Himax Technologies, Inc. Reports Third Quarter 2022 Financial Results; Provides Fourth Quarter 2022 Guidance
Himax Technologies reported Q3 2022 revenues of $213.6M, a 31.7% decline QoQ but above guidance. Gross margin reached 36.3%, while non-IFRS after-tax profit was $29.8M, or 17.0 cents per diluted ADS, lower than the previous quarter. For Q4 2022, the company expects revenues to increase by 4% to 8%, with non-IFRS gross margin projected at 31.5% to 33.5%. A bright spot is anticipated in automotive, AMOLED, Tcon, and WiseEye AI segments, projected to account for over 50% of Q4 sales. Despite challenges, Himax's automotive business is expected to grow by 50% for the full year.
- Guidance for Q4 revenues to increase by 4% to 8% QoQ.
- Automotive business expected to grow by approximately 50% in 2022.
- Non-IFRS profit guidance for Q4 between 21.0 and 24.0 cents per diluted ADS.
- Expected contributions from high visibility segments: automotive, AMOLED, Tcon, and WiseEye, projected to exceed 50% of total sales.
- Q3 revenues decreased 31.7% QoQ.
- Non-IFRS after-tax profit dropped from $76.8M to $29.8M QoQ.
- High inventory levels due to demand drop, affecting sales in consumer electronics.
Q3 2022 Revenues and EPS Beat Guidance, while Gross Margin at Mid-Range of Guidance issued on August 11, 2022
Company Q4 2022 Guidance: Revenues to Increase
- Q3 2022 revenues was
$213.6M , a decrease of31.7% QoQ. Q3 GM reached36.3% - Q3 2022 non-IFRS after-tax profit was
$29.8M , or 17.0 cents per diluted ADS, compared to$76.8M , or 43.9 cents last quarter - Company’s Q4 2022 revenues to increase
4.0% to8.0% QoQ. Non-IFRS GM around31.5% to33.5% . Non-IFRS profit attributable to shareholders in the range of 21.0 to 24.0 cents per fully diluted ADS - Judging by Company’s current business pipeline and production plan, Company believes its inventory level has reached the peak at the end of Q3
- The Company remains upbeat about its top line growth from several revenue streams that it considers as high visibility group, notably automotive, AMOLED, Tcon and WiseEye AI image sensing. These groups combined to account for more than
50% of total sales in Q4 and Himax believes their contribution weighting will continue to increase for years to come - Himax believes its 2022 full year automotive business growth will reach around
50% despite the challenging environment and expect growth momentum, especially for TDDI, to extend into 2023 for another stellar year of strong growth - The Company expects WiseEye sales to grow nicely next year, backed by existing business pipeline, including laptop solution for Dell, and a wide variety of new AI application adoptions. Himax is more committed than ever to strengthening its WiseEye product roadmap. The Company will also debut its next generation WE2 AI processor at CES 2023
- Among Himax’s AMOLED deployments, its AMOLED for smartphone will commence as a new sales stream next year on top of the current AMOLED for tablet and automotive sales
TAINAN, Taiwan, Nov. 10, 2022 (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 third quarter 2022 ended September 30, 2022.
“As we continue to tread through this inventory offloading cycle, we are cautiously managing our new wafer starts, trying to strike a balance between inventory level and foundry contract fulfillment. A silver lining among the clouds is the automotive segment where visibility is relative better. This allows us to continue to maintain new orders to our foundry partners and back-end suppliers. Continuous orders in such segments coupled with our successful negotiation with suppliers will reduce the incurred charges in Q4 from contracts to secure capacity as compared to the third quarter. Judging by our current business pipeline and production plan, we believe our inventory level has reached the peak at the end of the third quarter,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax.
“Despite the soft demand, we remain upbeat about our top line growth from several revenue streams that we consider our high visibility group, notably automotive, AMOLED, Tcon and WiseEye™ AI image sensing. We believe our 2022 full year automotive business growth will reach around
Third Quarter 2022 Financial Results
Himax net revenues
Revenue from large display drivers was
Small and medium-sized display revenue was
Q3 automotive business was once again the largest revenue contributor, representing over
Third quarter revenue from its non-driver businesses was
Non-IFRS gross margin for the third quarter was
Non-IFRS operating expenses for the third quarter were
Third quarter non-IFRS operating income was
Balance Sheet and Cash Flow
Himax had
The Company’s inventories as of September 30, 2022 were
Outstanding Share
As of September 30, 2022, Himax had 174.4 million ADS outstanding, little changed from last quarter. On a fully diluted basis, total number of ADS outstanding for the third quarter was 174.7 million.
Q4 2022 Outlook
The near-term economic outlook appears bleak in the face of elevated inflation and rapidly rising interest rates which are hurting the market along with the ongoing fallout from China city lockdowns and geopolitical conflict. For the display application market, end brands are downsizing their panel procurements which consequently triggers panel makers to further lower fab utilization. Against this backdrop, Himax’s business visibility remains limited, especially in consumer centric products. As the Company continues to tread through this inventory offloading cycle, it is cautiously managing its new wafer starts, trying to strike a balance between inventory level and foundry contract fulfillment. A silver lining among the clouds is the automotive segment where visibility is relative better. This allows the Company to continue to maintain new orders to its foundry partners and back-end suppliers. Continuous orders in such segments coupled with the Company’s successful negotiation with suppliers will reduce the incurred charges in Q4 from contracts to secure capacity as compared to the third quarter. Judging by the Company’s current business pipeline and production plan, it believes its inventory level has reached the peak at the end of the third quarter.
