Pixelworks Inc (PXLW) 2025 Q2 法說會逐字稿

Good day ladies and gentlemen and welcome to the Pixelworks, Inc's Second Quarter 2025 Earnings Conference Call. I will be your operator for today's call. (Operator Instructions) This conference call is being recorded for replay purposes.

女士們，先生們，大家好！歡迎參加Pixelworks, Inc. 2025年第二季財報電話會議。今天的電話會議將由我主持。 （接線員指示）本次電話會議將會被錄音，以便重播。

I would like to turn the call over to Brett Perry with Shelton Group Investor Relations.

我想將電話轉給 Shelton Group 投資者關係部的 Brett Perry。

Thank you, Deedee. Good afternoon, and thank you for joining us on today's call. With me on the call are Pixelworks' President and CEO, Todd DeBonis; and Chief Financial Officer, Haley Aman. The purpose of today's conference call is to supplement the information provided in Pixelworks' press release issued earlier today announcing the company's financial results for the second quarter of 2025.

謝謝你，Deedee。下午好，感謝你參加今天的電話會議。與我一起參加電話會議的還有Pixelworks總裁兼執行長Todd DeBonis和財務長Haley Aman。今天的電話會議旨在補充Pixelworks今天稍早發布的2025年第二季財務業績新聞稿中提供的資訊。

Before we begin, I'd like to remind you that various remarks we make on this call, including those about our projected future financial results, economic and market trends and 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 risks to differ materially. All forward-looking statements are based on the company's beliefs as of today, Tuesday, August 12, 2025. The company undertakes no obligation to update any such statements to reflect events or circumstances occurring after today. Please refer to today's press release, the company's annual report on Form 10-K for the year ended December 31, 2024, and subsequent SEC filings for a description of factors that could cause forward-looking statements to differ materially from actual results.

在開始之前，我想提醒您，我們在本次電話會議上所做的各種評論，包括關於我們預測的未來財務表現、經濟和市場趨勢以及競爭地位的言論，均構成前瞻性陳述。這些前瞻性陳述以及本次電話會議上所做的所有其他非歷史事實的陳述都受多種風險和不確定因素的影響，這些風險和不確定因素可能導致實際風險與實際情況大不相同。所有前瞻性陳述均基於本公司截至今天（2025年8月12日，星期二）的信念。本公司沒有義務更新任何此類陳述以反映今天之後發生的事件或情況。請參閱今天的新聞稿、本公司截至2024年12月31日的10-K表格年度報告以及隨後向美國證券交易委員會提交的文件，以了解可能導致前瞻性陳述與實際結果大不相同的因素。

Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in both GAAP and non-GAAP terms, including gross margin, operating expenses, net loss and net loss per share. Non-GAAP measures exclude restructuring costs and stock-based compensation expense as well as the tax effect of the non-GAAP adjustments. The company uses these non-GAAP measures internally to assess its operating performance. We believe these non-GAAP measures provide a meaningful perspective on core operating results and underlying cash flow dynamics.

此外，本公司在本次電話會議中的新聞稿和管理層聲明將討論某些指標和財務信息，這些指標和資訊將以公認會計準則 (GAAP) 和非公認會計準則 (Non-GAAP) 的形式呈現，包括毛利率、營業費用、淨虧損和每股淨虧損。非公認會計準則 (Non-GAAP) 指標不包括重組成本、股票薪資費用以及非公認會計準則 (Non-GAAP) 調整的稅務影響。公司內部使用這些非公認會計準則 (Non-GAAP) 指標來評估其營運績效。我們認為，這些非公認會計準則 (Non-GAAP) 指標能夠為了解核心營運績效和潛在現金流動態提供有意義的觀點。

We caution investors to consider these measures in addition to and not as a substitute for nor superior to the company's consolidated financial results as presented in accordance with US GAAP. Please note throughout the company's press release and management statements during this conference call, we refer to net loss attributable to Pixelworks, Inc as simply net loss.

我們提醒投資者，這些指標應作為公司根據美國公認會計準則 (US GAAP) 呈現的合併財務表現的補充，而非替代或優於其。請注意，在公司新聞稿和本次電話會議的管理層聲明中，我們將歸屬於 Pixelworks, Inc. 的淨虧損簡稱為淨虧損。

Also note on June 6, 2025, the company effected a 1-for-12 reverse stock split of the company's common stock and all shares of the company's common stock per share data and related information included in today's published condensed consolidated financial statements have been retroactively adjusted as though the reverse stock split had been affected prior to all periods presented. For additional details and reconciliations of GAAP to non-GAAP net loss and GAAP net loss to adjusted EBITDA, please refer to the company's press release issued earlier today. With that, it's now my pleasure to turn the call over to Pixelworks' CEO, for his opening remarks. Todd, please go ahead.

另請注意，公司於2025年6月6日對公司普通股進行了1比12的反向股票分割，並且今天發布的簡明合併財務報表中包含的所有公司普通股每股數據及相關信息均已進行追溯調整，如同反向股票分割在所有報告期間之前已受到影響一樣。有關更多詳細資訊以及GAAP與非GAAP淨虧損以及GAAP淨虧損與調整後EBITDA的對賬，請參閱本公司今天稍早發布的新聞稿。現在，我很高興將電話會議交給Pixelworks首席執行官，請他致開幕詞。 Todd，請開始。

Thank you, Brett. Good afternoon, and welcome to everyone on the phone and webcast. We appreciate you joining us for today's conference call. Earlier today, we reported top and bottom-line results that were within our guidance and reflected our expectations for a return to sequential revenue growth in the second quarter. Gross margin came in better than anticipated due to yield improvements on a ramping new co-development projector SoC. We also realized another step down in recurring costs with second quarter operating expenses decreasing more than $3 million year-over-year to below $10 million.

