Himax Technologies, Inc. Reports Second Quarter 2023 Financial Results; Provides Third Quarter 2023 Guidance
Q2 2023 Gross Margin Beat Guidance, Revenues and EPS at Upper End of Guidance Range Issued on May 11, 2023
Company Q3 2023 Guidance: Revenues to be Flat to Decline
- Q2 2023 revenues were
$235.0M , a decrease of3.8% QoQ, at the upper end of guidance range of decline9.0% to flat QoQ. Q2 GM reached21.7% , surpassing guidance range of20.0% to21.0% , due to a favorable product mix - Q2 2023 after-tax profit was
$0.9M , or 0.5 cents per diluted ADS, compared to$14.9M , or 8.5 cents last quarter - Company’s Q3 2023 revenues to be flat to decline
7.0% QoQ. GM around30.5% to32.0% , substantial improvement from the Q2 trough. Profit per diluted ADS to be in the range of 1.5 cents to 6.0 cents - The Company sees renewed momentum in the automotive market, its biggest sales contributor, and believes the stage is set for a sales rebound as it approaches the end of the year, supported by more favorable product mix, improved cost structure and normalized inventory level which should also lead to improved gross margin
- The Company’s inventory depletion is progressing nicely with Q3 inventory level on track for a meaningful reduction. Company’s inventory will normalize near historical average levels by the end of the year
- On automotive TDDI, Company remains confident that it will enjoy strong growth as its leading market share position remains unchallenged. Q3 automotive TDDI sales will account for over
30% of total automotive sales and are poised to continue to increase - The Company’s automotive sales for traditional DDIC, TDDI and Tcon are all set to enjoy decent double-digit QoQ growth in Q3, collectively represent almost
45% of total sales. Himax has already secured well over 300 design-wins and the number of new design-in projects is still increasing - The Company has witnessed steady growth in the adoption of WiseEye products particularly in home surveillance applications, specifically door lock, doorbell and battery camera. Company has a successful collaboration with a leading door lock vendor in China, the largest market globally. The project is slated for mass production starting in 2H23 with anticipated growth extending to 2024
- The Company focuses on strengthening its Intelli-Sensing Module business to further broaden customer base and application. The module offerings, incorporating WiseEye technology, provide clients with a series of highly integrated, plug-and-play module boards which are user-programmable but also loaded with Company’s pre-trained AI models for simple system integration
TAINAN, Taiwan, Aug. 10, 2023 (GLOBE NEWSWIRE) -- Himax Technologies, Inc. (Nasdaq: HIMX) (“Himax” or “Company”), a leading supplier and fabless manufacturer of display drivers and other semiconductor products, announced its financial results for the second quarter 2023 ended June 30, 2023.
“Now, looking ahead with renewed momentum in the automotive market, we believe the stage is set for a sales rebound as we approach the end of the year, supported by more favorable product mix, improved cost structure and normalized inventory level which should also lead to improved gross margin. In terms of gross margin, for the Q3, we expect substantial improvement from the Q2 trough,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax.
“Favorable product mix shift is also a key factor contributing to our expected Q3 GM expansion. This is predominately driven by increased automotive sales, thanks to a robust recovery in the Chinese automotive market leading to order resumption from customers. Notably, our automotive sales for traditional DDIC, TDDI and Tcon are all set to enjoy decent double-digit sequential growth in Q3 and, collectively, are expected to represent almost
Second Quarter 2023 Financial Results
Himax net revenues registered
Revenue from large display drivers was
Small and medium-sized display driver revenue was
Second quarter revenues from its non-driver business exceeded guidance with revenue of
Operating expenses for the second quarter were
Balance Sheet and Cash Flow
Himax had
The Company’s inventories as of June 30, 2023 were
Outstanding Share
As of June 30, 2023, Himax had 174.4 million ADS outstanding, unchanged from last quarter. On a fully diluted basis, total number of ADS outstanding for the second quarter was 174.7 million.
Q3 2023 Outlook
The prevailing sentiment in the consumer electronics market for semiconductor remains sluggish. Customers continue to exercise caution towards panel procurements, limiting Company’s visibility into the second half for consumer products. However, Himax sees improving business momentum in the automotive sector, its largest sales contributor, where a healthy rebound from the first half weakness appears to be underway. As a reminder, the global automotive market experienced a severe downturn throughout the first half of the year as major Chinese automakers cut back production and implemented strict cost control measures due to intensified EV price competition, adversely impacting its first half sales. Now, looking ahead with renewed momentum in the automotive market, Himax believes the stage is set for a sales rebound as it approaches the end of the year, supported by more favorable product mix, improved cost structure and normalized inventory level which should also lead to improved gross margin.
