Here is why I am still on the sidelines with PXLW:
Earnings expectations and revenue along with history from Yahoo (1 Analysts only) is:
- 3Q 2013: $0.11 EPS on $15 million revenue expected
- 3Q 2102: $0.02 EPS on $16.28 million revenue comparison
- 4Q 2013: $0.05 EPS on $15.1 million revenue expected
- 4Q 2012: ($15) EPS on $13.57 million revenue comparison
- FY 2013: ($0.32 EPS) on $47.9 million revenue expected
- FY2012: ($0.16) EPS on $57.9 million revenue comparison
So, I just don't get how PXLW is going to suddenly turn profits on virtually the same revenue or less in some cases (like 3Q) or just sllightly increased revenue (4Q with revenue just up 10%). And, without revenue growth, just how do margins expand? Was there some great cost cutting or reorganization I am unaware of?
Also, aren't there now more shares after a recent offering? It seems that will make positive EPS a bit harder with more shares.
Also, looking at how good this analyst is in projecting earnings, it seems that the analyst was overly optimistic on the first two quarters of 2013 as per below.
- 2Q 2013: ($0.23) EPS vs. expectation of ($0.14) so a much bigger loss than expected
- 1Q 2013: ($0.25) EPS vs. expectation of ($0.23) so a slightly bigger loss than expected
Now, I hope for good things for PXLW and y'all but I just don't see the reason to put my money in here yet. I have this on my watch list and just thought I would put in my 2 cents worth and hope they get added to the bottom line of earnings :-))
What are y'all expecting for earnings this quarter? Do you really think PXLW can hit the projected $0.11 after their 2Q wider than expected loss of $0.32 and their 1Q loss of $0.16? I just don't see the revenue growth to drive the margins............but admit I don't know everything about the company and plans.
stocks moves on the sentiment-pxlw has a positive sentiment, numbers seems good, but the actual numbers will give this stock a great boost,you must consider the future outlook, which is very positive. lets see what happens on 7, but the real deal is there will be a rally once again no matter what till 6 or may be 5.60 again..so tick tick tick lets count and see
Hopefully this secondary offering was done for upgrades so they would get the contract with Apple for their TV which was mentioned in a SA article. That was the reason I bought in a while back, I have not heard anything more on this. This was mentioned as a possible triple in SA articles along with Himax which did get the Google glass contract. If PXLW gets the Apple TV screen contract I would think this would be a triple also.
I did read the 2Q Conference Call which had this on the 3Q. The $15 million revenue expected is the mid-point of guidance but the $0.11 EPS is toward the high end.
But, I suspect the analyst followed company guidance in the past when PXLW missed earnings?????
I am not trying to bash here. I am just trying to get a handle on this.
From the CC:
Looking at Q3, we currently expect revenue to be in the range of $14 million to $16 million. We expect gross margins for the quarter to range between 59% to 63% on a non-GAAP basis and 58% to 62% on a GAAP basis. We expect operating expenses in the third quarter to range between $6.5 million and $7.5 million on a non-GAAP basis and $7 million to $8 million on a GAAP basis.
And finally, we expect to record a non-GAAP net profit of between $0.02 and $0.17 per share. And on a GAAP basis, we expect a net loss per share of between $0.01 and a net profit of $0.14 per share.
So, what has changed for PXWL that would change their prospects? And, if things were changing, why did they need to dilute shares with the offering...........and why couldn't it wait until they showed this turnaround and thus done at a 50% higher price???
From the offering news:
Pixelworks has agreed to sell 2,630,000 shares of its common stock at a price of $3.50 per share, and has granted the underwriter an option to purchase up to 394,500 additional shares of common stock to cover over-allotments (expected to close August 21, 2013).
Pixelworks intends to use the net proceeds from the offering for general corporate purposes, which may include, among other things, increasing our working capital, financing of ongoing operating expenses and overhead, and funding of capital expenditures, such as the continued development of solutions for the multimedia projector, high-end television, and mobile device markets.