Looking into Q4, the Company’s gross margin is still under pressure due to price erosion from high inventory offloading while the cost of goods sold remains high as the inventory was sourced when foundry and back-end pricings were still at high levels. Despite the soft demand, Himax remains upbeat about its top line growth from several revenue streams that it considers as its high visibility group, notably automotive, AMOLED, Tcon and WiseEye AI image sensing. In the automotive business, Himax expects TDDI sales momentum to pick up starting Q4 from the trough in the third quarter. For automotive DDIC, however, customers are still in the process of offloading their inventories accumulated intended for the second quarter production which was severely disrupted by the widespread China city lockdowns. The Company believes its 2022 full year automotive business growth will reach around
Display Driver IC Businesses
LDDIC
Q4 large display driver IC revenue is projected to be flat sequentially off a low base after three consecutive quarters of decline. Yet on a year-over-year basis this is still a double-digit decline as the Company braces for a disappointing year-end holiday season. On a positive note, the Company does see TV panel prices showing signs of stabilization as customers have started to replenish inventory particularly in mainstream models, leading to positive momentum in its TV driver sales which are set to increase single digit sequentially in Q4. Conversely, the downward trend in its IT segment lingers on with further declines expected in both notebook and monitor sales in the fourth quarter on the backdrop of customers’ continuous tight inventory control measures and the sluggish economy.
SMDDIC
Q4 SMDDIC revenue is expected to increase by single digit sequentially. Q4 automotive driver IC sales are anticipated to be flat sequentially following double digit decline in Q3 as customers look to restock inventory. Sales for automotive TDDI are poised to grow by double digit while those for traditional driver IC are set to decrease single digit from the last quarter. The business visibility for automotive segment into next year remains much better than those of consumer centric products. Smartphone driver IC revenue is set to be slightly down sequentially, a result of lengthy inventory off-loading cycle amid soft demand and limited visibility across those channels. Tablet driver IC revenue, however, is projected to increase double digit sequentially driven by replenishment momentum from leading customers.
Automotive segment has more resilient demand and is less vulnerable to the macro headwinds. As Himax has previously discussed, automotive driver sales are now its largest revenue contributor and set to represent over
Furthermore, Himax is the first in the industry to launch the cutting edge LTDI (Large Touch and Display Driver Integration) automotive display solution specially designed for the next generation extra-large-sized automotive displays, which are typically larger than 30 inches. The LTDI adopts cascade-topology technique allowing up to 30 chips seamlessly connected in support of extra-large sized display and high-precision touch sensitivity, creating a high entry barrier for potential competitors. This was featured at CES 2022 early this year by one of Himax’s key customers who showcased a 30-inch in-cell touch display powered by Himax LTDI solution. More design collaborations are underway and will debut in 2023 in some of the most modish automotive vehicles.
For smartphone, much of its shipments to key customers for their next generation new designs have been delayed amidst deteriorating demand. As for tablet, shipments are on the rise for premium models that adopt high end tablet TDDIs and advanced AMOLED tablet solution, of which the Company offers both DDIC and Tcon to certain leading brands. Q4 sales for these premium tablet solutions are expected to increase more than
E-paper driver business is expected to increase double digit quarter-over-quarter, stemming from increasing shipment of a large size display to a leading customer as their sole supplier. Himax expects long-term demand for both e-paper and e-signage to endure. E-reader demand is fueled by a growing e-learning market along with increasing reading material over the internet. E-signage market is also on an upswing as the product is being more widely used in smart warehousing, smart retail and many other fields to replace traditional signage. The Company continues to collaborate with world-leading customers for certain ASIC and Tcon projects with increased R&D efforts spent on their next generation products toward larger size, higher resolution, and colored e-paper displays.
On AMOLED, Himax continues to gear up for AMOLED driver IC development jointly with major Korean and Chinese panel makers in various applications. Q4 AMOLED sales are set to increase by double digit sequentially and represent over
Non-Driver Product Categories
TCON
The Company anticipates Q4 Tcon sales to increase by high teens sequentially, bolstered by higher shipment of automotive products for both LCD and AMOLED displays. For the AMOLED display market, it successfully commenced production of AMOLED Tcons for tablet and automotive. Himax also made good progress strategically with leading panel makers on AMOLED notebook Tcon, which features advanced eDP1.5, providing higher resolution, higher refresh rate as well as improved image quality to the notebook. On LCD display for automotive, its position remains unchallenged in automotive Tcon for local dimming technology, which not only enhances display contrast for better viewing and driver safeguard under various ambient light conditions, but also provides effective power saving, critical for EVs and larger sized displays. With years of strenuous work on this high entry barrier technology, Himax has won numerous awards from various OEMs, Tier-1 and car makers’ premium new car models, some of which have already commenced mass production. The Company anticipates Q4 automotive Tcon sales to increase more than
Ultralow Power WiseEye AI image sensing
Himax's WiseEye AI image sensing total solution incorporates the Company’s proprietary ultralow power AI processor, always-on CMOS image sensor, and CNN-based AI algorithm. For WiseEye business for notebook, the Company continues to support a range of Dell’s new models where Himax remains the key supplier for leading-edge ultralow power AI processor and always-on CMOS image sensor.
In order to capture the vast opportunity presented in the emerging notebook AI application market, Himax has extended deployment of in-house development of new algorithms to advance its AI capabilities while partnering with leading notebook CPU players aiming to expand its partnerships with leading global laptop names to propel this business forward. In addition to features such as human presence, look-away and onlooker detections, Himax is also working on a variety of enriched new AI features and use cases to broaden possible applications with end customers for next generation smart notebooks.
