| PIXELWORKS, INC. | |||||||||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL INFORMATION * | |||||||||||||||
| (In thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
| 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||
| Reconciliation of GAAP net loss and adjusted EBITDA | |||||||||||||||
| GAAP net loss | $ | (8,139 | ) | $ | (6,552 | ) | $ | (2,306 | ) | $ | (20,090 | ) | $ | (4,621 | ) |
| Stock-based compensation | 1,850 | 2,243 | 1,498 | 5,915 | 4,852 | ||||||||||
| Restructuring | 1,596 | - | - | 2,188 | 398 | ||||||||||
| Amortization of acquired intangible assets | 374 | 374 | 374 | 1,122 | 1,130 | ||||||||||
| Tax effect of non-GAAP adjustments | (137 | ) | 18 | (84 | ) | (144 | ) | 49 | |||||||
| Gain on sale of patents | - | - | - | - | (3,905 | ) | |||||||||
| Inventory step-up and backlog amortization | - | - | - | - | 12 | ||||||||||
| Non-GAAP net loss | $ | (4,456 | ) | $ | (3,917 | ) | $ | (518 | ) | $ | (11,009 | ) | $ | (2,085 | ) |
| EBITDA adjustments: | |||||||||||||||
| Depreciation and amortization | $ | 861 | $ | 871 | $ | 1,024 | $ | 2,754 | $ | 2,824 | |||||
| Non-GAAP interest expense (income) and other, net | 28 | 24 | (70 | ) | (2 | ) | (270 | ) | |||||||
| Non-GAAP provision for income taxes | 111 | 89 | 16 | 401 | 522 | ||||||||||
| Adjusted EBITDA | $ | (3,456 | ) | $ | (2,933 | ) | $ | 452 | $ | (7,856 | ) | $ | 991 | ||
| *Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the reconciliations from GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to "Non-GAAP Financial Measures” in this document for an explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors. | |||||||||||||||
