Wish I understood more about this TrueCut platform and value to content creators. Hopefully, Todd provides greater clarity in Q1 call in a month or so. There does appear to be a linkage between Iris and TrueCut -- with today's PR stating "new mobile devices enabled with Pixelworks' Iris visual processors are expected to be announced as TrueCut certified in the coming months."
Given today's somewhat tepid market reaction, I'm guessing others are similarly non-plused by the PR.
K
The biggest take away from the Oppo news is that it is a Multi-Year collaboration. This is not going to be a one or two phone deal this will be multi-phones over several years. Also, I liked the comment, "To meet this challenge, the agreement calls on the companies to closely cooperate in a wide range of activities related to display and visual processing, including integration and technical support, content optimization with cloud partners as well as long-term product roadmap collaboration."
H
Bulls need to pop this tomorrow if they want all the traders on the sideline waiting for confirmation before piling in to a push higher, testing resistance in the $6.20 area and then another breakout.
This could turn into a momentum play if the buyers stop wasting time and step up.
Shorts got the shock in PXLW, now we need the Awe to defeat the sellers, PXLW could very well trade up to $10.
Data on this page is updated every quarter This data represents the Global smartphone market share by quarter (from 2017-2019) …
Data on this page is updated every quarter This data represents the Global smartphone market share by quarter (from 2017-2019) …
www.counterpointresearch.com
T
Some interesting thoughts on analysts cc by entrepreneur;
For inevstors, virtual analyst events are an improvement
-- Debonis needs to get a professional camera to attach to the laptop, a lavalier mic, spot lighting, and a stand so that that the laptop is level with his face. All easy fixes that will improve his performance, confidence, and the listening levels of his audience...
...including his staff who he likely spends a few hours per day in virtual meetings.
-- He got awkward, and I track it to defensiveness, when he discussed the mobile OEM targets, which exclude Apple, Huawei and Samsung. He doesn't have the right wording accessible to him in explaining and being OK with this being the strategy...
....having been in this situation (we all have,) I think it's tied to a competitive sense that he thinks the audience will be less interested.
....If will be painful, but he needs to re-watch it and figure out what goes on in his psyche when this happens, so it doesn't happen as often.
....he also misspoke as to the carriers that sell OnePlus....it's the only factual thing that seemed wrong and is a bit bad to have said as a public company manager. He meant that unlociked OnePlus works on the ATT network, but that's not what he said.
--- Clear shift to talking much more about TrueCut. They may not have deals made, but they're in discussions. It's a heady feeling -- lots of risk and work to get this point, and now things are teed up to land brand name, wholesale customers who will use the technology for libraries vs individual titles.
No chips, high margin SAAS revenue. Unlike mobile, little engineering customization for each customer.
-- They want Xiaomi.....it's painful this hasn't happened, or if it has he can't talk about it. My read is that it hasn't happened yet, but maybe he's a good poker player.
-- the IRIS line is exponentially complicated at this point. Oh for the days when there was just one chip.
.....it's clear they are other mobile OEMs cooperating and trying to find ways to match what they want with what PXLW can deliver.
....At this point, IRIS doesn't care if the operating chip is QCOM or Mediatek, which is news.
-- Talks little about the Xcode markets. They aren't growing the way mobile is.
...and this the key shift in his frame of reference -- tieing the Company's focus to the gast growing mobile video market, and the view that TruCut is driven by this.
-- Considering that projection just about collapsed in the Q2 guidance, he didn't sound as depressed about it as he should.
....Who knows maybe there's some life there, and it does pay the bills for the Company (or not as we're experiencing this Q.) I don't see how projection doesn't continue to suffer in a Covid world, but not a lot has changed going forward. In a sense, if they have more spacing, they have to move events to the largest possible rooms -- where good projectors are needed most.
Pixelworks is a hard company to talk about with institututions. Numbers are small. Performance numbers don't sound good. The products and markets sound complicated and prospective.
As to the event itself from the standpoint of Cowen -- probably a lot of the institutions were just fine with it being virtual. For managements, how cool is it they don't have to travel and can just focus on business.
The Cowen analyst seemed burned out and on automatic -- the role doesn't seem to attract the highest talent. While I wished Debonis was vastly better set-up and had someone practice with him, Cowen was surprisingly incompetent with their camera, lighting, and line-of-eyesight.
