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]
Artificial Intelligence
Courageous Whistleblowers Reclaim Derogatory Terms As Data Shows 80% of Financial Professionals Stay Silent on Suspected Internal Fraud, Fearing Retaliation
Enron whistleblower, Sherron Watkins, alongside stars of Apple TV’s The Big Conn, Sarah Carver and Jennifer Griffith, reclaim derogatory labels for whistleblowers Concerning new data shows more than half of financial professionals in the UK and US have spotted or suspected internal fraud in their workplaces, yet four out of five stay silent fearing retaliation 32% of professionals in finance have seen whistleblowers victimized behind their back or to their faceJACKSONVILLE, Fla., May 21, 2024 /PRNewswire/ — New data from fraud detection software company Medius shows more than half of financial professionals in the UK and US (56%) have spotted or suspected internal fraud in their workplaces yet four in five (81%) stayed silent. When asked why, 45% of professionals cited the fear of recrimination.
Whistleblowers Sherron Watkins, Sarah Carver and Jennifer Griffith have joined forces to reclaim the derogatory names they were called after reporting serious internal financial fraud.
To help empower others to come forward, the whistleblowers are reclaiming the terms “snitch”, “rat” and “traitor”.
Sherron Watkins is the former Vice President of Enron Corporation who alerted the CEO to accounting irregularities, warning the organization “‘might implode in a wave of accounting scandals.” Watkins received national acclaim for her courageous actions and TIME magazine named her along with two others as their Persons of the Year in 2002, calling them simply ‘The Whistleblowers.’
Sarah Carver and Jennifer Griffith are the stars of Apple TV’s The Big Conn after they exposed a fraud scheme of more than $550 million while employed at the Social Security Administration. In efforts to silence their disclosures, they experienced multiple acts of severe retaliation and were denied protection. Ultimately, both Carver and Griffith were forced from employment.
Concerns of repercussions are vindicated – the survey reveals the extent to which financial professionals in the UK and US have witnessed negative consequences for whistleblowers firsthand:
59% have seen whistleblowers subsequently left out of important decisions 33% have seen whistleblowers moved to a different team 32% have heard whistleblowers called derogatory names behind their backs or directly to their faceWhen asked what would encourage them to flag suspicious activity, 93% of workers surveyed would feel more comfortable doing so if they had more evidence, yet nearly half (48%) said the legal system simply does not adequately protect whistleblowers.
Jim Lucier, CEO at Medius, a leading global provider of cloud-based accounts payable automation and spend management solutions, said:
“White collar crime is on the rise and no organization is safe. Employees are the last line of defense against fraud but confidence to report suspicious activity is declining. AI anomaly-detection technology can provide employees with the evidence and assurances they need to be more forthcoming. Building a culture where employees feel comfortable to report their suspicions could save organizations millions in the long-run.”
Medius works with over 4,000 customers across 102 countries and processes $200 billion in annual spend. It uses the power of AI and automation to detect fraud the moment invoices are submitted safeguarding against bad actors and potential threats, internal and external.
Sherron Watkins, whistleblower who was called a “snitch”, said: “When someone is troubled by corporate wrongdoing and they attempt to sound the alarm, the pathway is uncharted, things happen organically. Normal rational people speak about their concerns with their closest friends and work colleagues, who often suggest staying safe saying “keep your head down, if you must report, go soft, nothing black and white.” Yet black and white evidence is what is needed to get the attention of those in power, either internally or with media or outside watchdog groups to prevent or stop fraudulent activity.”
Jennifer Griffith, whistleblower who was called a “traitor”, said: “Choosing to blow the whistle involves more than just the desire to right a wrong. It’s about protecting their employers from fraud. However, it’s more often than not seen as causing trouble for the employer, or as a self-serving action to get a financial reward. No one who chooses to blow the whistle expects to have their reputation attacked, their credibility impugned or to lose their job. The cost of ignoring a whistleblowers complaints are far greater than acknowledging that a problem exists and taking steps to fix it. It’s been 19 years since I blew the whistle and the problems that existed then with the Social Security Administration still exist today. We must do more to protect whistleblowers.”
Sarah Carver, whistleblower who was called a “rat”, said: “The government’s attempt to conceal the fraud resulted in exacerbated damage, whereas a more prudent approach would have entailed immediate acknowledgement and rectification upon initial disclosure. The retaliatory measures aimed at silencing me made me stronger and fight harder to find someone to listen and stop the fraud.”
Georgina Hallford-Hall, CEO of Whistleblowers UK, said: “Too many organisations talk the talk but fail to engage with whistleblowers often at great cost to both. Technology used properly can remove the fear that both organisations and whistleblowers have about dealing with whistleblowing because it removes the person and focuses on the concerns or malfeasance. WhistleblowersUK are calling on the UK government to introduce an Independent Office of the Whistleblower to protect everyone from discrimination setting standards that end stigmatisation and discrimination making it safe to speak up.”
The billboard advertising campaign runs on Wall Street from Saturday, 18th May to Friday, 24th May 2024.
