Why Pixelworks (PXLW) Is Spiking Today

NEW YORK (TheStreet) -- Pixelworks (PXLW) was spiking 42.7% to $6.85 Thursday after the company detailed its relationship to Apple (AAPL) in an SEC filing.

In a regulatory filing the display maker disclosed that sales to Apple made up more than 10% of its revenue in 2013.

"Recent advancements in display manufacturing technology have allowed display manufacturers to pack an increasing number of pixels into tighter spaces," the filing says. "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. This trend of providing more pixels is likely to continue as display manufacturers and device manufacturers seek differentiation, and as content is created at increasingly higher resolutions."

It is not clear what Apple products use or will use Pixelworks products.

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TheStreet Ratings team rates PIXELWORKS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate PIXELWORKS INC (PXLW) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity."

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