Still, for actual investors of the Company, immensely informative.
If this is the sort of stuff that gets discussed in an analyst meeting that's not recorded, how does the SEC allow it? The level of information from this event vs the CC is night and day.
To invest properly today, you really need to get rich and have a family fund so that you can go to these events. The SEC is sitting idle while a corrupt system chugs along.
P
At the end of the HMD PR on the Nokia 8.3 announcement, PXLW noted that they are working with HMD to put quality displays in the hands of consumers. The PR's key statement is the last sentence: "We look forward to working with HMD to continue pushing the boundries of visual performance across all smartphones." For those that believe management is credible, they have signaled where Nokia and PXLW believe this to be going.
The last sentence seems quite bold, but the recently extremely favorable reviews of the OPPO Find X2 phones adds considerable credence to it. From a dollars and sense standpoint, the last sentence in the joint PR signifies that Nokia has likely agreed with PXLW that Pure Display should be more broadly rolled out in Noka phones. Just focusing on Nokia, that implies on its 30M to 40M unit annual sales that Iris revenues will increase to some meaningful percentage of $40M to $60M. Assuming a low end 50% attach rate to an 75% attach rate, one gets to $20M to $45M revenue -- ONLY ON Nokia.
The job that Debonis, Carson and others are PXLW are doing to establish an extremely valuable ecosystem is way underappreciated.
Once CV situation resolves, I expect to see PXLW trading at a $6 to $18 price -- within 1.5 years. The higher range assumes meaningful TrueCut developments.
In this CV world, I don't see much happening with the stock price so Oily will likely be able to continue to scare aware retail folks. For those in the business, however, draw comfort that Renaissance is also accumulating.
For my purposes, I've been hoping to see evidence that Iris is gaining greater penetration across customer phone line-ups. This is the first signal, but I don't expect it to be the last. For anyone that follows the industry, they understand that this is an extremely competitive and copycat industry where competitors cannot afford to be lagging. PXLW is at or near the point where it will be adopted in my opinion, but that is still not free from doubt. Just my opinion -- but based on the mostly overwhelming favorable reviews of phones including Iris.
Atomic -- I'm pretty sure you are right about Xiaomi. The tell is the phone design that allows shift between 120Hz and the 60Hz battery saving mode. Debonis played up that capacity enabled by Iris design in the last quarterly call. I always assumed it was likely Xiaomi simply because of the BlackShark relationship. I'm a bit surprised this may be out in October. It seems promising that the reviews I read this morning all seem to indicate that users of higher refresh rate phones seem to universally say that they could not go back to 60Hz. My hope is that PXLW's Iris affords middle tier OEMs the needed ability to offer such phones and that they proliferate.
About a year or two ago, Debonis spoke to the movement towards higher refresh rates and 5G as being helpful tailwinds for PXLW. I suspect 2020 has a good chance to be the needed inflection point for PXLW mobile. So much going on hear and the Debonis strategy is increasingly looking like it will pay off. Would not shock me that we get back into the low to mid-4s before call and maybe into mid $5s if a Xiaomi announcement is revealed. The key to anything higher will be evidence that Xiaomi intends to roll this out beyond its flagship models.
I'm fully loaded here and will not likely be adding; however, if I was not I would certainly be adding up to about $4.50 or so. Anything in the $5s will be attractive if Xiaomi is the tier 1 OEM and it has larger plans for higher refresh rates (which is a fairly solid bet).
Also, for further comfort on the mobile progress, take a look at the reviews posted on ROGII and Nokia 6.2 and 7.2 on PXLW twitter account. They are impressing critics, so hopefully that carries over into the market.
We've uncovered evidence that Xiaomi is working on a smartphone with a 120Hz display. This would be Xiaomi's first device with a high refresh rate panel.
