On September 11, 2024, Oregon-based Pixelworks (NASDAQ:PXLW), Inc. was notified by Nasdaq that its stock does not meet the minimum bid price requirement. The company's shares have been below the $1.00 threshold for 30 consecutive business days, violating Nasdaq Listing Rule 5450(a)(1).
While the notice does not immediately impact Pixelworks' listing, the company must boost its share price to at least $1.00 for 10 consecutive days before March 10, 2025, to regain compliance. If unsuccessful by this deadline, Pixelworks may receive an extension.
Currently, Pixelworks' common stock continues to trade on the Nasdaq Global Market under the ticker PXLW. The company has announced plans to monitor its stock price closely and explore potential solutions to address the deficiency.
In other recent news, Pixelworks reported a second-quarter revenue of $8.5 million for 2024, which was in line with expectations despite a significant dip in mobile revenue. The company also revealed improved gross margins and a strategy centered on cost reductions, including workforce adjustments.
Furthermore, Pixelworks anticipates sequential revenue growth in the third quarter, projecting a revenue between $9 million and $10 million, and expects a non-GAAP EPS loss of $0.11 to $0.14 per share.
The company is optimistic about the second half of the year, citing its expanding gaming ecosystem and upcoming mobile visual processor releases. While there was a pause in orders from a key mobile customer leading to a decrease in mobile revenue, the home and enterprise segment remained stable, contributing $6.4 million to the total revenue.
Despite a net loss of $7.7 million for the quarter, Pixelworks has implemented cost reduction actions and is engaging with multiple customers on the next-gen mobile visual processor. The company also expects a new projector SoC co-developed for volume production in the fourth quarter. These recent developments reveal Pixelworks' strategic moves to maintain stability amid challenges in the mobile sector.
InvestingPro Insights
In light of Pixelworks' recent notification from Nasdaq regarding its share price, an examination of the company's financial health and stock performance through InvestingPro's lens offers additional context. Pixelworks holds a market capitalization of approximately $40.58 million, reflecting its size in the marketplace. Despite a modest annual revenue growth of 4.63% as of the last twelve months ending Q2 2024, the company has experienced a significant quarterly revenue decline of 37.27% in Q2 2024. This could suggest challenges in maintaining consistent sales growth.
InvestingPro Tips indicate that Pixelworks is navigating through a turbulent period. The company's stock price has seen a sharp decline over the past six months, plummeting by nearly 77%. Additionally, analysts have revised their earnings expectations downwards for the upcoming period, which may be contributing to the bearish sentiment. Notably, Pixelworks is carrying more cash than debt on its balance sheet, which could provide some financial flexibility in addressing the current share price situation and strategizing for future growth.
For investors seeking to delve deeper into Pixelworks' financial metrics and stock performance, InvestingPro provides a comprehensive suite of additional tips, including insights into valuation, profitability, and liquidity. Interested readers can find a total of 15 tips on Pixelworks at https://www.investing.com/pro/PXLW, which may further aid in informed decision-making.
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