Pixelworks, Inc.

Good day, ladies and gentlemen, and welcome to Pixelworks' first quarter 2026 earnings conference call. I will be your operator for today's call. At this time, all participants are in a listen-only mode. After the speaker's presentation, we'll open up for questions. To ask a question during a session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. As a reminder, this conference call is being recorded for replay purposes. I would like to turn the call over to Brett Perry with Shelton Group Investor Relations.

Thank you, Victor. Good afternoon, and thank you for joining us on today's call. With me on the call are Pixelworks Chairman and CEO Todd DeBonis and Chief Financial Officer Haley Munn. The purpose of today's conference call is to supplement the information provided in Pixelworks' press release issued earlier today announcing the company's financial results for the first quarter of 2026. Before we begin, I'd like to remind you that various remarks we make on this call, including those about projected future financial results, economic and market trends, and competitive position constitute forward-looking statements. These forward-looking statements and all other statements made on this call that are not historical facts are subject to risks and uncertainties that may cause actual results to differ materially. All forward-looking statements are based on the company's beliefs as of today, Thursday, May 14, 2026. The company undertakes no obligation to update any such statements to reflect events or circumstances occurring after today. Please refer to today's press release, the company's annual report on Form 10-K for the year ended December 31, 2025, and subsequent SEC filings for a description of factors that could cause forward-looking statements to differ materially from actual results. Please note that throughout the company's press release and management statements during this conference call, we refer to net loss attributable to Pixelworks as simply net loss. With that, it's now my pleasure to turn the call over to Pixelworks Chairman and CEO, Todd. Please go ahead.

Thank you, Brett. Good afternoon and welcome to everyone joining us for today's conference call. As previewed on the previous conference call in February, Q1 was a transformational quarter for Pixelworks. After closing the sale of our Shanghai-based semiconductor subsidiary and receiving the net cash proceeds from the transaction in early January, we completed a series of planned restructuring actions to streamline the remaining organization and cost structure. The one-time severance and other related costs resulting from these actions were recognized during the first quarter, and we expect to realize a significantly lower run rate for operating expenses beginning in the second quarter. Also during the quarter, we settled all remaining cash outlays associated with the sale of our Shanghai subsidiary. And we ended the first quarter with cash balance of $58 million and zero debt. Taken together, we exited the first quarter as a repositioned, well-capitalized, and focused company with our entire team supporting the go-forward strategy of building a global technology licensing business. As a reminder, post-transaction, we continue to have ownership of salient intellectual property, including over 60 issued and pending patents anchored by our industry-leading TrueCut Motion platform and motion grading services. Our strategy is centered on enabling a truly differentiated viewing experience while continuing to expand our core strengths in visualization enhancement solutions and pursuing new and existing licensing initiatives. Today, our True Cut Motion platform continues to be utilized by leading filmmakers to enhance the cinematic experience across premium theatrical screens. We recently completed work on one of our most complex motion grading projects to date in support of the most technically ambitious theatrical release of the year, Billie Eilish, Hit Me Hard and Soft, the tour live in 3D. Directed by Billie Eilish and Academy Award winning James Cameron, and distributed globally by Paramount Pictures, the film was released to premium large format 3D theaters on May 8th, where it generated an estimated worldwide box office of $20 million in the opening weekend, effectively recouping the film's full production budget in a matter of days. Working in post-production alongside Lightstorm and multiple contributing technology providers, our True Cut Motion platform was tasked with overcoming unprecedented motion grading challenges, including novel, world-first camera systems and multiple source frame rates. The end result was a stunning and immersive concert experience in which true-cut motion enabled the creative team to preserve the raw energy of live performances while delivering perfect cinematic motion clarity. The New York Times review summed it up as, the pure quality of image and visceral sense of 3D immersion is spectacular. This high-profile collaboration and highly technical implementation of true-cut motion grading further validates the unique value proposition of our core cinematic solution, positioning Pixelworks as a recognized enabler of next-generation immersive entertainment experiences. In addition, there continues to be consistent indications by both the studios and theater operators shifting towards premium large format experiences. At the annual CinemaCon conference held in April, the atmosphere was observably upbeat with year-to-date box office sales tracking approximately 20% higher over the same period in 2025. Leading studios expressed renewed volume of theatrical releases and commitments to longer exhibition exclusivity periods, with Paramount committing to 30 films annually and Amazon MGM scaling to 15 targeted releases, while also endorsing a 45-day theatrical window that establishes a stable pipeline of content for exhibitors. Also in conjunction with CinemaCon, Disney launched its new Infinity Vision certification aimed at expanding consumer awareness of premium large format screens. underscoring the increased importance of higher margin revenue from premium large format content and experience-based pricing. Collectively, these observed trends at the world's largest show for global motion picture industry continue to validate our thesis and the industry's increasing emphasis on premium large format theatrical experiences. As part of our strategy to accelerate expanded adoption of our True Cut Motion platform, Our near-term focus is on supporting the theatrical release of premium, visually stunning films. This includes broadening our direct engagement with leading premium exhibitors who share our motivation to encourage both studios and filmmakers to consistently make more premium format content available. Following the collaborative ecosystem partnerships that we announced with Marcus Theatres and Odeon Cinemas Group earlier this year, And in addition to our previously launched collaboration with CineD, we recently added another published endorsement with Vue, the largest privately owned cinema operator in Europe, to bring our advanced TruCut motion grading technology to their premium theaters. This includes prioritizing TruCut content as part of Vue's most advanced Epic brand cinematic experience. Featuring world-leading HDR laser projection by Barco and advanced light steering technology, that delivers up to six times the brightness of standard cinema screens. With True Cut Motion's unique and commercially proven capability to enable the most authentic, high-fidelity viewing experience, you will see us continue to expand our True Cut Motion ecosystem of leading premium exhibitors. As we grow this ecosystem, it will naturally drive increasing market demand for premium large format content from filmmakers and studios. And while our R&D team continues to expand on the existing capabilities and increasing productivity of our TrueCut motion grading tools, we are also simultaneously pursuing compelling adjacent market opportunities to deliver enhanced visualization solutions leveraging our core technology and expertise. I look forward to elaborating on these efforts and complementary opportunities as they evolve and mature over the coming quarters. In closing, I want to reiterate that during the quarter we completed all targeted restructuring and streamlining actions following the close sale of our prior Shanghai semiconductor subsidiary. As a result, we exited the first quarter fully repositioned as a global technology licensing company with a unified organization that's more nimble, scalable, and asset light, and focused on delivering highly differentiated cinematic and visualization enhancement solutions. We are well capitalized to execute on our strategic growth objectives and are committed to maintaining a robust balance sheet as we continue to build a broader and highly profitable licensing business centered around cinematic and visual enhancement solutions. With that, I'll turn the call over to Haley to provide some additional financial details for the quarter, including our current balance sheet position.