Wall Street Transcript with Bruce A. Walicek, President and CEO of Pixelworks, Inc. (PXLW)

October 7, 2013

67 WALL STREET, New York - October 7, 2013 - The Wall Street Transcript has just published its Semiconductors Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Cloud Computing - Mobile Device Consumer Demand - Enterprise Data Storage Demand - Energy Efficiency, Cloud Computing and Telecommunications

Companies include: Pixelworks Inc. (PXLW) and many more.

In the following excerpt from the Semiconductors Report, the President and CEO of Pixelworks, Inc. (PXLW) discusses company strategy and the outlook for this vital industry:

TWST: Which end markets do you sell into, and in which of your customer markets do you currently see the best opportunity for growth?

Mr. Walicek: Our historic market is the front projection industry, which still accounts for about two-thirds of our revenue. We were an early entrant and helped enable the industry by supping chips and software that brought video-processing technology to projectors. Today the market is global and largely driven by the education segment. The trends in the projector market that are driven by education applications include interactivity, content sharing, collaboration as well as mobile connectivity, and we are continuing to introduce solutions that meet these new requirements. For example, we just announced our VueMagic app that enables mobile devices to seamlessly connect with projectors based on our Topaz family of chips.

The other market we currently serve is the large-screen flat panel market comprised of predominantly TVs, where video quality and efficient video processing are extremely important. A small percentage of the market is digital signage applications, but the largest segment is large-screen TVs. That market is just beginning a major transition to 4,000 by 2,000 resolution screens that have four times the number of pixels versus today's full HD displays. This transition requires a major step up in video processing and quality requirements, and we are currently ramping production of our new product for this market, the PA168, which provides leading video processing performance and video quality for next-generation 4,000 by 2,000 TVs.

This end market is undergoing a lot of change as TV platforms become compute-intensive, much like what is occurring in mobile platforms. I think we are going to see a redefinition of what a TV is, much like what is happening to the laptop PC and mobile phone. The key driver behind the need for our technology is increasing display resolutions, which is the result of advancements in display manufacturing technology, combined with a massive increase in compute requirements as all products get smarter. On top of all of this, video is being watched on a wide variety of new products like tablets and smartphones.

The analysts are calling it the "TV everywhere" trend, and consumers are going to increasingly demand a great viewing experience regardless of the device or size of the screen they are watching, so essentially what's happening is the video processing challenges that historically have been associated with large-screen TVs are now occurring on smaller high-resolution displays for essentially the same reasons. The higher resolution the display, the more image quality issues show up. In first part of 2014 we will be bringing our innovation and expertise in video processing to mobile screens like tablets and ultrabooks, so that's a big growth...

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