Pixelworks, Inc. (NASDAQ:PXLW) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 05:00 pm ET


Pixelworks, Inc. (NASDAQ:PXLW) Q4 2018 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to Pixelworks, Inc. Fourth Quarter 2018 Earnings Conference Call. I will be your operator for today's call.

(Operator Instructions)

This conference call is being recorded for replay purposes. I would now like to turn the call over to Pixelworks Vice President and CFO, Mr. Steve Moore.

Steven L. Moore

Good afternoon, and thank you for joining us today. With me today is Todd DeBonis, Pixelworks' President and CEO. The purpose of today's conference call is to supplement the information provided in our press release issued earlier today announcing the Company's financial results for the fourth quarter and fiscal year 2018.

Before we begin, I'd like to remind you that various remarks that we make on this call including those about our projected future financial results, economic and market trends and our competitive position constitute forward-looking statements. These forward-looking statements and all other statements made on this call that are not historical facts are subject to a number of risks and uncertainties that may cause actual results to differ materially.

All forward-looking statements are based on the Company's beliefs as of today, Thursday, February 7, 2019, and we undertake no obligation to update any such statements to reflect events or circumstances occurring after today. Please refer to today's press release, our annual report on Form 10-K for the year ended December 31, 2017, and subsequent SEC filings for a description of factors that could cause forward-looking statements to differ materially from actual results.

Additionally, the Company's press release and management statements during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms including gross margin, operating expenses, net income loss and net income loss per share. These non-GAAP measures exclude deferred revenue fair value adjustment, inventory step-up and backlog amortization, amortization of acquired intangible assets, stock-based compensation expense, restructuring expenses, acquisition and integration expenses, discount accretion on convertible debt fair value, gain on extinguishment of convertible debt, fair value adjustment on convertible debt conversion option and benefits related to tax reform.

With the exception of stock-based compensation and benefit related to tax reform, all of these adjusting items are related to the acquisition and integration of ViXS Systems. We use these non-GAAP measures internally to assess our operating performance. The company believes that these non-GAAP measures provide a meaningful perspective on our core operating results and underlying cash flow dynamics, but we caution investors to consider these measures in addition to, not as a substitute for, nor superior to, the Company's consolidated financial results as presented in accordance with GAAP.

Included in the Company's press release are definitions and reconciliations of GAAP to non-GAAP net income/loss and GAAP net income/loss to adjusted EBITDA, which provide additional details.

With that said, I will now turn the call over to Todd for his opening remarks.

Todd DeBonis

Thank you, Steve, and good afternoon, and welcome to everyone joining us on today's call.

Beginning with a quick overview of our results for the quarter, consolidated revenue