Himax Technologies, Inc. Reports Third Quarter 2024 Financial Results; Provides Fourth Quarter 2024 Guidance
Himax Technologies (HIMX) reported Q3 2024 revenues of $222.4M, down 7.2% QoQ but exceeding guidance. Q3 gross margin was 30.0%, with after-tax profit of $13.0M or 7.4 cents per ADS. For Q4 2024, the company expects revenues to be flat to slightly down QoQ, with gross margin flat to slightly up, and profit per ADS between 9.3-11.0 cents.
The company's automotive business remains the largest revenue contributor, representing nearly half of total sales. FY24 automotive driver IC sales are projected to grow high-teens YoY. Himax maintains strong position in automotive TDDI with over 70M cumulative shipments and expects Q4 automotive TDDI sales to surpass DDIC sales for the first time.
Himax Technologies (HIMX) ha riportato ricavi per il terzo trimestre del 2024 pari a 222,4 milioni di dollari, in calo del 7,2% rispetto al trimestre precedente, ma superiori alle previsioni. Il margine lordo per il terzo trimestre si è attestato al 30,0%, con un profitto netto di 13,0 milioni di dollari, corrispondente a 7,4 centesimi per ADS. Per il quarto trimestre del 2024, l'azienda prevede ricavi stabili o leggermente in calo rispetto al trimestre precedente, con un margine lordo stabile o in lieve aumento, e un profitto per ADS compreso tra 9,3 e 11,0 centesimi.
Il business automobilistico dell'azienda rimane il maggiore contributore ai ricavi, rappresentando quasi la metà delle vendite totali. Le vendite di circuiti integrati per driver automobilistici per l'anno fiscale 2024 sono previste in crescita di alta percentuale rispetto all'anno precedente. Himax mantiene una forte posizione nel TDDI automobilistico con oltre 70 milioni di spedizioni cumulative e si aspetta che le vendite TDDI automobilistiche del quarto trimestre superino per la prima volta le vendite di DDIC.
Himax Technologies (HIMX) reportó ingresos de 222,4 millones de dólares en el tercer trimestre de 2024, lo que representa una disminución del 7,2% respecto al trimestre anterior, pero superando las expectativas. El margen bruto en el tercer trimestre fue del 30,0%, con una ganancia neta de 13,0 millones de dólares, equivalente a 7,4 centavos por ADS. Para el cuarto trimestre de 2024, la compañía espera que los ingresos sean estables o ligeramente a la baja en comparación con el trimestre anterior, con un margen bruto estable o ligeramente al alza, y una ganancia por ADS entre 9,3 y 11,0 centavos.
El negocio automotriz de la compañía sigue siendo el mayor contribuyente a los ingresos, representando casi la mitad de las ventas totales. Se prevé que las ventas de IC para controladores automotrices para el año fiscal 2024 crezcan en porcentajes altos en comparación con el año anterior. Himax mantiene una posición sólida en TDDI automotriz con más de 70 millones de envíos acumulados y espera que las ventas de TDDI automotriz del cuarto trimestre superen por primera vez las ventas de DDIC.
Himax Technologies (HIMX)는 2024년 3분기 수익이 2억 2천 2백 40만 달러로, 전분기 대비 7.2% 감소했지만 예상치를 초과했다고 보고했습니다. 3분기 총 마진은 30.0%였으며, 세후 이익은 1천 3백만 달러, 즉 ADS당 7.4센트입니다. 2024년 4분기에는 매출이 전분기 대비 비슷하거나 약간 감소할 것으로 예상되며, 총 마진은 비슷하거나 약간 증가할 것으로 보이고, ADS당 이익은 9.3~11.0센트로 예상됩니다.
회사의 자동차 사업 부문은 여전히 총 매출의 거의 절반을 차지하는 최대 매출원이 됩니다. 2024 회계연도 자동차 드라이버 IC 판매는 전년 대비 높은 성장률을 기록할 것으로 예상됩니다. Himax는 7천만 건 이상의 누적 출하량을 보유하고 있는 자동차 TDDI에서 강력한 입지를 유지하고 있으며, 4분기 자동차 TDDI 판매가 처음으로 DDIC 판매를 초과할 것으로 예상하고 있습니다.
Himax Technologies (HIMX) a rapporté des revenus de 222,4 millions de dollars pour le troisième trimestre de 2024, en baisse de 7,2 % par rapport au trimestre précédent, mais dépassant les prévisions. La marge brut pour le troisième trimestre était de 30,0 %, avec un bénéfice après impôt de 13,0 millions de dollars, soit 7,4 cents par ADS. Pour le quatrième trimestre de 2024, la société attend des revenus stables ou légèrement en baisse par rapport au trimestre précédent, avec une marge brut stable ou légèrement en hausse, et un bénéfice par ADS compris entre 9,3 et 11,0 cents.
Le secteur automobile de l'entreprise reste le plus grand contributeur aux revenus, représentant près de la moitié des ventes totales. Les ventes de circuits intégrés pour pilotes automobiles pour l'exercice 2024 devraient connaître une croissance à deux chiffres par rapport à l'année précédente. Himax maintient une position forte dans le TDDI automobile avec plus de 70 millions d'expéditions cumulées et s'attend à ce que les ventes de TDDI automobile du quatrième trimestre surpassent pour la première fois celles de DDIC.
Himax Technologies (HIMX) berichtete für das dritte Quartal 2024 Einnahmen von 222,4 Millionen US-Dollar, was einem Rückgang von 7,2 % im Vergleich zum Vorquartal entspricht, aber die Prognose übertroffen hat. Die Bruttomarge im dritten Quartal betrug 30,0 %, mit einem Nachsteuergewinn von 13,0 Millionen US-Dollar oder 7,4 Cent pro ADS. Für das vierte Quartal 2024 erwartet das Unternehmen stabile oder leicht rückläufige Einnahmen im Vergleich zum Vorquartal, eine stabile oder leicht steigende Bruttomarge und einen Gewinn pro ADS von 9,3 bis 11,0 Cent.