謝謝，Brett。下午好，歡迎各位透過電話和網路直播收看。感謝您參加今天的電話會議。今天早些時候，我們公佈了營收和淨利潤，這些業績均符合我們的預期，並反映了我們對第二季營收恢復季增的預期。由於新聯合開發的投影機SoC良率的提升，毛利率高於預期。我們也實現了經常性成本的進一步下降，第二季營運費用年減超過300萬美元，降至1,000萬美元以下。

Staying with the same order of our most recent calls, I'll start with an update on our TrueCut Motion business, then provide remarks specific to our majority-owned Pixelworks Shanghai subsidiary and the strategic review process. Starting with our TrueCut Motion platform. Following a quiet first half of the year in terms of new titles across the industry, we've recently been accredited with three new theatrical releases. First, in early July, Universal Pictures, Jurassic World: Rebirth, then earlier this month, DreamWorks Animation, The Bad Guys 2, and yesterday, we announced Universal Pictures, Nobody 2. As discussed in the past, exhibitors are investing significantly in laser PLF theater upgrades that drive higher box office revenues.

按照我們最近幾次電話會議的順序，我將首先介紹我們的 TrueCut Motion 業務的最新情況，然後具體談談我們控股的 Pixelworks 上海子公司和策略評估流程。首先是我們的 TrueCut Motion 平台。今年上半年，整個產業新片數量平淡，最近我們又獲得了三部新戲上映的認可。首先是 7 月初環球影業的《侏羅紀世界：重生》，然後是本月早些時候的夢工廠動畫的《壞傢伙們 2》，以及昨天我們宣布的環球影業的《無名小卒 2》。正如過去所討論的，影院商正在大力投資雷射 PLF 影院升級，以推動票房收入的成長。

TrueCut Motion delivers major improvements to the viewing experience in these theaters, and exhibitors are increasingly asking for the format, driving increased pool for TrueCut Motion at the studios. Notably, China's flagship CINITY theaters promoted that Jurassic World Rebirth was exclusively available in the TrueCut Motion format on their screens. Studios understand that premium screens generate an outsized portion of the box office sales. So we confidently expect to see expanded presence of TrueCut Motion format and the brand in theaters worldwide.

TrueCut Motion 大大提升了這些戲院的觀影體驗，戲院對這種格式的需求也日益增長，從而推動了 TrueCut Motion 在影廳的票房成長。值得注意的是，中國旗艦 CINITY 影院宣傳《侏羅紀世界：重生》僅在其影院以 TrueCut Motion 格式放映。影城深知高端戲院在票房收入中佔有巨大的份額。因此，我們充滿信心地期待 TrueCut Motion 格式及其品牌在全球影院的進一步推廣。

While exhibitor and audience pool are growing, an important indication of studio and filmmaker acceptance is the quality and success of the titles on which we've been credited. As of today, titles that utilize TrueCut Motion have achieved over $4 billion at the box office, proving that our current studio partners, Universal, DreamWorks, Disney, Legendary and Lightstorm see the value that TrueCut brings to their tentpole production films. These encouraging results clearly show that we are moving towards sustained growth for titles and brand awareness.

雖然戲院和觀眾群不斷壯大，但衡量製片廠和電影製作人認可度的一個重要指標是我們參與製作影片的品質和成功程度。截至目前，使用 TrueCut Motion 的影片已取得超過 40 億美元的票房，證明了我們目前的製片廠合作夥伴——環球影​​業、夢工廠、迪士尼、傳奇影業和光風暴影業——看到了 TrueCut 為其主打影片帶來的價值。這些令人鼓舞的成績清楚地表明，我們正在朝著影片和品牌知名度持續成長的方向邁進。

Also notable, we were excited to recently receive confirmation that in advance of the scheduled theatrical release of Avatar: Fire and Ash in December, James Cameron's highly successful Avatar: The Way of The Water will return to selected IMAX screens in October using the TrueCut Motion format. Based upon our recent momentum, we believe TrueCut Motion format is quickly moving towards becoming a standard for premium large-format cinemas.

同樣值得注意的是，我們最近很高興地收到確認，在原定於12月上映的《阿凡達：火與灰燼》之前，詹姆斯·卡梅隆執導的備受好評的《阿凡達：水之道》將於10月在部分IMAX影院採用TrueCut Motion格式回歸。基於我們近期的勢頭，我們相信TrueCut Motion格式正迅速成為高端大格式影院的標竿。

With cinema format standards, a leading indicator of future home entertainment standards, there is a growing consumer desire to bring the TrueCut Motion PLF experience home. The first home entertainment device to support TrueCut Motion is also one of the world's best ways to watch movies outside of the cinema, namely the Apple Vision Pro.

