PXLW ( $14->$10 ) eps-0.97 Cap=$409mil Pro Forma Net Income in Third Quarter
siliconinvestor.com
TUALATIN, Ore.--(BUSINESS WIRE)--Oct. 16, 2001--Pixelworks, Inc. (Nasdaq:PXLW - news):
CONFERENCE CALL at 2 p.m. PDT, October 16, 2001 - Pixelworks will host a conference call at 2 p.m. PDT, October 16, 2001, which can be accessed at 719/457-2646 using pass code 746352, or at www.companyboardroom.com. A replay will be available by telephone through October 18, 2001, at 719/457-0820 using pass code 746352. The Web broadcast will also be available at www.companyboardroom.com through October 30, 2001.
Selected Highlights
Record third quarter revenue of $24.1 million increases 58 percent over the third quarter of 2000
Gross profit margin improves for the seventh consecutive quarter to 47.6 percent, up from 41.5 percent in the third quarter of 2000
Record pro forma net income(NOTE) of $3.9 million increases for ninth consecutive quarter
(NOTE) 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., a leading provider of system-on-a-chip ICs for the advanced display market, today announced financial results for the third quarter ended September 30, 2001.
Revenue for the third quarter of 2001 was $24.1 million, a 58 percent increase over revenue of $15.3 million in the third quarter of 2000 and six percent increase from $22.7 million in the second quarter of 2001.
Pro forma net income(NOTE) for the third quarter was $3.9 million, or $0.09 per diluted share, a 62 percent increase over pro forma net income of $2.4 million, or $0.06 per diluted share in the third quarter of 2000. Pro forma net income for the third quarter of 2001 increased 12 percent sequentially from $3.5 million, or $0.08 per diluted share for the second quarter of 2001.
Non-cash charges recorded in the third 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. Including these non-cash charges, net loss for the third quarter was ($3.0) million, or ($0.07) per diluted share, compared to net income of $1.8 million, or $0.05 per diluted share, in the third quarter of 2000 and a net loss of ($3.4) million, or ($0.08) per diluted share, in the second quarter of 2001.
``We had another outstanding quarter with record revenues and record pro forma earnings. Our solid financial performance is a direct result of our strong customer relationships and our broad technology portfolio targeting markets that continue to grow despite a challenging economic environment, as well as the operational excellence demonstrated throughout our company,'' said Allen Alley, President, CEO and Chairman of Pixelworks.
``With markets for our products that offer great growth prospects, and new products coming to market over the next few quarters that will unquestionably be the most exciting in the company's history, our future is indeed bright,'' Alley concluded.
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 September 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 $24.0 million in the fourth quarter of 2001. 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 fourth quarter 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 of approximately $8.9 million in the fourth quarter of 2001.
The company expects non-cash charges related to the amortization of deferred stock compensation to be approximately $2.5 million and non-cash charges from the acquisition of Panstera, Inc. for amortization of goodwill and assembled workforce to be approximately $4.4 million for the fourth quarter of 2001.
The company expects interest income of approximately $900,000 in the fourth quarter of 2001. This estimate is dependent on no material change to average cash balances and interest rates from those at September 30, 2001.
The company expects no tax provision will be necessary for the remainder of 2001.
About Pixelworks, Inc.
Pixelworks, headquartered in Tualatin, Oregon, is a leading provider of system-on-a-chip ICs for the advanced display market. Pixelworks' solutions process and optimize video, computer graphics and Web information for display on a wide variety of devices used in business and consumer markets. Pixelworks ImageProcessor Architecture powers the world's most highly regarded flat panel display products, including monitors and projectors marketed by Compaq, Dell, NEC-Mitsubishi, Samsung, SANYO, Sony and ViewSonic. For more information, please visit the company's Web site at www.pixelworks.com. |