In terms of gross margin, for the third quarter, Himax expects substantial improvement from the Q2 trough which was primarily related to the one-time early termination expense to foundry partners as it reported last quarter. This early termination decision was part of a crucial operating strategy for the Company. By sacrificing margin last quarter, Himax now has added flexibility where new wafer starts are no longer bound by minimum fulfillment requirements and high wafer costs set during the severe foundry capacity shortage period. Furthermore, Himax can now leverage diverse foundry sources for optimal operational efficiency and much improved cost structure, thereby maintaining Company’s product competitiveness.
Favorable product mix shift is also a key factor contributing to its expected Q3 gross margin expansion. This is predominately driven by increased automotive sales, thanks to a robust recovery in the Chinese automotive market leading to order resumption from customers. Notably, Himax’s automotive sales for traditional DDIC, TDDI and Tcon are all set to enjoy decent double-digit sequential growth in the third quarter and, collectively, are expected to represent almost
On inventory destocking. Himax’s inventory depletion is progressing nicely with Q3 inventory level on track for a meaningful reduction. At this point, Himax is comfortable in its overall inventory level, thanks to Company’s continuous effort to destock for several quarters. In addition, the remaining stocks are comprised of IC products which have a solid customer design-in base and long expected lifetimes. Himax now expects that its inventory will normalize near historical average levels by the end of the year.
While the macroeconomic environment still presents some headwinds for the Company, given the expected strength in automotive sales, improved operating flexibility and cost structure, in addition to Company’s commitment to expand its presence in high value-added areas, such as Tcon, OLED and AI, Himax expects second half sales and gross margin to improve from the first half and believes it is well positioned for long-term sustainable revenue growth.
Display Driver IC Businesses
LDDIC
Q3 large display driver IC revenue is projected to be down single digit sequentially. Himax expects TV IC business to be down high-teens quarter over quarter due to leading end brand’s stringent production control measures amidst soft market. Notebook IC sales are expected to increase by a decent double digit sequentially, predominantly from rush orders from one leading brand. Meanwhile, monitor IC sales are set to increase single digit sequentially, continuing the customers’ restocking momentum the Company saw last quarter.
SMDDIC
Despite continuing uncertainty in consumer electronics, with improved visibility and demand in the automotive market, Q3 SMDDIC revenue is expected to be flat or slightly up sequentially. Himax’s automotive driver IC business is poised to increase by a decent double digit sequentially on a strong uptick in both TDDI and traditional DDIC. However, smartphone and tablet sales are both projected to decline double digit. The sequential growth of automotive DDIC business is fueled by resumption of customer orders across the board following several quarters of inventory correction. Automotive TDDI business also resumed its growth trajectory in the third quarter, driven by increasing production of customers’ new vehicles, after an unexpected second quarter disruption. The automotive recovery has been further bolstered by supportive governmental policies, especially in China and the U.S, to incentivize new vehicle purchases. Given the rapid adoption of TDDI in new generation vehicles, where Himax has already secured well over 300 design-wins and the number of new design-in projects is still increasing as it speaks, the Company remains confident that it will continue to enjoy strong growth as its leading market share position remains unchallenged. It’s worth noting that automotive TDDI sales will account for over
On LTDI, a technology where Himax has been a pioneer in the market. Given the growing global demand for large, panoramic, interactive, and intuitive in-car display experiences, Himax anticipates accelerating adoption of LTDI in the coming years. LTDI is gaining popularity particularly among high-end car models with fancy and/or larger than 30-inch automotive displays. Company’s integrated solution of LTDI and local dimming Tcon has been adopted by many customers as their standard platform for high-end displays from which a variety of large automotive displays will be developed. This further solidifies its position among customers in the high-end automotive display market. Himax expects an influx of collaborations leading to a growing number of projects slated for mass production starting 2024.
Himax is at the front runner position in automotive display IC market, offering a comprehensive product portfolio covering the entire spectrum of specifications and technologies to address varying design needs, including traditional DDIC, TDDI, local dimming Tcon, LTDI, and AMOLED. Having the broadest, one-stop-shop offering also drives customer loyalty as evidenced by years of extensive collaboration with panel makers across the globe as well as deep engagement with Tier 1s and OEMs who deeply trust and rely on Himax expertise for their product roadmap. Himax is confident that its automotive business will continue to be the primary sales growth engine moving forward.
On smartphone and tablet product lines, Himax continues to see lackluster demand in the market. Currently a small group of peers are still in the midst of offloading inventory, offering aggressive pricing while enduring losses to deplete their excess inventory. As Himax nears the end of its destocking process, its strategy is to not engage in pricing competition, even at the expense of forfeiting revenues by turning away unprofitable projects. Having said that, Himax has placed wafter starts for select products starting Q2.
