UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 20, 2004
PIXELWORKS, INC.
(Exact name of registrant as specified in its charter)
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OREGON |
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000-30269 |
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91-1761992 |
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(State or other jurisdiction |
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(Commission File Number) |
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(I.R.S. Employer |
8100 SW Nyberg Road
Tualatin, Oregon 97062
(503) 454-1750
(Address, including zip code, and telephone number,
including
area code, of registrant’s principal executive offices)
PIXELWORKS, INC. AND SUBSIDIARIES
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits.
99.1 Press Release issued by Pixelworks, Inc. dated July 20, 2004
Item 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On July 20, 2004, Pixelworks, Inc. (the “Company”) issued a press release announcing its financial results for the three and six months ended June 30, 2004. The press release contains forward-looking statements regarding the Company, and includes cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated.
The press release issued July 20, 2004 is furnished herewith as Exhibit No. 99.1 to this Report, and shall not be deemed filed for purposes of Section 18 of the Exchange Act.
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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PIXELWORKS, INC. |
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(Registrant) |
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By |
/s/ Jeffrey B. Bouchard |
Date: July 20, 2004 |
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Jeffrey B. Bouchard |
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Vice President, Finance and Chief Financial Officer |
3
Exhibit 99.1
Financial News Release
For Immediate Release
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Contact Information: |
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Investor Inquiries |
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Media Inquiries |
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Jeff Bouchard |
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Chris Bright |
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Pixelworks, Inc. |
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Pixelworks, Inc. |
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Tel: (503) 454-1750 ext. 1771 |
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Tel: (503) 454-1750 ext. 1770 |
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E-mail: jeffb@pixelworks.com |
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E-mail: cbright@pixelworks.com |
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Web site: www.pixelworks.com |
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Conference Call at 2 p.m. PDT, July 20, 2004 – Pixelworks will host a conference call at 2 p.m. PDT, July 20, 2004, which can be accessed at (719) 457-2618 and using pass code 510886. The conference call will also be available through a Web broadcast that can be accessed by visiting the Investor Relations section at www.pixelworks.com. A replay of the conference call will be available through July 22, 2004, and can be accessed by calling (719) 457-0820 using pass code 510886. A replay of the Web broadcast will be available through August 19, 2004.
Pixelworks Reports Second Quarter 2004 Financial Results; Record Revenue Up 49 Percent Year-Over-Year; Earnings Per Share on GAAP Basis Increased to $0.12 From $0.01 in Second Quarter of 2003
• Record revenue of $48.5 million in the second quarter increased 49% from $32.6 million in the second quarter of 2003, and increased 7% over $45.3 million in the previous quarter
• GAAP net income in the second quarter of $5.8 million, or $0.12 per diluted share, improved from $0.4 million, or $0.01 per diluted share, in the second quarter of 2003
• Pro forma* net income of $6.1 million, or $0.13 per diluted share, increased 152% from $2.4 million, or $0.05 per diluted share, in the second quarter of 2003
*Pro forma gross profit, income before income taxes, and net income, which differs from gross profit, income before income taxes, and net income in accordance with accounting principles generally accepted in the United States of America (GAAP), excludes merger-related and restructuring expenses, and non-cash expenses for amortization of purchased developed technology, and stock-based compensation and amortization of assembled workforce. A schedule reconciling these amounts for the three and six months ended June 30, 2004 and 2003 is included in this news release. Pixelworks’ management believes the presentation of these non-GAAP financial measures provides useful information to investors regarding Pixelworks’ results of operations as these non-GAAP financial measures allow investors to better evaluate ongoing business performance. Pixelworks’ management also uses these non-GAAP financial measures internally to monitor performance of the business. Pixelworks, however, cautions investors to consider these
—more—
non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.
Tualatin, Ore., July 20, 2004 — Pixelworks, Inc. (NASDAQ:PXLW), a leading provider of system-on-chip ICs for the advanced display industry, today announced financial results for the second quarter ended June 30, 2004.
Revenue for the second quarter of 2004 was a record $48.5 million, a 49 percent increase over revenue of $32.6 million in the second quarter of 2003 and a 7 percent increase over revenue of $45.3 million in the first quarter of 2004.