隨著戲院格式標準成為未來家庭娛樂標準的先行指標，越來越多的消費者希望將 TrueCut Motion PLF 體驗帶回家。首款支援 TrueCut Motion 的家庭娛樂設備 Apple Vision Pro 也是全球最佳的戲院外觀影方式之一。

Streaming services, Disney+ and Apple TV+ both brought Avatar: The Way of the Water and the 4K rerelease of the original Avatar to their respective platforms and apps for this device. We encourage anyone who has the opportunity and wants to fully appreciate what TrueCut Motion can do for the movie experience to watch either title on the Apple Vision Pro and compare that to the experience of titles that don't utilize TrueCut Motion format. Recognizing the differentiated sales opportunity and growing consumer awareness, premium streaming services and home entertainment device brands are engaging closely with us to roll out the format.

串流媒體服務 Disney+ 和 Apple TV+ 都已將《阿凡達：水之道》和 4K 重製版原版《阿凡達》引入各自的平台和應用，並支援這款裝置。我們鼓勵任何有機會並希望充分體驗 TrueCut Motion 為電影體驗帶來的變化的人，在 Apple Vision Pro 上觀看這兩部影片，並將其與未使用 TrueCut Motion 格式的影片的體驗進行比較。高端串流媒體服務和家庭娛樂設備品牌意識到差異化的銷售機會和日益增長的消費者認知度，正在與我們密切合作，共同推出該格式。

Turning to an update on our Pixelworks Shanghai subsidiary. As a reminder, and for newer participants on today's call, as part of the strategic realignment initiated in the 2021 timeframe, we restructured our Shanghai-based subsidiary to serve as the center of operations for all Pixelworks semiconductor business. This includes all generations of our open market and co-developed visual display processor chips for both the digital projector and mobile markets as well as previously end-of-life transcoding chips for video delivery.

關於Pixelworks上海子公司的最新動態。需要提醒的是，對於今天電話會議的新參與者，作為2021年啟動的策略調整的一部分，我們重組了位於上海的子公司，使其成為Pixelworks所有半導體業務的營運中心。這包括我們針對數位投影機和行動市場的各代公開市場和共同開發的視覺顯示處理器晶片，以及先前已停產的視訊傳輸轉碼晶片。

Starting with an update on the mobile business. Second quarter mobile revenue had a similar profile to the prior quarter, with shipments largely in support of residual demand from customers' previously launched smartphone models. Although design-ins for newly launched smartphones and the expected revenue recovery has taken longer to materialize, we remain committed to several existing engagements that we will -- we believe will contribute to achieving renewed mobile growth over the coming quarters.

首先介紹一下行動業務的最新情況。第二季行動業務收入與上一季相似，出貨量主要支撐了客戶先前推出的智慧型手機型號的剩餘需求。儘管新推出的智慧型手機的設計導入和預期的收入復甦需要更長時間才能實現，但我們仍將致力於現有的幾項合作，我們相信這些合作將有助於在未來幾個季度實現行動業務的再次成長。

Our strategy and efforts are focused on two defined approaches based upon the market segment. The first is expansion of our served target market with a new low-cost mobile graphics accelerator solution for mid- and entry-level smartphones. Our open market road map will continue to focus on improving the visual performance of graphics, animation and gaming in mobile phones with ASPs below $350. We have created a completely new architecture to dramatically improve the performance of application processors used in this market segment.

我們的策略和工作重點是基於細分市場，主要集中在兩個明確的方向。首先，我們透過面向中階和入門級智慧型手機的全新低成本行動圖形加速器解決方案，拓展我們服務的目標市場。我們的開放市場路線圖將繼續專注於提昇平均售價低於 350 美元的手機的圖形、動畫和遊戲視覺表現。我們創建了一個全新的架構，旨在顯著提升該細分市場應用處理器的效能。

Second, we continue to pursue the premium gaming experience for mobile phones with ASPs over $350 with our current X7 prime and X8 flagship mobile visual processors. Within this premium segment, we have seen growing interest and a trend towards a more customer-optimized solution. And going forward, we are increasingly focused on IP licensing and custom design engagements. Highlighting our most recent win resulting from an in-depth collaboration with the customer, over the weekend, OPPO's affiliate brand, realme, previewed their upcoming launch of its realme P4 series in India targeted for August 20. Both the realme P4 and P4 Pro smartphones are explicitly marketed as incorporating Pixelworks X7 Gen 2 visual processor. The realme P4 series will be the first phones in the segment of the market to feature dual chips based upon our distributed rendering architecture.

其次，我們將繼續憑藉現有的X7 prime和X8旗艦行動視覺處理器，為平均售價超過350美元的手機提供卓越的遊戲體驗。在這個高端細分市場，我們看到了客戶日益增長的興趣，並呈現出尋求更以客戶為中心優化解決方案的趨勢。展望未來，我們將更加重視智慧財產權授權和客製化設計。上週末，OPPO旗下品牌realme預告了即將於8月20日在印度發布的realme P4系列，這是我們與客戶深入合作的最新成果。 realme P4和P4 Pro智慧型手機都明確宣稱搭載Pixelworks X7 Gen 2視覺處理器。 realme P4系列將成為該細分市場中首批採用基於我們分散式渲染架構的雙晶片的手機。

The P4 Pro model pairs our X7 visual processor alongside a Snapdragon 7 Gen 4 applications processor and the standard P4 model will pair our processor alongside a MediaTek Dimensity 7400 Ultra 5G apps processor. In both device models, our visual processor enables 144 frame per second gaming on over 100 mobile games with real-time frame generation and AI-enhanced 1.5K resolution upscaling. In addition to delivering visual performance typically reserved for flagship smartphones, our rendering acceleration solution contributes to improved system responsiveness and extended gameplay while eliminating overheating and the need for performance throttling.

