Pixelworks Inc (NASDAQ:PXLW)
Pixelworks Inc, a leading video and pixel processing semiconductor company yesterday reported their fourth quarter 2016 financial results. The company reported fourth quarter adjusted earnings of $0.04 per share which beat analysts estimates of $0.01 per share. Pixelworks reported fourth quarter revenue of $16 million which beat analyst estimates of $15.5 million.
Pixelworks, Inc. CEO’s Comments
President and CEO of Pixelworks, Todd DeBonis, commented,
Fourth quarter revenue increased 17% sequentially to $16 million, reaching the high-end of guidance and reflecting solid demand across the projector market. We also achieved profitability on both a GAAP and non-GAAP basis in the quarter – the first time in over three years. Finally, we significantly exceeded our stated goal earlier in the year to achieve cash flow breakeven by the fourth quarter, generating $3 million in cash from operations in the quarter.
These results demonstrate the considerable progress we’ve made over the last few quarters to transform our operating model and strengthen the Company’s fundamentals. Looking forward, we expect to achieve year-over-year revenue growth, excluding the anticipated EOL contribution, while also maintaining a goal of delivering profitability in 2017. We are now well positioned to capture additional share in the projector market, which continues to exhibit improving dynamics. In mobile, the efforts of our strengthened sales organization remains focused on driving incremental adoption of Pixelworks’ technology, including at targeted OEMs in Asia as well as across the broader mobile ecosystem. Business Wire
PXLW Technical Analysis
PXLW opened trading yesterday at $3.06 which was up from the previous day’s trading close of $3.04. Shares closed trading yesterday at $3.14 and spiked up after market to $3.75, equivalent to a 19% increase from the closing price. Taking a look at the daily chart we can see that the last time PXLW traded below these levels we have to go back to October 12th, 2015 when it traded at $3.77.
Taking a closer look at the daily chart we can see that before the spike up PXLW had already been in an overall upward trend dating back to December 19th, 2016 when it traded at $2.56. PXLW has a float of 24.24 million shares and traded 1.71 times the normal daily trading volume on Thursday. For trading purposes, I would like to see PXLW open trading on Friday above $3.55 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.10 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Pixelworks, Inc. designs, develops, and markets video and pixel processing semiconductors, intellectual property cores, software, and custom ASIC solutions for digital video applications. Its products allow manufacturers and developers of digital display and projection devices to manufacture screens of various sizes that display the highest video quality with minimum power consumption.
The company provides video display processor products, including imageprocessor (integrated circuits) ICs, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within projectors and high-resolution flat panels; video co-processor ICs that work with an image processor to post-process video signals to enhance the performance or feature set of the overall video solution; and networked display ICs, which combines video sharing capabilities with video image processing, wireless connectivity, and Internet connection to ensure high quality, multi-source video output, and enhanced value to its projection display customers.
It also has an intellectual property portfolio of 135 patents related to the visual display of digital image data. The company sells its products through a direct sales force, distributors, and manufacturers’ representatives worldwide. Pixelworks, Inc. was founded in 1997 and is headquartered in San Jose, California.