Das Automobilgeschäft des Unternehmens bleibt der größte Umsatzträger und macht fast die Hälfte des Gesamtumsatzes aus. Für das Geschäftsjahr 2024 werden die Verkaufszahlen von Treiber-ICs für Automobile mit zweistelligen Wachstumsraten im Jahresvergleich prognostiziert. Himax hält eine starke Position im Automobil-TDDI mit über 70 Millionen kumulierten Sendungen und erwartet, dass die Verkaufszahlen von Automobil-TDDI im vierten Quartal die Verkaufszahlen von DDIC zum ersten Mal übersteigen werden.
- Q3 revenues of $222.4M exceeded guidance despite 7.2% QoQ decline
- Q3 EPS of 7.4 cents significantly above guidance of 1.5-4.5 cents
- Automotive business represents nearly half of total sales
- FY24 automotive driver IC sales projected for high-teens YoY growth
- Automotive TDDI achieves market dominance with over 70M units shipped
- Q3 revenues decreased 7.2% QoQ to $222.4M
- Gross margin declined to 30.0% from 32.0% in Q2
- Operating income decreased to 2.6% of sales from 12.2% last quarter
- Cash balance decreased by $47.3M QoQ to $206.5M
- Q4 guidance indicates flat to slightly down revenues
Insights
The Q3 2024 results show mixed performance with
Notable metrics include:
- Automotive business represents nearly half of total sales
- Projected high-teens YoY growth in automotive driver IC sales for FY24
- Strong cash position of
$206.5M - Well-managed inventory levels at
$192.5M
Q4 guidance suggests flat to slightly lower revenues with stable margins, indicating near-term market challenges but long-term growth potential in automotive, AI and OLED segments. The shift toward higher-margin automotive TDDI products and expansion in AI PC solutions present significant growth opportunities.
Himax is strategically positioning itself at the intersection of three major tech trends: automotive display evolution, AI PC emergence and optical solutions for AI infrastructure. The company's dominance in automotive TDDI with over 70M units shipped and 500 design-wins demonstrates strong market leadership.
The development of next-gen solutions including:
- In-cell touch TDDI for LCD notebooks
- On-cell touch control for OLED notebooks
- eDP 1.5 display interface
- LPO/CPO optical solutions
These innovations align well with industry shifts toward AI-enabled devices and advanced display technologies. The collaboration with FOCI on optical solutions for AI computing represents a promising new revenue stream in the high-growth AI infrastructure market.
Q3 2024 Revenues and EPS both Surpassed Guidance while Gross Margin In Line With Guidance Range Issued on Aug. 8, 2024
Company Q4 2024 Guidance: Revenues to be flat to slightly down QoQ,
Gross Margin is Expected to be flat to slightly up QoQ, Profit per diluted ADS to be 9.3 Cents to 11.0 Cents
- Q3 2024 revenues were
$222.4M , a decrease of7.2% QoQ, yet significantly exceeded the guidance range of a12.0% to17.0% decrease QoQ. The better-than-expected financial results stemmed primarily from stronger order momentum in automotive, tablet and Tcon product lines. Q3 GM reached30.0% , in line with guidance of around30% , but down from32.0% in Q2, mainly a result of unfavorable product mix - Q3 2024 after-tax profit was
$13.0M , or 7.4 cents per diluted ADS, considerably above the guidance range of 1.5 cents to 4.5 cents - Himax Q4 2024 revenues to be flat to slightly down QoQ. GM to be flat to slightly up QoQ. Profit per diluted ADS to be in the range of 9.3 cents to 11.0 cents
- Looking ahead, Himax is confident in the outlook for key areas, namely automotive, AI, WLO, and OLED, expecting these product lines to drive significant business growth
- Himax Q3 automotive driver sales largely outperformed guidance, primarily fueled by rush orders from Himax’s Chinese panel customers shortly after Q2 earnings call on the backdrop of Chinese government's renewed trade-in stimulus announcement made in mid-August, as part of their efforts to further boost automobile consumption
- Himax FY24 automotive driver IC sales are projected to grow high-teens YoY, significantly outperforming global automotive growth. Himax remains optimistic in its long-term automotive IC outlook, particularly in LCD TDDI, OLED, and Tcon, all of which are relatively new and cutting-edge technologies for automotive display
- Himax continues to strengthen its automotive TDDI market dominance with cumulative shipments already exceeding 70M units, far surpassing those of its competitors. Q4 automotive TDDI sales are set to surpass DDIC sales for the first time
- Himax Q4 automotive Tcon business is expected to achieve high-teens growth QoQ, driven by secured design-win shipments. FY24 automotive Tcon business is projected to grow over
80% YoY, contributing to nearly4% of total sales - Himax is confident in its collaboration with FOCI on the LPO/CPO business, making decent progress in the initial small-scale production of the first-generation solution. Himax and FOCI, along with world-leading AI semiconductor companies and foundry partner, have begun new technology development for future generation products. Himax believes this will create new revenue streams and make a significant contribution to Company’s total revenue and profit in the coming years
- The Emergence of AI PC is prompting display upgrades towards OLED displays and displays equipped with touch features. Himax is well positioned to capitalize on this trend, offering a comprehensive range of NB IC products, including state-of-the-art in-cell touch TDDI for LCD NB, on-cell touch control for OLED NB and next-gen eDP 1.5 display interface for Tcon, applicable to both LCD and OLED panels
TAINAN, Taiwan, Nov. 07, 2024 (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 2024 ended September 30, 2024.
