Artificial Intelligence
Pixelworks Reports Third Quarter 2020 Financial Results
Executing on Strategic Growth Initiatives Despite Challenging Environment;
Mobile Revenue Increased Sequentially, Driven by Expanded Wins on Newly Launched Smartphones
SAN JOSE, Calif., Oct. 29, 2020 (GLOBE NEWSWIRE) — Pixelworks, Inc. (NASDAQ: PXLW), a leading provider of innovative video and display processing solutions, today announced financial results for the third quarter ended September 30, 2020.
Third Quarter and Recent Highlights
- Mobile revenue grew more than 230% sequentially, driven by increased shipments in support of a growing number of smartphones launched by new and existing mobile OEM customers
- GAAP gross margin was 48.5% and non-GAAP gross margin was 55.6%, reflecting sustained progress on product cost reduction initiatives and a favorable product mix
- Combination of new and existing Mobile OEM customers launch three new phones incorporating Pixelworks advanced visual processing technology, the ASUS ZenFone 7 flagship 5G smartphone, the Coolpad Legacy Brisa and the OnePlus 8T smartphone
- Formally launched and secured initial design-ins for sixth-generation mobile visual processor, the first Pixelworks visual processor to leverage innovative, low-power Artificial Intelligence (AI) technology
- Entered into securities purchase agreement with MTM-Xinhe Investment Limited, a consortium of strategic investors in China, to enhance mobile strategy and customer base in China
- Appointed Dr. Alan Zhou as Executive VP, President of China in support of strategic and mobile growth initiatives in Asia
- Ended the third quarter with $16.8 million in cash, cash equivalents and short-term investments, with an additional $6.6 million in cash from the MTM-Xinhe private placement investment anticipated to close in November 2020.
“Although the overall environment has remained challenging, particularly in our Projector and Video Delivery markets, customers’ order patterns began to stabilize during the third quarter in conjunction with early indications of a bottom in end market demand. Our previous actions to aggressively contain costs have enabled us to minimize cash burn, as we’ve continued to focus on and advance our growth initiatives in Mobile and for our TrueCut platform solutions,” stated Todd DeBonis, President and CEO of Pixelworks.
“Our Mobile business returned to sequential growth in the quarter, as we continued to expand the number of year-to-date wins on smartphones launched by a growing list of mobile OEM customers. We have also maintained a very healthy pipeline of engagements comprised of next-generation programs with existing customers as well as programs with multiple new customers, including a second tier-one mobile OEM. Additionally, we recently hired Dr. Alan Zhou as Executive VP, President of China as part of our effort to strengthen the strategic position of our mobile business and expand the capabilities of Pixelworks operations in China.
“While we anticipate the recovery in our mature markets to be gradual, we remain well positioned with a compelling portfolio of visual processing solutions to capitalize on the dominant market trends in mobile, as OEMs increasingly push to incorporate 5G, HDR, higher frame rates and superior gaming performance across multiple tiers of smartphones.”
Third Quarter 2020 Financial Results
Revenue in the third quarter of 2020 was $8.2 million, compared to $9.3 million in the second quarter of 2020 and revenue of $18.1 million in the third quarter of 2019. The sequential and year-over-year decline in revenue reflected a combination of inventory corrections and the impact of the global pandemic on end market demand in the projector and video delivery market, partially offset by a sequential increase in shipments of visual processing solutions in the mobile market.
On a GAAP basis, gross profit margin in the third quarter of 2020 was 48.5%, compared to 54.6% in the second quarter of 2020 and 51.8% in the third quarter of 2019. Third quarter 2020 GAAP operating expenses were $12.1 million, compared to operating expenses of $11.5 million in the second quarter of 2020 and $11.8 million in the year-ago quarter.
For the third quarter of 2020, the Company recorded a GAAP net loss of $8.1 million, or ($0.20) per share, compared to a GAAP net loss of $6.6 million, or ($0.17) per share, in the second quarter of 2020 and a GAAP net loss of $2.3 million, or ($0.06) per share, in the year-ago quarter.
On a non-GAAP basis, third quarter 2020 gross profit margin was 55.6%, compared to 59.2% in the second quarter of 2020 and 53.9% in the year-ago quarter. Third quarter 2020 non-GAAP operating expenses were $8.9 million, compared to $9.3 million in the second quarter of 2020 and $10.3 million in the year-ago quarter.