Aside from notebook, its highly integrated WiseEye total solution, featuring ultralow power tinyML vision AI in a tiny form factor, is a perfect fit for many resource-constrained and battery-powered end point applications, a new AI area which is now ardently explored by AI communities. One successful example worth highlighting is the strong adoption with meaningful shipment of Himax’s AI solution in Automatic Meter Reading. The Company’s power efficient AI can help existing conventional water meters operate with a battery pack for over 5 years for real-time water consumption readout and detection of abnormalities such as water leakage. Attracted by the simplicity of installation and superb low power performance, dozens of water authorities, utility companies, meter OEM/ODMs and/or IoT network providers across the globe have commenced joint development projects with Himax. Moreover, the Company has additional WiseEye AI customer engagements in areas such as video conference device, shared bike parking, medical capsule endoscope, automotive, smart office, battery cam and surveillance, just to name a few. Decent volume shipment is anticipated within the next few quarters.
As the Company focuses on scaling adoption in this relatively untapped market, it continues to build alliances with numerous AI partners and communities to make its AI solution more accessible. To that end, during the upcoming CES 2023, several of its proprietary ultralow power WiseEye AI solutions will be showcased jointly with its ecosystem partners and customers in various applications, including smart home, smart agriculture, and surveillance, just to name a few. Also on display will be applications embedded with Himax’s Intelli-Sensing Module, a solution that offers numerous pre-trained machine learning models with a plug-and-play design that makes it possible to drastically reduce the significant entry barriers for AI or system developers in deploying computer vision and machine learning AI capabilities to the end point devices. Himax welcomes all interested parties to stop by to learn more about its AI product line and see them in action.
Himax recently announced the divestiture of its fully owned subsidiary Emza Visual Sense. As it mentioned in press release, this transaction will not affect the existing business with Dell. The divestiture does not change Himax’s ultralow power WiseEye AI Image Sensing business model where it will continue to develop its own algorithms and work with third-party algorithm partners. Furthermore, the Company is more committed than ever to strengthening its WiseEye product roadmap and retaining its leadership position in ultralow power AI processor and image sensor for end-point AI applications. As a demonstration of this commitment, at CES 2023, Himax will also debut its next generation AI processor, code-named WE2. The WE2 AI processor features Arm based Cortex CPU and Ethos NPU, rich sets of sensor control interfaces, industrial grade security and cryptography engines, and multi-layer power management architecture to offer superb tinyML computing performance, optimal energy efficiency and best-in-case security and privacy assurance. The WE2 AI processor offers
Optical product line-up/ Metaverse
Himax’s optical related product lines covers WLO, LCoS and 3D Sensing. Himax is one of the few companies in the technology industry with optical design capabilities and years of proven track record of mass production. Himax continues to work on strengthening its optical-related technology suite while collaborating with some of the world’s largest technology companies that are deeply committed to investing in its development. Himax is well positioned to play an enabling role in this exciting new industry as it evolves.
Himax’s leading-edge front-lit LCoS microdisplay features light-weight, small form factor, and full color with unique characteristics of high illumination and low power consumption. One notable highlight in Q3 is a design-win with a partner for new AR glasses with Himax’s front-lit LCoS microdisplays which assists hearing-impaired people through audio to text translation that is projected onto the AR glasses on a real time basis. Small volume shipment commenced during Q3. In addition, Himax also started shipment of front-lit LCoS microdisplay in Q3 for a customer’s assisted-reality type hands-free head-mounted device that sits below a person’s line of sight to assist workers to access real time working information.
On human interface sensing. Himax is seeing increasing adoption of its optical components and/or 3D sensing technologies that enable new ways people interact with AR and VR applications. On 3D gesture control, its WLO technology is deployed to empower 3D perception sensing for precise controller-free gesture recognition in VR devices. The collaboration is ongoing with a leading VR player with promising progress with volume production expected during 2023. On 3D scanning for object reconstruction, Himax’s 3D sensing technology, which incorporates both its 3D projector and 3D decoder, is being deployed by a leading customer’s 3D scanning device for the purpose of generating real time digital twins, avatar and 3D environment surroundings that ultimately help users transit and connect seamlessly between physical and digital worlds.
While still early in the lifecycle for optical and metaverse related products, the ongoing commitment by the world’s technology leaders alongside expanding interest in its potential suggests this next generation technology is poised for significant growth in the years to come. The Company is excited that it is at the forefront of optical innovation for this nascent industry and believes it has potential to be a long-term growth driver for its business.
For non-driver IC business, the Company expects revenue to increase high teens sequentially in the fourth quarter.
Fourth Quarter 2022 Guidance
Net Revenue: | To increase |
Non-IFRS Gross Margin: | To be around |
Non-IFRS Profit: | To be 21.0 cents to 24.0 cents per diluted ADS |
IFRS Profit: | To be 17.8 cents to 20.8 cents per diluted ADS |
HIMAX TECHNOLOGIES THIRD QUARTER 2022 EARNINGS CONFERENCE CALL | |
DATE: | Thursday, Nov 10, 2022 |
TIME: | U.S. 8:00 a.m. EST |
Taiwan 9:00 p.m. | |
WEBCAST: | https://edge.media-server.com/mmc/p/h4xam55j |
PHONE REGISTRATION: | https://register.vevent.com/register/BI2a6855bd74034982b641a33fb69b3816 |
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/h4xam55j. 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 November 10, 2023.
Non-IFRS Financial Measures
Himax provides investors with gross profit, gross margin, operating income, operating margin, profit attributable to stockholders and diluted earnings per ADS attributable to Himax Technologies, Inc. stockholders on a non-IFRS basis to review and assess the Company's operating performance, which is not required by, or presented in accordance with, IFRS. The presentation of these non-IFRS financial measures are not intended to be considered in isolation or as a substitute for financial information prepared and presented in accordance with IFRS.
Himax believes that providing certain of these measures allow investors to identify underlying trends in the Company’s business and enhance the overall understanding of the Company’s past performance and future prospects with respect to key metrics used by the Company in its financial and operational decision-making. However, the use of the non-IFRS measure has limitations as an analytical tool, and investors should not consider them in isolation from, or as substitute for analysis of, the Company’s results of operations or financial condition as reported under IFRS. Further, non-IFRS financial measures may differ from the non-IFRS information used by other companies, including peer companies, and therefore its comparability may be limited.