Net income in accordance with generally accepted accounting principles (GAAP) in the second quarter of 2004 was $5.8 million, or $0.12 per diluted share, compared with net income of $420,000, or $0.01 per diluted share, in the second quarter of 2003 and net income of $6.6 million, or $0.14 per diluted share, in the first quarter of 2004. Second quarter 2004 GAAP results include non-cash expenses for stock-based compensation, amortization of assembled workforce, and amortization of acquired developed technology of approximately $345,000 (excluded for pro forma reporting purposes).
Pro forma net income in the second quarter of 2004 was $6.1 million, or $0.13 per diluted share, which compared to pro forma net income of $2.4 million, or $0.05 per diluted share in the second quarter of 2003 and pro forma net income of $7.0 million, or $0.14 per diluted share, in the first quarter of 2004.
“We were pleased with the financial results for the second quarter, which came in at the high end of our expectations and resulted in strong year-over-year revenue and earnings growth,” said Allen Alley, President, CEO, and Chairman of Pixelworks. “Advanced television business continued to be the big growth driver with revenue growing 146 percent year-over-year and 15 percent sequentially. Projector business was up 25 percent year-over-year, but down 8 percent sequentially, which was slightly weaker than expected. Our LCD monitor business, while representing only 14 percent of total revenue, was up a better-than-expected 47 percent sequentially due to strength in high-resolution LCD monitor business in particular,” concluded Alley.
Business Outlook for Third Quarter 2004
The following statements are based on current expectations. These statements are forward-looking, subject to risks and uncertainties, and actual results may differ materially.
2
These statements do not include the potential impact of any investments outside the ordinary course of business, or mergers or acquisitions that may be completed after June 30, 2004. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The inclusion of any statement in this release does not constitute a suggestion by the Company or any other person that the events or circumstances described in such statements are material. The Company does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied in this release will not be realized.
Due to very uncertain and unpredictable economic conditions, it is particularly difficult to predict product demand and other related matters.
The Company estimates net income per share in the third quarter of 2004 will be $0.08 to $0.11 on a GAAP basis and $0.09 to $0.12 on a pro forma basis, based on the following estimates:
• Revenue of $47.0 to $50.0 million, a year-over-year increase of 32 to 41 percent. Revenue is highly dependent on a number of factors including, but not limited to, general economic conditions, timely new product introductions, the Company’s ability to secure additional design wins with customers, growth rates in the flat panel monitor, multimedia projector, and advanced television markets, levels of inventory at distributors and customers, and increased supply of products from the Company’s third party foundries.
• GAAP gross profit margin of 45.0 to 47.0 percent. Pro forma gross profit margin, which excludes an estimated $132,000 in non-cash expense for the amortization of acquired developed technology, of 45.3 to 47.3 percent. Gross profit margin may be higher or lower than expected due to many factors including, but not limited to, competitive pricing actions, changes in estimated product costs, revenue levels, and changes in estimated product mix.
• R&D and SG&A expenses, combined, of $14.8 to $15.3 million.
• Non-cash expenses for stock-based compensation and amortization of assembled workforce of approximately $250,000 (excluded for pro forma reporting purposes).
• Interest income, net of approximately $250,000.
• Effective tax rate of 34 to 36 percent of net income before income taxes.
3
About Pixelworks, Inc.
Pixelworks, headquartered in Tualatin, Oregon, is a leading provider of system-on-chip ICs for the advanced display industry. Pixelworks’ solutions provide the intelligence for advanced televisions, multimedia projectors and flat panel monitors by processing and optimizing video and computer graphics signals to produce high quality images. Many of the world’s leading manufacturers of consumer electronics and computer display products utilize our technology to enhance image quality and ease of use of their products.
For more information, please visit the company’s Web site at www.pixelworks.com.
#####
Pixelworks is a trademark of Pixelworks, Inc. All other trademarks and registration marks are the property of their respective owners.
