Sec Form 4 Filing - Hess Damon M @ PIXELWORKS, INC - 2007-03-05

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person Hess Damon M 2. Issuer Name and Ticker or Trading Symbol PIXELWORKS, INC [ PXLW] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner X __ Officer (give title below) _____ Other (specify below) Vice President Sales (Last) (First) (Middle) 8100 SW NYBERG RD. 3. Date of Earliest Transaction (MM/DD/YY) 03/05/2007 (Street) TUALATIN, OR97062 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 9,117 D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Non-Qualified Stock Option (right to buy) $ 1.86 03/05/2007 A 100,000 ( 1 ) 03/05/2017 Common Stock 100,000 $ 1.86 100,000 D Non-Qualified Stock Option (right to buy) $ 2.03 ( 1 ) 02/12/2017 Common Stock 22,000 22,000 D Non-Qualified Stock Option (right to buy) $ 2.49 ( 2 ) 12/04/2013 Common Stock 13,175 13,175 D Non-Qualified Stock Option (right to buy) $ 4.65 ( 3 ) 02/08/2016 Common Stock 30,000 30,000 D Non-Qualified Stock Option (right to buy) $ 6.46 ( 3 ) 07/23/2013 Common Stock 5,000 5,000 D Non-Qualified Stock Option (right to buy) $ 8.249 ( 3 ) 06/03/2012 Common Stock 4,000 4,000 D Non-Qualified Stock Option (right to buy) $ 8.5 ( 3 ) 04/02/2011 Common Stock 10,000 10,000 D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other Hess Damon M 8100 SW NYBERG RD. TUALATIN, OR97062 Vice President Sales Signatures By: Alice Myton For: Damon Hess 03/07/2007 Signature of Reporting Person Date

Explanation of Responses:

( 1 )Becomes exercisable on a monthly basis over 3 years, commencing the last day of the month of the date of grant. ( 2 )Options become exercisable over 18 months as follows: 33.3% on June 30, 2007 and 66.7% becoming exercisable at a rate of 5.56% on a monthly basis thereafter over 12 months, or through June 30, 2008. ( 3 )The options become exercisable on a monthly basis at a rate of 10% in year 1, 20% in year 2, 30% in year 3 and 40% in year 4, which commences on the last day of the month the option is granted.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

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