For the third quarter of 2020, the Company recorded a non-GAAP net loss of $4.5 million, or ($0.11) per share, compared to a non-GAAP net loss of $3.9 million, or ($0.10) per share, in the second quarter of 2020 and a non-GAAP net loss of $0.5 million or ($0.01) per share, in the third quarter of 2019.
Adjusted EBITDA in the third quarter of 2020 was a negative $3.5 million, compared to a negative $2.9 million in the second quarter of 2020 and a positive $0.5 million in the year-ago quarter.
Cash, cash equivalents and short-term investments were $16.8 million in the current quarter versus $21.4 million in the second quarter of 2020.
Business Outlook
The Company’s current business outlook, including guidance for the fourth quarter of 2020, will be provided as part of the scheduled conference call.
Conference Call Information
Pixelworks will host a conference call today, October 29, 2020, at 2:00 p.m. Pacific Time, which can be accessed by calling 1-877-359-9508 and using passcode 5276154. A live audio webcast of the call can also be accessed by visiting the Company’s investor page at www.pixelworks.com. For those unable to listen to the live webcast, it will be archived for approximately 90 days. A replay of the conference call will also be available through Wednesday, November 4, 2020, and can be accessed by calling 1-855-859-2056 and using passcode 5276154.
About Pixelworks, Inc.
Pixelworks provides industry-leading content creation, video delivery and display processing solutions and technology that enable highly authentic viewing experiences with superior visual quality, across all screens – from cinema to smartphone and beyond. The Company has a 20-year history of delivering image processing innovation to leading providers of consumer electronics, professional displays and video streaming services. Pixelworks is headquartered in San Jose, CA. For more information, please visit the company’s web site at www.pixelworks.com.
Note: Pixelworks and the Pixelworks logo are registered trademarks of Pixelworks, Inc.
Non-GAAP Financial Measures
This earnings release makes reference to non-GAAP gross profit margins, non-GAAP operating expenses, non-GAAP net loss and non-GAAP net loss per share, which exclude gain on sale of patents, inventory step-up and backlog amortization, amortization of acquired intangible assets, stock-based compensation expense, and restructuring expenses, which are all required under GAAP as well as the tax effect of the non-GAAP adjustments. The press release also makes reference to and reconciles GAAP net loss and adjusted EBITDA, which Pixelworks defines as GAAP net loss before interest income and other, net, income tax provision, depreciation and amortization, as well as the specific items listed above.
Pixelworks management uses these non-GAAP financial measures internally to understand, manage and evaluate the business and establish its operational goals, review its operations on a period to period basis, for compensation evaluations, to measure performance, and for budgeting and resource allocation. Pixelworks management believes it is useful for the Company and investors to review, as applicable, both GAAP information and non-GAAP financial measures to help assess the performance of Pixelworks’ continuing business and to evaluate Pixelworks’ future prospects. These non-GAAP measures, when reviewed together with the GAAP financial information, provide additional transparency and information for comparison and analysis of operating performance and trends. These non-GAAP measures exclude certain items to facilitate management’s review of the comparability of our core operating results on a period to period basis.
Because the Company’s non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be read only in conjunction with the Company’s consolidated financial results as presented in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial measures is included in this earnings release which is available in the investor relations section of the Pixelworks’ website.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by use of terms such as “begin,” “continue,” “will,” “expect”, “believe,” “anticipate” and similar terms or the negative of such terms, and include, without limitation, statements about the Company’s digital projection, mobile and video delivery businesses, including market movement and demand, customer engagements, growth in the mobile market, strategy, and additional guidance, particularly as to the business outlook and current market environment and the impact of the COVID-19 pandemic on the same. All statements other than statements of historical fact are forward-looking statements for purposes of this release, including any projections of revenue or other financial items or any statements regarding the plans and objectives of management for future operations. Such statements are based on management’s current expectations, estimates and projections about the Company’s business. These statements are not guarantees of future performance and involve numerous risks, uncertainties and assumptions that are difficult to predict. Actual results could vary materially from those contained in forward looking statements due to many factors, including, without limitation: our ability to execute on our strategy; competitive factors, such as rival chip architectures, introduction or traction by competing designs, or pricing pressures; the success of our products in expanding markets; current global economic challenges; changes in the digital display and projection markets; seasonality in the consumer electronics market; our efforts to achieve profitability from operations; our limited financial resources; our ability to attract and retain key personnel; and the impact of the COVID-19 pandemic on our business and on our suppliers and customers. More information regarding potential factors that could affect the Company’s financial results and could cause actual results to differ materially from those discussed in the forward-looking statements is included from time to time in the Company’s Securities and Exchange Commission filings, including its Annual Report on Form 10-K for the year ended December 31, 2019 as well as subsequent SEC filings.