We've uncovered evidence that Xiaomi is working on a smartphone with a 120Hz display. This would be Xiaomi's first device with a high refresh rate panel.
www.xda-developers.com
p
Pixelworksis in next OPPO release OPPO Find X with curved screen design and support a high refresh ratein feb 2020. This is the one debonis talked about. Ans he said that they pobably not would make it for the 26 dec release. This text is
In response to the news of Shen Yiren, the digital blogger @ 数码 闲聊 站 not only said that the display of the new OPPO Find series will have high resolution + high refresh rate, but also released suspected relevant specifications, which is that the native display will support QHD + resolution and 90Hz refresh rate, but with the built-in independent Pixelworks image processing chip, you can fill the frame to a higher refresh rate.
And Pixelworks will in next releases as well.
OPPOs market has grown from 2% in 2015 to now close to 9 pct - impressive
Search for OPPO Pixelworks and translate to english
Also from QCOM cc: “Turning to 5G device forecast. Launches across all regions remain on track. While we expect some minor changes to the launch timing and sell-through of certain devices, our calendar 2020 estimates remain unchanged at 175 million to 225 million units.”
T
In the revenue race between Mobile and Video Delivery , our Ceo seemed to pause when asked which will be greatest gainer in FY19. VD's coming off a base of about $12M In Fy18 , Mobile is starting from a $3M base line. It's reasonable I think to see VD achieving $20M in FY19 , and it's also reasonable to see Mobile Iris chip sales hitting 10 Million units if Nokia uses Iris in the soon to launch true flagship Nokia 9 as well as in the next lower mid-Tier model perhaps a 8.1 Plus; combine these with our other wins in Asus ROG, the two BlackShark's, and the Axon 9 Pro should easily get us 10M units in FY19 or about $25M Revenue. Put these strong growth numbers on top of our projector revenue of about $60M gets us to about $100M easily. Debonis continues to play his cards close to his best, but some common sense and Google DD'ing points to seriously strong And Accelerating Significantly Revenue for Pixelworks beginnings to show itself in about 90 days or less when Q1 cc arrives and guidance for Q2 hits
r
will this CC be different do we need the helmets for after hours today and tomorrow mornings opening, i expect one more lite quarter(the !st) the phones are just being launched and the virus shutting down stuff in China, really not a word should be used to blamed on the virus, the phones are just getting started and they have lots of deals and talks going on thats what should be talked about , I still fear one more 16 million qtr, maybe shipping all those chips can be counted as revenue and we will get the 2 number in front of the guidance for 2nd qtr, if anything negative is mentioned and they give another lite qtr be prepared for the follies and drop to shake the tree one last time, I will ad in after hours if they manipulate because that never happens, I hope the board has a celebratory feel to it after the close today but all remains to be seen, my wish is PC doing the call ,GLTA
o
The Pixel "disappearing bid" is back again! Since the Q2 results, the stock had been acting well trading in a range $3.20-$3.66 even during the Trump tweets. On Friday, a 26k sell block knocked Pixel down from $3.23 to $3.09 in the blink of an eye! The stock was soft for the rest of the day. What does it mean? Liquidity is lacking as the trading action shows the order book is lacking adequate bids to absorb even moderate selling. Where are the Nokia Iris wins? Pixel needs some good news to attract bids and place a floor under the stock.
B
Total newb, so I'd like to try and get a better understanding from my bulls and bears here - full disclosure: I have an open short position at the 4.56 mark with pxlw right now. While our earnings beat expectations by 0.01/sh, and our revenues also beat exp by 1.74% (I think...), this is what I got overall from the CC:
Revenue: Q4 2019: 16MM, down 2.1MM from Q3, down 4.5MM from Q4 2018 2019 Total: 68.8MM, down 7.8MM from 2018
GAAP Profit Margin: Q4 2019: 45.6%, down 6.2% from Q3, down 7.5% from Q4 2018 2019 Total: 50.2%, down 1.4% from 2018
GAAP Op.Ex.: Q4 2019: 12.2MM, up 0.4MM from Q3, down 0.2MM from Q4 2018 2019 Total: 47.6MM, up 3.3MM from 2018
Non-GAAP Net Loss: Q4 2019: 2.3MM (0.06/sh), up 1.8MM from Q3, up 3.6MM from an income of 1.3MM in Q4 2018 2019 Total Loss: 4.4MM (0.12/sh), down 8.6MM (0.23/sh) from income of of 4.2MM (0.11/sh) in 2018.
