News Of Revenue From Apple Inc (NASDAQ:AAPL) Props Pixelworks, Inc. (NASDAQ:PXLW)
Pixelworks, Inc. (NASDAQ:PXLW) the makers of chips which drive high definition video processing on screens which range from cameras and tablets to smart phones, disclosed on 6th March to SEC in a mandatory filing that in the just concluded fiscal 2013, ending 31st December revenue stream from its top two customers Apple Inc.(NASDAQ:AAPL) and NEC Corporation each accounted for more than 10 percent and above of its overall 2013 revenue ( which is to be reported on 6th March).
The regulatory update filled by Pixelworks, Inc. (NASDAQ:PXLW) goes on to elaborate that, “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.”
Filing Throws Light On Underlying Demand
The filing goes on to provide a high level view of the likely impact it’s high definition video pixel enabling chips are likely to have on the broader digital market in which screens and digital device makers will try to outdo each other to offer more pixels per square inch, in order to differentiate themselves from competition. Pixelworks, Inc. (NASDAQ:PXLW) also explains that the higher definition digital content being produced and developed in the world today is also seeing a incremental increase, leading to a huge demand for its high definition pixel enabling chipsets.
On the back of the disclosure, the investor community piled on to the stock of this $197 million market capped semiconductor player, leading to a 87 percent increase in the stock’s market valuation through the day. Analysts have opined that the move by Pixelworks, Inc. (NASDAQ:PXLW) to disclose its working relationship with globe’s premier tech firm was a smart move, since this is bound to attract more equipment manufacturers and suppliers to its door steps seeking similar or newly designed chips which could be embedded into their products.