For more information about how Medius can prevent fraud, visit: https://www.medius.com/whistleblowing/
Notes to Editor
Methodology
The research was conducted by Censuswide with 1500 financial professionals in the UK and US (aged 18+) between 04/22/24 – 05/07/24. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles and are members of The British Polling Council.
For more information, please contact:
Fight or Flight for [email protected] / +44 330 133 0985
This information was brought to you by Cision http://news.cision.com
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Artificial Intelligence
ThroughPut.AI and Inteligistics Announce Strategic Partnership to Transform Agriculture and Fresh Produce Supply Chains
The Partnership focuses on driving maximum optimization of both the supply chain and interwoven cold chain to improve sales, profit margins, output, safety, and traceability.
PALO ALTO, Calif., May 21, 2024 /PRNewswire/ — ThroughPut Inc., the industrial AI supply chain Decision Intelligence pioneer, and Inteligistics, the leading digital visibility solutions provider for perishable supply chains, today announced a strategic technology alliance to accelerate profitability for the sales of perishable goods. This area is typically plagued by volatile prices and volumes, poor predictions, limited supply chain visibility, and excessive product spoilage. This leads to high rejection and discount rates, and avoidable lost margins. ThroughPut.AI, in collaboration with Inteligistics, will enable growers, suppliers, carriers, distributors, and retailers to significantly improve the efficiency of their supply and cold chain operations, thus ensuring that all fresh products – ranging from berries and vegetables to fish and meat – is sold profitably on-time and in-full for faster, fresher and safer delivery with full supply chain visibility.
Mutual customers introduced ThroughPut.AI and Inteligistics as complementary partners due to ThroughPut.AI’s patented, Gartner-ranked comprehensive Supply Chain Analytics & Decision Intelligence software, with Inteligistics’ industry-leading expertise in supply chain performance, productivity, and sustainability, where both have yielded high-value outcomes for customers, their consumers, and owner-investors across the globe. The two companies also share a common goal of minimizing waste, shrink, unfilled orders, and lost sales.
“We’re delighted to partner with Inteligistics as we look to expand our capabilities for our clients in the critical Food and Agricultural industry. Food and AG supply chains suffer from siloed legacy point solutions that don’t address today’s supply chain networks’ complexity and volatility. To overcome these modern Food and AG supply chain challenges, already existing but disparate data must be tapped into, stitched together, analyzed, visualized, and optimized with Industrial-grade AI for actionable recommendations and better results,” explained Seth Page, COO and Head of Strategic Partnerships of ThroughPut Inc. “By partnering with Inteligistics, we can provide customers with our unprecedented supply chain visibility, actionability, predictions and recommendations into customers’ cold chain operations as part of their larger end-to-end supply chain networks. This allows customers to leverage data at every step of the way to make the right produce available at the right place, at the right time, to the right customer, at the best price, in the correct quantities, and in the safest traceable manner possible.”
“Our partnership with ThroughPut.AI will empower agricultural producers, and buyers to leverage data for timely, intelligent decision-making, while accelerating margins,” said Rao Mandava, CEO and Chairman at Inteligistics. “Our customers will now have a unified common operating picture for a single source of truth for all their perishable inventory, enabling them to reduce risk, increase safety, and unlock new growth opportunities. The data is also available for our recently unveiled 1-Click FSMA 204 Traceability reporting solutions. All our supply and cold chain solutions work with data from a company’s legacy data platforms, including ERP, WMS and procurement systems, eliminating the major operational disruption associated with platform replacement.”
Joint Capabilities
Bringing together ThroughPut’s patented and award-winning AI-powered Supply Chain Advanced Analytics and Decision Intelligence solution with Inteligistics’ innovative supply and cold chain performance improvement capabilities will empower their customers to drive additional value in many key areas including the following:
Fill Rate: The joint solution will provide customers with an innovative fill rate model that will enable them to:Dynamically allocate products when farm and producer outputs vary, thus ensuring timely demand fulfillment.Proactively forecast customer demand, pricing, and volumes, as well as leveraging advanced analytics to balance supply with demand on a real-time basis.Tailor fill-rates based on customer segmentation, helping customers to prioritize higher contribution margin product mixes with the best on-time and in-full (OTIF) rates to maximize returns.Scheduling: The combined solution will empower suppliers and buyers to optimize loading facility and cross-docking queuing, slotting, scheduling, loading and usage via:Data-driven recommendations for ideal order fulfillment time-slots based on customer segmentation, available inventory, and priority-based delivery of in-demand products across the supply chain.Ensure necessary labor, docks and slots are available for loading on time to further enhance operational efficiency, greater throughput, higher output, and additional revenue and profit generation.Streamline the scheduling process and maximize order fulfillment while minimizing delays, idle time, and site traffic.Rejection and Discount Rates: Leveraging data inputs from Inteligistics and ThroughPut.AI will deliver fresh Food & Agriculture specific capabilities, including:Actionable insights and recommendations to optimize end-to-end supply chain operations while maintaining traceable product quality and food safety, for a greater bottom-line with enhanced regulatory compliance.Minimize rejection factors by analyzing data on product temperatures, sales history, and movements across supply chain networks to predict the likelihood of rejection or discounts, while reducing rejection rates and discounts in shipments that are fully traceable and quantifiable.Minimize waste and discounts to consumers by managing the inventory from DCs to stores using predictive shelf life and First Expire/First Out distribution.PR Contact
Tina Jacobs
[email protected]
About ThroughPut:
ThroughPut.AI is a Silicon Valley-based Supply Chain AI leader that puts Industrial material flows on Autopilot by leveraging existing Enterprise Data to achieve superior Business, Operations, Financial and Sustainability Results. ThroughPut.AI’s patented, Gartner-recognized AI-powered Supply Chain Analytics and Decision Intelligence software platform predicts Demand, reorients Production Capacity, reassigns Warehouse Space, and reorders Materials optimally, so businesses minimize overpromising and under-delivering, and maximize for their desired outcomes. As a rapid diagnostic platform, ThroughPut.AI both improves material flow and free-cash-flow across the entire end-to-end value chain far faster than leading contemporary and legacy solutions could ever imagine. The founding team is led by seasoned serial entrepreneurs with real-world AI, Supply Chain, Manufacturing, Transportation and Operations experience, from the shopfloor to the top-floor, at leading Fortune 500 Industrial Companies & pioneering Enterprise Technology companies that have impacted the world.
