From televisions to tablets, the world is going high definition — and companies that produce the technology to enable ever smaller and higher-def packages are going to profit.
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That’s the operating thesis under which investors are snapping up HD processing company Pixelworks today. The stock is up over 80% on Thursday after it revealed in its annual report that it has a large relationship with Apple. While relationships with the world’s largest computer company are usually kept quiet, Pixelworks had no choice but to reveal that it relied on Apple for more than 10% of its revenues in 2013.
Granted, that’s still a small partner for the massive Apple — Pixelworks had 2013 revenue of only $48 million. However, Wall Street is speculating as to what exactly Pixelworks may be providing for Apple.
Could it be something related to a new “iTV” product? Perhaps. Or maybe the company contributes to work on an existing product, like the iPhone’s Retina display. No matter what, investors may be speculating that the small cap company could be an acquisition target for cash-rich Apple at some point.
Pixelworks designs and develops semiconductors, software, and other solutions for processing high-end digital video applications. They work on optimizing technology for screens of all sizes, trying to deliver high quality video while minimizing bandwidth and power consumption. Other companies Pixelworks attributed more than 10% of revenue in 2013 include Hitachi and NEC Corporation.
Pixelworks was founded in 1997 and now employs 223 people. Incorporated in Oregon, it has offices in Portland, San Jose, Tokyo, Taipei, Shanghai, Shenzen, Seoul, and Hsinchu.