“Looking ahead to Q4, the macro environment remains challenging. Against this backdrop, we continue to strictly manage expenses and implement various cost optimization measures, including enhancing manufacturing and operational efficiency, as well as leveraging a diverse range of vendors in foundries and backend suppliers. Looking ahead, while the global economy still looks uncertain, we are confident in the business outlook of several key areas, namely automotive, AI, WLO, and OLED, and expect these product lines to drive significant growth of our business,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax.
“In terms of our WLO business, we are confident in our collaboration with FOCI on the LPO/CPO business where I am pleased to share that we are making decent progress in the initial small-scale production of the first-generation solution. Moreover, Himax and FOCI, along with world-leading AI semiconductor companies and foundry partner, have begun new technology development for future generation products. We believe this will create new revenue streams for Himax and make a significant contribution to our total revenue and profit in the coming years,” concluded Mr. Jordan Wu.
Third Quarter 2024 Financial Results
Himax net revenues registered
Revenue from large display drivers came in at
Small and medium-sized display driver segment totaled
Third quarter revenues from its non-driver business reached
Operating expenses for the third quarter were
Q3 operating income was
Balance Sheet and Cash Flow
Himax had
The Company’s inventories as of September 30, 2024 were
Outstanding Share
As of September 30, 2024, Himax had 175.0 million ADS outstanding, little changed from last quarter. On a fully diluted basis, the total number of ADS outstanding for the third quarter was 175.0 million.
Q4 2024 Outlook
Looking ahead to Q4, the macro environment remains challenging. Panel customers are reducing production to stabilize panel prices in response to the current market conditions. At the same time, end brands are also taking a cautious approach to panel procurement and maintaining low inventory levels. Taken together, these factors have suppressed IC demand, leading to Himax’s conservative outlook for the fourth quarter.
Against this backdrop, Himax continues to strictly manage expenses and implement various cost optimization measures, including enhancing manufacturing and operational efficiency, as well as leveraging a diverse range of vendors in foundries and backend suppliers. Looking ahead, while the global economy still looks uncertain, Himax is confident in the business outlook of several key areas, namely automotive, AI, WLO, and OLED, and expect these product lines to drive significant growth of Himax’s business.
On the automotive sector, Himax’s primary revenue contributor. Himax remains optimistic in its long-term outlook as the automotive display market continues to expand through innovation and technological advancements. Himax’s confidence also stems from its comprehensive offering and leading position in the market, particularly in the areas of LCD TDDI, OLED, and Tcon, all of which are relatively new and cutting-edge technologies for automotive display. These technologies are expected to see continued adoption, providing Himax with sustainable long-term growth opportunities.
It's worth noting that there have been significant fluctuations in automotive market demands in recent quarters, particularly from the Chinese market, which accounts for over
In terms of WLO business, Himax is confident in its collaboration with FOCI on the LPO/CPO business where I am pleased to share that Himax is making decent progress in the initial small-scale production of the first-generation solution. Demand for high-speed optical communication technology is surging, driven by advancements in high-performance computing and artificial intelligence. Moreover, Himax and FOCI, along with world-leading AI semiconductor companies and foundry partner, have begun new technology development for future generation products. Himax believes this will create new revenue streams for the Company and make a significant contribution to Himax’s total revenue and profit in the coming years.
Display Driver IC Businesses
LDDIC
In Q4 2024, Himax anticipates a double-digit sequential sales decrease for large display driver ICs due to soft holiday shopping demand expectations, ongoing customers destocking since Q2, and intensified China local competition. Panel manufacturers are strategically reducing production to safeguard panel prices while end brands are enforcing strict procurement control in response to soft demand and maintaining low inventory levels.
Looking ahead in the notebook sector, the emergence of AI PC is prompting display upgrades towards OLED displays and displays equipped with touch features. Through strategic collaborations with leading panel makers in Korea and China, Himax is well positioned to capitalize on this trend, offering a comprehensive range of notebook IC products including DDIC, Tcon, and touch controller for OLED displays and TDDI and Tcon for LCD display. First on TDDI for LCD, Himax is pioneering in-cell touch TDDI for notebook LCD display. Himax’s state-of-the-art in-cell touch TDDI solution features a proprietary architecture where the touch controller is embedded inside the TDDI chip with the display portion of the TDDI taking advantage of the conventional display driver configuration to convey Tcon data to drive the panel. This allows customers to maintain the existing Tcon adoption, substantially reducing their product development effort and enhancing production flexibility. Additionally, the TDDI features high integration, multi-chip cascade, and increased channel output, enabling higher resolution of up to 4K and larger screen of up to 16 inches, with compact PCB and narrower bezel designs, making it suitable for both mainstream and high-end LCD laptops. In the third quarter, Himax’s newly introduced in-cell touch TDDI successfully entered mass production for a prominent brand's first AI PC. Several projects are also in progress with other brands for their upcoming notebook models.
The second area of focus is OLED, which is seeing increasing adoption in premium laptops. In addition to Himax’s OLED DDIC and Tcon solutions, Himax is also pioneering on-cell touch control technology on notebook OLED display. Multiple projects with top panel and laptop leaders are underway. Finally, Himax is developing the next generation eDP 1.5 display interface for Tcon, applicable to both LCD and OLED panels, supporting high frame rates, low power panel replay, adaptive sync, and high-resolution. Himax aims to launch eDP 1.5 Tcon in the second half of 2025. Himax is confident that, with these initiatives, Himax will be the frontrunner for next-gen AI PCs and premium notebooks. With several projects slated for mass production starting in 2025, Himax believes its LCD and OLED notebook solutions will act as growth catalysts for Himax’s notebook IC business for the coming years.