Safe Harbor Statement
The statements by Allen Alley and the statements in the Business Outlook for Third Quarter 2004 above are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company’s business. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors including those described above and the following: business and economic conditions, changes in growth in the flat panel monitor, multimedia projector, and advanced television industries, changes in customer ordering patterns, competitive factors, such as rival chip architectures, pricing pressures, insufficient, excess or obsolete inventory and variations in inventory valuation, continued success in technological advances, shortages of manufacturing capacity from our third-party foundries, litigation involving antitrust and intellectual property, the non-acceptance of the combined technologies by leading manufacturers, and other risk factors listed from time to time in the Company’s Securities and Exchange Commission filings. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release. If the Company does update one or more forward-looking statements, investors and others should not conclude that the Company will make additional updates with respect thereto or with respect to other forward-looking statements.
4
PIXELWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP BASIS)
(In thousands, except per share data)
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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||||||||
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2004 |
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2003 |
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2004 |
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2003 |
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Revenue |
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$ |
48,509 |
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$ |
32,559 |
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$ |
93,779 |
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$ |
64,564 |
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Cost of revenue (1) |
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25,127 |
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17,880 |
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46,702 |
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35,172 |
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Gross profit |
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23,382 |
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14,679 |
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47,077 |
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29,392 |
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Operating expenses: |
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Research and development |
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7,471 |
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6,854 |
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14,725 |
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13,601 |
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Selling, general and administrative |
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6,888 |
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5,489 |
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13,120 |
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10,877 |
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Merger related expenses |
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— |
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1,398 |
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— |
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2,977 |
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Stock-based compensation and amortization of assembled workforce |
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213 |
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468 |
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498 |
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873 |
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Total operating expenses |
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14,572 |
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14,209 |
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28,343 |
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28,328 |
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Income from operations |
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8,810 |
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470 |
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18,734 |
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1,064 |
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Interest income |
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528 |
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305 |
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764 |
|
690 |
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Interest expense |
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(294 |
) |
(4 |
) |
(295 |
) |
(10 |
) |
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Amortization of debt issuance costs |
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(115 |
) |
— |
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(115 |
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— |
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Interest income, net |
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119 |
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301 |
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354 |
|
680 |
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Income before income taxes |
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8,929 |
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771 |
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19,088 |
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1,744 |
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Provision for income taxes |
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3,170 |
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351 |
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6,776 |
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1,076 |
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Net income |
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$ |
5,759 |
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$ |
420 |
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$ |
12,312 |
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$ |
668 |
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Net income per share: |
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Basic |
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$ |
0.12 |
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$ |
0.01 |
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$ |
0.26 |
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$ |
0.01 |
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Diluted |
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$ |
0.12 |
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$ |
0.01 |
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$ |
0.25 |
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$ |
0.01 |
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Weighted average shares outstanding: |
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Basic |
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46,636 |
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45,184 |
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46,479 |
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45,106 |
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Diluted |
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48,475 |
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46,390 |
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48,299 |
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46,364 |
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(1) Includes amortization of acquired developed technology of $132 for each of the three months ended June 30, 2004 and 2003, and $264 for each of the six months ended June 30, 2004 and 2003.
PIXELWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (PRO FORMA BASIS)
(In thousands, except per share data)
(Unaudited)
|
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Three Months Ended |
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Six Months Ended |
|
||||||||
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2004 |
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2003 |
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2004 |
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2003 |
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Revenue |
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$ |
48,509 |
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$ |
32,559 |
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$ |
93,779 |
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$ |
64,564 |
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Cost of revenue |
|
24,995 |
|
17,748 |
|
46,438 |
|
34,908 |
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Pro forma gross profit |
|
23,514 |
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14,811 |
|
47,341 |
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29,656 |
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Operating expenses: |
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|
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|
|
|
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|
||||
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Research and development |
|
7,471 |
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6,854 |
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14,725 |
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13,601 |
|
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Selling, general and administrative |
|
6,888 |
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5,489 |
|
13,120 |
|
10,877 |
|
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Total operating expenses |
|
14,359 |
|
12,343 |
|
27,845 |
|
24,478 |
|
||||
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Pro forma income from operations |
|
9,155 |
|
2,468 |
|
19,496 |
|
5,178 |
|
||||
|
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|
|
|
|
|
|
|
|
||||
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Interest income |
|
528 |
|
305 |
|
764 |
|
690 |
|
||||
|
Interest expense |
|
(294 |
) |
(4 |
) |
(295 |
) |
(10 |
) |
||||
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Amortization of debt issuance costs |
|
(115 |
) |
— |
|
(115 |
) |
— |
|
||||
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Interest income, net |
|
119 |
|
301 |
|
354 |
|
680 |
|
||||
|
Pro forma income before income taxes |
|
9,274 |
|
2,769 |
|
19,850 |
|
5,858 |
|
||||
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|
|
|
|
|
|
|
|
|
||||
|
Provision for income taxes |
|
3,170 |
|
351 |
|
6,776 |
|
1,076 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Pro forma net income |
|
$ |
6,104 |
|
$ |
2,418 |
|
$ |
13,074 |
|
$ |
4,782 |
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|
|
|
|
|
|
|
|
|
|
|
||||
|
Pro forma net income per share: |
|
|
|
|
|
|
|
|
|
||||
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Basic |
|
$ |
0.13 |
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$ |
0.05 |
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$ |
0.28 |
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$ |
0.11 |
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|
Diluted |
|
$ |
0.13 |
|
$ |
0.05 |
|
$ |
0.27 |
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$ |
0.10 |
|
|
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|
|
|
|
|
|
|
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|
||||
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Weighted average shares outstanding: |
|
|
|
|
|
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|
|
|
||||
|
Basic |
|
46,636 |
|
45,184 |
|
46,479 |
|
45,106 |
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||||
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Diluted |
|
48,475 |
|
46,390 |
|
48,299 |
|
46,364 |
|
