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 June 30, 2003 |
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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 |
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Commission File Number: 000-30269 |
PIXELWORKS, INC.
(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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Tualatin, Oregon 97062 |
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(503) 454-1750 |
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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
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
Number of shares of Common Stock outstanding as of July 31, 2003: 44,609,617
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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June 30, |
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December 31, |
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(Unaudited) |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
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$ |
88,760 |
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$ |
62,152 |
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Short-term marketable securities |
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13,051 |
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24,915 |
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Accounts receivable, net |
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10,230 |
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10,421 |
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Inventories, net |
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9,722 |
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6,788 |
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Prepaid expenses and other current assets |
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4,215 |
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3,896 |
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Total current assets |
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125,978 |
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108,172 |
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Long-term marketable securities |
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4,089 |
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14,500 |
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Property and equipment, net |
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8,502 |
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9,073 |
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Goodwill |
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82,548 |
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82,548 |
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Acquired intangible assets |
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5,133 |
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5,882 |
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Other assets |
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6,518 |
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7,037 |
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Total assets |
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$ |
232,768 |
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$ |
227,212 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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CURRENT LIABILITIES |
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Accounts payable |
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$ |
7,030 |
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$ |
5,084 |
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Accrued liabilities and other liabilities |
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9,154 |
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7,312 |
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Total current liabilities |
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16,184 |
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12,396 |
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Shareholders’ equity: |
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Common stock |
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289,986 |
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287,566 |
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Shares exchangeable into common stock |
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8,119 |
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10,491 |
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Deferred stock compensation |
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(1,350 |
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(2,402 |
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Accumulated deficit |
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(80,171 |
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(80,839 |
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Total shareholders’ equity |
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216,584 |
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214,816 |
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Total liabilities and shareholders’ equity |
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$ |
232,768 |
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$ |
227,212 |
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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 per share data)
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Three Months Ended |
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Six Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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Revenue |
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$ |
32,559 |
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$ |
24,644 |
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$ |
64,564 |
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$ |
46,649 |
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Cost of revenue (inclusive of amortization of deferred stock compensation of $2, $5, $5 and $11 for the three and six months ended June 30, 2003 and 2002, respectively) |
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17,880 |
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12,266 |
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35,172 |
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22,810 |
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Gross profit |
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14,679 |
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12,378 |
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29,392 |
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23,839 |
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Operating expenses: |
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Research and development(1) |
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6,250 |
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5,275 |
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12,344 |
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10,727 |
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Selling, general and administrative(2) |
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6,093 |
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5,839 |
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12,134 |
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11,027 |
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Amortization of assembled workforce |
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242 |
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— |
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485 |
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— |
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In-process research and development expense |
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— |
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— |
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— |
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4,200 |
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Amortization of deferred stock compensation |
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226 |
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170 |
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388 |
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1,191 |
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Merger-related expenses |
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1,398 |
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— |
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2,977 |
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— |
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Total operating expenses |
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14,209 |
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11,284 |
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28,328 |
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27,145 |
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Income (loss) from operations |
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470 |
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1,094 |
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1,064 |
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(3,306 |
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Interest income |
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305 |
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617 |
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690 |
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1,292 |
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Interest expense |
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(4 |
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(23 |
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(10 |
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(54 |
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Interest income, net |
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301 |
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594 |
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680 |
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1,238 |
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Income (loss) before income taxes |
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771 |
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1,688 |
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1,744 |
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(2,068 |
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