Company Meets Q2 Revenue and Gross Margin
Guidance, and Beats EPS Guidance Provides Q3
2016 Guidance Revenue to Increase 5.0% to
10.0% Sequentially, Gross Margin
to be Flat to Slightly Down,
GAAP EPS to be 6.0 to 8.0
Cents and Non-GAAP EPS to
be 10.0 to 12.0
Cents
Himax Technologies, Inc. (Nasdaq:HIMX) (“Himax” or “Company”), a
leading supplier and fabless manufacturer of display drivers and
other semiconductor products, announced its financial results for
the second quarter ended June 30, 2016.
SUMMARY FINANCIALS
|
Second Quarter 2016 Results
Compared to Second Quarter
2015 Results (USD in
millions) (unaudited) |
| |
Q2 2016 |
Q2 2015 |
CHANGE |
| Net Revenue |
$201.1 million |
$169.2 million |
|
|
+18.8 |
% |
|
| Gross Profit |
$52.5 million |
$40.3 million |
|
|
+30.2 |
% |
|
| Gross Margin |
|
26.1 |
% |
|
23.8 |
% |
|
|
+2.3 |
% |
|
| GAAP Net Income
Attributable to Shareholders |
$19.8 million |
$8.8 million |
|
|
+124.0 |
% |
|
| Non-GAAP Net Income
Attributable to Shareholders |
$20.2 million (1) |
$9.3 million (2) |
|
|
+115.7 |
% |
|
| GAAP EPS (Per Diluted ADS,
USD) |
$ |
0.115 |
|
$ |
0.051 |
|
|
|
+123.8 |
% |
|
|
Non-GAAP EPS (Per Diluted ADS, USD) |
$0.117 (1) |
$0.054 (2) |
|
|
+115.5 |
% |
|
| |
(1) Non-GAAP Net income attributable to common
shareholders and EPS excludes $0.2 million of share-based
compensation expenses, net of tax and $0.2 million non-cash
acquisition related charge, net of tax.(2) Non-GAAP Net income
attributable to common shareholders and EPS excludes $0.4 million
of share-based compensation expenses, net of tax and $0.1 million
non-cash acquisition related charge, net of tax
| |
|
Second Quarter 2016 Results Compared to
First Quarter 2016 Results (USD in
millions) (unaudited) |
| |
Q2 2016 |
Q1 2016 |
CHANGE |
| Net
Revenue |
$201.1 million |
$180.3 million |
|
|
+11.5 |
% |
| Gross
Profit |
$52.5 million |
$47.2 million |
|
|
+11.2 |
% |
| Gross
Margin |
|
26.1 |
% |
|
26.2 |
% |
|
|
-0.1 |
% |
| GAAP Net
Income Attributable to Shareholders |
$19.8 million |
$13.1 million |
|
|
+51.2 |
% |
| Non-GAAP Net
Income Attributable to Shareholders |
$20.2 million (1) |
$13.5 million (2) |
|
|
+49.8 |
% |
| GAAP EPS (Per
Diluted ADS, USD) |
$ |
0.115 |
|
$ |
0.076 |
|
|
|
+51.2 |
% |
| Non-GAAP EPS
(Per Diluted ADS, USD) |
$0.117 (1) |
$0.078 (2) |
|
|
+49.7 |
% |
| |
|
|
(1) Non-GAAP Net income attributable to common
shareholders and EPS excludes $0.2 million of share-based
compensation expenses, net of tax and $0.2 million non-cash
acquisition related charge, net of tax.(2) Non-GAAP Net income
attributable to common shareholders and EPS excludes $0.2 million
of share-based compensation expenses, net of tax and $0.2 million
non-cash acquisition related charge, net of tax.
"We are pleased to report that we achieved both
top and bottom line growth during the quarter as preannounced on
July 5th. Our 2016 second quarter revenue was $201.1 million. Gross
margin for the quarter was 26.1%. Second quarter GAAP earnings per
diluted ADS came in at 11.5 cents. Both our 2016 second quarter
revenues and gross margin reached the high end of our guidance
while EPS exceeded our guidance provided in May,” began Mr. Jordan
Wu, President and Chief Executive Officer of Himax. “The sequential
revenue growth was due mostly to strong sales in small and
medium-sized driver IC business from our Chinese smartphone
customers. Accelerating AR/VR related business from LCOS and WLO
shipments to our leading US customer also contributed to the second
quarter growth.”