Reconciliations between IFRS and Non-IFRS financial data are attached to this press release.
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™ AI 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 2,100 people from three Taiwan-based offices in Tainan, Hsinchu and Taipei and country offices in China, Korea, Japan, German, and the US. Himax has 2,980 patents granted and 417 patents pending approval worldwide as of September 30, 2022. 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, 2021 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 September 30, | 3 Months Ended June 30, | ||||||||||
2022 | 2021 | 2022 | |||||||||
Revenues | |||||||||||
Revenues from third parties, net | $ | 213,586 | $ | 420,912 | $ | 312,564 | |||||
Revenues from related parties, net | 45 | 26 | 42 | ||||||||
213,631 | 420,938 | 312,606 | |||||||||
Costs and expenses: | |||||||||||
Cost of revenues | 136,828 | 204,213 | 176,245 | ||||||||
Research and development | 55,749 | 51,399 | 40,355 | ||||||||
General and administrative | 8,554 | 9,025 | 6,678 | ||||||||
Sales and marketing | 8,555 | 8,057 | 5,566 | ||||||||
Total costs and expenses | 209,686 | 272,694 | 228,844 | ||||||||
Operating income | 3,945 | 148,244 | 83,762 | ||||||||
Non operating income (loss): | |||||||||||
Interest income | 1,387 | 178 | 1,055 | ||||||||
Changes in fair value of financial assets at fair value through profit or loss | (67 | ) | 43 | 407 | |||||||
Foreign currency exchange gains, net | 1,181 | 226 | 1,672 | ||||||||
Finance costs | (843 | ) | (269 | ) | (328 | ) | |||||
Share of losses of associates | (164 | ) | (282 | ) | (202 | ) | |||||
Other income | 120 | 89 | 79 | ||||||||
1,614 | (15 | ) | 2,683 | ||||||||
Profit before income taxes | 5,559 | 148,229 | 86,445 | ||||||||
Income tax expense (benefit) | (2,449 | ) | 30,379 | 16,271 | |||||||
Profit for the period | 8,008 | 117,850 | 70,174 | ||||||||
Loss attributable to noncontrolling interests | 311 | 866 | 461 | ||||||||
Profit attributable to Himax Technologies, Inc. stockholders | $ | 8,319 | $ | 118,716 | $ | 70,635 | |||||
Basic earnings per ADS attributable to Himax Technologies, Inc. stockholders | $ | 0.048 | $ | 0.680 | $ | 0.404 | |||||
Diluted earnings per ADS attributable to Himax Technologies, Inc. stockholders | $ | 0.048 | $ | 0.680 | $ | 0.404 | |||||
Basic Weighted Average Outstanding ADS | 174,695 | 174,677 | 174,694 | ||||||||
Diluted Weighted Average Outstanding ADS | 174,735 | 174,692 | 174,823 |
Himax Technologies, Inc. | ||||||||
Unaudited Condensed Consolidated Statements of Profit or Loss | ||||||||
(Amounts in Thousands of U.S. Dollars, Except Share and Per Share Data) | ||||||||
Nine Months Ended September 30, | ||||||||
2022 | 2021 | |||||||
Revenues | ||||||||
Revenues from third parties, net | $ | 938,879 | $ | 1,095,152 | ||||
Revenues from related parties, net | 170 | 50 | ||||||
939,049 | 1,095,202 | |||||||
Costs and expenses: | ||||||||
Cost of revenues | 531,994 | 580,600 | ||||||
Research and development | 135,399 | 109,846 | ||||||
General and administrative | 21,852 | 21,195 | ||||||
Sales and marketing | 19,743 | 16,491 | ||||||
Total costs and expenses | 708,988 | 728,132 | ||||||
Operating income | 230,061 | 367,070 | ||||||
Non operating income (loss): | ||||||||
Interest income | 2,823 | 593 | ||||||
Changes in fair value of financial assets at fair value through profit or loss | 361 | (11 | ) | |||||
Foreign currency exchange gains, net | 5,949 | 222 | ||||||
Finance costs | (1,451 | ) | (789 | ) | ||||
Share of losses of associates | (573 | ) | (740 | ) | ||||
Other income | 215 | 150 | ||||||
7,324 | (575 | ) | ||||||
Profit before income taxes | 237,385 | 366,495 | ||||||
Income tax expense | 43,916 | 74,032 | ||||||
Profit for the period | 193,469 | 292,463 | ||||||
Loss attributable to noncontrolling interests | 1,357 | 2,040 | ||||||
Profit attributable to Himax Technologies, Inc. stockholders | $ | 194,826 | $ | 294,503 | ||||
Basic earnings per ADS attributable to Himax Technologies, Inc. stockholders | $ | 1.115 | $ | 1.687 | ||||
Diluted earnings per ADS attributable to Himax Technologies, Inc. stockholders | $ | 1.115 | $ | 1.685 | ||||
Basic Weighted Average Outstanding ADS | 174,694 | 174,587 | ||||||
Diluted Weighted Average Outstanding ADS | 174,753 | 174,823 |
Himax Technologies, Inc. Unaudited Supplemental Financial Information (Amounts in Thousands of U.S. Dollars) | |||||||||||
The amount of share-based compensation included in applicable statements of profit or loss categories is summarized as follows: | Three Months Ended September 30, | Three Months Ended June 30, | |||||||||
2022 | 2021 | 2022 | |||||||||
Share-based compensation | |||||||||||
Cost of revenues | $ | 454 | $ | 675 | $ | 7 | |||||
Research and development | 13,719 | 17,200 | 501 | ||||||||
General and administrative | 1,637 | 2,272 | 159 | ||||||||
Sales and marketing | 2,387 | 3,124 | 62 | ||||||||
Income tax benefit | (3,776 | ) | (4,773 | ) | (126 | ) | |||||
Total | $ | 14,421 | $ | 18,498 | $ | 603 | |||||
