PXLW beats by a penny:
Pixelworks Reports Second Quarter Financial Results
Record Revenue Exceeds April Outlook
TUALATIN, Ore., Jul 17, 2001 (BUSINESS WIRE) -- Pixelworks, Inc. (Nasdaq: PXLW chart, msgs):
Selected Highlights
-- Record second quarter revenue of $22.7 million increases 88
percent over the second quarter of 2000 and 7 percent
sequentially; exceeds April outlook of $22.5 million
-- Gross profit margin increases to 47.3 percent in the second
quarter from 43.4 percent in the first quarter; sixth
consecutive quarter of improvement
-- Record pro forma net income(a) of $3.5 million increases for
eighth consecutive quarter
(a) Pro forma net income (loss) represents net income (loss)
excluding non-cash expenses for the amortization of goodwill
and assembled workforce, patent settlement expense, in-process
research and development expense, amortization of deferred
stock compensation, accretion of preferred stock redemption
preference and preferred stock beneficial conversion feature.
Net income (loss) excluding these expenses differs from net
income (loss) according to generally accepted accounting
principles.
Pixelworks, Inc. (Nasdaq: PXLW chart, msgs), the leading provider of system-on-a-chip ICs for the advanced display market, today announced financial results for the second quarter ended June 30, 2001.
Revenue for the second quarter of 2001 was $22.7 million, an 88 percent increase over revenue of $12.1 million in the second quarter of 2000 and 7 percent increase sequentially from the first quarter of 2001.
Pro forma net income(a) for the second quarter was $3.5 million, a 194 percent increase from the second quarter of 2000 and up 14 percent sequentially. Pro forma earnings for the second quarter were $0.08 per diluted share, up 142 percent from $0.03 in the second quarter of 2000 and up 9 percent sequentially.
Non-cash charges recorded in the second quarter in accordance with generally accepted accounting principles included $4.4 million for amortization of goodwill and assembled workforce related to the acquisition of Panstera, Inc., and $2.5 million for amortization of deferred stock compensation, of which $2.2 million was related to the acquisition of Panstera, Inc. Including these non-cash charges, net loss for the second quarter was $3.4 million, or $0.08 per diluted share, compared to net income of $0.6 million, or $0.02 per diluted share, in the second quarter of 2000 and a net loss of $34.1 million, or $0.87 per diluted share, in the first quarter of 2001.
"We were very pleased to have another quarter of record revenues despite a very tough economic environment. Our financial performance for the second quarter continued to show that we are executing across all segments of our business," said Allen Alley, president, CEO, and chairman of Pixelworks. "Our flat panel monitor business was again the fastest growing segment with over 150 percent revenue growth year over year."
"I couldn't be more pleased with the development of the company and our competitive position," Alley added.
"The building blocks we have put in place over the last year, in the form of strategic partnerships, the acquisition of Panstera, and other investments both inside and outside the company, have put us in position to continue rolling out the broadest product line-up in the industry over the next twelve months," concluded Alley.
Business Outlook
The following statements are based on current expectations. These statements are forward-looking, subject to risks and uncertainties, and actual results may differ materially. These statements do not include the potential impact of any investments outside the ordinary course of business, or mergers or acquisitions that may be completed after June 30, 2001. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The inclusion of any statement in this release does not constitute a suggestion by the company or any other person that the events or circumstances described in such statements are material. The company does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied in this release will not be realized.
-- The company estimates revenue of approximately $24.5 to
$25.5 million in the third quarter. Revenue in the fourth
quarter is anticipated to increase 8 to 12 percent over the
third quarter. Revenue is highly dependent on a number of
factors including, but not limited to, general economic
conditions, timely new product introductions, the company's
ability to secure additional design wins with customers,
growth rates in the flat panel monitor, multimedia projector,
and advanced television markets, and increased supply of
products from the company's third party foundries.
-- The company expects gross profit margins of approximately 46
to 47 percent in the second half of 2001. Gross profit margins
may be higher or lower than expected due to many factors
including, but not limited to, competitive pricing actions,
changes in estimated product costs, and changes in estimated
product mix.
-- The company expects combined operating expenses for R&D and
SG&A to range from $9.0 to $9.2 million in the third quarter,
and $9.5 to $10.0 million in the fourth quarter.
-- The company expects non-cash charges related to the
amortization of deferred stock compensation to be
approximately $2.5 million per quarter for the remainder of
2001. The company expects non-cash charges from the
acquisition of Panstera, Inc. for amortization of goodwill and
assembled workforce to be approximately $4.4 million per
quarter for the remainder of 2001.
-- The company expects interest income of approximately
$1.0 million per quarter in the third and fourth quarters.
This estimate is dependent on no material change to average
cash balances and interest rates from those at June 30, 2001.
-- The company expects no tax provision will be necessary in
2001. |
