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Pixelworks Inc. (PXLW) filed Quarterly Report for the period ended 2011-06-30.
Pixelworks Inc. has a market cap of $39.3 million; its shares were traded at around $2.27 with and P/S ratio of 0.6.
This is the annual revenues and earnings per share of PXLW over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of PXLW.
Highlight of Business Operations:
All actions under our prior restructuring plans were completed in the second quarter of 2009; however, due to decreases in estimated future sublease income and related professional fees, lease termination costs of $0.1 million were recorded in the first quarter of 2010. As of June 30, 2011, accrued lease termination costs of $0.2 million are included in current and non-current accrued liabilities in the condensed consolidated balance sheets and will be paid in cash over the remaining lease terms of approximately two years.
Total cash and marketable securities decreased $13.0 million from December 31, 2010 to June 30, 2011. The net decrease in the first half of 2011 resulted primarily from $15.8 million used to repurchase our outstanding debentures, $3.0 million used to repay the outstanding balance on our line of credit and $2.9 million in payments on property and equipment and other asset financing. These decreases were partially offset by $8.3 million net proceeds from our equity offering.
Accounts receivable, net increased to $4.7 million as of June 30, 2011 from $4.5 million as of December 31, 2010. The average number of days sales outstanding decreased to 27 days as of June 30, 2011 from 29 days as of December 31, 2010. These changes were due to normal fluctuations in the timing of cash receipts.
Inventories, net decreased to $4.7 million as of June 30, 2011 from $4.9 million as of December 31, 2010. Inventory turnover increased to 6.9 as of June 30, 2011 from 5.8 as of December 31, 2010, primarily due to lower average inventory balances and increased direct material cost due to an increase in cost of goods sold, associated with increased revenue from the fourth quarter of 2010 to the second quarter of 2011. Inventory turnover is calculated based on annualized operating results and average inventory balances for the respective quarters.
In 2004, we issued $150.0 million of 1.75% convertible subordinated debentures due 2024. Between 2006 and 2009, we repurchased and retired $134.2 million principal amount of the debentures. On April 13, 2011, we announced an offer to repurchase all of the remaining outstanding debentures, as required under the terms of the indenture governing the debentures. In connection with the offer, we filed a Tender Offer Statement on Schedule TO on that day, including as an exhibit, a notice to holders of the debentures specifying the terms, conditions and procedures of our offer to repurchase. The remaining $15.8 million principal amount of the debentures were properly tendered to us and were redeemed for cash at par value on May 16, 2011.
While total cash and marketable securities decreased $13.0 million during the first half of 2011, primarily due to the payment of $18.8 million to repurchase our outstanding debentures and repay our line of credit, our working capital increased by $6.0 million over the same period. As of June 30, 2011, we have no short- or long-term debt and our cash and cash equivalents balance of $16.8 million is highly liquid. We anticipate that our existing working capital, as well as funds available under our Revolving Line, will be adequate to fund our operating, investing and financing needs for the next twelve months. If necessary, management will pursue financing arrangements including the issuance of debt or equity securities or will reduce expenditures, in order to meet the Company s cash requirements. There is no assurance that, if required, we will be able to raise additional capital or reduce discretionary spending to provide the required liquidity which, in turn, may have an adverse effect on our results of operations and financial position.
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