The amount of acquisition-related charges included in applicable statements of profit or loss categories is summarized as follows: | |||||||||||
Acquisition-related charges | |||||||||||
Research and development | $ | 250 | $ | 275 | $ | 277 | |||||
Income tax benefit | (57 | ) | (64 | ) | (65 | ) | |||||
Total | $ | 193 | $ | 211 | $ | 212 | |||||
The amount of cash award included in applicable statements of profit or loss categories is summarized as follows: | |||||||||||
Cash award | |||||||||||
Cost of revenues | $ | 296 | $ | 432 | $ | 77 | |||||
Research and development | 6,174 | 810 | 5,067 | ||||||||
General and administrative | 665 | 95 | 584 | ||||||||
Sales and marketing | 1,361 | 245 | 979 | ||||||||
Income tax benefit | (1,655 | ) | (76 | ) | (1,393 | ) | |||||
Total | $ | 6,841 | $ | 1,506 | $ | 5,314 | |||||
Himax Technologies, Inc. Unaudited Supplemental Financial Information (Amounts in Thousands of U.S. Dollars) | |||||||
The amount of share-based compensation included in applicable statements of profit or loss categories is summarized as follows: | Nine Months Ended September 30, | ||||||
2022 | 2021 | ||||||
Share-based compensation | |||||||
Cost of revenues | $ | 468 | $ | 675 | |||
Research and development | 14,687 | 17,200 | |||||
General and administrative | 1,894 | 2,272 | |||||
Sales and marketing | 2,488 | 3,124 | |||||
Income tax benefit | (4,024 | ) | (4,773 | ) | |||
Total | $ | 15,513 | $ | 18,498 | |||
The amount of acquisition-related charges included in applicable statements of profit or loss categories is summarized as follows: | |||||||
Acquisition-related charges | |||||||
Research and development | $ | 803 | $ | 828 | |||
Income tax benefit | (186 | ) | (193 | ) | |||
Total | $ | 617 | $ | 635 | |||
The amount of cash award included in applicable statements of profit or loss categories is summarized as follows: | |||||||
Cash award | |||||||
Cost of revenues | $ | 450 | $ | 432 | |||
Research and development | 16,309 | 810 | |||||
General and administrative | 1,832 | 95 | |||||
Sales and marketing | 3,318 | 245 | |||||
Income tax benefit | (4,416 | ) | (76 | ) | |||
Total | $ | 17,493 | $ | 1,506 | |||
Himax Technologies, Inc. | |||||||||||
IFRS Unaudited Condensed Consolidated Statements of Financial Position | |||||||||||
(Amounts in Thousands of U.S. Dollars) | |||||||||||
September 30, 2022 | September 30, 2021 | June 30, 2022 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 219,745 | $ | 229,197 | $ | 452,902 | |||||
Financial assets at amortized cost | 8,147 | 17,861 | 8,539 | ||||||||
Financial assets at fair value through profit or loss | - | 3,765 | 192 | ||||||||
Accounts receivable, net (including related parties) | 253,284 | 400,897 | 371,033 | ||||||||
Inventories | 410,071 | 160,947 | 337,312 | ||||||||
Income taxes receivable | 41 | 93 | 39 | ||||||||
Restricted deposit | 369,300 | 156,800 | 151,400 | ||||||||
Other receivable from related parties | 1,230 | 1,209 | 1,381 | ||||||||
Other current assets | 109,734 | 54,530 | 91,744 | ||||||||
Total current assets | 1,371,552 | 1,025,299 | 1,414,542 | ||||||||
Financial assets at fair value through profit or loss | 14,466 | 13,943 | 14,037 | ||||||||
Financial assets at fair value through other comprehensive income | 352 | 422 | 373 | ||||||||
Equity method investments | 3,293 | 3,920 | 3,994 | ||||||||
Property, plant and equipment, net | 127,598 | 133,874 | 128,839 | ||||||||
Deferred tax assets | 6,199 | 7,979 | 6,622 | ||||||||
Goodwill | 28,138 | 28,138 | 28,138 | ||||||||
Other intangible assets, net | 5,571 | 7,004 | 5,948 | ||||||||
Restricted deposit | 32 | 36 | 34 | ||||||||
Refundable deposits | 162,924 | 87,001 | 174,779 | ||||||||
Other non-current assets | 10,809 | 20,285 | 13,524 | ||||||||
359,382 | 302,602 | 376,288 | |||||||||
Total assets | $ | 1,730,934 | $ | 1,327,901 | $ | 1,790,830 | |||||
Liabilities and Equity | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term unsecured borrowings | $ | 6,000 | $ | 6,000 | $ | 6,000 | |||||
Short-term secured borrowings | 369,300 | 151,400 | 151,400 | ||||||||
Accounts payable (including related parties) | 191,971 | 226,290 | 243,304 | ||||||||
Income taxes payable | 66,517 | 61,217 | 71,112 | ||||||||
Other payable to related parties | 2,385 | 3,002 | 2,167 | ||||||||
Contract liabilities-current | 34,481 | 19,058 | 36,152 | ||||||||
Other current liabilities | 65,943 | 43,625 | 286,606 | ||||||||
Total current liabilities | 736,597 | 510,592 | 796,741 | ||||||||
Long-term unsecured borrowings | 42,000 | 48,000 | 43,500 | ||||||||
Deferred tax liabilities | 754 | 947 | 830 | ||||||||
Contract liabilities-non-current | 12,356 | - | 12,356 | ||||||||
Other non-current liabilities | 90,672 | 37,146 | 96,271 | ||||||||
145,782 | 86,093 | 152,957 | |||||||||
Total liabilities | 882,379 | 596,685 | 949,698 | ||||||||
Equity | |||||||||||
Ordinary shares | 107,010 | 107,010 | 107,010 | ||||||||
Additional paid-in capital | 111,404 | 108,108 | 111,370 | ||||||||