The forward-looking statements contained in this release are as of the date of this release, and the Company does not undertake any obligation to update any such statements, whether as a result of new information, future events or otherwise.
[Financial Tables Follow]
PIXELWORKS, INC. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||
Revenue, net | $ | 8,190 | $ | 9,253 | $ | 18,057 | $ | 31,217 | $ | 52,732 | |||||
Cost of revenue (1) | 4,214 | 4,204 | 8,710 | 15,417 | 25,537 | ||||||||||
Gross profit | 3,976 | 5,049 | 9,347 | 15,800 | 27,195 | ||||||||||
Operating expenses: | |||||||||||||||
Research and development (2) | 6,062 | 6,314 | 6,458 | 18,643 | 19,294 | ||||||||||
Selling, general and administrative (3) | 4,621 | 5,156 | 5,333 | 14,970 | 15,728 | ||||||||||
Restructuring | 1,430 | – | – | 2,022 | 398 | ||||||||||
Total operating expenses | 12,113 | 11,470 | 11,791 | 35,635 | 35,420 | ||||||||||
Loss from operations | (8,137 | ) | (6,421 | ) | (2,444 | ) | (19,835 | ) | (8,225 | ) | |||||
Interest income (expense) and other, net | (28 | ) | (24 | ) | 70 | 2 | 270 | ||||||||
Gain on sale of patents | – | – | – | – | 3,905 | ||||||||||
Total other income (expense), net | (28 | ) | (24 | ) | 70 | 2 | 4,175 | ||||||||
Loss before income taxes | (8,165 | ) | (6,445 | ) | (2,374 | ) | (19,833 | ) | (4,050 | ) | |||||
Provision (benefit) for income taxes | (26 | ) | 107 | (68 | ) | 257 | 571 | ||||||||
Net loss | $ | (8,139 | ) | $ | (6,552 | ) | $ | (2,306 | ) | $ | (20,090 | ) | $ | (4,621 | ) |
Net loss per share – basic and diluted | $ | (0.20 | ) | $ | (0.17 | ) | $ | (0.06 | ) | (0.51 | ) | (0.12 | ) | ||
Weighted average shares outstanding – basic and diluted | 40,766 | 39,444 | 38,086 | 39,697 | 37,677 | ||||||||||
—————— | |||||||||||||||
(1) Includes: | |||||||||||||||
Amortization of acquired intangible assets | 298 | 298 | 298 | 894 | 894 | ||||||||||
Restructuring | 166 | – | – | 166 | – | ||||||||||
Stock-based compensation | 117 | 127 | 89 | 345 | 267 | ||||||||||
Inventory step-up and backlog amortization | – | – | – | – | 12 | ||||||||||
(2) Includes stock-based compensation | 820 | 806 | 570 | 2,274 | 1,934 | ||||||||||
(3) Includes: | |||||||||||||||
Stock-based compensation | 913 | 1,310 | 839 | 3,296 | 2,651 | ||||||||||
Amortization of acquired intangible assets | 76 | 76 | 76 | 228 | 236 | ||||||||||
PIXELWORKS, INC. | |||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL INFORMATION * | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||
Reconciliation of GAAP and non-GAAP gross profit | |||||||||||||||
GAAP gross profit | $ | 3,976 | $ | 5,049 | $ | 9,347 | $ | 15,800 | $ | 27,195 | |||||
Amortization of acquired intangible assets | 298 | 298 | 298 | 894 | 894 | ||||||||||
Restructuring | 166 | – | – | 166 | – | ||||||||||
Stock-based compensation | 117 | 127 | 89 | 345 | 267 | ||||||||||
Inventory step-up and backlog amortization | – | – | – | – | 12 | ||||||||||
Total reconciling items included in gross profit | 581 | 425 | 387 | 1,405 | 1,173 | ||||||||||
Non-GAAP gross profit | $ | 4,557 | $ | 5,474 | $ | 9,734 | $ | 17,205 | $ | 28,368 | |||||
Non-GAAP gross profit margin | 55.6 | % | 59.2 | % | 53.9 | % | 55.1 | % | 53.8 | % | |||||
Reconciliation of GAAP and non-GAAP operating expenses | |||||||||||||||
GAAP operating expenses | $ | 12,113 | $ | 11,470 | $ | 11,791 | $ | 35,635 | $ | 35,420 | |||||
Reconciling item included in research and development: | |||||||||||||||
Stock-based compensation | 820 | 806 | 570 | 2,274 | 1,934 | ||||||||||
Reconciling items included in selling, general and administrative: | |||||||||||||||
Stock-based compensation | 913 | 1,310 | 839 | 3,296 | 2,651 | ||||||||||
Amortization of acquired intangible assets | 76 | 76 | 76 | 228 | 236 | ||||||||||
