It’s a good day to be an investor in shares of Pixelworks, Inc. (NASDAQ:PXLW). Pixelworks shares rose almost 11% this morning, after the video display technology company provided a solid preliminary financial results for the fourth quarter of 2016.
For the quarter ended December 31, 2016, revenue is expected to be approximately $16 million, at the high end of the Company’s previous revenue guidance of $15 million to $16 million. The Company also expects to report a profit for the fourth quarter on a fully diluted GAAP basis, compared to previous guidance of a loss of $0.06 per share to breakeven. Additionally, the Company generated cash from operations in the fourth quarter and anticipates a quarter-end cash balance of approximately $19.6 million, net of any borrowing, which is approximately $3 million greater than at the end of the third quarter.
On the ratings front, Roth Capital analyst Brian Alger reiterated a Buy rating on PXLW, with a price target of $3.30, in a report issued on October 28. The current price target implies an upside of 17% from current levels. According to TipRanks.com, Alger has a yearly average return of 19.5%, a 69% success rate, and is ranked #201 out of 4347 analysts.
Pixelworks, Inc. designs, develops and markets video and pixel processing semiconductors, intellectual property cores, software and custom ASIC solutions for digital video applications. Its products allow manufacturers and developers of digital display and projection devices to manufacture screens of all sizes that display the highest video quality with minimum power consumption. The company was founded in 1997 by Allen H. Alley and is headquartered in San Jose, CA.