Treasury shares | (5,594 | ) | (5,761 | ) | (5,761 | ) | |||||
Accumulated other comprehensive income | (2,247 | ) | (822 | ) | (1,453 | ) | |||||
Retained earnings | 637,149 | 519,696 | 628,830 | ||||||||
Equity attributable to owners of Himax Technologies, Inc. | 847,722 | 728,231 | 839,996 | ||||||||
Noncontrolling interests | 833 | 2,985 | 1,136 | ||||||||
Total equity | 848,555 | 731,216 | 841,132 | ||||||||
Total liabilities and equity | $ | 1,730,934 | $ | 1,327,901 | $ | 1,790,830 | |||||
Himax Technologies, Inc. | ||||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||||||
(Amounts in Thousands of U.S. Dollars) | ||||||||||||
Three Months Ended September 30, | Three Months Ended June 30, | |||||||||||
2022 | 2021 | 2022 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Profit for the period | $ | 8,008 | $ | 117,850 | $ | 70,174 | ||||||
Adjustments for: | ||||||||||||
Depreciation and amortization | 5,359 | 5,292 | 5,411 | |||||||||
Share-based compensation expenses | 662 | 97 | 729 | |||||||||
Changes in fair value of financial assets at fair value through profit or loss | 67 | (43 | ) | (407 | ) | |||||||
Interest income | (1,387 | ) | (178 | ) | (1,055 | ) | ||||||
Finance costs | 843 | 269 | 328 | |||||||||
Income tax expense (benefit) | (2,449 | ) | 30,379 | 16,271 | ||||||||
Share of losses of associates | 164 | 282 | 202 | |||||||||
Inventories write downs | 7,282 | 1,224 | 4,577 | |||||||||
Unrealized foreign currency exchange losses (gains) | 1,034 | 27 | (1,988 | ) | ||||||||
19,583 | 155,199 | 94,242 | ||||||||||
Changes in: | ||||||||||||
Accounts receivable (including related parties) | 117,749 | (71,874 | ) | 71,217 | ||||||||
Inventories | (80,041 | ) | (27,928 | ) | (88,834 | ) | ||||||
Other receivable from related parties | 152 | - | (168 | ) | ||||||||
Other current assets | 2,804 | (455 | ) | 4,157 | ||||||||
Other non-current assets | - | (19,460 | ) | - | ||||||||
Accounts payable (including related parties) | (51,323 | ) | 15,802 | (12,404 | ) | |||||||
Other payable to related parties | 219 | 198 | 126 | |||||||||
Contract liabilities | (1,671 | ) | 12,491 | (2,702 | ) | |||||||
Other current liabilities | (424 | ) | 1,896 | 1,619 | ||||||||
Other non-current liabilities | (4,151 | ) | 3,651 | 5,805 | ||||||||
Cash generated from operating activities | 2,897 | 69,520 | 73,058 | |||||||||
Interest received | 443 | 112 | 1,171 | |||||||||
Interest paid | (843 | ) | (269 | ) | (328 | ) | ||||||
Income tax paid | (6,171 | ) | (8,852 | ) | (64,785 | ) | ||||||
Net cash provided by (used in) operating activities | (3,674 | ) | 60,511 | 9,116 | ||||||||
Cash flows from investing activities: | ||||||||||||
Acquisitions of property, plant and equipment | (3,402 | ) | (2,128 | ) | (2,497 | ) | ||||||
Acquisitions of intangible assets | - | (283 | ) | (26 | ) | |||||||
Acquisitions of financial assets at amortized cost | (720 | ) | (8,384 | ) | (1,134 | ) | ||||||
Proceeds from disposal of financial assets at amortized cost | 660 | 4,009 | 16,157 | |||||||||
Acquisitions of financial assets at fair value through profit or loss | (30,179 | ) | - | (27,543 | ) | |||||||
Proceeds from disposal of financial assets at fair value through profit or loss | 33,188 | 1,339 | 70,316 | |||||||||
Increase in refundable deposits | (6,131 | ) | (33,007 | ) | - | |||||||
Releases of restricted deposit | - | 2,699 | - | |||||||||
Cash received in advance from disposal of land | - | 3,075 | - | |||||||||
Net cash provided by (used in) investing activities | (6,584 | ) | (32,680 | ) | 55,273 | |||||||
Cash flows from financing activities: | ||||||||||||
Payments of cash dividends | (217,873 | ) | (47,404 | ) | - | |||||||
Purchases of subsidiary shares from noncontrolling interests | - | (152 | ) | (301 | ) | |||||||
Proceeds from long-term unsecured borrowings | 40,000 | - | - | |||||||||
Repayments of long-term unsecured borrowings | (41,500 | ) | (1,500 | ) | (1,500 | ) | ||||||
Proceeds from short-term secured borrowings | 668,700 | 233,200 | 51,400 | |||||||||
Repayments of short-term secured borrowings | (450,800 | ) | (185,800 | ) | (51,400 | ) | ||||||
Pledge of restricted deposit | (217,900 | ) | (47,400 | ) | - | |||||||
Payment of lease liabilities | (601 | ) | (1,225 | ) | (1,206 | ) | ||||||
Guarantee deposits received (refunded) | (882 | ) | - | 14,181 | ||||||||
Proceeds from exercise of employee stock options | - | 30 | - | |||||||||
Net cash provided by (used in) financing activities | (220,856 | ) | (50,251 | ) | 11,174 | |||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | (2,043 | ) | (108 | ) | (674 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | (233,157 | ) | (22,528 | ) | 74,889 | |||||||
Cash and cash equivalents at beginning of period | 452,902 | 251,725 | 378,013 | |||||||||
Cash and cash equivalents at end of period | $ | 219,745 | $ | 229,197 | $ | 452,902 | ||||||
Himax Technologies, Inc. | |||||||
Unaudited Condensed Consolidated Statements of Cash Flows | |||||||
(Amounts in Thousands of U.S. Dollars) | |||||||