SMDDIC
Q4 SMDDIC revenue is expected to be flat sequentially. Automotive IC revenue in Q4 is expected to resume growth and increase single digit sequentially, mainly supported by ongoing China market promotional events and the Chinese government’s renewed trade-in stimulus policies. Notably, Himax’s automotive driver IC sales for the full year 2024 are projected to grow high-teens year-over-year, significantly outperforming global automotive growth, primarily driven by continued expansion of TDDI adoption among all major end customers worldwide. In the automotive TDDI sector, Himax continues to strengthen Himax’s market dominance with cumulative shipments already exceeding 70 million units, far surpassing those of Company’s competitors. With nearly 500 design-in projects secured and only about
Meanwhile, an emerging market trend shows more customers are opting for Himax’s TDDI or LTDI, coupled with Himax’s local dimming Tcon, as their standard development platforms for new automotive displays across various sizes and applications. This growing platform adoption of more of Himax’s automotive IC offerings not only reflects strong customer loyalty to Himax’s technologies and services but also signifies the increase in content value for Himax on a per-panel basis. Himax is widely recognized as the leader in the automotive display IC market, offering the industry's broadest range of products with leading market share in each of the product areas. The diverse range of offerings allows Himax to address different customer needs and adapt to changing market trends, thereby strengthening Himax’s market presence and boosting potential revenue. Himax’s newly introduced TED (Tcon Embedded Driver IC) solution, which combines TDDI with local dimming Tcon into a single chip, exemplifies its commitment to providing customers with more competitive, flexible and broader options. This solution is ideal for smaller panels that typically require only 1 to 2 ICs for cost consideration, while still offering advanced touch and local dimming features. Production is set to begin in early 2025 with several projects and engagements currently underway with major customers. Meanwhile, Himax is actively collaborating with automotive Tier 1 partners to develop more advanced, innovative and/or cost optimized solutions tailored to various market needs. This not only underscores Himax’s customers' confidence in its technology leadership but also reflects their commitment to engaging with Himax in future roadmap collaborations.
On smartphone IC sales, Himax anticipates Q4 to slightly decline sequentially with ongoing shipment to key customers. Q4 tablet IC sales are projected to decline low teens sequentially, as end customers are extending their replacement cycles due to challenging economic conditions.
On OLED business. In the automotive OLED market, Himax has formed strategic partnerships with leading panel manufacturers in Korea, China, and Japan. As OLED technology gains traction beyond premium car models, Himax is well-positioned as the preferred partner, thanks to Himax’s strong presence and proven track records in the LCD automotive display sector. Leveraging Himax’s first-mover advantage, Himax looks to capitalize on the growing adoption of OLED in automotive displays by offering a comprehensive range of OLED solutions, including DDIC, Tcon, and on-cell touch controller. Himax believes this positions the Company as the primary beneficiary of the growing adoption of OLED display in automotive. For instance, Himax’s advanced OLED on-cell touch controllers are setting new industry standards with an impressive touch signal-to-noise ratio of over 45 dB, ensuring reliable performance under challenging conditions such as glove-wearing or wet-finger operations. Himax’s OLED on-cell touch controller for automotive applications entered production last quarter and adoption is expanding across the board. With additional projects starting mass production next year, Himax expects this segment’s contribution to its revenues to increase starting in 2025.
Beyond the automotive sector, Himax has made notable advances in the tablet and notebook sectors with top OLED panel manufacturers in Korea and China. Himax’s comprehensive OLED product offerings, encompassing DDIC, Tcon, and touch controllers, have led to several new projects that are on track to enter mass production during Q4 and as the Company moves into 2025. Regarding smartphone OLED, Himax expects mass production to commence next year. Currently, Himax is making good progress in collaborations with customers in Korea and China on several verification and partnership projects. Additionally, Himax is building strong, long-term partnerships with leading OLED players to enhance Himax’s market position.
Non-Driver Product Categories
Q4 non-driver IC revenues are expected to increase mid-teens sequentially.
Timing Controller (Tcon)
Himax anticipates Q4 Tcon sales to increase mid-teens sequentially, driven by automotive and a one-time ASIC Tcon product shipment to a leading projector customer. Automotive Tcon business is expected to achieve high-teens growth sequentially, driven by the shipment of secured design wins. For the full year, Himax’s automotive Tcon business is projected to grow over
Despite subdued end-market demand, Himax is actively developing next-generation OLED Tcon ICs for tablets, notebooks, and automotive applications. This proactive approach not only broadens and diversifies Himax’s product offerings, but also helps the Company navigate through industry shifts towards wider adoption of OLED displays across applications. Some of Himax’s newly developed Tcon ICs for OLED tablets and notebooks are already showing promising results. For automotive OLED Tcon, an area rich with exciting growth potential, Himax began production in 2021 and anticipates new product launches with advanced feature enhancements in 2025.
WiseEye™ Ultralow Power AI Sensing
Himax’s WiseEye™ Ultralow Power AI Sensing is a cutting-edge endpoint AI integration featuring industry-leading ultralow power AI processor, always-on CMOS image sensor, and advanced CNN-based AI algorithm. In the fast-changing AI landscape, WiseEye AI technology stands out for its expertise in on-device tinyML microcontroller solutions, characterized by remarkably low power consumption, operating at just single-digit milliwatts, making it possible to add AI functionalities to battery-powered endpoint devices. Himax’s WiseEye technology is unlocking new opportunities across various applications, particularly in endpoint devices for everyday life. A prime example is the smart door lock. Stemming from Himax’s collaboration with DESMAN, a leading vendor in China's high-end smart door lock market, Himax is expanding use cases with other world-leading door lock makers across continents by integrating innovative AI features such as parcel recognition, smart anti-pinch protection, and palm vein biometric access. This approach targets diverse home security markets that value WiseEye’s ultralow power consumption and on-device AI capabilities, which are crucial for battery-powered endpoint AI devices.
On WiseEye module business update. Himax continues to offer a diverse range of plug-and-play modules, collaborating with ecosystem partners and third-party system integrators to develop pretrained no-code and low-code AI solutions with the goal of lowering barriers and timelines for developers entering the AI space. Progress is being made across various domains, including smart parking, access control, palm vein authentication, smart offices, smart homes, and more.