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The above pro forma financial statements are presented for informational purposes only. Our presentation of pro forma financial information excludes non-cash expenses resulting from acquisitions and the issuance of stock options, as well as unusual or infrequent expenses that are not directly attributable to our ongoing operations and are expected to be incurred over a limited period of time. Because of these exclusions, our presentation is not in accordance with accounting principles generally accepted in the United States of America (GAAP). Additionally, our presentation of pro forma financial information may not be consistent with that of other companies.
We believe that the exclusion of non-cash charges may help the investor better understand our liquidity position and the use of tangible resources in our operations, and the exclusion of unusual or infrequent items provides an alternative measure which may help the investor evaluate our underlying operating performance. Pro forma information is not, and should not be considered, a substitute for financial information prepared in accordance with GAAP.
PIXELWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
RECONCILIATION OF GAAP TO PRO FORMA BASIS
(In thousands, except per share data)
(Unaudited)
|
|
|
Three Months Ended |
|
Three Months Ended |
|
||||||||||||||
|
|
|
GAAP |
|
Adjustments |
|
Pro forma |
|
GAAP |
|
Adjustments |
|
Pro forma |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
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Revenue |
|
$ |
48,509 |
|
$ |
— |
|
$ |
48,509 |
|
$ |
32,559 |
|
$ |
— |
|
$ |
32,559 |
|
|
Cost of revenue |
|
25,127 |
|
(132 |
)(1) |
24,995 |
|
17,880 |
|
(132 |
)(1) |
17,748 |
|
||||||
|
Gross profit |
|
23,382 |
|
132 |
|
23,514 |
|
14,679 |
|
132 |
|
14,811 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Research and development |
|
7,471 |
|
— |
|
7,471 |
|
6,854 |
|
— |
|
6,854 |
|
||||||
|
Selling, general and administrative |
|
6,888 |
|
— |
|
6,888 |
|
5,489 |
|
— |
|
5,489 |
|
||||||
|
Merger related expenses |
|
— |
|
— |
|
— |
|
1,398 |
|
(1,398 |
)(2) |
— |
|
||||||
|
Stock-based compensation and amortization of assembled workforce |
|
213 |
|
(213 |
)(3) |
— |
|
468 |
|
(468 |
)(3) |
— |
|
||||||
|
Total operating expenses |
|
14,572 |
|
(213 |
) |
14,359 |
|
14,209 |
|
(1,866 |
) |
12,343 |
|
||||||
|
Income from operations |
|
8,810 |
|
345 |
|
9,155 |
|
470 |
|
1,998 |
|
2,468 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Interest income |
|
528 |
|
— |
|
528 |
|
305 |
|
— |
|
305 |
|
||||||
|
Interest expense |
|
(294 |
) |
— |
|
(294 |
) |
(4 |
) |
— |
|
(4 |
) |
||||||
|
Amortization of debt issuance costs |
|
(115 |
) |
— |
|
(115 |
) |
— |
|
— |
|
— |
|
||||||
|
Interest income, net |
|
119 |
|
— |
|
119 |
|
301 |
|
— |
|
301 |
|
||||||
|
Income before income taxes |
|
8,929 |
|
345 |
|
9,274 |
|
771 |
|
1,998 |
|
2,769 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Provision for income taxes |
|
3,170 |
|
— |
|
3,170 |
|
351 |
|
— |
|
351 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income |
|
$ |
5,759 |
|
$ |
345 |
|
$ |
6,104 |
|
$ |
420 |
|
$ |
1,998 |
|
$ |
2,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Basic |
|
$ |
0.12 |
|
|
|
$ |
0.13 |
|
$ |
0.01 |
|
|
|
$ |
0.05 |
|
||
|
Diluted |
|
$ |
0.12 |
|
|
|
$ |
0.13 |
|
$ |
0.01 |
|
|
|
$ |
0.05 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Basic |
|
46,636 |
|
|
|
46,636 |
|
45,184 |
|
|
|
45,184 |
|
||||||
|
Diluted |
|
48,475 |
|
|
|
48,475 |
|
46,390 |
|
|
|
46,390 |
|
||||||
(1) Non-cash expenses for amortization of value assigned to an acquired company’s developed and other core technology at time of acquisition.
(2) Expenses related to proposed (now terminated) merger with Genesis Microchip.
(3) Non-cash expenses associated with certain stock options issued to employees prior to the Company’s Initial Public Offering and to employees of acquired companies. Also includes non-cash expense associated with amortization of the intangible assembled workforce asset recorded in connection with the Jaldi Semiconductor asset acquisition.
PIXELWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
RECONCILIATION OF GAAP TO PRO FORMA BASIS
(In thousands, except per share data)
(Unaudited)
|
|
|
Six Months Ended |
|
Six Months Ended |
|
||||||||||||||
|
|
|
GAAP |
|
Adjustments |