Nine Months Ended September 30, | |||||||
2022 | 2021 | ||||||
Cash flows from operating activities: | |||||||
Profit for the period | $ | 193,469 | $ | 292,463 | |||
Adjustments for: | |||||||
Depreciation and amortization | 16,146 | 16,013 | |||||
Share-based compensation expenses | 2,002 | 97 | |||||
Changes in fair value of financial assets at fair value through profit or loss | (361 | ) | 11 | ||||
Interest income | (2,823 | ) | (593 | ) | |||
Finance costs | 1,451 | 789 | |||||
Income tax expense | 43,916 | 74,032 | |||||
Share of losses of associates | 573 | 740 | |||||
Inventories write downs | 13,107 | 5,345 | |||||
Unrealized foreign currency exchange gains | (3,586 | ) | (154 | ) | |||
263,894 | 388,743 | ||||||
Changes in: | |||||||
Accounts receivable (including related parties) | 156,927 | (157,271 | ) | ||||
Inventories | (224,578 | ) | (57,585 | ) | |||
Other receivable from related parties | (13 | ) | (9 | ) | |||
Other current assets | 7,426 | (5,550 | ) | ||||
Other non-current assets | - | (19,460 | ) | ||||
Accounts payable (including related parties) | (56,444 | ) | 52,819 | ||||
Other payable to related parties | 745 | 430 | |||||
Contract liabilities | (1,047 | ) | 12,436 | ||||
Other current liabilities | (214 | ) | 2,210 | ||||
Other non-current liabilities | 1,657 | 9,144 | |||||
Cash generated from operating activities | 148,353 | 225,907 | |||||
Interest received | 1,729 | 519 | |||||
Interest paid | (1,451 | ) | (799 | ) | |||
Income tax paid | (71,189 | ) | (19,599 | ) | |||
Net cash provided by operating activities | 77,442 | 206,028 | |||||
Cash flows from investing activities: | |||||||
Acquisitions of property, plant and equipment | (9,485 | ) | (5,542 | ) | |||
Acquisitions of intangible assets | (169 | ) | (427 | ) | |||
Acquisitions of financial assets at amortized cost | (7,979 | ) | (15,021 | ) | |||
Proceeds from disposal of financial assets at amortized cost | 24,982 | 5,711 | |||||
Acquisitions of financial assets at fair value through profit or loss | (103,293 | ) | (16,553 | ) | |||
Proceeds from disposal of financial assets at fair value through profit or loss | 105,201 | 20,883 | |||||
Proceeds from capital reduction of investment | - | 151 | |||||
Acquisitions of equity method investments | - | (598 | ) | ||||
Increase in refundable deposits | (6,131 | ) | (93,767 | ) | |||
Releases (pledges) of restricted deposit | 2,700 | (5,295 | ) | ||||
Cash received in advance from disposal of land | - | 3,075 | |||||
Net cash provided by (used in) investing activities | 5,826 | (107,383 | ) | ||||
Cash flows from financing activities: | |||||||
Payments of cash dividends | (217,873 | ) | (47,424 | ) | |||
Purchases of subsidiary shares from noncontrolling interests | (301 | ) | (152 | ) | |||
Proceeds from short-term unsecured borrowings | - | 10,000 | |||||
Repayments of short-term unsecured borrowings | - | (10,000 | ) | ||||
Proceeds from long-term unsecured borrowings | 40,000 | - | |||||
Repayments of long-term unsecured borrowings | (44,500 | ) | (4,500 | ) | |||
Proceeds from short-term secured borrowings | 854,500 | 390,200 | |||||
Repayments of short-term secured borrowings | (636,600 | ) | (342,800 | ) | |||
Pledge of restricted deposit | (217,900 | ) | (47,400 | ) | |||
Payment of lease liabilities | (3,036 | ) | (3,431 | ) | |||
Guarantee deposits received | 28,913 | - | |||||
Proceeds from exercise of employee stock options | - | 1,182 | |||||
Net cash used in financing activities | (196,797 | ) | (54,325 | ) | |||
Effect of foreign currency exchange rate changes on cash and cash equivalents | (2,750 | ) | (61 | ) | |||
Net increase (decrease) in cash and cash equivalents | (116,279 | ) | 44,259 | ||||
Cash and cash equivalents at beginning of period | 336,024 | 184,938 | |||||
Cash and cash equivalents at end of period | $ | 219,745 | $ | 229,197 | |||
Himax Technologies, Inc. | |||||||||||
Non-IFRS Unaudited Supplemental Data – Reconciliation Schedule | |||||||||||
(Amounts in Thousands of U.S. Dollars) | |||||||||||
Gross Margin, Operating Margin and Net Margin Excluding Share-Based Compensation, Acquisition-Related Charges and Cash Award: | |||||||||||
Three Months Ended September 30, | Three Months Ended June 30, | ||||||||||
2022 | 2021 | 2022 | |||||||||
Revenues | $ | 213,631 | $ | 420,938 | $ | 312,606 | |||||
Gross profit | 76,803 | 216,725 | 136,361 | ||||||||
Add: Share-based compensation – cost of revenues | 454 | 675 | 7 | ||||||||
Add: Cash award – cost of revenues | 296 | 432 | 77 | ||||||||
Gross profit excluding share-based compensation and cash award | 77,553 | 217,832 | 136,445 | ||||||||
Gross margin excluding share-based compensation and cash award | 36.3 | % | 51.7 | % | 43.6 | % | |||||
Operating income | 3,945 | 148,244 | 83,762 | ||||||||
Add: Share-based compensation | 18,197 | 23,271 | 729 | ||||||||
Add: Acquisition-related charges –intangible assets amortization | 250 | 275 | 277 | ||||||||
Add: Cash award | 8,496 | 1,582 | 6,707 | ||||||||