P4 Pro 機型搭載我們的 X7 視覺處理器和驍龍 7 第四代應用處理器，而標準版 P4 機型則搭載我們的處理器和聯發科天璣 7400 Ultra 5G 應用處理器。在這兩款機型中，我們的視覺處理器支援即時幀生成和 AI 增強的 1.5K 解析度提升，可在超過 100 款手機遊戲中實現每秒 144 幀的流暢運行。除了提供通常只有旗艦智慧型手機才具備的視覺效能外，我們的渲染加速解決方案還有助於提升系統反應速度，延長遊戲時間，同時消除過熱問題和效能降頻的必要性。

Touching briefly on our home and enterprise business, which comprises of our visual processor system on a chips for 3LCD digital projector market. Revenue increased by over 20% sequentially, driven by a combination of the traditional bounce back from seasonally lower first quarter demand as well as a growing ramp in shipments of our newest SoC to our large co-development projector customer. Despite the ongoing dynamic global trade environment, we have yet to see evidence of meaningful impacts from our customers' order patterns. Consistent with our comments last quarter, we continue to anticipate our total projector business in '25 to look very similar to 2024.

簡單談談我們的家庭和企業業務，其中包括針對3LCD數位投影機市場的視覺處理器系統級晶片。營收季增超過20%，這得益於第一季需求從季節性低迷中逐漸回升，以及我們最新系統級晶片（SoC）對我們大型聯合開發投影機客戶的出貨量不斷增長。儘管全球貿易環境持續動盪，但我們尚未看到客戶訂單模式產生重大影響的證據。與我們上季度的評論一致，我們仍然預計2025年的整體投影機業務將與2024年非常相似。

Shifting gears to a brief update on the adjacent revenue opportunities discussed in recent quarters. Starting with transcoding, which, again, as a reminder, we completed all scheduled end-of-life shipments of transcoding products during the fourth quarter of last year. Subsequently, we were approached by two different prior transcoding customers that expressed interest in sizable onetime orders for our prior transcoding chips that are no longer in production. As of today, we have a purchase order in hand from one of the customers, and we expect to fulfill the entirety of this order during the fourth quarter. The second prior customer representing the larger opportunity is still evaluating whether to move forward. We have communicated a deadline to this customer, and we will know that the outcome on the second opportunity by quarter end.

接下來，簡單介紹一下最近幾季討論過的相關收入機會。首先是轉碼業務。再次提醒一下，我們在去年第四季完成了所有計畫的停產轉碼產品出貨。隨後，我們接到了兩家不同的轉碼老客戶聯繫，他們表示有意一次訂購我們之前已停產的轉碼晶片。截至目前，我們已收到其中一家客戶的訂單，預計在第四季完成全部訂單。第二家代表更大機會的老客戶仍在評估是否繼續前進。我們已經與該客戶溝通了截止日期，我們將在季度末獲悉第二個機會的進展。

Next, with respect to ASIC design services. Having established a framework earlier this year, we now have a pipeline of prospective ASIC design service engagements. We are currently engaged with two different companies with the potential to become our first design service customer. Both of these initial ASIC design service customers have the potential to contribute revenue later this year, and we expect increased visibility on these respective opportunities in the coming months. In addition to working towards winning these two programs, we are continuing to focus on expanding our pipeline of design service opportunities.

接下來，關於 ASIC 設計服務。我們在今年早些時候建立了框架，目前已擁有一系列潛在的 ASIC 設計服務項目。目前，我們正在與兩家不同的公司合作，它們有可能成為我們的首批設計服務客戶。這兩家 ASIC 設計服務首批客戶都有可能在今年稍後貢獻收入，我們預計未來幾個月這些機會的前景將更加明朗。除了努力爭取這兩個項目外，我們還將繼續致力於擴展我們的設計服務項目。

Lastly, in terms of IP licensing. Since our previous conference call, the number of discussions and evaluations underway with third parties have expanded meaningfully. Given the binary and sometimes open-ended nature of these programs, it's challenging to provide definitive timelines and qualitative updates on these collective discussions. However, we are seeing progression, and we currently have active IP evaluations underway with three Tier 1 system companies in China and one Tier 1 system company in North America.

最後，關於知識產權許可。自上次電話會議以來，與第三方進行的討論和評估數量顯著增加。鑑於這些項目的二元性，有時甚至是開放式的，很難提供明確的時間表和關於這些集體討論的定性更新。然而，我們看到了進展，目前正在與中國的三家一級系統公司和北美的一家一級系統公司積極進行智慧財產權評估。

Given our previous actions to significantly reduce our cost structure and ongoing efforts to streamline the business, today, we are better positioned to drive bottom line results from a reasonably small uplift in revenue. Although the planned recovery in mobile revenue is taking a bit longer than previously anticipated, we are still targeting for our Pixelworks Shanghai subsidiary to reach profitability as soon as the fourth quarter.

