PIXELA CORPORATION

Business Details

While maintaining hardware sales of digital TV tuners, TV capture devices, and IoT communication equipment as its core, the segment is promoting a shift toward new businesses such as the smart ring "Re・De Ring", the point-program app "EveryPoint", and the Web3 healthcare platform "WellthVerse". The company aims for a structural transformation from one-time hardware sales to recurring revenue driven by software royalties, maintenance, and incentive-linked models.

Recent Overview

Net sales rose 6.9% year on year to ¥265 million, and segment loss improved year on year to -¥78 million

Net sales in the AV-Related Business for the cumulative second quarter of FY2026 (ending September 2026) (October 2025 to March 2026) were ¥265 million (up 6.9% year on year). Home-related products increased significantly to ¥151 million (up 52.4% year on year) on strong sales of the Xit Air Series and contribution from the new PIX-SMB400-NX product, while IoT-related products declined to ¥40 million (down 41.2% year on year) due to a significant decrease in BtoB results. Segment loss improved to ¥78 million from ¥86 million in the same period of the prior year. New initiatives progressed, including the start of Re・De Ring sales at all Yodobashi Camera stores, a planned large-scale PoiTele rollout at major mass retailers (scheduled for the third quarter), and the start of OEM discussions with major home appliance manufacturers.

Key Products

Growth Drivers

• Enhanced recognition of the Xit Air Series as a TV viewing device through multi-OS compatibility (GoogleTV, iOS, etc.) and expanded bundled sales with ceiling-mounted projectors
• Expansion into mass retailer channels and improved brand recognition, starting with the rollout of Re・De Ring at all Yodobashi Camera stores
• PoiTele's planned large-scale rollout at major mass retailers in the third quarter and OEM deployment of next-generation tuner technology to major home appliance manufacturers (under discussion with multiple companies)
• Building a point and incentive economic zone through enhanced integration between the point-program app EveryPoint and products such as Re・De Ring and PoiTele
• Increased demand and improving sales trend for the hotel STB and the LTE-compatible USB dongle PIX-MT110
• Overseas BtoB revenue opportunities from continued demand for the EWBS-compatible overseas STB (once transmitter-side infrastructure development is complete)
• Structural transformation from one-time hardware sales to recurring revenue through software royalties, maintenance, and incentive-linked models

Risks

• Material doubt about going concern due to eight consecutive periods of operating losses and twelve consecutive periods of negative operating cash flow
• Structural decline in the tuner market due to the shift from TV viewing to streaming
• Significant decline in BtoB results for IoT-related products (down 41.2% year on year for the current interim period) and decreased consumer sales due to competitors' new products
• Uncertainty regarding the timing of monetization for new businesses (EveryPoint, WellthVerse, Re・De Ring)
• Redemption burden and cash flow risk related to unsecured ordinary bonds issued to EVO FUND (¥1,600 million issued in the current interim period, with ¥750 million recorded as bonds due within one year)
• Risk that PoiTele's mass retailer rollout and OEM negotiations may not proceed as planned
• Uncertainty regarding the timing of sales recognition for the EWBS-compatible overseas STB due to delays in transmitter-side infrastructure development