| PIXELWORKS, INC. | |||||||||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL INFORMATION * | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
| 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||
| Reconciliation of GAAP and non-GAAP gross profit | |||||||||||||||
| GAAP gross profit | $ | 3,976 | $ | 5,049 | $ | 9,347 | $ | 15,800 | $ | 27,195 | |||||
| Amortization of acquired intangible assets | 298 | 298 | 298 | 894 | 894 | ||||||||||
| Restructuring | 166 | - | - | 166 | - | ||||||||||
| Stock-based compensation | 117 | 127 | 89 | 345 | 267 | ||||||||||
| Inventory step-up and backlog amortization | - | - | - | - | 12 | ||||||||||
| Total reconciling items included in gross profit | 581 | 425 | 387 | 1,405 | 1,173 | ||||||||||
| Non-GAAP gross profit | $ | 4,557 | $ | 5,474 | $ | 9,734 | $ | 17,205 | $ | 28,368 | |||||
| Non-GAAP gross profit margin | 55.6 | % | 59.2 | % | 53.9 | % | 55.1 | % | 53.8 | % | |||||
| Reconciliation of GAAP and non-GAAP operating expenses | |||||||||||||||
| GAAP operating expenses | $ | 12,113 | $ | 11,470 | $ | 11,791 | $ | 35,635 | $ | 35,420 | |||||
| Reconciling item included in research and development: | |||||||||||||||
| Stock-based compensation | 820 | 806 | 570 | 2,274 | 1,934 | ||||||||||
| Reconciling items included in selling, general and administrative: | |||||||||||||||
| Stock-based compensation | 913 | 1,310 | 839 | 3,296 | 2,651 | ||||||||||
| Amortization of acquired intangible assets | 76 | 76 | 76 | 228 | 236 | ||||||||||
| Restructuring | 1,430 | - | - | 2,022 | 398 | ||||||||||
| Total reconciling items included in operating expenses | 3,239 | 2,192 | 1,485 | 7,820 | 5,219 | ||||||||||
| Non-GAAP operating expenses | $ | 8,874 | $ | 9,278 | $ | 10,306 | $ | 27,815 | $ | 30,201 | |||||
| Reconciliation of GAAP and non-GAAP net loss | |||||||||||||||
| GAAP net loss | $ | (8,139 | ) | $ | (6,552 | ) | $ | (2,306 | ) | $ | (20,090 | ) | $ | (4,621 | ) |
| Reconciling items included in gross profit | 581 | 425 | 387 | 1,405 | 1,173 | ||||||||||
| Reconciling items included in operating expenses | 3,239 | 2,192 | 1,485 | 7,820 | 5,219 | ||||||||||
| Reconciling items included in total other income, net | - | - | - | - | (3,905 | ) | |||||||||
| Tax effect of non-GAAP adjustments | (137 | ) | 18 | (84 | ) | (144 | ) | 49 | |||||||
| Non-GAAP net loss | $ | (4,456 | ) | $ | (3,917 | ) | $ | (518 | ) | $ | (11,009 | ) | $ | (2,085 | ) |
| Non-GAAP net loss per share - basic and diluted | $ | (0.11 | ) | $ | (0.10 | ) | $ | (0.01 | ) | $ | (0.28 | ) | $ | (0.06 | ) |
| Non-GAAP weighted average shares outstanding - basic and diluted | 40,766 | 39,444 | 38,086 | 39,697 | 37,677 | ||||||||||
| *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. | |||||||||||||||