To learn more about ThroughPut Inc, visit our website today.
Additional Resources:
Learn more about ThroughPut Food and Beverage Solution OfferingsFor more information about ThroughPut, visit ThroughPut Resource LibraryRead the ThroughPut Blog and access latest ThroughPut Press CoverageAbout Inteligistics:
Inteligistics is uniquely placed in perishables industries using Silicon Valley technology and process improvements to bring digital transformation, turn Big Data into clear actions through AI/ML, and deliver high value improvements to supply chain and cold chain performance for perishable commodities. The resulting increase in productivity and reduction in critical cut-to-cool times, resources help meet sustainability goals. Using IoT, off-the-shelf wireless hardware, and proprietary cloud-based applications, Inteligistics develops custom solutions and provides an end-to-end integrated supply chain platform and standalone applications that improve quality, throughput, increase profits and deliver high ROI on the critical process of moving product from field to consumer. Visit inteligistics.com and linkedin.com/company/inteligistics.
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Artificial Intelligence
Lukka Acquires Coinfirm bringing Audited Data to Blockchain Analytics, Compliance, and Investigations
NEW YORK, May 21, 2024 /PRNewswire/ — Lukka, the global leader in enterprise digital asset data and software solutions, proudly announces its acquisition of Coinfirm, a top-tier European based blockchain analytics software company. This acquisition deepens Lukka’s existing capabilities to now support a comprehensive set of on-chain analytics of compliance, AML, sanction screening, entity due diligence, and investigations business needs. The new combined offering utilizes the industry’s only audited, institutional grade datasets at a time when trust in the quality and accuracy of data has become essential.
Since 2016, Coinfirm has been at the forefront of digital asset transaction analysis and monitoring, specializing in compliance, AML (Anti-Money Laundering) detection, and advanced blockchain analytics. Lukka’s enterprise focused approach integrates Coinfirm blockchain data into its platforms with conventional financial information, and maintains existing trusted standards in the form of an AICPA SOC Operational risk controls. Coinfirm was a natural addition to Lukka’s existing product suite due to their prior adherence to AICPA SOC 2 standards, audited by a Big 4 accounting firm.
“Our customers have stated very clearly that they want data that they can trust and that they have too many overlapping vendors, which creates inefficiency and unnecessary spending. We spent years of due diligence across hundreds of businesses and customer feedback discussions and very carefully selected Coinfirm.
Ultimately, the decision was easy – the team that they have built is incredibly talented and their data quality is best in class. At Lukka we know data and the data behind their on-chain analytics and investigative products was the most comprehensive and highest quality. Lukka is a single provider for all of your crypto data needs.” said Robert Materazzi, CEO at Lukka.
The integration of the Coinfirm team and products with Lukka is not just an expansion of services but a strategic move towards offering an unmatched range of on-chain and off-chain data solutions. In addition to Lukka’s commercial strategy, the story doesn’t end with this acquisition. Lukka is continuously assessing opportunities to partner and work with great teams across the world.
About Lukka
Founded in 2014, Lukka serves the most risk-mature businesses in the world with institutional data and software solutions. As a global company, headquartered in the United States, Lukka bridges the gap between the complexities of blockchain data in a global crypto ecosystem with traditional business and reporting requirements.
All of Lukka’s products are created with institutional standards, such as AICPA Service and Organization Controls (SOC), which focus on data quality, financial calculation accuracy & completeness, and managing technology operational risk. Lukka has obtained AICPA SOC 1 Type II and SOC 2 Type II Audits, an ISO/IEC-27001 certification, NIST Cybersecurity Assessment, and continues to lead the industry with best in class technology risk governance.
Our global team looks forward to partnering with you to solve your data challenges.
For information about Lukka, visit lukka.tech.
Media Contact:Rafal [email protected]
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