鑑於我們先前大幅削減成本結構的舉措以及持續精簡業務的努力，如今我們更有能力透過略微提升的收入來提升盈利。儘管行動業務收入的復甦時間比先前預期略長，但我們仍致力於讓Pixelworks上海子公司最早在第四季獲利。

Having said that, I want to share the latest status on our strategic review process. To briefly recap how and when this process originated, in the latter part of 2024, we received inbound strategic interest in our Pixelworks Shanghai subsidiary. We engaged Morgan Stanley as an adviser and initiated a formal review process. In addition to reviewing the initial inbound interest, the process was expanded to include strategic -- a strategic evaluation of potential alternative ownership structures as well as possible collaboration structures, all specific to our Shanghai-based subsidiary.

話雖如此，我想分享一下我們戰略評估流程的最新進展。簡單回顧一下這個過程的起源與時間：2024年下半年，我們收到了對Pixelworks上海子公司的進駐策略意圖。我們聘請了摩根士丹利擔任顧問，並啟動了正式的評估流程。除了審查最初的入駐意圖外，該流程還擴展到戰略層面——對潛在的替代所有權結構以及可能的合作結構進行策略評估，所有這些都針對我們位於上海的子公司。

Relatively early in the process, we received additional inbound interest from multiple other unrelated third parties. Following early-stage discussions with all interested parties as well as some preliminary due diligence, Pixelworks, Inc imposed a deadline of May 31 to receive term sheets from all parties that were interested in moving forward. We received nonbinding term sheets from three different potential buyers. We have since been engaged with due diligence with all three parties. I traveled to Shanghai last week, and although the outcome is yet to be determined, we believe the process is progressing well and nearing closure and likely to result in a new strategic direction for our Pixelworks Shanghai subsidiary before the end of the third quarter. With that, I'll turn the call to Haley to review financials and provide guidance for the third quarter.

在流程相對較早的時候，我們收到了來自多個其他非關聯第三方的額外意圖。在與所有意向方進行早期討論以及一些初步盡職調查後，Pixelworks, Inc. 設定了5月31日的截止日期，要求所有有意向推進的各方提交投資意向書。我們收到了三個不同潛在買家的非約束性投資意向書。此後，我們一直在與這三方進行盡職調查。我上週去了上海，雖然結果尚未確定，但我們相信整個流程進展順利，即將結束，並可能在第三季結束前為我們的Pixelworks上海子公司確定新的策略方向。之後，我將把電話轉給Haley，讓她審查財務狀況並提供第三季的業績指引。

Thank you, Todd. Revenue for the second quarter of 2025 was $8.3 million compared to $7.1 million in the first quarter and $8.5 million in the second quarter of 2024. The sequential increase in second quarter revenue was primarily driven by product shipments in the home and enterprise market. The breakdown of revenue in the second quarter was as follows: Home and enterprise revenue was approximately $7.1 million. Revenue from mobile was approximately $1.2 million.

謝謝你，Todd。 2025年第二季營收為830萬美元，而第一季為710萬美元，2024年第二季為850萬美元。第二季營收的環比成長主要得益於家庭和企業市場的產品出貨量。第二季營收細分如下：家庭與企業市場營收約710萬美元。行動業務營收約120萬美元。

Second quarter non-GAAP gross profit margin was 46% compared to 49.9% in the first quarter of 2025 and 51% in the second quarter of 2024. The sequential decrease in gross profit margin reflected a unique mix consisting of a new product ramp within home and enterprise. However, yields related to this new product ramp were better than originally expected, leading to gross margin that was above our second quarter guidance range.

第二季非公認會計準則毛利率為46%，而2025年第一季為49.9%，2024年第二季為51%。毛利率環比下降反映了家庭和企業領域新產品量產的獨特組合。然而，新產品量產帶來的收益率高於最初預期，導致毛利率高於我們第二季的指導範圍。

Non-GAAP operating expenses of $9.7 million in the second quarter compared to $10.4 million in the prior quarter and $12.8 million in the second quarter of 2024. The sequential and year-over-year decrease in operating expenses reflects the results of our previously taken actions to reduce operating expenses and streamline our overall cost structure. Additionally, during the second quarter, our Pixelworks Shanghai subsidiary received approximately $1.6 million in cash subsidies as part of its certified status in China's Little Giant program. These subsidies effectively serve as reimbursement for certain purchases of IP and design tools as well as various R&D expenses.

第二季非公認會計準則營運費用為 970 萬美元，而上一季為 1,040 萬美元，2024 年第二季為 1,280 萬美元。營運費用較上月和年比均有所下降，反映了我們先前採取措施降低營運費用和精簡整體成本結構的效果。此外，在第二季度，我們的 Pixelworks 上海子公司因其在中國「小巨人」計畫中的認證資格而獲得了約 160 萬美元的現金補貼。這些補貼實際上用於報銷某些 IP 和設計工具的購買費用以及各種研發費用。

We recognized $800,000 of other income in the second quarter with the remainder of the total subsidies allocated as offsetting credits to applicable expense and balance sheet items. On a non-GAAP basis, second quarter 2025 net loss was $5.3 million or a loss of $1 per share compared to a net loss of $6.5 million or a loss of $1.30 per share in the prior quarter and a net loss of $7.7 million or a loss of $1.60 per share in the second quarter of 2024. Adjusted EBITDA for the second quarter of 2025 was a negative $4.3 million compared to a negative $5.8 million in the prior quarter and a negative $7 million in the second quarter of 2024.