Restructuring | 1,430 | – | – | 2,022 | 398 | ||||||||||
Total reconciling items included in operating expenses | 3,239 | 2,192 | 1,485 | 7,820 | 5,219 | ||||||||||
Non-GAAP operating expenses | $ | 8,874 | $ | 9,278 | $ | 10,306 | $ | 27,815 | $ | 30,201 | |||||
Reconciliation of GAAP and non-GAAP net loss | |||||||||||||||
GAAP net loss | $ | (8,139 | ) | $ | (6,552 | ) | $ | (2,306 | ) | $ | (20,090 | ) | $ | (4,621 | ) |
Reconciling items included in gross profit | 581 | 425 | 387 | 1,405 | 1,173 | ||||||||||
Reconciling items included in operating expenses | 3,239 | 2,192 | 1,485 | 7,820 | 5,219 | ||||||||||
Reconciling items included in total other income, net | – | – | – | – | (3,905 | ) | |||||||||
Tax effect of non-GAAP adjustments | (137 | ) | 18 | (84 | ) | (144 | ) | 49 | |||||||
Non-GAAP net loss | $ | (4,456 | ) | $ | (3,917 | ) | $ | (518 | ) | $ | (11,009 | ) | $ | (2,085 | ) |
Non-GAAP net loss per share – basic and diluted | $ | (0.11 | ) | $ | (0.10 | ) | $ | (0.01 | ) | $ | (0.28 | ) | $ | (0.06 | ) |
Non-GAAP weighted average shares outstanding – basic and diluted | 40,766 | 39,444 | 38,086 | 39,697 | 37,677 | ||||||||||
*Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the reconciliations from GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to “Non-GAAP Financial Measures” in this document for an explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors. | |||||||||||||||
PIXELWORKS, INC. | |||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP EARNINGS PER SHARE * | |||||||||||||||||||||||||||||||||||||||
(Figures may not sum due to rounding) | |||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Dollars per share | Dollars per share | Dollars per share | Dollars per share | Dollars per share | |||||||||||||||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | Basic | Diluted | Basic | Diluted | ||||||||||||||||||||||||||||||
Reconciliation of GAAP and non-GAAP net loss | |||||||||||||||||||||||||||||||||||||||
GAAP net loss | $ | (0.20 | ) | $ | (0.20 | ) | $ | (0.17 | ) | $ | (0.17 | ) | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.51 | ) | $ | (0.51 | ) | $ | (0.12 | ) | $ | (0.12 | ) | |||||||||
Reconciling items included in gross profit | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.04 | 0.04 | 0.03 | 0.03 | |||||||||||||||||||||||||||||
Reconciling items included in operating expenses | 0.08 | 0.08 | 0.06 | 0.06 | 0.04 | 0.04 | 0.20 | 0.20 | 0.14 | 0.14 | |||||||||||||||||||||||||||||
Reconciling items included in total other income, net | – | – | – | – | – | – | – | – | (0.10 | ) | (0.10 | ) | |||||||||||||||||||||||||||
Tax effect of non-GAAP adjustments | – | – | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||||
Non-GAAP net loss | $ | (0.11 | ) | $ | (0.11 | ) | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.28 | ) | $ | (0.28 | ) | $ | (0.06 | ) | $ | (0.06 | ) | |||||||||
*Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the reconciliations from GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to “Non-GAAP Financial Measures” in this document for an explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors. | |||||||||||||||||||||||||||||||||||||||
PIXELWORKS, INC. | ||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP GROSS PROFIT MARGIN * | ||||||||||||||
(Figures may not sum due to rounding) | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||
Reconciliation of GAAP and non-GAAP gross profit margin | ||||||||||||||
GAAP gross profit margin | 48.5 | % | 54.6 | % | 51.8 | % | 50.6 | % | 51.6 | % | ||||
Amortization of acquired intangible assets | 3.6 | % | 3.2 | % | 1.7 | % | 2.9 | % | 1.7 | % | ||||
Restructuring | 2.0 | % | – | % | – | % | 0.5 | % | – | % | ||||
