Nicolas Doyle's questions to PIXELWORKS (PXLW) leadership • Q1 2025
Question
Nicolas Doyle sought clarification on mobile business engagements, asking about the status of programs with the lead customer and whether additional engagements would contribute to 2025 revenue. He also asked about the gross margin impact from product yield issues and the potential to return to historical levels.
Answer
Executive Todd DeBonis explained that the collaboration with the lead customer is for a new graphics accelerator solution for low-cost phones, which is now being marketed internally to that customer's program managers. Other engagements are already booked design wins for the X7P chip. Regarding margins, he clarified that the near-term pressure is from yield ramp-up on a new projector chip, not a mobile product, and he expects yields to improve. However, he noted that as the lower-margin mobile business ramps up, the overall product mix will become more important.