“Shares Pixelworks (PXLW), which makes video and pixel processing semiconductors and software, are sharply higher in pre-market trading after the company disclosed details last night about its relationship with Apple (AAPL),” The Fly On the Wall reports. ” In a regulatory filing last night, Pixelworks disclosed that sales to each of Apple and NEC Corporation represented more than 10% of Pixelworks’ revenue in 2013.”
From Pixelworks’ 10-K SEC filing:
Recent advancements in display manufacturing technology have allowed display manufacturers to pack an increasing number of pixels into tighter spaces. This transition was led by the mobile segment, and in particular by Apple’s “Retina” display, which set the standard for smaller screens. The resolution on display devices in all segments is increasing. This trend of providing more pixels is likely to continue as display manufacturers and device manufacturers seek differentiation, and as content is created at increasingly higher resolutions…
Revenue attributable to our top five end customers represented 57%, 53% and 51% of revenue in 2013, 2012 and 2011, respectively. End customers include customers who purchase directly from us as well as customers who purchase products indirectly through distributors. Sales to Hitachi Ltd. represented more than 10% of revenue in each of 2013, 2012 and 2011. Sales to each of Apple Inc. and NEC Corporation represented more than 10% of revenue in 2013. Sales to Panasonic Corporation represented more than 10% of revenue in each of 2012 and 2011. Sales to Seiko Epson Corporation represented more than 10% of revenue in 2011. No other end customer accounted for more than 10% of revenue in 2013, 2012 or 2011.
Pixelworks’ full 10-K SEC filing here.
Nothing to see here. AAPL contributes less than 10% of their revenue. The bulls who pushed the share price up 50% today are going to be roasted.
That’s 10% of revenue in 2013. What could Apple possibly do with so little of a purchase? Perhaps built prototypes? If so, that could mean a large ongoing relationship starting in 2014.