EBITDA: Q4 2019: loss of 1.7MM, down 2.2MM from income of 0.5MM in Q3 2019, down 3.5MM from income of 1.8MM in Q4 2018. 2019 Total: loss of 0.7MM, down 8.7MM from income of 8.0MM in 2018.
In other words, while we did top expectations (always a plus), our overall picture has revenue, profit margins, GAAP Net, and EBITDA down substantially year-over-year, as well as quarter-to-quarter, while our OpEx is actually up year-over-year and quarter-to-quarter.
Given all of the above, it sounds like what everyone is saying is that just our potential disruption into the mobile market is what is carrying the day right now, along with earnings and revenues being not as bad as expected. From my position, that all seems like too little to hang our long-trade hats on right this second. Is there some core thing I'm missing? Perhaps I just need better figures on the potential in the mobile market?
Flameouts welcome (we all need a little entertainment).
Two of the fastest growing industries right now in the United States are on-demand technology and cannabis. These two industries are at the epicenter of growth and investors aren’t being shy about their appetite for companies in these arenas. But one
Two of the fastest growing industries right now in the United States are on-demand technology and cannabis. These two industries are at the epicenter of growth and investors aren’t being shy about their appetite for companies in these arenas. But one
profiledstockpicks.com
S
Congrats to the team on YOY & QOQ performance and the strong growth in mobile. So much activity in the works and so little quantification. The great news. PXLW has developed a great technology platform for mobile and is positioned to be a market leader. The 7th gen visual processor solidifies that position. TCL collaborating with PXLW on True Cut is a testament to the promise of the technology. Tons of design in activity. The staffing additions in China will help to solidify the business for many reasons. The financial change brings more transparency. PXLW has a relatively low burn rate and a strong cash position. Hopefully next quarter the team will have more visibility as to the demand ramp on the products, wafer availability and can provide more dimension and guidance for the year. But there are obviously a lot of good things in the works here and the right kind of activity to generate strong growth.
P
This is from a Pixelworks sales employee’s LinkdIn page: “Promote and cooperate with Tencent Multimedia&Game and Youku Multimedia department to promote our DSP chip with OPPO and vivo, both of them had much interesting in this eco-system.” C’mon Todd, we need the PR! OPPO and Vivo!!
Pixelworks' stock is down 54% from recent highs. Pixelworks has won 2 Tier-1 accounts for its Iris chips. As mobile revenue increases, the stock will re-rate wi
Pixelworks' stock is down 54% from recent highs. Pixelworks has won 2 Tier-1 accounts for its Iris chips. As mobile revenue increases, the stock will re-rate wi
seekingalpha.com
R
Pixelworks downgraded to Hold from Buy at Lake Street Lake Street analyst Jaeson Schmidt downgraded Pixelworks to Hold from Buy with an unchanged price target of $3.50. While he is encouraged by the growing momentum in mobile, he thinks the ramp in that business will put near-term pressure on gross margin. Meanwhile, he believes continued uncertainty amid inventory correction in both the projector and video delivery businesses will create near-term headwinds, Schmidt tells investors.
E
Great article in the Wall Street Journal this morning regarding the new collaboration between QCOM and APPL as 5G video optimization takes center stage this year. There is opportunity for PXLW as QCOM and AAPL utilize IP to optimized content delivery. The question is who’s IP will dominate.
Given today's somewhat tepid market reaction, I'm guessing others are similarly non-plused by the PR.
This could turn into a momentum play if the buyers stop wasting time and step up.
Shorts got the shock in PXLW, now we need the Awe to defeat the sellers, PXLW could very well trade up to $10.
For inevstors, virtual analyst events are an improvement
-- Debonis needs to get a professional camera to attach to the laptop, a lavalier mic, spot lighting, and a stand so that that the laptop is level with his face. All easy fixes that will improve his performance, confidence, and the listening levels of his audience...
...including his staff who he likely spends a few hours per day in virtual meetings.
-- He got awkward, and I track it to defensiveness, when he discussed the mobile OEM targets, which exclude Apple, Huawei and Samsung. He doesn't have the right wording accessible to him in explaining and being OK with this being the strategy...
....having been in this situation (we all have,) I think it's tied to a competitive sense that he thinks the audience will be less interested.