Stock-based compensation | 1.4 | % | 1.4 | % | 0.5 | % | 1.1 | % | 0.5 | % | ||||
Inventory step-up and backlog amortization | – | % | – | % | – | % | – | % | 0.0 | % | ||||
Total reconciling items included in gross profit | 7.1 | % | 4.6 | % | 2.1 | % | 4.5 | % | 2.2 | % | ||||
Non-GAAP gross profit margin | 55.6 | % | 59.2 | % | 53.9 | % | 55.1 | % | 53.8 | % | ||||
*Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the reconciliations from GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to “Non-GAAP Financial Measures” in this document for an explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors. | ||||||||||||||
PIXELWORKS, INC. | |||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL INFORMATION * | |||||||||||||||
(In thousands) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||
Reconciliation of GAAP net loss and adjusted EBITDA | |||||||||||||||
GAAP net loss | $ | (8,139 | ) | $ | (6,552 | ) | $ | (2,306 | ) | $ | (20,090 | ) | $ | (4,621 | ) |
Stock-based compensation | 1,850 | 2,243 | 1,498 | 5,915 | 4,852 | ||||||||||
Restructuring | 1,596 | – | – | 2,188 | 398 | ||||||||||
Amortization of acquired intangible assets | 374 | 374 | 374 | 1,122 | 1,130 | ||||||||||
Tax effect of non-GAAP adjustments | (137 | ) | 18 | (84 | ) | (144 | ) | 49 | |||||||
Gain on sale of patents | – | – | – | – | (3,905 | ) | |||||||||
Inventory step-up and backlog amortization | – | – | – | – | 12 | ||||||||||
Non-GAAP net loss | $ | (4,456 | ) | $ | (3,917 | ) | $ | (518 | ) | $ | (11,009 | ) | $ | (2,085 | ) |
EBITDA adjustments: | |||||||||||||||
Depreciation and amortization | $ | 861 | $ | 871 | $ | 1,024 | $ | 2,754 | $ | 2,824 | |||||
Non-GAAP interest expense (income) and other, net | 28 | 24 | (70 | ) | (2 | ) | (270 | ) | |||||||
Non-GAAP provision for income taxes | 111 | 89 | 16 | 401 | 522 | ||||||||||
Adjusted EBITDA | $ | (3,456 | ) | $ | (2,933 | ) | $ | 452 | $ | (7,856 | ) | $ | 991 | ||
*Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the reconciliations from GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to “Non-GAAP Financial Measures” in this document for an explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors. | |||||||||||||||
PIXELWORKS, INC. | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(In thousands) | ||||||
(Unaudited) | ||||||
September 30, | December 31, | |||||
2020 | 2019 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 16,062 | $ | 7,257 | ||
Short-term marketable securities | 735 | 6,975 | ||||
Accounts receivable, net | 5,417 | 10,915 | ||||
Inventories | 3,895 | 5,401 | ||||
Prepaid expenses and other current assets | 1,685 | 1,689 | ||||
Total current assets | 27,794 | 32,237 | ||||
Property and equipment, net | 5,631 | 4,608 | ||||
Operating lease right of use assets | 6,943 | 5,434 | ||||
Other assets, net | 1,187 | 1,267 | ||||
Acquired intangible assets, net | 1,581 | 2,704 | ||||
Goodwill | 18,407 | 18,407 | ||||
Total assets | $ | 61,543 | $ | 64,657 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 687 | $ | 818 | ||
Accrued liabilities and current portion of long-term liabilities | 9,649 | 8,692 | ||||
Short-term line of credit | 3,954 | – | ||||
Current portion of income taxes payable | 5 | 164 | ||||
Total current liabilities | 14,295 | 9,674 | ||||
Long-term liabilities, net of current portion | 1,982 | 982 | ||||
Operating lease liabilities, net of current portion | 5,304 | 4,212 | ||||
Income taxes payable, net of current portion | 2,368 | 2,260 | ||||
Total liabilities | 23,949 | 17,128 | ||||
Shareholders’ equity | 37,594 | 47,529 | ||||
Total liabilities and shareholders’ equity | $ | 61,543 | $ | 64,657 | ||
Contacts:
Investor Contact
Shelton Group
Brett Perry
P: +1-214-272-0070
E: [email protected]
Company Contact
Pixelworks, Inc.
