[May 02, 2013] Pixelworks Reports First Quarter 2013 Financial Results Tweet May 02, 2013 (Close-Up Media via COMTEX) -- Pixelworks, Inc., a video and display processing technology, announced financial results for the first quarter ended March 31. In a release on April 25, the Company noted that first quarter 2013 revenue was $8.3 million, compared to $13.6 million reported in the prior quarter and $14.3 million in the first quarter of 2012. The decline in first quarter revenue reflects greater than normal seasonality coupled with a push-out of certain licensing revenue. On a GAAP basis, gross profit margin in the first quarter of 2013 was 48.1 percent, compared to 48.6 percent in the prior quarter and 54.5 percent in the first quarter of 2012. The sequential decline in gross profit margin was driven by reduced fixed cost absorption during the first quarter of 2013 offset by a favorable product mix. First quarter 2013 GAAP operating expenses were $9.5 million, compared to $9.8 million in the previous quarter and $9.1 million in the first quarter of 2012. For the first quarter of 2013, the Company recorded a GAAP net loss of $5.4 million, or $0.29 per share, compared to a GAAP net loss of $3.6 million, or $0.19 per share, in the fourth quarter of 2012 and a GAAP net loss of $0.6 million, or $0.04 per share, in the first quarter of 2012. On a non-GAAP basis, gross profit margin in the first quarter of 2013 was 49.7 percent, compared to 49.9 percent in the prior quarter and 55.7 percent in the first quarter of 2012. First quarter 2013 operating expenses on a non-GAAP basis were $8.9 million, compared to $9.2 million in the prior quarter and $8.6 million in the first quarter of 2012. The sequential decline in operating expenses was primarily due to modest decreases in certain development costs. First quarter 2013 research and development expense did not include any reimbursement credit related to a co-development partnership with a major customer; however, future reimbursement credits to research and development expense are anticipated in 2013 as additional milestones associated with the co-development partnership are achieved. The Company expects the product being developed under this co-development project to begin contributing significantly to revenue in 2014. For the first quarter of 2013, the Company recorded a non-GAAP net loss of $4.7 million, or $0.25 per share, compared with a net loss of $2.8 million, or $0.15 per share, in the prior quarter and a net loss of $0.1 million, or $0.01 per share, in the first quarter of 2012. "The first quarter was a difficult quarter due to an ongoing inventory correction that led to a weaker demand environment for our products as well as the push-out of an IP licensing deal into Q2," said Bruce Walicek, President and CEO of Pixelworks. "Despite these first quarter challenges, we expect our robust IP licensing pipeline, strong design win activity, and ramping of new products to contribute to topline growth in the second quarter and for the balance of 2013. As the industry begins a major shift to higher resolutions across all screens, we remain focused on capitalizing on this trend and applying our industry-leading video display processing technology to deliver the highest quality video experience to displays of all sizes." More information: www.pixelworks.com. ((Comments on this story may be sent to [email protected])) [ Back To TMCnet.com's Homepage ]