Pixelworks rallies on EPS beat, solid top-line guidance

Pixelworks (PXLW +7.8%) guided on its Q1 CC (transcript) for Q2 revenue of $14M-$16M and EPS of -$0.11 to breakeven; the sole analyst estimate is for revenue of $13.7M and EPS of -$0.05.

CEO Bruce Walicek mentioned Pixelworks has received mass-production qualification for an SoC (aimed at large-screen applications) that it has co-developed (previous), and will start sampling a low-power mobile video display processor he declares will be the first to "brings the video quality of large screens to mobile screens."

Gross margin rose to 60.1% in Q1 from 57.8% in Q4 and 49.7% a year ago - that contributed to the EPS beat. Opex grew 10% Y/Y to $10.4M.

Q1 results, PR

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Comments (4)
  • hancharou
    , contributor
    Comments (18) | Send Message
    Apple is using their components in iPhone 6 small and big display.
    9 May 2014, 03:54 PM Reply Like
  • Mark Gomes
    , contributor
    Comments (3060) | Send Message
    Another PTT Research pick delivers the goods! http://bit.ly/13nKItI


    ...and we're hiring! http://bit.ly/1g4F46x
    9 May 2014, 03:57 PM Reply Like
  • Bullmarketcall
    , contributor
    Comments (2057) | Send Message
    Apple using comp. That has been almost denied in CC. One time contract is the truth. The only fact was almost inaudible 2Q guidance of about (0.15).
    9 May 2014, 05:57 PM Reply Like
  • Jam3s
    , contributor
    Comments (17) | Send Message
    Well then I would like to know which company they are co-developing with.
    There's a chance this might be the iPhone 6 (most likely the 5.5" version).
    But my guess it'll be the iPad.
    Both companies are starting mass production this quarter.
    And my guess Tupman (ex-Apple vice president of hardware engineering) joining PXLW's board was a strategic move for a yet questionable reason e.g. future buyout?


    "first, we we’ve developed the mass production version of the advanced SOC for large screen applications we developed under our co-development partnership and during the quarter we received mass production qualification from our customer.


    This is a major milestone on this project and we are on track for volume production to begin in the current quarter and ramp it in the second half of this year, which we believe will result in significant market share gains in 2014 and beyond."


    And why are we so blind to see it?
    Remember what Apple said when the news got leaked about GTAT making their sapphire screens.


    "Maintaining secrecy is important, he said, because talking about the future gives competitors a road map of Apple's plans and the company is 'getting ripped off left, right and sideways.'"
    10 May 2014, 06:36 PM Reply Like
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