On AMOLED. Himax offers both DDIC and Tcon for OLED display and has commenced production for tablet and automotive applications jointly with global leading panel makers. For automotive OLED display, design-in activities are going smoothly with both conventional car makers and NEV vendors across different continents. Concurrently, Himax continues to gear up for AMOLED driver IC development by strategically partnering with major Korean and Chinese panel makers on various applications, covering smartphone, tablet, notebook, and TV. For smartphone AMOLED display driver, amidst a muted smartphone market, Himax still targets to commence production toward the end of 2023.
Non-Driver Product Categories
TCON
The Company anticipates Q3 Tcon sales to decrease single digit sequentially, hampered by reduced shipment for monitors and OLED displays for tablet. For OLED tablet business, Himax’s customers are still in the midst of inventory offloading due to muted end market demand. Despite the soft demand environment, the Company is actively working on the next generation IC for OLED tablet, aiming to broaden its offering and better position it for when demand returns. On automotive Tcon business. The Company continues to solidify its leadership position, particularly in local dimming Tcon which can improve display contrast while also lowering power consumption. Himax is encouraged by the growing validation and widespread deployment in both premium and mainstream car models across the globe. Himax’s automotive Tcon business is poised to experience explosive growth with notable sales contribution starting 2024. The Company expects it to be one of its major growth engines in coming years.
WiseEye Smart Image Sensing
Himax’s WiseEye Smart Image Sensing total solution incorporates the Company’s proprietary ultralow power AI processor, always-on CMOS image sensor, and CNN-based AI algorithm. Himax continues to support the mass production of Dell’s notebook along with other endpoint AI applications, including video conference device, shared bike parking, door lock, and smart agriculture, among others. The Company is also focused on strengthening its Intelli-Sensing Module business in an effort to further broaden its customer base and application. The module offerings, incorporating WiseEye technology, provide clients with a series of highly integrated, plug-and-play module boards which are user-programmable but also loaded with Company’s pre-trained AI models for simple system integration. This can effectively shorten customers’ time-to-market and reduce development cost, making it particularly well-suited for markets featuring high variety and small quantity. Throughout recent quarters, Himax has received excellent feedback from customers while seeing large increases in projects for various applications. Building on this momentum, Himax plans to roll out a series of modules that will expand its product offerings to cover more diverse markets and seize upon the vast opportunities presented in endpoint AI.
Over the past few quarters, Himax has witnessed steady growth in the adoption of WiseEye products particularly in home surveillance applications, specifically door lock, doorbell and battery camera. Notably, Himax is pleased to report a successful collaboration with a leading door lock vendor in China, the largest market globally. The project is slated for mass production starting in second half this year with anticipated growth extending to 2024. WiseEye solution is also being implemented for automotive applications, where it can intelligently detect the presence, movement or posture of the driver or passenger, delivering a broad array of AI use cases inside a vehicle. Such demand is expanding rapidly with global leading car brands for new car models, primarily in application for car owner recognition and keyless access, with other new use cases also under development.
On WE2 AI processor where Himax has engaged global notebook names for their next generation product development. The Company has made significant progress in enriching AI features and use cases through collaborations with major CPU and AP SOC players for next generation smart notebook, surveillance and a host of other endpoint AI applications. The WE2 processor offers further advancements in inference speed and ultralow power, maintaining superior power efficiency compared to Himax’s already industry-leading first-generation AI processor, WE1. Furthermore, in context aware AI, WE2 enables more detailed computer vision object analysis, such as real-time facial landmark, hand landmark, and human pose and skeleton, among others, at extremely low power consumption. This enables sophisticated human expression detection for smart notebook and broader AIoT applications.
Having established a leading position in ultralow power AI processing and image sensing for endpoint AI applications, Himax is firmly committed to the WiseEye product line’s ongoing development and growth. By leveraging broad ecosystem partners and customers, Himax aims to maximize market reach and explore potential applications. The Company believes that its WiseEye AI business will serve as a multi-year structural growth driver for Himax.
Optical Related Product Lines / Metaverse
On Himax’s optical related product lines. Himax is one of the few companies in the world that can offer a diverse range of optical products including WLO, 3D Sensing, and LCoS for the development of immersive technologies and the realization of the metaverse. Himax is well-positioned to capitalize on the growth of this nascent industry as its technologies are vital for facilitating immersive content, evidenced by the growing list of AR/VR goggle device engineering projects with leading customers across the board.
On WLO update. Himax recently commenced volume production of WLO technology to a leading North American customer starting in the second quarter for their new generation VR devices to enable 3D gesture control. The Company expects a decent shipment for this customer in the second half in preparation for the upcoming seasonal shopping sales.