Among these, Himax PalmVein solution, which is part of Himax’s WiseEye AI module business, has garnered significant attention and positive feedback from customers since its launch early this year. It has already been adopted by a U.S. customer for smart access control systems and is on track to begin mass production by the end of the year. Extensive engineering activities of WiseEye PalmVein are ongoing with world-leading players across various industries, including smart door locks, access control, notebooks, and automotive, among others. The WiseEye PalmVein solution integrates the Himax WiseEye2 AI processor, an AoS CMOS sensor, and a proven palm vein authentication algorithm. It features an ultralow power, compact module capable of authenticating an individual’s identity in under 100 milliseconds while consuming only a few milliwatts of power, ideal for battery-charged, on-device AI endpoint applications. Palm vein authentication utilizes unique internal vein patterns that are difficult to replicate or spoof. In addition to exceptional low power consumption, WiseEye PalmVein provides robust security and reliability with industry-leading low rates of false acceptance and rejection, making it nearly impossible to bypass or misidentify. Equally important, WiseEye PalmVein processes identification locally, eliminating privacy risk associated with cloud access required for solutions that perform authentication remotely. Himax anticipates increasing sales contribution from WiseEye PalmVein across a diverse array of applications starting next year and are excited about the strong customer interest and opportunity for rapid growth in WiseEye module business.
Wafer Level Optics (WLO)
In June of this year, Himax joined forces with FOCI, a global leader in silicon photonics connectors, to announce the launch of an industry-leading optical communication solution designed for the most advanced multi-chip modules. Himax and FOCI are currently progressing through the small-scale production phase of first-generation solution designed for the LPO architecture. In addition, Himax, in collaboration with FOCI, along with leading global AI IC design companies and foundry partner, has commenced development for next-generation technologies, with the objective of incorporating these advancements into more sophisticated CPO architectures.
Leveraging Himax’s years of WLO engineering expertise, Himax has meticulously designed and developed nano-scale precision optical systems for LPO/CPO. In the LPO/CPO optical solution, Himax’s precision-engineered optical design and manufacturing technologies ensure that the optical signals in each fiber couple precisely with the silicon photonic integrated circuit (PIC) in the LPO/CPO optical components. This achieves high precision, low loss, and high-speed transmission to meet the demands of silicon photonic transmission in high-speed computing.
In addition to the progress made in LPO/CPO, Himax is seeing an increase in engineering collaborations with global technology leaders who are leveraging Himax’s WLO expertise for AR/VR and a range of other applications, underscoring the widespread recognition of Himax’s technology. Himax believes that WLO will make a significant contribution to its overall revenue and profit in the coming year.
Fourth Quarter 2024 Guidance | ||
Net Revenue: | Flat to slightly down sequentially | |
Gross Margin: | Flat to slightly up sequentially, depending on final product mix | |
Profit: | 9.3 cents to 11.0 cents per diluted ADS |
HIMAX TECHNOLOGIES THIRD QUARTER 2024 EARNINGS CONFERENCE CALL | ||
DATE: | Thursday, November 7, 2024 | |
TIME: | U.S. | 8:00 a.m. EST |
Taiwan | 9:00 p.m. |
Live Webcast (Video and Audio): http://www.zucast.com/webcast/naEJkyEo | |
Toll Free Dial-in Number (Audio Only): | |
Hong Kong 2112-1444 Taiwan 0080-119-6666 Australia 1-800-015-763 Canada 1-877-252-8508 China (1) 4008-423-888 China (2) 4006-786-286 Singapore 800-492-2072 UK 0800-068-8186 United States (1) 1-800-811-0860 United States (2) 1-866-212-5567 | |
Dial-in Number (Audio Only): | |
Taiwan Domestic Access 02-3396-1191 International Access +886-2-3396-1191 | |
Participant PIN Code: 1407507 # | |
If you choose to attend the call by dialing in via phone, please enter the Participant PIN Code 1407507 # after the call is connected. A replay of the webcast will be available beginning two hours after the call on www.himax.com.tw. This webcast can be accessed by clicking on this link or Himax’s website, where the webcast can be accessed through November 7, 2025
About Himax Technologies, Inc.
Himax Technologies, Inc. (NASDAQ: HIMX) is a leading global fabless semiconductor solution provider dedicated to display imaging processing technologies. The Company’s display driver ICs and timing controllers have been adopted at scale across multiple industries worldwide including TVs, PC monitors, laptops, mobile phones, tablets, automotive, ePaper devices, industrial displays, among others. As the global market share leader in automotive display technology, the Company offers innovative and comprehensive automotive IC solutions, including traditional driver ICs, advanced in-cell Touch and Display Driver Integration (TDDI), local dimming timing controllers (Local Dimming Tcon), Large Touch and Display Driver Integration (LTDI) and OLED display technologies. Himax is also a pioneer in tinyML visual-AI and optical technology related fields. The Company’s industry-leading WiseEyeTM Ultralow Power AI Sensing technology which incorporates Himax proprietary ultralow power AI processor, always-on CMOS image sensor, and CNN-based AI algorithm has been widely deployed in consumer electronics and AIoT related applications. Himax optics technologies, such as diffractive wafer level optics, LCoS microdisplays and 3D sensing solutions, are critical for facilitating emerging AR/VR/metaverse technologies. Additionally, Himax designs and provides touch controllers, OLED ICs, LED ICs, EPD ICs, power management ICs, and CMOS image sensors for diverse display application coverage. 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 2,683 patents granted and 390 patents pending approval worldwide as of September 30, 2024.
