This digital software and hardware company just added a former top executive at Apple to its board of directors.
Pixelworks, Inc. (PXLW)
from the Oberweis Report
Pixelworks (PXLW) designs, develops and markets video and pixel processing semiconductors, intellectual property cores, software, and custom ASIC solutions for high-end digital video applications. The company’s products allow manufacturers and developers of digital display and projection devices to manufacture screens of all sizes that display the highest video quality with minimum power consumption. Pixelworks’ core video display processing technology intelligently processes video signals from a variety of sources and optimizes the image for the viewer.
Primary target markets include digital projection systems, digital televisions, Ultrabook devices, tablets, and smartphones. The company has an intellectual property portfolio of 125 patents related to the visual display of digital image data. Pixelworks generates revenue by selling pixel processing semiconductors, licensing its technology, and collecting royalties from its licensees.
In 2013, the company signed a license agreement with Apple (AAPL), and our expectation is that they will likely collect royalties from Apple in the future.
In the company’s latest reported fourth quarter, sales increased approximately 10% to $15.0 million from $13.6 million in the fourth quarter of last year. Pixelworks reported earnings per share of $.05 in the latest reported fourth quarter versus a loss in the same quarter of last year. The company expects to launch volume production of a new chip for the projection market that we believe will cause revenue growth to accelerate in the coming quarters.
Jim Oberweis, CFA, The Oberweis Report, www.oberweisreport.com, 800-323-6166, May 2014