On LCoS, Himax’s state-of-the-art Color Sequential Front-lit LCoS microdisplay technology was one of the most high-profile demos at the Display Week 2023 in May and successfully captured the attention of numerous tech giants. Through years of strenuous development, Himax’s Color Sequential Front-lit LCoS has achieved exceptional and industry-leading illumination in full RGB color, along with a groundbreaking tiny form factor, ultra lightweight and a wide degree field-of-view. These features make Himax’s LCoS microdisplay particularly well suited for next generation AR goggles, outperforming other competing technologies, mainly MicroLED. A growing number of engineering engagements are proceeding nicely with leading tech names. Himax is confident its Color Sequential Front-lit LCoS can be one of the most promising technologies that meets the rigorous requirements to enable AR goggles.
The introduction of the latest mixed reality device of a leading tech giant exhibited a significant advancement for the whole metaverse ecosystem. It illustrates how the metaverse and immersive technologies continue to evolve, are increasingly accessible, and may gradually become a more integral part of everyday live in the future. The Company believes given its expertise in optical related technologies including hundreds of patents in AR/VR and 3D, customers can leverage Himax’s product suite to develop immersive experiences for a variety of futuristic and mainstream products in their metaverse applications. Himax continues to strengthen its optical-related technology suite while forging partnerships with global technology leaders to strategically secure a distinct position in the space and create an additional diverse long-term revenue stream.
For non-driver IC business, the Company expects revenue to decline double digit sequentially in the third quarter.
Third Quarter 2023 Guidance | |
Net Revenue: | To be flat to decline |
Gross Margin: | To be |
Profit: | To be 1.5 cents to 6.0 cents per diluted ADS |
Similar to Himax’s usual practice, the Company will grant employees’ annual bonus, including RSUs and cash awards, on or around September 30 this year. The third quarter guidance for profit per diluted ADS has taken into account the expected 2023 annual bonus, which, subject to Board approval, is now assumed to be around
HIMAX TECHNOLOGIES SECOND QUARTER 2023 EARNINGS CONFERENCE CALL | ||
DATE: | Thursday, August 10, 2023 | |
TIME: | U.S. | 8:00 a.m. EDT |
Taiwan | 8:00 p.m. | |
WEBCAST: | https://edge.media-server.com/mmc/p/7r8hbkz7 | |
PHONE REGISTRATION: | https://register.vevent.com/register/BIbb13302225784a6d93f5eb3fc6b147c6 | |
If you choose to attend by phone, you need to register first to obtain dial-in numbers for the call. Once registered you will be emailed the dial-ins along with an option to receive a call back at the start of the earnings call. Each registrant will receive a unique personal PIN. A replay of the call will be available beginning two hours after the call. The conference webcast link is https://edge.media-server.com/mmc/p/7r8hbkz7. This call is being webcast by Nasdaq and can be accessed by clicking on this link or Himax’s website, where the webcast can be accessed through August 10, 2024.
About Himax Technologies, Inc.
Himax Technologies, Inc. (NASDAQ: HIMX) is a fabless semiconductor solution provider dedicated to display imaging processing technologies. Himax is a worldwide market leader in display driver ICs and timing controllers used in TVs, laptops, monitors, mobile phones, tablets, automotive, digital cameras, car navigation, virtual reality (VR) devices and many other consumer electronics devices. Additionally, Himax designs and provides controllers for touch sensor displays, in-cell Touch and Display Driver Integration (TDDI) single-chip solutions, AMOLED ICs, LED driver ICs, power management ICs and LCoS micro-displays for augmented reality (AR) devices and heads-up displays (HUD) for automotive. The Company also offers CMOS image sensors, wafer level optics for AR devices, 3D sensing and ultralow power WiseEye™ smart image sensing, which are used in a wide variety of applications such as mobile phone, tablet, laptop, TV, PC camera, automobile, security, medical device, home appliance, AIoT, etc. Founded in 2001 and headquartered in Tainan, Taiwan, Himax currently employs around 2,200 people from three Taiwan-based offices in Tainan, Hsinchu and Taipei and country offices in China, Korea, Japan, Germany, and the US. Himax has 2,872 patents granted and 380 patents pending approval worldwide as of June 30, 2023. Himax has retained its position as the leading display imaging processing semiconductor solution provider to consumer electronics brands worldwide.
Forward Looking Statements
Factors that could cause actual events or results to differ materially from those described in this conference call include, but are not limited to, the effect of the Covid-19 pandemic on the Company’s business; general business and economic conditions and the state of the semiconductor industry; market acceptance and competitiveness of the driver and non-driver products developed by the Company; demand for end-use applications products; reliance on a small group of principal customers; the uncertainty of continued success in technological innovations; our ability to develop and protect our intellectual property; pricing pressures including declines in average selling prices; changes in customer order patterns; changes in estimated full-year effective tax rate; shortage in supply of key components; changes in environmental laws and regulations; changes in export license regulated by Export Administration Regulations (EAR); exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; our ability to collect accounts receivable and manage inventory and other risks described from time to time in the Company’s SEC filings, including those risks identified in the section entitled “Risk Factors” in its Form 20-F for the year ended December 31, 2022 filed with the SEC, as may be amended.