Mr. Wu concluded: “We are very encouraged to
experience the continuous growth in both our driver and non-driver
business segments as we have started to benefit from new business
opportunities not enjoyed by many of our competitors. Notably, we
saw increased market share of our large panel driver ICs, shipment
increases from our small and medium-sized driver IC customers and
the phenomenal performance of AR/VR related products which
increased by several folds. Two of the key achievements of our
smartphone driver IC business are the shipments of our OLED driver
IC design and the successful launch of our TDDI (Touch and Display
Driver Integration) products. Both products were actively sought
after by mobile device makers, module houses, and panel makers.
Lastly, the staggering success of Pokémon Go highlights the most
revolutionary technologies in our LCOS and WLO product line and
AR/VR, their key applications. Some of the world’s largest and most
impactful technology companies have continued to work closely with
us on their AR/VR devices using our LCOS, WLO and/or driver IC
solutions. Some of them have announced the launch of their products
in 2016. We have just kick-started our expansion plan for next
generation LCOS and WLO product lines backed upon our customers'
demands and feedbacks. The next generation expansion will
substantially enlarge our existing capacity and lift our technology
to another level, thereby further strengthening our leadership
position in the AR sector worldwide. We expect the expansion
project will enjoy a phenomenal return on investment in the years
to come. In summary, we are seeing strong momentum across all our
major product lines and feel excited about the growth prospect of
2016 and beyond.”
Second Quarter 2016 Revenue Breakdown by
Product Line (USD in millions)
(unaudited)
| |
Q2 2016 |
|
% |
|
Q2 2015 |
|
% |
|
% Change |
|
| Display drivers for
large-sized panels |
$ |
67.5 |
|
|
|
33.6 |
% |
|
$ |
54.3 |
|
|
|
32.1 |
% |
|
|
+24.4 |
% |
|
| Display drivers for
small/medium-sized panels |
$ |
90.6 |
|
|
|
45.0 |
% |
|
$ |
82.8 |
|
|
|
48.9 |
% |
|
|
+9.4 |
% |
|
| Non-driver
products |
$ |
43.0 |
|
|
|
21.4 |
% |
|
$ |
32.1 |
|
|
|
19.0 |
% |
|
|
+33.6 |
% |
|
|
Total |
$ |
201.1 |
|
|
|
100.0 |
% |
|
$ |
169.2 |
|
|
|
100.0 |
% |
|
|
+18.8 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Q2 2016 |
|
% |
|
Q1 2016 |
|
% |
|
% Change |
|
| Display drivers for
large-sized panels |
$ |
67.5 |
|
|
|
33.6 |
% |
|
$ |
65.7 |
|
|
|
36.4 |
% |
|
|
+2.8 |
% |
|
| Display drivers for
small/medium-sized panels |
$ |
90.6 |
|
|
|
45.0 |
% |
|
$ |
79.4 |
|
|
|
44.1 |
% |
|
|
+14.0 |
% |
|
| Non-driver
products |
$ |
43.0 |
|
|
|
21.4 |
% |
|
$ |
35.2 |
|
|
|
19.5 |
% |
|
|
+22.1 |
% |
|
|
Total |
$ |
201.1 |
|
|
|
100.0 |
% |
|
$ |
180.3 |
|
|
|
100.0 |
% |
|
|
+11.5 |
% |
|
The second quarter revenue of $201.1 million
represented an 11.5% sequential increase and an 18.8% increase
year-over-year. Revenue from large panel display drivers was $67.5
million, up 2.8% sequentially, and up 24.4% from a year ago. Large
panel driver ICs accounted for 33.6% of the Company’s total
revenues for the second quarter, compared to 36.4% in the last
quarter and 32.1% a year ago. As opposed to original guidance of
high-single-digit sequential growth, the Company’s large panel
driver business grew just low-single-digit due to a certain
customer’s short-noticed adjustment of production plan for its
monitor products. Without the last minute change, the Company could
have achieved high-single-digit sequential growth that it guided.
Despite the lower than expected sales mentioned above, the
Company’s large panel products actually enjoyed close to 25%
year-over-year growth mainly thanks to strong demands from Chinese
panel customers with 4K TV still the major growth engine. In China,
the Company’s driver IC business for large panel almost doubled
year-over-year during the quarter. In comparison, worldwide
large-size TFT-LCD panel shipments declined around 3% in the same
period, according to market research firm IHS. It is especially
worth highlighting that Himax’s engineering collaboration and
design-in activities with large panel customers across China,
Taiwan and Korea all remain robust and the Company expects these
trends to continue throughout the year.
