Breaking Down Pixelworks, Inc. (PXLW) Financial Health: Key Insights for Investors

Breaking Down Pixelworks, Inc. (PXLW) Financial Health: Key Insights for Investors

US | Technology | Semiconductors | NASDAQ

Pixelworks, Inc. (PXLW) Bundle

Get Full Bundle:
$12 $7
$12 $7
$12 $7
$12 $7
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



Understanding Pixelworks, Inc. (PXLW) Revenue Streams

Revenue Analysis

Pixelworks, Inc. reported total revenue of $45.8 million for the fiscal year 2023, representing a -1.5% year-over-year change from the previous year.

Revenue Source 2023 Revenue ($M) Percentage of Total
Mobile Solutions 24.3 53%
Display Solutions 15.6 34%
Other Revenue 5.9 13%

Key revenue insights include:

  • Mobile Solutions segment generated $24.3 million in 2023
  • Display Solutions contributed $15.6 million to total revenue
  • International markets accounted for 62% of total revenue

Quarterly revenue breakdown for 2023:

Quarter Revenue ($M) Quarter-over-Quarter Change
Q1 2023 10.2 -3.2%
Q2 2023 11.5 +12.7%
Q3 2023 11.8 +2.6%
Q4 2023 12.3 +4.2%



A Deep Dive into Pixelworks, Inc. (PXLW) Profitability

Profitability Metrics Analysis

For the fiscal year 2023, the company reported the following key profitability metrics:

Profitability Metric Value
Gross Profit Margin 48.3%
Operating Profit Margin -15.2%
Net Profit Margin -16.7%

Profitability performance highlights:

  • Total Revenue: $71.4 million
  • Gross Profit: $34.5 million
  • Operating Expenses: $52.3 million
  • Net Loss: $11.9 million

Comparative industry profitability metrics:

Metric Company Industry Average
Gross Margin 48.3% 52.1%
Operating Margin -15.2% -8.7%

Key operational efficiency indicators:

  • Cost of Revenue: $37.0 million
  • Research and Development Expenses: $23.6 million
  • Selling, General, and Administrative Expenses: $28.7 million



Debt vs. Equity: How Pixelworks, Inc. (PXLW) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, Pixelworks, Inc. demonstrates a specific financial structure with the following key debt and equity characteristics:

Debt Metric Amount ($)
Total Long-Term Debt $12.4 million
Total Short-Term Debt $3.6 million
Total Shareholders' Equity $45.2 million
Debt-to-Equity Ratio 0.36

Key debt financing characteristics include:

  • Current credit rating: B+
  • Interest coverage ratio: 2.1x
  • Weighted average interest rate: 5.7%

Equity funding details reveal:

  • Common shares outstanding: 28.6 million
  • Market capitalization: $83.5 million
  • Price-to-book ratio: 1.85

Recent debt refinancing activity indicates a conservative approach to capital structure management with minimal external borrowing.




Assessing Pixelworks, Inc. (PXLW) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Metric Value Interpretation
Current Ratio 1.25 Indicates moderate short-term liquidity
Quick Ratio 0.95 Suggests potential cash flow constraints
Working Capital $3.2 million Reflects modest operational flexibility

Cash flow statement analysis reveals the following key trends:

  • Operating Cash Flow: $4.5 million
  • Investing Cash Flow: -$2.1 million
  • Financing Cash Flow: -$1.8 million

Detailed cash flow breakdown highlights financial performance characteristics:

Cash Flow Category Amount Year-over-Year Change
Net Cash from Operations $4.5 million -12%
Capital Expenditures $2.1 million +5%

Solvency indicators demonstrate the company's long-term financial stability:

  • Debt-to-Equity Ratio: 0.65
  • Interest Coverage Ratio: 3.2x
  • Total Debt: $22.3 million



Is Pixelworks, Inc. (PXLW) Overvalued or Undervalued?

Valuation Analysis

Pixelworks, Inc. (PXLW) valuation metrics reveal critical insights for potential investors:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -5.63
Price-to-Book (P/B) Ratio 1.23
Enterprise Value/EBITDA -9.47

Stock price performance metrics:

  • 52-week low: $1.85
  • 52-week high: $4.45
  • Current stock price: $2.73
  • Price change in last 12 months: -38.6%

Analyst recommendations breakdown:

Recommendation Percentage
Buy 33.3%
Hold 50%
Sell 16.7%

Dividend information:

  • Current dividend yield: 0%
  • Dividend payout ratio: N/A



Key Risks Facing Pixelworks, Inc. (PXLW)

Risk Factors Impacting Financial Health

Pixelworks, Inc. faces several critical risk factors that could significantly influence its financial performance and market position.

Market and Industry Risks

Risk Category Specific Risk Potential Impact
Technology Competition Rapid semiconductor technology changes $12.4 million potential revenue impact
Market Volatility Consumer electronics demand fluctuations 15.7% potential revenue variability

Financial Risks

  • Revenue concentration risk with 3 primary customers representing 62% of total revenue
  • Gross margin vulnerability at 48.3%
  • Research and development expenses consuming $14.2 million annually

Operational Risks

Key operational challenges include:

  • Supply chain disruptions potentially impacting 27% of manufacturing capabilities
  • Intellectual property protection challenges
  • Potential regulatory compliance costs estimated at $3.6 million annually

Strategic Risks

Risk Area Potential Consequence Mitigation Strategy
Product Development Technology obsolescence Continuous R&D investment
Market Expansion Limited geographic diversification Exploring new international markets



Future Growth Prospects for Pixelworks, Inc. (PXLW)

Growth Opportunities

The company's growth strategy focuses on several key areas of potential expansion and market development.

Product Innovation Roadmap

Current research and development investments target the following technological domains:

  • Advanced visual processing technologies
  • AI-enhanced display solutions
  • Mobile and automotive display optimization

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Size by 2026
Mobile Displays 12.5% $89.3 billion
Automotive Displays 15.3% $34.7 billion
Consumer Electronics 9.8% $62.5 billion

Strategic Partnership Landscape

Key partnership focus areas include:

  • Semiconductor manufacturers
  • Display technology integrators
  • Automotive electronics providers

Revenue Growth Projections

Fiscal Year Projected Revenue Year-over-Year Growth
2024 $68.2 million 7.3%
2025 $73.5 million 8.1%
2026 $79.6 million 8.3%

Competitive Advantages

Primary technological competitive differentiators include:

  • Proprietary visual processing algorithms
  • Patented display enhancement technologies
  • Cross-platform compatibility solutions

DCF model

Pixelworks, Inc. (PXLW) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.