Elias Nader
P: +1-408-200-9271
E: [email protected]
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In today’s market, the consumption of models is primarily focused on large language models (LLMs) for generative AI. In reality, LLMs are a very small part of the modeling needs of real-world production deployments of AI and decision making for businesses. With the new offering, SAS is moving beyond LLMs and delivering industry-proven deterministic AI models for industries that span use cases such as fraud detection, supply chain optimization, entity management, document conversation and health care payment integrity and more.
Unlike traditional AI implementations that can be cumbersome and time-consuming, SAS’ industry-specific models are engineered for quick integration, enabling organizations to operationalize trustworthy AI technology and accelerate the realization of tangible benefits and trusted results.
Expanding market footprintOrganizations are facing pressure to compete effectively and are looking to AI to gain an edge. At the same time, staffing data science teams has never been more challenging due to AI skills shortages. Consequently, businesses are demanding agility in using AI to solve problems and require flexible AI solutions to quickly drive business outcomes. SAS’ easy-to-use, yet powerful models tuned for the enterprise enable organizations to benefit from a half-century of SAS’ leadership across industries.
Delivering industry models as packaged offerings is one outcome of SAS’ commitment of $1 billion to AI-powered industry solutions. As outlined in the May 2023 announcement, the investment in AI builds on SAS’ decades long focus on providing packaged solutions to address industry challenges in banking, government, health care and more.
“Models are the perfect complement to our existing solutions and SAS Viya platform offerings and cater to diverse business needs across various audiences, ensuring that innovation reaches every corner of our ecosystem,” said Udo Sglavo, Vice President for AI and Analytics, SAS. “By tailoring our approach to understanding specific industry needs, our frameworks empower businesses to flourish in their distinctive environments.”
Bringing AI to the massesSAS is democratizing AI by offering out-of-the-box, lightweight AI models – making AI accessible regardless of skill set – starting with an AI assistant for warehouse space optimization. Leveraging technology like large language models, these assistants cater to nontechnical users, translating interactions into optimized workflows seamlessly and aiding in faster planning decisions.
“SAS Models provide organizations with flexible, timely and accessible AI that aligns with industry challenges,” said Sglavo. “Whether you’re embarking on your AI journey or seeking to accelerate the expansion of AI across your enterprise, SAS offers unparalleled depth and breadth in addressing your business’s unique needs.”
The first SAS Models are expected to be generally available later this year. Learn more about SAS Applied AI and Modeling here: https://blogs.sas.com/content/tag/applied-ai-modeling/.
Today’s announcement was made at SAS Innovate, the data and AI experience for business leaders, technical users and SAS Partners. Keep up with the latest news from SAS by following @SASsoftwareNews on X/Twitter.
About SASSAS is a global leader in data and AI. With SAS software and industry-specific solutions, organizations transform data into trusted decisions. SAS gives you THE POWER TO KNOW®.
SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright © 2024 SAS Institute Inc. All rights reserved.
Editorial Contact:Jennifer [email protected] 202-210-4180 sas.com/news
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View original content:https://www.prnewswire.co.uk/news-releases/sas-advances-industry-solutions-with-packaged-ai-models-302114589.html
Artificial Intelligence
Expanded SAS Viya uses generative AI to accelerate customer productivity
Leading data and AI platform helps explain and integrate large language models to augment existing processes; SAS Data Maker will address critical challenges without compromising sensitive data
LAS VEGAS, April 17, 2024 /PRNewswire/ — SAS INNOVATE — So many organizations have jumped on the GenAI bandwagon in the last year, but are those efforts delivering results yet? If the organization uses the SAS® Viya® data and AI platform, the answer is a resounding yes. Infused with large language model (LLM) orchestration strength, SAS Viya is already helping customers accelerate efficiency and productivity. Throughout 2024, SAS will continue delivering innovation by broadening its trustworthy GenAI footprint with the introduction of its own synthetic data generator – SAS Data Maker – and by offering industry-specific GenAI assistants.
