelable prepaid royalty | (14 | ) | — | 4 | (14 | ) | 95 | |||||||||||||||||||
| (2) Includes stock-based compensation | 524 | 429 | 562 | 1,442 | 1,801 | |||||||||||||||||||||
| (3) Includes stock-based compensation | 443 | 422 | 634 | 1,401 | 1,909 | |||||||||||||||||||||
| PIXELWORKS, INC. | ||||||||||||||||||||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL INFORMATION * | ||||||||||||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
| 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
| Reconciliation of GAAP and non-GAAP gross profit | ||||||||||||||||||||||||||
| GAAP gross profit | $ | 8,278 | $ | 7,234 | $ | 8,566 | $ | 22,479 | $ | 24,222 | ||||||||||||||||
| Stock-based compensation | 52 | 42 | 61 | 147 | 191 | |||||||||||||||||||||
| Additional amortization of non-cancelable prepaid royalty | (14 | ) | — | 4 | (14 | ) | 95 | |||||||||||||||||||
| Total reconciling items included in cost of revenue | 38 | 42 | 65 | 133 | 286 | |||||||||||||||||||||
| Non-GAAP gross profit | $ | 8,316 | $ | 7,276 | $ | 8,631 | $ | 22,612 | $ | 24,508 | ||||||||||||||||
| Non-GAAP gross profit margin | 50.2 | % | 48.3 | % | 50.4 | % | 49.1 | % | 53.5 | % | ||||||||||||||||
| Reconciliation of GAAP and non-GAAP operating expenses | ||||||||||||||||||||||||||
| GAAP operating expenses | $ | 9,479 | $ | 9,689 | $ | 10,534 | $ | 29,373 | $ | 30,564 | ||||||||||||||||
| Reconciling item included in research and development: | ||||||||||||||||||||||||||
| Stock-based compensation | 524 | 429 | 562 | 1,442 | 1,801 | |||||||||||||||||||||
| Reconciling item included in selling, general and administrative: | ||||||||||||||||||||||||||
| Stock-based compensation | 443 | 422 | 634 | 1,401 | 1,909 | |||||||||||||||||||||
| Total reconciling items included in operating expenses | 967 | 851 | 1,196 | 2,843 | 3,710 | |||||||||||||||||||||
| Non-GAAP operating expenses | $ | 8,512 | $ | 8,838 | $ | 9,338 | $ | 26,530 | $ | 26,854 | ||||||||||||||||
| Reconciliation of GAAP and non-GAAP net loss | ||||||||||||||||||||||||||
| GAAP net loss | $ | (1,243 | ) | $ | (2,796 | ) | $ | (2,300 | ) | $ | (7,403 | ) | $ | (7,189 | ) | |||||||||||
| Reconciling items included in cost of revenue | 38 | 42 | 65 | 133 | 286 | |||||||||||||||||||||
| Reconciling items included in operating expenses | 967 | 851 | 1,196 | 2,843 | 3,710 | |||||||||||||||||||||
| Tax effect of non-GAAP adjustments | 65 | (46 | ) | 91 | — | 6 | ||||||||||||||||||||
| Non-GAAP net loss | $ | (173 | ) | $ | (1,949 | ) | $ | (948 | ) | $ | (4,427 | ) | $ | (3,187 | ) | |||||||||||
| Non-GAAP net loss per share - basic and diluted | $ | (0.01 | ) | $ | (0.08 | ) | $ | (0.04 | ) | $ | (0.18 | ) | $ | (0.14 | ) | |||||||||||
| Non-GAAP weighted average shares outstanding - basic and diluted | 25,735 | 23,539 | 23,007 | 24,210 | 22,629 | |||||||||||||||||||||
