Pixelworks, Inc. reported a significant decline in financial performance for the first quarter of 2025, with net revenue falling to $7.1 million, a decrease of 56% from $16.1 million in the same period of 2024. The drop in revenue was primarily attributed to an 86% decrease in sales within the Mobile market, which accounted for a substantial portion of the decline. The company also recorded a net loss of $8.0 million, compared to a loss of $5.2 million in the prior year, resulting in a loss per share of $0.13, up from $0.09.
In terms of operational changes, Pixelworks executed a restructuring plan in February 2025, which included a 6% reduction in workforce aimed at improving operational efficiency. This followed a previous restructuring in June 2024 that saw a 16% workforce reduction. The restructuring efforts resulted in a total expense of $468,000 for the quarter, which was included in both cost of revenue and operating expenses. The company also reported a decrease in research and development expenses, which fell by 19% to $6.5 million, reflecting cost control measures and reduced headcount.
The company’s cash and cash equivalents decreased to $18.5 million as of March 31, 2025, down from $23.6 million at the end of 2024. This decline was primarily due to $6.7 million used in operating activities, partially offset by $1.3 million from a registered direct offering and $0.5 million from an at-the-market equity offering. Accounts receivable also decreased to $5.4 million, while inventories rose to $5.0 million, indicating a potential mismatch between production and sales.
Looking ahead, Pixelworks remains focused on its strategic plan to realign its Mobile and Home & Enterprise businesses, particularly through its subsidiary, Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. The company is preparing to pursue an initial public offering on the Shanghai Stock Exchange’s STAR Market, although market conditions and regulatory requirements have posed challenges. The management expressed optimism about the potential benefits of the listing, including improved access to capital markets, but acknowledged the uncertainties involved in achieving this goal. The company continues to evaluate its operational strategies and may seek additional financing to support its growth initiatives.
About PIXELWORKS, INC
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