UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended September 30, 2002 |
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OR |
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o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to
Commission File Number: 000-30269
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PIXELWORKS, INC. |
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(Exact name of registrant as specified in its charter) |
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OREGON |
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91-1761992 |
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(State or other jurisdiction of incorporation) |
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(I.R.S. Employer Identification No.) |
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8100 SW Nyberg Road |
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(Address, including zip
code, and telephone number, including |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days.
Yes ý No o
Number of shares of Common Stock outstanding as of October 31, 2002: 43,848,445
PIXELWORKS, INC.
Table of Contents
1
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PIXELWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
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September 30, |
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December 31, |
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ASSETS |
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(Unaudited) |
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CURRENT ASSETS |
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Cash and cash equivalents |
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$ |
68,062 |
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$ |
53,288 |
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Short-term marketable securities |
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23,042 |
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40,517 |
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Accounts receivable, net |
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9,947 |
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6,378 |
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Inventories, net |
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4,032 |
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4,176 |
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Prepaid expenses and other current assets |
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3,815 |
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3,667 |
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Total current assets |
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108,898 |
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108,026 |
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Property and equipment, net |
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8,712 |
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5,463 |
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Long-term marketable securities |
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9,482 |
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7,450 |
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Goodwill, net |
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100,284 |
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69,162 |
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Other assets, net |
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9,092 |
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12,738 |
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Total assets |
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$ |
236,468 |
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$ |
202,839 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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CURRENT LIABILITIES |
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Accounts payable |
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$ |
4,237 |
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$ |
2,391 |
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Accrued liabilities and current portion of long-term debt |
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6,732 |
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6,815 |
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Total current liabilities |
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10,969 |
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9,206 |
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Shareholders’ equity: |
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Common stock |
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279,856 |
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259,363 |
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Shares exchangeable into common stock |
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16,376 |
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— |
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Deferred stock compensation |
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(3,056 |
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(5,658 |
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Note receivable for common stock |
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— |
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(84 |
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Accumulated deficit |
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(67,677 |
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(59,988 |
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Total shareholders’ equity |
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225,499 |
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193,633 |
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Total liabilities and shareholders’ equity |
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$ |
236,468 |
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$ |
202,839 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
2
PIXELWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share data)
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Three Months Ended |
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Nine Months Ended |
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2002 |
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2001 |
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2002 |
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2001 |
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Revenue |
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$ |
26,862 |
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$ |
24,074 |
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$ |
73,512 |
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$ |
68,149 |
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Cost of revenue(1) |
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13,647 |
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12,607 |
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36,447 |
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36,667 |
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Gross profit |
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13,215 |
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11,467 |
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37,065 |
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31,482 |
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Operating expenses: |
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Research and development(2) |
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6,463 |
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4,379 |
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17,190 |
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12,913 |
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Selling, general and administrative(3) |
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5,232 |
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4,226 |
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16,259 |
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11,833 |
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Amortization of goodwill and assembled workforce |
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— |
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4,359 |
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— |
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11,623 |
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In-process research and development expense |
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6,300 |
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— |
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10,500 |
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32,400 |
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Amortization of deferred stock compensation |
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676 |
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2,539 |
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1,878 |
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6,873 |
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Total operating expenses |
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18,671 |
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15,503 |
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45,827 |
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75,642 |
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Loss from operations |
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(5,456 |
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(4,036 |
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(8,762 |
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(44,160 |
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Interest income |
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559 |
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997 |
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1,850 |
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3,587 |
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Interest expense |
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(17 |
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— |
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(70 |
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Interest income, net |
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542 |
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997 |
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1,780 |
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3,587 |
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Loss before income taxes |
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(4,914 |
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(3,039 |
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(6,982 |
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(40,573 |
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Income tax provision |
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