我們在第二季確認了80萬美元的其他收入，其餘補貼總額已分配作為抵扣，計入適用費用和資產負債表項目。以非公認會計準則 (Non-GAAP) 計算，2025年第二季淨虧損為530萬美元，即每股虧損1美元，而上一季淨虧損為650萬美元，即每股虧損1.30美元，2024年第二季淨虧損為770萬美元，即每股虧損1.60美元。 2025年第二季調整後EBITDA為負430萬美元，上一季為負580萬美元，2024年第二季為負700萬美元。

Turning to the balance sheet. We ended the second quarter with cash and cash equivalents of $14.3 million compared to $18.5 million at the end of the first quarter. Shifting to our current expectations and guidance for the third quarter of 2025. Based on our existing backlog, we currently expect total revenue for the third quarter to be in a range of between $8.5 million and $9.5 million. For the third quarter, we expect non-GAAP gross profit margin to be between 47% and 49%. This range primarily reflects a more favorable product mix within home and enterprise.

再來看看資產負債表。第二季末，我們的現金及現金等價物為1,430萬美元，而第一季末為1,850萬美元。調整後，我們將轉向2025年第三季的當前預期和指引。基於我們現有的訂單儲備，我們目前預計第三季總營收將在850萬美元至950萬美元之間。我們預計第三季非公認會計準則毛利率將在47%至49%之間。這一區間主要反映了家庭和企業領域更有利的產品組合。

With respect to operating expenses, we expect third quarter operating expenses to be in a range of between $8.5 million and $9.5 million on a non-GAAP basis. Note that this range reflects the expected incremental benefits associated with our cost reduction actions taken during the first and second quarters. Lastly, we expect third quarter non-GAAP EPS to range between a loss of $0.70 per share and a loss of $1.02 per share. That completes our prepared remarks, and we look forward to taking your questions. Operator, please proceed with the Q&A.

關於營運費用，我們預計第三季營運費用在非公認會計準則 (Non-GAAP) 基礎上將在 850 萬美元至 950 萬美元之間。請注意，此範圍反映了我們在第一季和第二季採取的成本削減措施所帶來的預期增量收益。最後，我們預計第三季非公認會計準則每股收益將在每股虧損 0.70 美元至每股虧損 1.02 美元之間。我們的準備演講到此結束，期待您的提問。請接線生繼續問答環節。

(Operator Instructions) And our first question comes from Suji De Silva of Roth Capital.

（操作員指示）我們的第一個問題來自 Roth Capital 的 Suji De Silva。

Maybe first, Todd, you could talk about why your mobile customers in China in the premium side are emphasizing custom ASIC versus your standard merchant products? I'm just curious the trends underneath that, that's driving that opportunity for you.

Todd，首先，您能不能談談為什麼你們在中國的高端行動客戶更青睞客製化 ASIC，而不是你們的標準商用產品？我很好奇背後的趨勢，以及這為你們帶來了哪些機會。

Yes. The main driver is they want differentiation. They want something that the other phone -- I mean, Suji, it's a flat market. I don't expect high growth in the overall mobile market. I expect the Chinese OEMs to try to expand globally beyond their reach where they don't have strong market shares.

是的。主要驅動力是他們想要差異化。他們想要一些其他手機無法比擬的東西——我的意思是，Suji，這是一個扁平化的市場。我不認為整個行動市場會出現高成長。我預期中國OEM廠商會嘗試在全球擴張，突破他們目前市佔率不大的區域。

They're clearly very strong in China. They're reasonably strong in Southeast Asia. They're not that strong in the rest of the world. With the exception -- you could say at the very low end, like in Africa and emerging markets. But if you look in the premium segment, which is where your question is, right, they have very little position in developed countries. Those countries are dominated by Apple, Samsung and to some degree, Motorola, and Google. Frankly, Google is doing okay right now with the Pixel.

他們在中國顯然非常強大，在東南亞也相當強勁。但在世界其他地區，他們的表現就沒那麼強勁了。除了非洲和新興市場等低端市場。但如果你看看高端市場，也就是你的問題所在，你會發現他們在已開發國家的市場地位很低。這些國家主要由蘋果、三星以及某種程度上的摩托羅拉和谷歌主導。坦白說，Google目前的Pixel表現還不錯。

So our target customers are these Chinese OEMs for the most part. We talk to others, but for the most part, Chinese OEMs. I think as we go to an IP sale, it expands that horizon for us. But if you look at the specific Chinese OEMs, they're in a hypercompetitive market. My personal belief is you'll see consolidation in that market either through attrition or M&A. There's one or two too many large or larger companies, but the market is not there to support all of them, in my opinion.

因此，我們的目標客戶主要是這些中國原始設備製造商。我們與其他公司洽談，但主要仍是中國原始設備製造商。我認為，當我們進行智慧財產權出售時，它拓展了我們的視野。但如果你看看具體的中國原始設備製造商，你會發現他們正處於一個競爭異常激烈的市場。我個人認為，你會看到該市場透過人員削減或併購進行整合。現在有一兩家大型或規模更大的公司太多了，但在我看來，市場並不足以支撐所有這些公司。

So what you're going to see is a hypercompetitive environment. And in the premium segment, they're going to want to differentiate and especially in the geopolitical environment we're in showing technology leadership. And so buying a standard product that is similar across the board doesn't give them that differentiation. The current two AP manufacturers really don't give them much differentiation because they sell them the same APs across the board.