Company Contacts:
Eric Li, Chief IR/PR Officer
Himax Technologies, Inc.
Tel: +886-6-505-0880
Fax: +886-2-2314-0877
Email: hx_ir@himax.com.tw
www.himax.com.tw
Karen Tiao, Investor Relations
Himax Technologies, Inc.
Tel: +886-2-2370-3999
Fax: +886-2-2314-0877
Email: hx_ir@himax.com.tw
www.himax.com.tw
Mark Schwalenberg, Director
Investor Relations - US Representative
MZ North America
Tel: +1-312-261-6430
Email: HIMX@mzgroup.us
www.mzgroup.us
-Financial Tables-
Himax Technologies, Inc. | |||||||||||
Unaudited Condensed Consolidated Statements of Profit or Loss | |||||||||||
(These interim financials do not fully comply with IFRS because they omit all interim disclosure required by IFRS) | |||||||||||
(Amounts in Thousands of U.S. Dollars, Except Share and Per Share Data) | |||||||||||
Three Months Ended June 30, | 3 Months Ended March 31, | ||||||||||
2023 | 2022 | 2023 | |||||||||
Revenues | |||||||||||
Revenues from third parties, net | $ | 234,988 | $ | 312,564 | $ | 244,191 | |||||
Revenues from related parties, net | 43 | 42 | 13 | ||||||||
235,031 | 312,606 | 244,204 | |||||||||
Costs and expenses: | |||||||||||
Cost of revenues | 183,961 | 176,245 | 175,609 | ||||||||
Research and development | 41,433 | 40,355 | 39,427 | ||||||||
General and administrative | 6,115 | 6,678 | 6,041 | ||||||||
Sales and marketing | 5,664 | 5,566 | 5,544 | ||||||||
Total costs and expenses | 237,173 | 228,844 | 226,621 | ||||||||
Operating income (loss) | (2,142 | ) | 83,762 | 17,583 | |||||||
Non operating income (loss): | |||||||||||
Interest income | 2,648 | 1,055 | 2,327 | ||||||||
Changes in fair value of financial assets at fair value through profit or loss | 336 | 407 | 41 | ||||||||
Foreign currency exchange gains (losses), net | 528 | 1,672 | (535 | ) | |||||||
Finance costs | (1,717 | ) | (328 | ) | (1,741 | ) | |||||
Share of losses of associates | (175 | ) | (202 | ) | (189 | ) | |||||
Other income | 4 | 79 | 107 | ||||||||
1,624 | 2,683 | 10 | |||||||||
Profit (loss) before income taxes | (518 | ) | 86,445 | 17,593 | |||||||
Income tax expense (benefit) | (1,247 | ) | 16,271 | 2,938 | |||||||
Profit for the period | 729 | 70,174 | 14,655 | ||||||||
Loss attributable to noncontrolling interests | 159 | 461 | 272 | ||||||||
Profit attributable to Himax Technologies, Inc. stockholders | $ | 888 | $ | 70,635 | $ | 14,927 | |||||
Basic earnings per ADS attributable to Himax Technologies, Inc. stockholders | $ | 0.005 | $ | 0.404 | $ | 0.086 | |||||
Diluted earnings per ADS attributable to Himax Technologies, Inc. stockholders | $ | 0.005 | $ | 0.404 | $ | 0.085 | |||||
Basic Weighted Average Outstanding ADS | 174,417 | 174,694 | 174,417 | ||||||||
Diluted Weighted Average Outstanding ADS | 174,672 | 174,823 | 174,794 | ||||||||
Himax Technologies, Inc. | |||||||||||
Unaudited Condensed Consolidated Statements of Profit or Loss | |||||||||||
(Amounts in Thousands of U.S. Dollars, Except Share and Per Share Data) | |||||||||||
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Revenues | |||||||||||
Revenues from third parties, net | $ | 479,179 | $ | 725,293 | |||||||
Revenues from related parties, net | 56 | 125 | |||||||||
479,235 | 725,418 | ||||||||||
Costs and expenses: | |||||||||||
Cost of revenues | 359,570 | 395,166 | |||||||||
Research and development | 80,860 | 79,650 | |||||||||
General and administrative | 12,156 | 13,298 | |||||||||
Sales and marketing | 11,208 | 11,188 | |||||||||
Total costs and expenses | 463,794 | 499,302 | |||||||||
Operating income | 15,441 | 226,116 | |||||||||
Non operating income (loss): | |||||||||||
Interest income | 4,975 | 1,436 | |||||||||
Changes in fair value of financial assets at fair value through profit or loss | 377 | 428 | |||||||||
Foreign currency exchange gains (losses), net | (7 | ) | 4,768 | ||||||||
Finance costs | (3,458 | ) | (608 | ) | |||||||
Share of losses of associates | (364 | ) | (409 | ) | |||||||
