Pixelworks (PXLW) saw its loss almost stable for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1.24 million, or $0.05 a share. On the other hand, adjusted net loss for the quarter widened to $0.44 million, or $0.02 a share from a loss of $0.17 million or $0.01 a share, a year ago. 

Revenue during the quarter dropped 17.59 percent to $13.66 million from $16.57 million in the previous year period. Gross margin for the quarter contracted 194 basis points over the previous year period to 48.02 percent. Operating margin for the quarter stood at negative 7.03 percent as compared to a negative 7.25 percent for the previous year period.

Operating loss for the quarter was $0.96 million, compared with an operating loss of $1.20 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $0.67 million compared with $0.89 million in the prior year period. At the same time, adjusted EBITDA margin contracted 46 basis points in the quarter to 4.91 percent from 5.37 percent in the last year period.  

president and chief executive officer of Pixelworks, Todd DeBonis, commented, "Third quarter revenue and earnings per share were both at the high-end of our guidance, reflecting continued sequential improvement across our business. Our projector business benefited from increased traction throughout the quarter as order patterns from OEMs and distributors began to normalize following the channel disruptions experienced earlier this year. In our mobile business, we are now sampling our 3rd generation IRIS processor at key smartphone and tablet customers, which in addition to having a smaller footprint and improved power consumption also enables OEMs to differentiate their devices with a superior mobile viewing experience. I’m also pleased to announce the appointment of Ting Xiong as Pixelworks’ senior VP of worldwide sales, who will be based in China and most recently headed the APAC sales organization at Qorvo’s IDP group. Ting fills-out our sales footprint and combined with other additions to the team earlier in the year gives us broad sales coverage across all of the key mobile markets in Asia."

For the fourth-quarter, Pixelworks projects revenue to be in the range of $15 million to $16 million.                                             

Cash conversion cycle (CCC) has decreased to 10 days for the quarter from 22 days for the last year period. Days sales outstanding went up to 29 days for the quarter compared with 26 days for the same period last year.

Days inventory outstanding has decreased to 20 days for the quarter compared with 35 days for the previous year period. At the same time, days payable outstanding went down to 39 days for the quarter from 40 for the same period last year.