....If will be painful, but he needs to re-watch it and figure out what goes on in his psyche when this happens, so it doesn't happen as often.
....he also misspoke as to the carriers that sell OnePlus....it's the only factual thing that seemed wrong and is a bit bad to have said as a public company manager. He meant that unlociked OnePlus works on the ATT network, but that's not what he said.
--- Clear shift to talking much more about TrueCut. They may not have deals made, but they're in discussions. It's a heady feeling -- lots of risk and work to get this point, and now things are teed up to land brand name, wholesale customers who will use the technology for libraries vs individual titles.
No chips, high margin SAAS revenue. Unlike mobile, little engineering customization for each customer.
-- They want Xiaomi.....it's painful this hasn't happened, or if it has he can't talk about it. My read is that it hasn't happened yet, but maybe he's a good poker player.
-- the IRIS line is exponentially complicated at this point. Oh for the days when there was just one chip.
.....it's clear they are other mobile OEMs cooperating and trying to find ways to match what they want with what PXLW can deliver.
....At this point, IRIS doesn't care if the operating chip is QCOM or Mediatek, which is news.
-- Talks little about the Xcode markets. They aren't growing the way mobile is.
...and this the key shift in his frame of reference -- tieing the Company's focus to the gast growing mobile video market, and the view that TruCut is driven by this.
-- Considering that projection just about collapsed in the Q2 guidance, he didn't sound as depressed about it as he should.
....Who knows maybe there's some life there, and it does pay the bills for the Company (or not as we're experiencing this Q.) I don't see how projection doesn't continue to suffer in a Covid world, but not a lot has changed going forward. In a sense, if they have more spacing, they have to move events to the largest possible rooms -- where good projectors are needed most.
Pixelworks is a hard company to talk about with institututions. Numbers are small. Performance numbers don't sound good. The products and markets sound complicated and prospective.
As to the event itself from the standpoint of Cowen -- probably a lot of the institutions were just fine with it being virtual. For managements, how cool is it they don't have to travel and can just focus on business.
The Cowen analyst seemed burned out and on automatic -- the role doesn't seem to attract the highest talent. While I wished Debonis was vastly better set-up and had someone practice with him, Cowen was surprisingly incompetent with their camera, lighting, and line-of-eyesight.
Still, for actual investors of the Company, immensely informative.
If this is the sort of stuff that gets discussed in an analyst meeting that's not recorded, how does the SEC allow it? The level of information from this event vs the CC is night and day.
To invest properly today, you really need to get rich and have a family fund so that you can go to these events. The SEC is sitting idle while a corrupt system chugs along.
The last sentence seems quite bold, but the recently extremely favorable reviews of the OPPO Find X2 phones adds considerable credence to it. From a dollars and sense standpoint, the last sentence in the joint PR signifies that Nokia has likely agreed with PXLW that Pure Display should be more broadly rolled out in Noka phones. Just focusing on Nokia, that implies on its 30M to 40M unit annual sales that Iris revenues will increase to some meaningful percentage of $40M to $60M. Assuming a low end 50% attach rate to an 75% attach rate, one gets to $20M to $45M revenue -- ONLY ON Nokia.
The job that Debonis, Carson and others are PXLW are doing to establish an extremely valuable ecosystem is way underappreciated.
Once CV situation resolves, I expect to see PXLW trading at a $6 to $18 price -- within 1.5 years. The higher range assumes meaningful TrueCut developments.
In this CV world, I don't see much happening with the stock price so Oily will likely be able to continue to scare aware retail folks. For those in the business, however, draw comfort that Renaissance is also accumulating.
For my purposes, I've been hoping to see evidence that Iris is gaining greater penetration across customer phone line-ups. This is the first signal, but I don't expect it to be the last. For anyone that follows the industry, they understand that this is an extremely competitive and copycat industry where competitors cannot afford to be lagging. PXLW is at or near the point where it will be adopted in my opinion, but that is still not free from doubt. Just my opinion -- but based on the mostly overwhelming favorable reviews of phones including Iris.