Other income | 111 | 95 | |||||||||
1,634 | 5,710 | ||||||||||
Profit before income taxes | 17,075 | 231,826 | |||||||||
Income tax expense | 1,691 | 46,365 | |||||||||
Profit for the period | 15,384 | 185,461 | |||||||||
Loss attributable to noncontrolling interests | 431 | 1,046 | |||||||||
Profit attributable to Himax Technologies, Inc. stockholders | $ | 15,815 | $ | 186,507 | |||||||
Basic earnings per ADS attributable to Himax Technologies, Inc. stockholders | $ | 0.091 | $ | 1.068 | |||||||
Diluted earnings per ADS attributable to Himax Technologies, Inc. stockholders | $ | 0.091 | $ | 1.067 | |||||||
Basic Weighted Average Outstanding ADS | 174,417 | 174,694 | |||||||||
Diluted Weighted Average Outstanding ADS | 174,653 | 174,825 | |||||||||
Himax Technologies, Inc. | ||||||||||||
IFRS Unaudited Condensed Consolidated Statements of Financial Position | ||||||||||||
(Amounts in Thousands of U.S. Dollars) | ||||||||||||
June 30, 2023 | June 30, 2022 | March 31, 2023 | ||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 211,425 | $ | 452,902 | $ | 196,286 | ||||||
Financial assets at amortized cost | 8,079 | 8,539 | 8,510 | |||||||||
Financial assets at fair value through profit or loss | - | 192 | 19,026 | |||||||||
Accounts receivable, net (including related parties) | 239,039 | 371,033 | 252,155 | |||||||||
Inventories | 297,268 | 337,312 | 335,235 | |||||||||
Income taxes receivable | 28 | 39 | 35 | |||||||||
Restricted deposit | 369,300 | 151,400 | 369,300 | |||||||||
Other receivable from related parties | 1,171 | 1,381 | 1,174 | |||||||||
Other current assets | 109,334 | 91,744 | 106,428 | |||||||||
Total current assets | 1,235,644 | 1,414,542 | 1,288,149 | |||||||||
Financial assets at fair value through profit or loss | 19,094 | 14,037 | 18,264 | |||||||||
Financial assets at fair value through other comprehensive income | 313 | 373 | 285 | |||||||||
Equity method investments | 6,127 | 3,994 | 6,385 | |||||||||
Property, plant and equipment, net | 121,674 | 128,839 | 124,476 | |||||||||
Deferred tax assets | 11,651 | 6,622 | 11,925 | |||||||||
Goodwill | 28,138 | 28,138 | 28,138 | |||||||||
Other intangible assets, net | 876 | 5,948 | 989 | |||||||||
Restricted deposit | 32 | 34 | 33 | |||||||||
Refundable deposits | 205,237 | 174,779 | 224,661 | |||||||||
Other non-current assets | 9,371 | 13,524 | 10,981 | |||||||||
402,513 | 376,288 | 426,137 | ||||||||||
Total assets | $ | 1,638,157 | $ | 1,790,830 | $ | 1,714,286 | ||||||
Liabilities and Equity | ||||||||||||
Current liabilities: | ||||||||||||
Short-term unsecured borrowings | $ | 289 | $ | - | $ | - | ||||||
Current portion of long-term unsecured borrowings | 6,000 | 6,000 | 6,000 | |||||||||
Short-term secured borrowings | 369,300 | 151,400 | 369,300 | |||||||||
Accounts payable (including related parties) | 127,652 | 243,304 | 135,677 | |||||||||
Income taxes payable | 18,894 | 71,112 | 72,880 | |||||||||
Other payable to related parties | 2,266 | 2,167 | 2,854 | |||||||||
Contract liabilities-current | 19,913 | 36,152 | 29,010 | |||||||||
Other current liabilities | 176,379 | 286,606 | 81,941 | |||||||||
Total current liabilities | 720,693 | 796,741 | 697,662 | |||||||||
Long-term unsecured borrowings | 37,500 | 43,500 | 39,000 | |||||||||
Deferred tax liabilities | 682 | 830 | 697 | |||||||||
Contract liabilities-non-current | 46 | 12,356 | 46 | |||||||||
Other non-current liabilities | 53,001 | 96,271 | 67,466 | |||||||||
91,229 | 152,957 | 107,209 | ||||||||||
Total liabilities | 811,922 | 949,698 | 804,871 | |||||||||
Equity | ||||||||||||
Ordinary shares | 107,010 | 107,010 | 107,010 | |||||||||
Additional paid-in capital | 113,761 | 111,370 | 113,060 | |||||||||
Treasury shares | (5,594 | ) | (5,761 | ) | (5,594 | ) | ||||||
Accumulated other comprehensive income | (617 | ) | (1,453 | ) | (84 | ) | ||||||
Retained earnings | 610,841 | 628,830 | 694,052 | |||||||||
