Shares of Pixelworks (PXLW) vaulted about 43% in Thursday morning trading after it emerged that tech giant Apple (AAPL) is one of its major customers.
PXLW, which develops video processing components and software, noted its relationship with Apple in documents filed with the U.S. Securities and Exchange Commission (SEC) on Wednesday. PXLW also identified two large Japanese manufacturers — Hitachi (HTHIY) and NEC — as major customers in the regulatory filings. The filings did not specify exactly what Apple has purchased from PXLW, AppleInsider notes.
According to the filings, PXLW generated 57% of its annual revenue in 2013 from its top five customers, including Apple, NEC and Hitachi. The filings represent the first confirmation that Apple is a PXLW customer.
Video processing technology from PXLW would be a natural fit for companies that produce high-resolution monitors and displays, like Apple’s Mac computers, iPhones and iPads. PXLW technology would also be useful in large-screen TVs. Apple has long been rumored to be working on its own television set.
PXLW stock closed at $4.80 a share on Wednesday. Over the past year, PXLW stock has gained more than 90%.