|
Pro forma |
|
GAAP |
|
Adjustments |
|
Pro forma |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Revenue |
|
$ |
93,779 |
|
$ |
— |
|
$ |
93,779 |
|
$ |
64,564 |
|
$ |
— |
|
$ |
64,564 |
|
|
Cost of revenue |
|
46,702 |
|
(264 |
)(1) |
46,438 |
|
35,172 |
|
(264 |
)(1) |
34,908 |
|
||||||
|
Gross profit |
|
47,077 |
|
264 |
|
47,341 |
|
29,392 |
|
264 |
|
29,656 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Research and development |
|
14,725 |
|
— |
|
14,725 |
|
13,601 |
|
— |
|
13,601 |
|
||||||
|
Selling, general and administrative |
|
13,120 |
|
— |
|
13,120 |
|
10,877 |
|
— |
|
10,877 |
|
||||||
|
Merger related expenses |
|
— |
|
— |
|
— |
|
2,977 |
|
(2,977 |
)(2) |
— |
|
||||||
|
Stock-based compensation and amortization of assembled workforce |
|
498 |
|
(498 |
)(3) |
— |
|
873 |
|
(873 |
)(3) |
— |
|
||||||
|
Total operating expenses |
|
28,343 |
|
(498 |
) |
27,845 |
|
28,328 |
|
(3,850 |
) |
24,478 |
|
||||||
|
Income from operations |
|
18,734 |
|
762 |
|
19,496 |
|
1,064 |
|
4,114 |
|
5,178 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Interest income |
|
764 |
|
— |
|
764 |
|
690 |
|
— |
|
690 |
|
||||||
|
Interest expense |
|
(295 |
) |
— |
|
(295 |
) |
(10 |
) |
— |
|
(10 |
) |
||||||
|
Amortization of debt issuance costs |
|
(115 |
) |
— |
|
(115 |
) |
— |
|
— |
|
— |
|
||||||
|
Interest income, net |
|
354 |
|
— |
|
354 |
|
680 |
|
— |
|
680 |
|
||||||
|
Income before income taxes |
|
19,088 |
|
762 |
|
19,850 |
|
1,744 |
|
4,114 |
|
5,858 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Provision for income taxes |
|
6,776 |
|
— |
|
6,776 |
|
1,076 |
|
— |
|
1,076 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income |
|
$ |
12,312 |
|
$ |
762 |
|
$ |
13,074 |
|
$ |
668 |
|
$ |
4,114 |
|
$ |
4,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Basic |
|
$ |
0.26 |
|
|
|
$ |
0.28 |
|
$ |
0.01 |
|
|
|
$ |
0.11 |
|
||
|
Diluted |
|
$ |
0.25 |
|
|
|
$ |
0.27 |
|
$ |
0.01 |
|
|
|
$ |
0.10 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Basic |
|
46,479 |
|
|
|
46,479 |
|
45,106 |
|
|
|
45,106 |
|
||||||
|
Diluted |
|
48,299 |
|
|
|
48,299 |
|
46,364 |
|
|
|
46,364 |
|
||||||
(1) Non-cash expenses for amortization of value assigned to an acquired company’s developed and other core technology at time of acquisition.
(2) Expenses related to proposed (now terminated) merger with Genesis Microchip.
(3) Non-cash expenses associated with certain stock options issued to employees prior to the Company’s Initial Public Offering and to employees of acquired companies. Also includes non-cash expense associated with amortization of the intangible assembled workforce asset recorded in connection with the Jaldi Semiconductor asset acquisition.
PIXELWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
|
|
|
June 30, |
|
December 31, |
|
||
|
|
|
|
|
|
|
||
|
ASSETS |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
99,982 |
|
$ |
75,165 |
|
|
Short-term marketable securities |
|
102,761 |
|
5,656 |
|
||
|
Accounts receivable, net |
|
19,499 |
|
8,468 |
|
||
|
Inventories, net |
|
15,942 |
|
10,478 |
|
||
|
Prepaid expenses and other current assets |
|
4,604 |
|
4,826 |
|
||
|
Total current assets |
|
242,788 |
|
104,593 |
|
||
|
|
|
|
|
|
|
||
|
Long-term marketable securities |
|
65,804 |
|
19,875 |
|
||
|
Property and equipment, net |
|
7,476 |
|
6,561 |
|
||
|
Other assets, net |
|
8,650 |
|
12,511 |
|
||
|
Deferred tax assets, net |
|
6,693 |
|
3,694 |
|
||
|
Debt issuance costs, net |
|
4,709 |
|
— |
|
||
|
Acquired intangible assets, net |
|
3,028 |
|
3,535 |
|
||
|
Goodwill |
|
82,007 |
|
82,548 |
|
||
|
Total assets |
|
$ |
421,155 |
|
$ |
233,317 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
||
|
Accounts payable |
|
$ |
10,872 |
|
$ |
4,330 |
|
|
Accrued liabilities and current portion of long term liabilities |
|
13,193 |
|
8,582 |
|
||
|
Income taxes payable |
|
3,042 |
|
— |
|
||
|
Total current liabilities |
|
27,107 |
|
12,912 |
|
||
|
|
|
|
|
|
|
||
|
Long-term liabilities |
|
827 |
|
100 |
|
||
|
Long-term debt |
|
150,000 |
|
— |
|
||
|
Total liabilities |
|
177,934 |
|
13,012 |
|
||
|
|
|
|
|
|
|
||
|
Shareholders’ equity |
|
243,221 |
|
220,305 |
|
||
|
Total liabilities and shareholders’ equity |
|
$ |
421,155 |
|
$ |
233,317 |
|