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, 2023 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, | ||||||||||
2024 | 2023 | 2024 | |||||||||
Revenues | |||||||||||
Revenues from third parties, net | $ | 222,401 | $ | 238,466 | $ | 239,610 | |||||
Revenues from related parties, net | 6 | 49 | 12 | ||||||||
222,407 | 238,515 | 239,622 | |||||||||
Costs and expenses: | |||||||||||
Cost of revenues | 155,795 | 163,692 | 163,038 | ||||||||
Research and development | 46,880 | 49,444 | 36,201 | ||||||||
General and administrative | 6,828 | 7,050 | 5,692 | ||||||||
Sales and marketing | 7,048 | 7,239 | 5,434 | ||||||||
Total costs and expenses | 216,551 | 227,425 | 210,365 | ||||||||
Operating income | 5,856 | 11,090 | 29,257 | ||||||||
Non operating income (loss): | |||||||||||
Interest income | 2,297 | 1,837 | 3,044 | ||||||||
Changes in fair value of financial assets at fair value through profit or loss | 27 | (432 | ) | 98 | |||||||
Foreign currency exchange gains, net | 457 | 764 | 403 | ||||||||
Finance costs | (1,018 | ) | (1,482 | ) | (1,014 | ) | |||||
Share of losses of associates | (143 | ) | (220 | ) | (107 | ) | |||||
Other income | 105 | 409 | 4 | ||||||||
1,725 | 876 | 2,428 | |||||||||
Profit before income taxes | 7,581 | 11,966 | 31,685 | ||||||||
Income tax expense (benefit) | (5,174 | ) | 1,214 | 1,978 | |||||||
Profit for the period | 12,755 | 10,752 | 29,707 | ||||||||
Loss (profit) attributable to noncontrolling interests | 268 | 484 | (81 | ) | |||||||
Profit attributable to Himax Technologies, Inc. stockholders | $ | 13,023 | $ | 11,236 | $ | 29,626 | |||||
Basic earnings per ADS attributable to Himax Technologies, Inc. stockholders | $ | 0.075 | $ | 0.064 | $ | 0.170 | |||||
Diluted earnings per ADS attributable to Himax Technologies, Inc. stockholders | $ | 0.074 | $ | 0.064 | $ | 0.169 | |||||
Basic Weighted Average Outstanding ADS | 174,727 | 174,420 | 174,724 | ||||||||
Diluted Weighted Average Outstanding ADS | 174,987 | 174,773 | 175,084 | ||||||||
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, | ||||||||||
2024 | 2023 | |||||||||
Revenues | ||||||||||
Revenues from third parties, net | $ | 669,555 | $ | 717,645 | ||||||
Revenues from related parties, net | 24 | 105 | ||||||||
669,579 | 717,750 | |||||||||
Costs and expenses: | ||||||||||
Cost of revenues | 465,638 | 523,262 | ||||||||
Research and development | 122,745 | 130,304 | ||||||||
General and administrative | 18,410 | 19,206 | ||||||||
Sales and marketing | 17,644 | 18,447 | ||||||||
Total costs and expenses | 624,437 | 691,219 | ||||||||
Operating income | 45,142 | 26,531 | ||||||||
Non operating income (loss): | ||||||||||
Interest income | 7,865 | 6,812 | ||||||||
Changes in fair value of financial assets at fair value through profit or loss | 118 | (55 | ) | |||||||
Foreign currency exchange gains, net | 1,801 | 757 | ||||||||
Finance costs | (3,050 | ) | (4,940 | ) | ||||||
Share of losses of associates | (471 | ) | (584 | ) | ||||||
Other income | 138 | 520 | ||||||||
6,401 | 2,510 | |||||||||
Profit before income taxes | 51,543 | 29,041 | ||||||||
Income tax expense (benefit) | (3,196 | ) | 2,905 | |||||||
Profit for the period | 54,739 | 26,136 | ||||||||
Loss attributable to noncontrolling interests | 408 | 915 | ||||||||
Profit attributable to Himax Technologies, Inc. stockholders | $ | 55,147 | $ | 27,051 | ||||||
Basic earnings per ADS attributable to Himax Technologies, Inc. stockholders | $ | 0.316 | $ | 0.155 | ||||||
Diluted earnings per ADS attributable to Himax Technologies, Inc. stockholders | $ | 0.315 | $ | 0.155 | ||||||
Basic Weighted Average Outstanding ADS | 174,725 | 174,418 | ||||||||
Diluted Weighted Average Outstanding ADS | 174,935 | 174,701 | ||||||||
Himax Technologies, Inc. | ||||||||||||
IFRS Unaudited Condensed Consolidated Statements of Financial Position | ||||||||||||
(Amounts in Thousands of U.S. Dollars) | ||||||||||||
September 30, 2024 | September 30, 2023 | June 30, 2024 | ||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 194,139 | $ | 147,257 | $ | 236,676 | ||||||
Financial assets at amortized cost | 12,335 | 8,139 | 11,408 | |||||||||
Financial assets at fair value through profit or loss | - | - | 5,713 | |||||||||
Accounts receivable, net (including related parties) | 224,589 | 248,507 | 242,376 | |||||||||
Inventories | 192,458 | 259,610 | 203,691 | |||||||||
Income taxes receivable | 986 | 22 | 970 | |||||||||
Restricted deposit | 503,700 | 453,000 | 453,000 | |||||||||
Other receivable from related parties | 22 | 1,190 | 55 | |||||||||
Other current assets | 42,581 | 102,652 | 54,463 | |||||||||
Total current assets | 1,170,810 | 1,220,377 | 1,208,352 | |||||||||
Financial assets at fair value through profit or loss | 26,383 | 18,655 | 25,697 | |||||||||
Financial assets at fair value through other comprehensive income | 22,457 | 289 | 27,974 | |||||||||
Equity method investments | 2,945 | 5,801 | 3,034 | |||||||||
Property, plant and equipment, net | 122,333 | 119,231 | 125,900 | |||||||||
Deferred tax assets | 13,806 | 11,244 | 13,482 | |||||||||