Renaissance vs Oily? Hmmm...:)
About a year or two ago, Debonis spoke to the movement towards higher refresh rates and 5G as being helpful tailwinds for PXLW. I suspect 2020 has a good chance to be the needed inflection point for PXLW mobile. So much going on hear and the Debonis strategy is increasingly looking like it will pay off. Would not shock me that we get back into the low to mid-4s before call and maybe into mid $5s if a Xiaomi announcement is revealed. The key to anything higher will be evidence that Xiaomi intends to roll this out beyond its flagship models.
I'm fully loaded here and will not likely be adding; however, if I was not I would certainly be adding up to about $4.50 or so. Anything in the $5s will be attractive if Xiaomi is the tier 1 OEM and it has larger plans for higher refresh rates (which is a fairly solid bet).
Also, for further comfort on the mobile progress, take a look at the reviews posted on ROGII and Nokia 6.2 and 7.2 on PXLW twitter account. They are impressing critics, so hopefully that carries over into the market.
https://www.xda-developers.com/xiaomi-120hz-display-smartphone-high-refresh-rate-rumor/
In response to the news of Shen Yiren, the digital blogger @ 数码 闲聊 站 not only said that the display of the new OPPO Find series will have high resolution + high refresh rate, but also released suspected relevant specifications, which is that the native display will support QHD + resolution and 90Hz refresh rate, but with the built-in independent Pixelworks image processing chip, you can fill the frame to a higher refresh rate.
And Pixelworks will in next releases as well.
OPPOs market has grown from 2% in 2015 to now close to 9 pct - impressive
Search for OPPO Pixelworks and translate to english
https://new.qq.com/omn/TEC20191/TEC2019122502668100.html
Revenue:
Q4 2019: 16MM, down 2.1MM from Q3, down 4.5MM from Q4 2018
2019 Total: 68.8MM, down 7.8MM from 2018
GAAP Profit Margin:
Q4 2019: 45.6%, down 6.2% from Q3, down 7.5% from Q4 2018
2019 Total: 50.2%, down 1.4% from 2018
GAAP Op.Ex.:
Q4 2019: 12.2MM, up 0.4MM from Q3, down 0.2MM from Q4 2018
2019 Total: 47.6MM, up 3.3MM from 2018
Non-GAAP Net Loss:
Q4 2019: 2.3MM (0.06/sh), up 1.8MM from Q3, up 3.6MM from an income of 1.3MM in Q4 2018
2019 Total Loss: 4.4MM (0.12/sh), down 8.6MM (0.23/sh) from income of of 4.2MM (0.11/sh) in 2018.
EBITDA:
Q4 2019: loss of 1.7MM, down 2.2MM from income of 0.5MM in Q3 2019, down 3.5MM from income of 1.8MM in Q4 2018.
2019 Total: loss of 0.7MM, down 8.7MM from income of 8.0MM in 2018.
In other words, while we did top expectations (always a plus), our overall picture has revenue, profit margins, GAAP Net, and EBITDA down substantially year-over-year, as well as quarter-to-quarter, while our OpEx is actually up year-over-year and quarter-to-quarter.
Given all of the above, it sounds like what everyone is saying is that just our potential disruption into the mobile market is what is carrying the day right now, along with earnings and revenues being not as bad as expected. From my position, that all seems like too little to hang our long-trade hats on right this second. Is there some core thing I'm missing? Perhaps I just need better figures on the potential in the mobile market?
Flameouts welcome (we all need a little entertainment).
So much activity in the works and so little quantification.
The great news.
PXLW has developed a great technology platform for mobile and is positioned to be a market leader.
The 7th gen visual processor solidifies that position.
TCL collaborating with PXLW on True Cut is a testament to the promise of the technology.
Tons of design in activity.
The staffing additions in China will help to solidify the business for many reasons.
The financial change brings more transparency.
PXLW has a relatively low burn rate and a strong cash position.
Hopefully next quarter the team will have more visibility as to the demand ramp on the products, wafer availability and can provide more dimension and guidance for the year.
But there are obviously a lot of good things in the works here and the right kind of activity to generate strong growth.
https://seekingalpha.com/article/4332521-pixelworks-beaten-down-stock-tierminus-1-wins-250-upside?utm_medium=email&utm_source=seeking_alpha&mail_subject=pxlw-pixelworks-beaten-down-stock-tier-1-wins-250-upside&utm_campaign=rta-stock-article&utm_content=link-2