Learn more about Viya LLM orchestration and other GenAI capabilities in this solution brief: Accelerate productivity with generative AI and SAS Viya.
“SAS’ guiding principle is everyone should be able to query data and perform complex analytical operations in every phase of the data and analytics life cycle, and generative AI is crucial in this democratization journey,” said Wiktor Markiewicz, Senior Market Research Analyst at IDC. “But most leaders don’t understand AI technology and how they can apply it meaningfully. Having an already trusted data and AI platform available removes the guesswork and kickstarts the generative AI journey.”
Georgia-Pacific and wienerberger rely on Viya for AI and GenAI capabilitiesManufacturer Georgia-Pacific is a SAS customer using Viya. “When challenges emerge with our manufacturing equipment or process, we leverage sensor data, business rules, recommender systems and generative AI to suggest the appropriate next best action and resolve the problem,” said Roshan Shah, Vice President, Collaboration & Support Center, Georgia-Pacific. “Streaming analytics and intelligent decision management support from SAS Viya helps us capture immediate value by making the right decisions as events occur.”
About Georgia-Pacific, SAS Executive Vice President and CTO Bryan Harris said, “One of SAS’ core strengths is our deep bench of industry knowledge. We understand manufacturing, and we understand Georgia-Pacific’s unique challenges. We help them appropriately scale LLM orchestration and manufacturing-specific GenAI assistant strategies so their employees can use those cutting-edge applications to troubleshoot real-time operational issues.”
Global brick manufacturer wienerberger also uses SAS for AI support. The company reduces energy consumption, cuts greenhouse gas emissions and improves product quality using SAS on Microsoft Azure. “We use AI and IoT analytics from SAS to connect all our data streams and analyze the entire production process,” said Florian Zittmayr, Team Lead for Data Science at wienerberger. “SAS Analytics brings intelligence to the kiln by helping our engineers and employees to gain valuable information about each step and identify specific target values to make the drying and firing of bricks more economical.”
And a global consumer goods manufacturer uses Viya and its GenAI capabilities to optimize warehouse space, allocate inbound shipments and compare “what-if” scenarios based on product demand. SAS helped develop an LLM-based digital assistant by dynamically updating SAS Visual Analytics dashboards so the company’s supply chain teams can easily save time and improve warehouse space usage with in-depth analytics. This conversational assistant allows both technical and business users to generate fast and accurate results and improve decision making using SAS’ trustworthy, explainable analytics.
Organizations are enthusiastic about adopting and deploying GenAI, but there’s often a gap between preparedness and execution. Learn more by reading the US Executive Summary from a new study: Generative AI Challenges and Potential Unveiled: How to Achieve a Competitive Advantage.
Viya stands out in the GenAI crowd because of pragmatic, industry-driven applicationsAs organizations explore GenAI, SAS prioritizes identifying industry-driven and ethically applied use cases. SAS enables secure adoption and fosters accelerated productivity and trusted results across diverse industries and regulatory landscapes. SAS’ GenAI functionality lives in leading products like Viya and SAS Customer Intelligence 360:
GenAI orchestration: Viya integrates external GenAI models with existing business processes and systems, orchestrating LLMs for end-to-end enterprise use cases. These capabilities are now available in SAS Viya.Viya Copilot: Enhances productivity for developers, data scientists and business users with a personal assistant that accelerates analytical, business and industry tasks. Viya Copilot offers diverse tools for tasks like code generation, data cleaning, data exploration, marketing planning, journey design and knowledge gap analysis. The first iteration of Viya Copilot is available through an invitation-only private preview.SAS Data Maker: Addresses data privacy and scarcity challenges by generating high-quality synthetic tabular data without compromising sensitive information, enabling organizations to address data privacy. SAS Data Maker is now available in private preview.Customer engagement. SAS continues to infuse GenAI capabilities into its flagship MarTech solution, SAS Customer Intelligence 360, to help marketers elevate the customer experience. SAS Customer Intelligence 360 already offers GenAI assistance on streamlining marketing planning, journey design and content and creative development. SAS is now introducing three new capabilities in SAS Customer Intelligence 360 for marketers: using GenAI to build recommended audiences based on natural language prompts, a chat experience to interpret audience data and a GenAI suggestion service for email subject lines.The GenAI functionality of Viya makes a meaningful difference to customers planning to:
Accelerate innovation: Seamlessly integrate GenAI models into decisioning workflows, AI/ML applications and existing business processes by using decisioning flow tools like SAS Intelligent Decisioning.Protect data: Support user privacy and security with robust data quality measures, including synthetic data generation, data minimization, anonymization and encryption, so sensitive information remains safeguarded.Create trustworthy and explainable results: Data experts can apply natural language processing techniques to preprocess data and explain the generated output, minimizing hallucinations and token costs.Enhance governance: Use built-in tools to create workflows that validate the life cycle of LLMs, including model risk management.Make more precise decisions: Quantitative decisioning capabilities, critical for successful GenAI reasoning, are built into the Viya platform.Today’s announcement was made at SAS Innovate, the data and AI experience for business leaders, technical users and SAS Partners. Keep up with the latest news from SAS by following @SASsoftwareNews on X/Twitter.