所以你將會看到一個競爭異常激烈的環境。在高端市場，他們渴望差異化，尤其是在我們展現科技領導的地緣政治環境下。因此，購買一款千篇一律的標準產品並不能為他們帶來差異化。目前的兩家AP製造商實際上並沒有為他們帶來太多差異化，因為他們銷售的都是相同的AP。

So one way for them to differentiate, and if you go look at these customers and they're premium phones, they're not just putting a custom visual processor in. I think one of Xiaomi's last phones, they announced four custom chips inside their phone from pre-ISP, AI enhancement, visual processing, what they call display chip, which is their own custom DDIC. So these Chinese manufacturers are very focused on trying to bring their own intellectual property into the phone. And one way to do it is work with partners like us on custom solutions.

所以，他們差異化的一個方法是，如果你去觀察這些高階手機客戶，你會發現他們不只是在手機中植入客製化的視覺處理器。我記得小米最近推出的幾款手機中，他們宣佈在手機中內建了四款客製化晶片，包括預影像訊號處理器 (ISP)、AI 增強、視覺處理，以及他們所謂的顯示晶片，也就是他們自己定制的顯示晶片 (DDIC)。所以，這些中國製造商非常專注於將自己的智慧財產權融入手機。而實現這一目標的方法之一就是與我們這樣的合作夥伴合作，開發客製化解決方案。

Okay. That's very helpful, Todd. And just as a follow-up on that, after you do this design work for a customer, would you be the one manufacturing the chips and selling it to them? Or is this meant to be more of a royalty model where the customer takes over the manufacturing?

好的。 Todd，這很有幫助。接下來我想問一下，在您為客戶完成設計工作後，您會負責生產晶片並將其出售給他們嗎？或者這更像是一種專利費模式，客戶負責製造？

There's only one Chinese -- well, that's not true. There's two Chinese OEMs that produce their own SoCs. In that particular case, it would be design services and IP. Although they still use external visual processors, none of them have integrated our capabilities into the AP yet. The other manufacturers are going to differentiate by ancillary chips. So to answer your specific question, if it's an ancillary chip opportunity, we would do the production. If it's somebody who is trying to integrate this into their own apps SoC, it would probably be a combination of IP and design services.

只有一家中國廠商——嗯，這並非事實。有兩家中國OEM廠商生產自己的SoC。在這種情況下，應該是設計服務和IP。雖然他們仍在使用外部視覺處理器，但還沒有一家將我們的功能整合到AP中。其他製造商將透過輔助晶片來實現差異化。所以，回答你的具體問題，如果這是一個輔助晶片的機會，我們會負責生產。如果有人想將其整合到自己的應用程式SoC中，那麼他們可能會結合IP和設計服務。

Okay. And then maybe a question for Haley. The transcoding onetime customer, you have the PO now. Is that revenue hitting in the third quarter or the fourth quarter? And maybe you can give us some idea of the magnitude of how much that's helping the second half?

好的。接下來也許可以問Haley一個問題。轉碼業務的曾經的客戶，現在您有訂單了。這部分收入會在第三季還是第四季產生？您能不能跟我們講一下，這對下半年的幫助有多大？

Yes, that would be hitting in the fourth quarter. Magnitude, I don't know that we're going to share the magnitude right now.

是的，那會在第四季產生影響。至於影響程度，我不知道我們現在能否透露。

Okay. And maybe one last one for Todd, and I'll pass it along. Todd, just kind of you said that Pixelworks post the -- what's going on with the Shanghai division restructuring-wise or strategically would make kind of a different post that transaction, Pixelworks. Maybe give us some sense of how Pixelworks will be different pre and post that transaction to the best of your ability. I know it's an ongoing process, but it would be helpful to understand --

好的。也許還有最後一個問題想問Todd，我會轉達給大家。 Todd，你剛剛說Pixelworks在交易後－上海分部的重組或策略重組會為Pixelworks帶來哪些改變？請盡可能地介紹Pixelworks在交易前後會有什麼變化。我知道這是一個持續的過程，但了解一下會很有幫助——

It's too early to give any color on that, Suji. I appreciate the question, and as soon as I'm in a position to give color in that regard, I will.

現在就此發表任何評論還為時過早，Suji。我很感謝你的提問，一旦我能夠就此發表任何評論，我就會這麼做。

And our next question comes from Nick Doyle of Needham & Company.

我們的下一個問題來自 Needham & Company 的 Nick Doyle。

Really interesting commentary on the ASIC design and IP. I mean, I guess my question would be, how broad does that go with these prospective customers? Is it limited to the smartphone AP? Or can your IP be used in other components or other markets?

關於ASIC設計和IP的評論真的很有趣。我的意思是，我的問題是，這對這些潛在客戶來說有多廣泛？僅限於智慧型手機AP嗎？還是說你們的IP可以用於其他組件或其他市場？

Good question, Nick. No, it is not limited to smartphone only. I mean we've already had -- some of the prescriptive engagements we've had and have been in the tablet area. There's a clear need to improve the performance -- display performance, visual performance in tablets. It's a growing segment. And then this up-and-coming AR/VR market, whether it's augmented reality glasses or complete virtual reality headsets, there is a need to utilize technology like ours in these applications. There's also people -- I mean, there's more, I'll call them, journeyman markets from LED panel walls to monitors, gaming monitors. So we clearly are too small to go build products for all these environments. But if we open up from an IT and design services and collaboration standpoint, we can pursue more of these adjacent markets.