Equity attributable to owners of Himax Technologies, Inc. | 825,401 | 839,996 | 908,444 | |||||||||
Noncontrolling interests | 834 | 1,136 | 971 | |||||||||
Total equity | 826,235 | 841,132 | 909,415 | |||||||||
Total liabilities and equity | $ | 1,638,157 | $ | 1,790,830 | $ | 1,714,286 | ||||||
Himax Technologies, Inc. | ||||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||||||
(Amounts in Thousands of U.S. Dollars) | ||||||||||||
Three Months Ended June 30, | Three Months Ended March 31, | |||||||||||
2023 | 2022 | 2023 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Profit for the period | $ | 729 | $ | 70,174 | $ | 14,655 | ||||||
Adjustments for: | ||||||||||||
Depreciation and amortization | 5,025 | 5,411 | 5,088 | |||||||||
Share-based compensation expenses | 723 | 729 | 805 | |||||||||
Changes in fair value of financial assets at fair value through profit or loss | (336 | ) | (407 | ) | (41 | ) | ||||||
Interest income | (2,648 | ) | (1,055 | ) | (2,327 | ) | ||||||
Finance costs | 1,717 | 328 | 1,741 | |||||||||
Income tax expense (benefit) | (1,247 | ) | 16,271 | 2,938 | ||||||||
Share of losses of associates | 175 | 202 | 189 | |||||||||
Inventories write downs | 5,047 | 4,577 | 5,503 | |||||||||
Unrealized foreign currency exchange losses (gains) | (1,201 | ) | (1,988 | ) | 1,186 | |||||||
7,984 | 94,242 | 29,737 | ||||||||||
Changes in: | ||||||||||||
Accounts receivable (including related parties) | 13,116 | 71,217 | 8,993 | |||||||||
Inventories | 32,920 | (88,834 | ) | 30,195 | ||||||||
Other receivable from related parties | 3 | (168 | ) | 50 | ||||||||
Other current assets | (3,318 | ) | 4,157 | 980 | ||||||||
Accounts payable (including related parties) | 10,207 | (12,404 | ) | 16,192 | ||||||||
Other payable to related parties | (588 | ) | 126 | 286 | ||||||||
Contract liabilities | (13,097 | ) | (2,702 | ) | (20,111 | ) | ||||||
Other current liabilities | 1,665 | 1,619 | (1,288 | ) | ||||||||
Other non-current liabilities | 2,351 | 5,805 | 2,351 | |||||||||
Cash generated from operating activities | 51,243 | 73,058 | 67,385 | |||||||||
Interest received | 3,262 | 1,171 | 1,455 | |||||||||
Interest paid | (1,717 | ) | (328 | ) | (1,741 | ) | ||||||
Income tax paid | (51,093 | ) | (64,785 | ) | (738 | ) | ||||||
Net cash provided by operating activities | 1,695 | 9,116 | 66,361 | |||||||||
Cash flows from investing activities: | ||||||||||||
Acquisitions of property, plant and equipment | (2,874 | ) | (2,497 | ) | (2,833 | ) | ||||||
Acquisitions of intangible assets | - | (26 | ) | (11 | ) | |||||||
Acquisitions of financial assets at amortized cost | (1,092 | ) | (1,134 | ) | (571 | ) | ||||||
Proceeds from disposal of financial assets at amortized cost | 1,134 | 16,157 | 541 | |||||||||
Acquisitions of financial assets at fair value through profit or loss | (33,821 | ) | (27,543 | ) | (22,222 | ) | ||||||
Proceeds from disposal of financial assets at fair value through profit or loss | 52,482 | 70,316 | 195 | |||||||||
Decrease (increase) in refundable deposits | 1,193 | - | (64,259 | ) | ||||||||
Net cash provided by (used in) investing activities | 17,022 | 55,273 | (89,160 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||
Purchases of subsidiary shares from noncontrolling interests | - | (301 | ) | - | ||||||||
Proceeds from short-term unsecured borrowings | 10,294 | - | - | |||||||||
Repayments of short-term unsecured borrowings | (10,000 | ) | - | - | ||||||||
Repayments of long-term unsecured borrowings | (1,500 | ) | (1,500 | ) | (1,500 | ) | ||||||
Proceeds from short-term secured borrowings | 139,200 | 51,400 | 286,200 | |||||||||
Repayments of short-term secured borrowings | (139,200 | ) | (51,400 | ) | (286,200 | ) | ||||||
Payment of lease liabilities | (1,202 | ) | (1,206 | ) | (1,179 | ) | ||||||
Guarantee deposits received | 5 | 14,181 | - | |||||||||