Goodwill | 28,138 | 28,138 | 28,138 | |||||||||
Other intangible assets, net | 717 | 851 | 791 | |||||||||
Restricted deposit | 31 | 31 | 31 | |||||||||
Refundable deposits | 221,879 | 205,383 | 221,856 | |||||||||
Other non-current assets | 18,484 | 7,734 | 19,611 | |||||||||
457,173 | 397,357 | 466,514 | ||||||||||
Total assets | $ | 1,627,983 | $ | 1,617,734 | $ | 1,674,866 | ||||||
Liabilities and Equity | ||||||||||||
Current liabilities: | ||||||||||||
Short-term unsecured borrowings | $ | - | $ | 279 | $ | - | ||||||
Current portion of long-term unsecured borrowings | 6,000 | 6,000 | 6,000 | |||||||||
Short-term secured borrowings | 503,700 | 453,000 | 453,000 | |||||||||
Accounts payable (including related parties) | 121,384 | 109,554 | 148,602 | |||||||||
Income taxes payable | 2,324 | 19,061 | 8,669 | |||||||||
Other payable to related parties | - | 1,937 | 102 | |||||||||
Contract liabilities-current | 25,694 | 16,774 | 34,266 | |||||||||
Other current liabilities | 54,673 | 89,342 | 112,831 | |||||||||
Total current liabilities | 713,775 | 695,947 | 763,470 | |||||||||
Long-term unsecured borrowings | 30,000 | 36,000 | 31,500 | |||||||||
Deferred tax liabilities | 505 | 658 | 493 | |||||||||
Other non-current liabilities | 11,361 | 47,454 | 15,060 | |||||||||
41,866 | 84,112 | 47,053 | ||||||||||
Total liabilities | 755,641 | 780,059 | 810,523 | |||||||||
Equity | ||||||||||||
Ordinary shares | 107,010 | 107,010 | 107,010 | |||||||||
Additional paid-in capital | 115,285 | 114,097 | 115,336 | |||||||||
Treasury shares | (4,714 | ) | (5,157 | ) | (5,157 | ) | ||||||
Accumulated other comprehensive income | 3,507 | (715 | ) | 8,688 | ||||||||
Retained earnings | 644,596 | 622,077 | 631,573 | |||||||||
Equity attributable to owners of Himax Technologies, Inc. | 865,684 | 837,312 | 857,450 | |||||||||
Noncontrolling interests | 6,658 | 363 | 6,893 | |||||||||
Total equity | 872,342 | 837,675 | 864,343 | |||||||||
Total liabilities and equity | $ | 1,627,983 | $ | 1,617,734 | $ | 1,674,866 | ||||||
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, | |||||||||||
2024 | 2023 | 2024 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Profit for the period | $ | 12,755 | $ | 10,752 | $ | 29,707 | ||||||
Adjustments for: | ||||||||||||
Depreciation and amortization | 5,640 | 5,094 | 5,679 | |||||||||
Share-based compensation expenses | 407 | 789 | 379 | |||||||||
Changes in fair value of financial assets at fair value through profit or loss | (27 | ) | 432 | (98 | ) | |||||||
Interest income | (2,297 | ) | (1,837 | ) | (3,044 | ) | ||||||
Finance costs | 1,018 | 1,482 | 1,014 | |||||||||
Income tax expense (benefit) | (5,174 | ) | 1,214 | 1,978 | ||||||||
Share of losses of associates | 143 | 220 | 107 | |||||||||
Inventories write downs | 2,269 | 5,263 | 2,892 | |||||||||
Unrealized foreign currency exchange losses (gains) | 228 | (878 | ) | 628 | ||||||||
14,962 | 22,531 | 39,242 | ||||||||||
Changes in: | ||||||||||||
Accounts receivable (including related parties) | 8,548 | (9,468 | ) | (37,688 | ) | |||||||
Inventories | 8,964 | 32,395 | (4,711 | ) | ||||||||
Other receivable from related parties | 33 | (19 | ) | 81 | ||||||||
Other current assets | (778 | ) | 4,157 | (81 | ) | |||||||
Accounts payable (including related parties) | (26,101 | ) | (18,096 | ) | 35,172 | |||||||
Other payable to related parties | (102 | ) | (329 | ) | 11 | |||||||
Contract liabilities | 667 | (2,885 | ) | (1,820 | ) | |||||||
Other current liabilities | (4,161 | ) | (2,145 | ) | 423 | |||||||
Other non-current liabilities | (3,354 | ) | (9,697 | ) | 509 | |||||||
Cash generated from operating activities | (1,322 | ) | 16,444 | 31,138 | ||||||||
Interest received | 860 | 1,185 | 4,505 | |||||||||
Interest paid | (1,018 | ) | (1,482 | ) | (1,014 | ) | ||||||
Income tax paid | (1,658 | ) | (104 | ) | (7,680 | ) | ||||||
Net cash provided by (used in) operating activities | (3,138 | ) | 16,043 | 26,949 | ||||||||
Cash flows from investing activities: | ||||||||||||
Acquisitions of property, plant and equipment | (2,551 | ) | (2,619 | ) | (4,582 | ) | ||||||
Acquisitions of intangible assets | (9 | ) | (64 | ) | (26 | ) | ||||||
Acquisitions of financial assets at amortized cost | (1,500 | ) | (675 | ) | (5,011 | ) | ||||||
Proceeds from disposal of financial assets at amortized cost | 617 | 640 | 8,051 | |||||||||
Acquisitions of financial assets at fair value through profit or loss | (27,934 | ) | (21,210 | ) | (33,774 | ) | ||||||
Proceeds from disposal of financial assets at fair value through profit or loss | 33,036 | 21,217 | 25,468 | |||||||||
Acquisitions of financial assets at fair value through other comprehensive income | - | - | (17,164 | ) | ||||||||
Decrease in refundable deposits | 11,339 | 6,133 | 14 | |||||||||
Cash received in advance from disposal of land | - | 2,821 | - | |||||||||
Net cash provided by (used in) investing activities | 12,998 | 6,243 | (27,024 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||