Operating income excluding share-based compensation, acquisition-related charges and cash award | 30,888 | 173,372 | 91,475 | ||||||||
Operating margin excluding share-based compensation, acquisition-related charges and cash award | 14.5 | % | 41.2 | % | 29.3 | % | |||||
Profit attributable to Himax Technologies, Inc. stockholders | 8,319 | 118,716 | 70,635 | ||||||||
Add: Share-based compensation, net of tax | 14,421 | 18,498 | 603 | ||||||||
Add: Acquisition-related charges, net of tax | 193 | 211 | 212 | ||||||||
Add: Cash award, net of tax | 6,841 | 1,506 | 5,314 | ||||||||
Profit attributable to Himax Technologies, Inc. stockholders excluding share-based compensation, acquisition-related charges and cash award | 29,774 | 138,931 | 76,764 | ||||||||
Net margin attributable to Himax Technologies, Inc. stockholders excluding share-based compensation, acquisition-related charges and cash award | 13.9 | % | 33.0 | % | 24.6 | % | |||||
*Gross margin excluding share-based compensation and cash award equals gross profit excluding share-based compensation and cash award divided by revenues | |||||||||||
*Operating margin excluding share-based compensation, acquisition-related charges and cash award equals operating income excluding share-based compensation, acquisition-related charges and cash award divided by revenues | |||||||||||
*Net margin attributable to Himax Technologies, Inc. stockholders excluding share-based compensation, acquisition-related charges and cash award equals profit attributable to Himax Technologies, Inc. stockholders excluding share-based compensation, acquisition-related charges and cash award divided by revenues |
Himax Technologies, Inc. | ||||||||
Non-IFRS Unaudited Supplemental Data – Reconciliation Schedule | ||||||||
(Amounts in Thousands of U.S. Dollars) | ||||||||
Gross Margin, Operating Margin and Net Margin Excluding Share-Based Compensation, Acquisition-Related Charges and Cash Award: | ||||||||
Nine Months Ended September 30, | ||||||||
2022 | 2021 | |||||||
Revenues | $ | 939,049 | $ | 1,095,202 | ||||
Gross profit | 407,055 | 514,602 | ||||||
Add: Share-based compensation – cost of revenues | 468 | 675 | ||||||
Add: Cash award – cost of revenues | 450 | 432 | ||||||
Gross profit excluding share-based compensation and cash award | 407,973 | 515,709 | ||||||
Gross margin excluding share-based compensation and cash award | 43.4 | % | 47.1 | % | ||||
Operating income | 230,061 | 367,070 | ||||||
Add: Share-based compensation | 19,537 | 23,271 | ||||||
Add: Acquisition-related charges –intangible assets amortization | 803 | 828 | ||||||
Add: Cash award | 21,909 | 1,582 | ||||||
Operating income excluding share-based compensation, acquisition-related charges and cash award | 272,310 | 392,751 | ||||||
Operating margin excluding share-based compensation, acquisition-related charges and cash award | 29.0 | % | 35.9 | % | ||||
Profit attributable to Himax Technologies, Inc. stockholders | 194,826 | 294,503 | ||||||
Add: Share-based compensation, net of tax | 15,513 | 18,498 | ||||||
Add: Acquisition-related charges, net of tax | 617 | 635 | ||||||
Add: Cash award, net of tax | 17,493 | 1,506 | ||||||
Profit attributable to Himax Technologies, Inc. stockholders excluding share-based compensation, acquisition-related charges and cash award | 228,449 | 315,142 | ||||||
Net margin attributable to Himax Technologies, Inc. stockholders excluding share-based compensation, acquisition-related charges and cash award | 24.3 | % | 28.8 | % | ||||
*Gross margin excluding share-based compensation and cash award equals gross profit excluding share-based compensation and cash award divided by revenues | ||||||||
*Operating margin excluding share-based compensation, acquisition-related charges and cash award equals operating income excluding share-based compensation, acquisition-related charges and cash award divided by revenues | ||||||||
*Net margin attributable to Himax Technologies, Inc. stockholders excluding share-based compensation, acquisition-related charges and cash award equals profit attributable to Himax Technologies, Inc. stockholders excluding share-based compensation, acquisition-related charges and cash award divided by revenues |
Diluted Earnings Per ADS Attributable to Himax Technologies, Inc. Stockholders Excluding Share-based Compensation, Acquisition-Related Charges and Cash Award: (Amounts in U.S. Dollars) | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||
2022 | 2022 | |||||
Diluted IFRS earnings per ADS attributable to Himax Technologies, Inc. stockholders | $ | 0.048 | $ | 1.115 | ||
Add: Share-based compensation per ADS | $ | 0.083 | $ | 0.089 | ||
Add: Acquisition-related charges per ADS | $ | 0.001 | $ | 0.004 | ||
Add: Cash award per ADS | $ | 0.039 | $ | 0.100 | ||
Diluted non-IFRS earnings per ADS attributable to Himax Technologies, Inc. stockholders excluding share-based compensation, acquisition-related charges and cash award | $ | 0.170 | $ | 1.307 | ||
Numbers do not add up due to rounding |
FAQ
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