尼克，問得好。不，這不僅限於智慧型手機。我的意思是，我們已經在平板電腦領域進行了一些約定俗成的合作。平板電腦的性能顯然需要提升——顯示性能、視覺性能。這是一個不斷成長的領域。此外，這個新興的擴增實境/虛擬實境市場，無論是擴增實境眼鏡還是完整的虛擬實境頭戴設備，都需要在這些應用中使用像我們這樣的技術。此外，還有更多人——我的意思是，我稱之為“熟練工市場”，從LED面板牆到顯示器、遊戲顯示器。因此，我們的規模顯然太小，無法為所有這些環境打造產品。但如果我們從IT、設計服務和協作的角度開放，我們就可以拓展更多這些相鄰的市場。

Yes, a lot of potential customers, bigger market there, thank you. Seeing strength in the home and enterprise market, I mean, can you just talk about the product market fit with your new SoC that's driving this recovery? What about the new product is driving that strength?

是的，那裡有很多潛在客戶，市場也更大，謝謝。看到家庭和企業市場的強勁表現，您能否談談新SoC與市場契合度如何，從而推動了這次復甦？新產品是如何推動這種強勁勢頭的？

Yes, no problem. I don't want to be misrepresented here. The overall market, we have a strong position in 3LCD, well over 90% share, okay, from what I can tell. So the overall market, even though our core sequentially -- and then even with guidance, we're going up a little bit, our overall market, I would say, is flat, okay, the market we sell into. But when we are ramping a new SoC, which happens to be a higher ASP than our old SoC, initially, the customers need to put in production-based inventory, some buffer inventory. So they'll pull harder on those new chips than they're on -- than what their actual production is, at least for a period of time, right? So we see -- the reason we're seeing some growth is partly because of the higher ASP of the mix and partly because of the stocking of this new chip. Whether that's sustained pull-through in 2026 or not, will completely depend on the end markets.

是的，沒問題。我不想在這裡被誤解。就整體市場而言，我們在3LCD領域佔據強勢地位，市佔率遠超過90%，至少就我所知。所以，即使我們的核心業務環比——甚至根據業績指引——有所成長，我們的整體市場，我想說，是持平的，也就是我們銷售的市場。但是，當我們量產一款新的SoC時，其平均售價恰好比舊款SoC更高，最初客戶需要投入一些基於生產的庫存，也就是緩衝庫存。因此，他們對這些新晶片的採購力度會比他們現有的——比他們的實際產量——至少在一段時間內會更大，對吧？所以我們看到——我們看到一些成長的原因，部分是因為產品組合的平均售價更高，部分是因為新晶片的備貨。這種成長能否在2026年持續下去，將完全取決於終端市場。

Understood. And if I could just squeeze one last one. Can you just confirm if you did any EOL business in 2Q or we're waiting until 4Q to see that?

明白了。我最後再問一個問題。您能否確認一下，第二季是否有任何停產業務？還是說我們要等到第四季才能看到？

So what we were saying is we EOLed the visual -- the last of our consumer visual -- our video delivery products, our transcoding chips. And when we -- that was a process of notification to customers in early '24, and they had to take last shipments by the end of '24. That was all complete. We had a couple of customers that came back, which is almost predictable any time you end of life a series of devices like this that have been in the market for well over 10 years that somebody comes back, even though you've notified them and says, hey, we need more. Oh, hey, we have a new program. Hey, can you support us on some derivative program? And so we've had two customers that we've engaged in those discussions.

所以我們的意思是，我們停止了視訊產品——我們最後的消費級視訊產品——也就是視訊傳輸產品，也就是轉碼晶片的銷售。我們在2024年初就通知了客戶，他們必須在2024年底前收到最後一批貨。一切都結束了。之後，我們有幾個客戶回來了。這幾乎是可以預見的，當你停止生產一系列已經在市場上銷售超過10年的設備時，總是會有人回來，即使你已經通知過他們，他們會說，嘿，我們需要更多。哦，嘿，我們有一個新的項目。嘿，你能支持我們一些衍生項目嗎？所以我們已經和兩個客戶進行了討論。

As long as you have the ability to go back to our supply chain and manufacture it, which we have validated, we can do it. But because you're no longer supporting this as a standard product, the engagement with those customers is a very specific engagement where they have to take the liability of the production. And they have to make it. There's usually large minimum orders required and certain delivery lead times, which they're probably going to have to inventory, the devices that they want them. And so if it's a large opportunity, it's a lot for a customer to bite off on. And so they need to think about it, but that's the terms of coming back after an EOL is done.

只要您有能力回到我們的供應鏈並進行生產（這一點我們已經驗證過），我們就能做到。但由於您不再將其作為標準產品來支持，與這些客戶的合作變得非常具體，他們必須承擔生產責任，並且必須生產。通常需要大量的最低訂單量和一定的交貨週期，他們可能需要對所需的設備進行庫存管理。因此，如果這是一個巨大的機會，那麼客戶很難抓住機會。他們需要考慮這一點，但這就是停產後回歸的條件。

I show no further questions at this time. I'd like to turn it back to management for closing remarks.

我現在沒有其他問題了。我想把時間交還給管理階層，請他們做最後發言。

Well, thanks. We clearly have a lot of activity over here. I look forward to updating you most probably on the strategic process before our next quarterly call. Thank you.

好的，謝謝。我們這邊顯然有很多活動。我期待在下次季度電話會議前向大家報告一下策略進展。謝謝。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您可以掛斷電話了。