Payments of cash dividends | (50,670 | ) | (83,720 | ) | - | |||||||
Payments of dividend equivalents | (233 | ) | (148 | ) | - | |||||||
Purchases of subsidiaries shares from noncontrolling interests | - | - | (190 | ) | ||||||||
Repayments of long-term unsecured borrowings | (1,500 | ) | (1,500 | ) | (1,500 | ) | ||||||
Proceeds from short-term secured borrowings | 522,600 | 530,800 | 349,200 | |||||||||
Repayments of short-term secured borrowings | (471,900 | ) | (447,100 | ) | (349,200 | ) | ||||||
Pledge of restricted deposit | (50,700 | ) | (83,700 | ) | - | |||||||
Payment of lease liabilities | (979 | ) | (1,205 | ) | (1,565 | ) | ||||||
Guarantee deposits received (refunded) | - | 200 | (21,514 | ) | ||||||||
Net cash used in financing activities | (53,382 | ) | (86,373 | ) | (24,769 | ) | ||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | 985 | (81 | ) | (182 | ) | |||||||
Net decrease in cash and cash equivalents | (42,537 | ) | (64,168 | ) | (25,026 | ) | ||||||
Cash and cash equivalents at beginning of period | 236,676 | 211,425 | 261,702 | |||||||||
Cash and cash equivalents at end of period | $ | 194,139 | $ | 147,257 | $ | 236,676 | ||||||
Himax Technologies, Inc. | ||||||||
Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
(Amounts in Thousands of U.S. Dollars) | ||||||||
Nine Months Ended September 30, | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Profit for the period | $ | 54,739 | $ | 26,136 | ||||
Adjustments for: | ||||||||
Depreciation and amortization | 16,790 | 15,207 | ||||||
Share-based compensation expenses | 1,144 | 2,317 | ||||||
Changes in fair value of financial assets at fair value through profit or loss | (118 | ) | 55 | |||||
Interest income | (7,865 | ) | (6,812 | ) | ||||
Finance costs | 3,050 | 4,940 | ||||||
Income tax expense (benefit) | (3,196 | ) | 2,905 | |||||
Share of losses of associates | 471 | 584 | ||||||
Inventories write downs | 9,514 | 15,813 | ||||||
Unrealized foreign currency exchange gains | (12 | ) | (893 | ) | ||||
74,517 | 60,252 | |||||||
Changes in: | ||||||||
Accounts receivable (including related parties) | (13,436 | ) | 12,641 | |||||
Inventories | 15,336 | 95,510 | ||||||
Other receivable from related parties | 47 | 34 | ||||||
Other current assets | 1,439 | 1,819 | ||||||
Accounts payable (including related parties) | 22,273 | 8,303 | ||||||
Other payable to related parties | (111 | ) | (631 | ) | ||||
Contract liabilities | 39 | (36,093 | ) | |||||
Other current liabilities | (11,518 | ) | (1,768 | ) | ||||
Other non-current liabilities | (2,331 | ) | (4,995 | ) | ||||
Cash generated from operating activities | 86,255 | 135,072 | ||||||
Interest received | 6,219 | 5,902 | ||||||
Interest paid | (2,968 | ) | (4,940 | ) | ||||
Income tax paid | (8,947 | ) | (51,935 | ) | ||||
Net cash provided by operating activities | 80,559 | 84,099 | ||||||
Cash flows from investing activities: | ||||||||
Acquisitions of property, plant and equipment | (9,832 | ) | (8,326 | ) | ||||
Acquisitions of intangible assets | (153 | ) | (75 | ) | ||||
Acquisitions of financial assets at amortized cost | (8,950 | ) | (2,338 | ) | ||||
Proceeds from disposal of financial assets at amortized cost | 9,168 | 2,315 | ||||||
Acquisitions of financial assets at fair value through profit or loss | (69,196 | ) | (77,253 | ) | ||||
Proceeds from disposal of financial assets at fair value through profit or loss | 66,667 | 73,894 | ||||||
Acquisitions of financial assets at fair value through other comprehensive income | (17,164 | ) | - | |||||
Decrease (increase) in refundable deposits | 33,570 | (56,933 | ) | |||||
Cash received in advance from disposal of land | - | 2,821 | ||||||
Net cash provided by (used in) investing activities | 4,110 | (65,895 | ) | |||||
Cash flows from financing activities: | ||||||||
Payments of cash dividends | (50,670 | ) | (83,720 | ) | ||||
Payments of dividend equivalents | (233 | ) | (148 | ) | ||||
Proceeds from issuance of new shares by subsidiary | 71 | - | ||||||
Purchases of subsidiaries shares from noncontrolling interests | (190 | ) | - | |||||
Proceeds from short-term unsecured borrowings | - | 10,294 | ||||||
Repayments of short-term unsecured borrowings | - | (10,000 | ) | |||||
Repayments of long-term unsecured borrowings | (4,500 | ) | (4,500 | ) | ||||
Proceeds from short-term secured borrowings | 1,318,900 | 956,200 | ||||||
Repayments of short-term secured borrowings | (1,268,200 | ) | (872,500 | ) | ||||
Pledge of restricted deposit | (50,700 | ) | (83,700 | ) | ||||
Payment of lease liabilities | (3,692 | ) | (3,586 | ) | ||||
Guarantee deposits received (refunded) | (23,382 | ) | 205 | |||||
Net cash used in financing activities | (82,596 | ) | (91,455 | ) | ||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | 317 | (1,073 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 2,390 | (74,324 | ) | |||||
Cash and cash equivalents at beginning of period | 191,749 | 221,581 | ||||||
Cash and cash equivalents at end of period | $ | 194,139 | $ | 147,257 | ||||
FAQ
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