About SASSAS is a global leader in data and AI. With SAS software and industry-specific solutions, organizations transform data into trusted decisions. SAS gives you THE POWER TO KNOW®.
SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright © 2024 SAS Institute Inc. All rights reserved.
Editorial Contact:Laura Fleek [email protected] 214-803-6692sas.com/news
Video – https://www.youtube.com/watch?v=D4rs5WqXySQ
Logo – https://mma.prnewswire.com/media/1250367/SAS_v1_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/expanded-sas-viya-uses-generative-ai-to-accelerate-customer-productivity-302118781.html
Artificial Intelligence
LTA’s Padel Programme Teams Up with Skylab for Enhanced Performance Analytics
MANCHESTER, England, April 17, 2024 /PRNewswire/ — Skylab, a UK-based specialist in sports technology and performance analysis, proudly announces its partnership with LTA Padel, solidifying its position as a premier provider of specialised services in the sports industry. This collaboration underscores Skylab’s commitment to excellence and showcases its ability to deliver innovative and diverse solutions tailored specifically for elite sports organisations like LTA Padel.
The LTA’s Padel performance programme in Great Britain will utilise Skylab’s Game Intelligence product and Performance Analysis services. The software will empower athletes and coaches alike with interactive and detailed match data, seamlessly integrated into intuitive dashboards that create automated video playlists. The Padel team at the LTA will gain a deeper understanding of padel at the elite level to support their talent identification, player pathway and coaching strategies as they strive to compete with the world’s best.
“Previously, Padel players lacked accurate and robust performance data, which made it impossible to analyse the opposition in detail. Coaches couldn’t answer their players’ key performance questions quickly, and performance directors had to rely on gut feeling and experience when evidencing what elite Padel looks like. However, our product and services provide practitioners with insights into the technical and tactical aspects of the game, as well as the physical demands required for elite-level performance. This allows practitioners to understand and predict the future performance of their players, enabling them to make data-informed decisions” says Ciaran Skinner, Business Development Manager, Skylab.
Skylab is a first-of-its-kind sports technology firm, offering tailored, market-leading Performance Analysis services and bespoke web platforms to elite sporting clients. It revolutionises how elite sports teams and individuals interact, use, and visualise their data. By packaging performance analysis with industry leading UX and bespoke software, partners will be in the position to make better decisions in sport.
For more information about Skylab and its services, please visit skylab.com or contact [email protected]
Notes
Website: www.skylab.com
https://skylab.com/padel-performance-insights/
Social:
LinkedIn – Skylab: https://www.linkedin.com/company/studio-skylab
LinkedIn – Skylab: Elite Performance Analysis: www.linkedin.com/company/skylab-epa/
About Skylab
Skylab is a first-of-its-kind sports technology firm, offering tailored, market-leading Performance Analysis services and bespoke web platforms to elite sporting clients. It revolutionises how elite sports teams and individuals interact, use, and visualise their data. By packaging performance analysis with industry leading UX and bespoke software, partners will be in the position to make better decisions in sport. Current clients include elite teams and organisations across Padel, Football, Athletics, Tennis, Rowing and more.
Photo – https://mma.prnewswire.com/media/2388380/skylab_sports_technology_performance_analysis.jpg
View original content:https://www.prnewswire.co.uk/news-releases/ltas-padel-programme-teams-up-with-skylab-for-enhanced-performance-analytics-302119847.html
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