Q1 2024 Pixelworks Inc Earnings Call Transcript
Key Points
- Pixelworks Inc (PXLW) reported a solid first quarter with total revenue just above the midpoint of guidance.
- Gross margin expanded nearly 600 basis points sequentially to over 50%, driven by a favorable shift in revenue mix towards newer X7 Gen 2 visual processors and increased TrueCut revenue.
- Year-over-year mobile revenue was up nearly 200%, representing a record 61% of total revenue for the first quarter.
- The introduction of IRX (Image Rendering Accelerator) has led to collaborations across industry-leading game engines and studios, with nine IRX certified mobile games and over a hundred IRX qualified games.
- Pixelworks Inc (PXLW) secured a multiyear agreement with Walt Disney Studios to bring TrueCut Motion-graded titles to select home entertainment devices, marking a significant milestone.
- The largest mobile customer over the past two quarters recently informed Pixelworks Inc (PXLW) of a near-term reduction in their demand, leading to a pause in orders that is expected to extend into Q3.
- There is a delay in the market introduction of the next-generation mobile visual processor, pushing out its production release to later in the year.
- This delay in the new processor release will cause Pixelworks Inc (PXLW) to miss a couple of customer design-in windows for new premium models in the back half of 2024.
- Due to the anticipated short-term drawdown in revenue, Pixelworks Inc (PXLW) is reviewing near-term operating expenses and areas to maximize operational efficiencies.
- The company reported a non-GAAP net loss of $4 million, or a loss of $0.07 per share, in the first quarter of 2024.
Good day, ladies and gentlemen, and welcome to Pixelworks Inc's first-quarter 2024 earnings conference call. I will be your operator for today's call. And as a reminder, this conference call is being recorded for replay purposes.
I would now like to turn the call over to Brett Perry with Shelton Group Investor Relations. Please go ahead.
Good afternoon, and thank you for joining us on today's call. With me on the call are Pixelworks' President and CEO, Todd DeBonis; and Chief Financial Officer, Haley Aman. The purpose of today's conference call is to supplement the information provided in Pixelworks' press release issued earlier today, announcing the company's financial results for the first quarter of 2024.
Before we begin, I'd like to remind you that various remarks we make on this call, including those about our projected future financial results, economic, and market trends, and our competitive position constitute forward-looking statements. These forward looking statements and all other statements made on
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