Net cash provided by (used in) financing activities | (2,403 | ) | 11,174 | (2,679 | ) | |||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | (1,175 | ) | (674 | ) | 183 | |||||||
Net increase (decrease) in cash and cash equivalents | 15,139 | 74,889 | (25,295 | ) | ||||||||
Cash and cash equivalents at beginning of period | 196,286 | 378,013 | 221,581 | |||||||||
Cash and cash equivalents at end of period | $ | 211,425 | $ | 452,902 | $ | 196,286 | ||||||
Himax Technologies, Inc. | |||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows | |||||||||||
(Amounts in Thousands of U.S. Dollars) | |||||||||||
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Profit for the period | $ | 15,384 | $ | 185,461 | |||||||
Adjustments for: | |||||||||||
Depreciation and amortization | 10,113 | 10,787 | |||||||||
Share-based compensation expenses | 1,528 | 1,340 | |||||||||
Changes in fair value of financial assets at fair value through profit or loss | (377 | ) | (428 | ) | |||||||
Interest income | (4,975 | ) | (1,436 | ) | |||||||
Finance costs | 3,458 | 608 | |||||||||
Income tax expense | 1,691 | 46,365 | |||||||||
Share of losses of associates | 364 | 409 | |||||||||
Inventories write downs | 10,550 | 5,825 | |||||||||
Unrealized foreign currency exchange gains | (15 | ) | (4,620 | ) | |||||||
37,721 | 244,311 | ||||||||||
Changes in: | |||||||||||
Accounts receivable (including related parties) | 22,109 | 39,178 | |||||||||
Inventories | 63,115 | (144,537 | ) | ||||||||
Other receivable from related parties | 53 | (165 | ) | ||||||||
Other current assets | (2,338 | ) | 4,622 | ||||||||
Accounts payable (including related parties) | 26,399 | (5,121 | ) | ||||||||
Other payable to related parties | (302 | ) | 526 | ||||||||
Contract liabilities | (33,208 | ) | 624 | ||||||||
Other current liabilities | 377 | 210 | |||||||||
Other non-current liabilities | 4,702 | 5,808 | |||||||||
Cash generated from operating activities | 118,628 | 145,456 | |||||||||
Interest received | 4,717 | 1,286 | |||||||||
Interest paid | (3,458 | ) | (608 | ) | |||||||
Income tax paid | (51,831 | ) | (65,018 | ) | |||||||
Net cash provided by operating activities | 68,056 | 81,116 | |||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions of property, plant and equipment | (5,707 | ) | (6,083 | ) | |||||||
Acquisitions of intangible assets | (11 | ) | (169 | ) | |||||||
Acquisitions of financial assets at amortized cost | (1,663 | ) | (7,259 | ) | |||||||
Proceeds from disposal of financial assets at amortized cost | 1,675 | 24,322 | |||||||||
Acquisitions of financial assets at fair value through profit or loss | (56,043 | ) | (73,114 | ) | |||||||
Proceeds from disposal of financial assets at fair value through profit or loss | 52,677 | 72,013 | |||||||||
Increase in refundable deposits | (63,066 | ) | - | ||||||||
Releases of restricted deposit | - | 2,700 | |||||||||
Net cash provided by (used in) investing activities | (72,138 | ) | 12,410 | ||||||||
Cash flows from financing activities: | |||||||||||
Purchases of subsidiary shares from noncontrolling interests | - | (301 | ) | ||||||||
Proceeds from short-term unsecured borrowings | 10,294 | - | |||||||||
Repayments of short-term unsecured borrowings | (10,000 | ) | - | ||||||||
Repayments of long-term unsecured borrowings | (3,000 | ) | (3,000 | ) | |||||||
Proceeds from short-term secured borrowings | 425,400 | 185,800 | |||||||||
Repayments of short-term secured borrowings | (425,400 | ) | (185,800 | ) | |||||||
Payment of lease liabilities | (2,381 | ) | (2,435 | ) | |||||||
Guarantee deposits received | 5 | 29,795 | |||||||||
Net cash provided by (used in) financing activities | (5,082 | ) | 24,059 | ||||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | (992 | ) | (707 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | (10,156 | ) | 116,878 | ||||||||
Cash and cash equivalents at beginning of period | 221,581 | 336,024 | |||||||||
Cash and cash equivalents at end of period | $ | 211,425 | $ | 452,902 |