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PIXELWORKS, INC.
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL INFORMATION * (In thousands, except per share data) (Unaudited) | |||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||||
| 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
| Reconciliation of GAAP and non-GAAP gross profit | |||||||||||||||||||||
| GAAP gross profit | $ | 7,300 | $ | 9,347 | $ | 10,905 | $ | 34,495 | $ | 39,478 | |||||||||||
| Amortization of acquired intangible assets | 298 | 298 | 298 | 1,192 | 1,192 | ||||||||||||||||
| Stock-based compensation | 100 | 89 | 93 | 367 | 324 | ||||||||||||||||
| Inventory step-up and backlog amortization | — | — | 17 | 12 | 475 | ||||||||||||||||
| Deferred revenue fair value adjustment | — | — | — | — | 52 | ||||||||||||||||
| Total reconciling items included in gross profit | 398 | 387 | 408 | 1,571 | 2,043 | ||||||||||||||||
| Non-GAAP gross profit | $ | 7,698 | $ | 9,734 | $ | 11,313 | $ | 36,066 | $ | 41,521 | |||||||||||
| Non-GAAP gross profit margin | 48.0 | % | 53.9 | % | 55.1 | % | 52.5 | % | 54.2 | % | |||||||||||
| Reconciliation of GAAP and non-GAAP operating expenses | |||||||||||||||||||||
| GAAP operating expenses | $ | 12,198 | $ | 11,791 | $ | 12,412 | $ | 47,618 | $ | 44,298 | |||||||||||
| Reconciling item included in research and development: | |||||||||||||||||||||
| Stock-based compensation | 611 | 570 | 635 | 2,545 | 2,466 | ||||||||||||||||
| Reconciling items included in selling, general and administrative: | |||||||||||||||||||||
| Stock-based compensation | 1,086 | 839 | 910 | 3,737 | 2,893 | ||||||||||||||||
| Amortization of acquired intangible assets | 76 | 76 | 101 | 312 | 404 | ||||||||||||||||
| Restructuring | — | — | 429 | 398 | 1,464 | ||||||||||||||||
| Total reconciling items included in operating expenses | 1,773 | 1,485 | 2,075 | 6,992 | 7,227 | ||||||||||||||||
| Non-GAAP operating expenses | $ | 10,425 | $ | 10,306 | $ | 10,337 | $ | 40,626 | $ | 37,071 | |||||||||||
| Reconciliation of GAAP and non-GAAP net income (loss) | |||||||||||||||||||||
| GAAP net loss | $ | (4,456 | ) | $ | (2,306 | ) | $ | (1,469 | ) | $ | (9,077 | ) | $ | (3,913 | ) | ||||||
| Reconciling items included in gross profit | 398 | 387 | 408 | 1,571 | 2,043 | ||||||||||||||||
| Reconciling items included in operating expenses | 1,773 | 1,485 | 2,075 | 6,992 | 7,227 | ||||||||||||||||
| Reconciling items included in total other income, net | — | — | — | (3,905 | ) | (1,203 | ) | ||||||||||||||
| Tax effect of non-GAAP adjustments | (49 | ) | (84 | ) | 237 | — | — | ||||||||||||||
| Non-GAAP net income (loss) | $ | (2,334 | ) | $ | (518 | ) | $ | 1,251 | $ | (4,419 | ) | $ | 4,154 | ||||||||
| Non-GAAP net income (loss) per share: | |||||||||||||||||||||
| Basic | $ | (0.06 | ) | $ | (0.01 | ) | $ | 0.03 | $ | (0.12 | ) | $ | 0.12 | ||||||||
| Diluted | $ | (0.06 | ) | $ | (0.01 | ) | $ | 0.03 | $ | (0.12 | ) | $ | 0.11 | ||||||||
| Non-GAAP weighted average shares outstanding: | |||||||||||||||||||||
| Basic | 38,370 | 38,086 | 36,736 | 37,851 | 35,959 | ||||||||||||||||
| Diluted | 38,370 | 38,086 | 38,320 | 37,851 | 37,819 | ||||||||||||||||
| *Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the reconciliations from GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to "Non-GAAP Financial Measures” in this document for an explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors. | |||||||||||||||||||||