Revenue for small and medium-sized drivers came
in at $90.6 million, up 14.0% sequentially and up 9.4% from the
same period last year. Driver ICs for small and medium-sized
applications accounted for 45.0% of total sales for the second
quarter, as compared to 44.1% in the previous quarter and 48.9% a
year ago. Sales into smartphones were especially robust, up more
than 30% sequentially and close to 25% year-over-year. Himax has
the most comprehensive coverage of leading Chinese smartphone names
and their growing market share has led to the Company’s good result
this quarter. Additionally, driver ICs for tablets also resumed
growth following several quarters of decline, thanks to new product
launches from several leading brand customers in the US and
Korea.
Revenues from non-driver businesses were $43.0
million, up 22.1% sequentially and up 33.6% from the same period
last year. Non-driver products accounted for 21.4% of total
revenues, as compared to 19.5% in the previous quarter and 19.0% a
year ago. The sequential growth was driven mainly by the LCOS and
WLO shipments for AR applications. Other product lines such as
touch panel controller, power IC, ASIC and NRE incomes also enjoyed
sequential growth. The performance of LCOS and WLO was phenomenal,
increasing several folds year-over-year as the Company’s major
customer started producing its AR product. The growth was, however,
partially offset by the decline of programmable gamma OP and CMOS
image sensors.
GAAP gross margin for the second quarter was
26.1%, around flat from the previous quarter and up 230 basis
points from the same period last year. The Company has been able to
maintain a relatively strong margin mainly thanks to a more
favorable product mix in small and medium-sized driver ICs and
higher engineering fees from AR/VR new project engagements. Gross
margin expansion was also a testament to Himax’s cost reduction
measures. Gross margin improvement remains one of the Company’s
business focuses.
Second quarter GAAP operating expenses were
$30.6 million, down 4.4% from the preceding quarter and little
changed from a year ago. GAAP operating margin for the second
quarter of 2016 improved to 10.9% from 5.2% for the same period
last year and 8.4% a quarter ago. GAAP operating income for the
second quarter of 2016 increased 44.3% sequentially and 146.8%
year-over-year.
Reported GAAP net income for the second quarter
was $19.8 million, or 11.5 cents per diluted ADS, compared to $13.1
million, or 7.6 cents per diluted ADS, in the previous quarter and
$8.8 million, or 5.1 cents per diluted ADS, a year ago. GAAP net
income increased 51.2% quarter-over-quarter and 124.0%
year-over-year, respectively. GAAP EPS exceeded the Company’s 8.5
to 10.5 cents guided range.
The sequential and year-over-year profit
increase was a combination of higher revenue and much improved
gross margin, together with lower operating expenses.
Second quarter non-GAAP net income, which
excludes the share-based compensation and acquisition-related
charges, was $20.2 million, or 11.7 cents per diluted ADS, compared
to $13.5 million last quarter and $9.3 million the same period last
year.
Balance Sheet and Cash Flow
Himax had $179.3 million of cash, cash
equivalents and marketable securities as of the end of June 2016,
compared to $164.5 million at the same time last year and $168.0
million a quarter ago. On top of the above cash position,
restricted cash was $138.0 million at the end of the quarter, a
decrease of $42.5 million from the preceding quarter. The
restricted cash is mainly used to guarantee the company’s
short-term loan for the same amount. Himax continues to maintain a
very strong balance sheet and remains a debt-free company.
Inventories as of June 30, 2016 were $186.7
million, little changed sequentially and year over year. Accounts
receivable at the end of June 2016 were $187.9 million as compared
to $182.3 million a year ago and $173.0 million last quarter. DSO
was 90 days at the end of June 2016, as compared to 95 days a year
ago and 87 days at end of the last quarter.
Net cash inflow from operating activities for
the second quarter was $13.1 million as compared to an outflow of
$13.8 million for the same period last year and an inflow of $21.5
million last quarter.
Capital expenditures were $1.7 million in the
second quarter of 2016 versus $2.0 million a year ago and $2.2
million last quarter. The capital expenditure in the second quarter
consisted mainly of purchases of R&D related equipment.
Fiscal Year 2015 Dividend
Declaration
During the second quarter, the Company declared
an annual cash dividend of 13 cents per ADS, totaling $22.3
million, which was paid out in early August. Himax’s dividend is
determined primarily by the prior year’s profitability. The
Company’s decision to pay out 89.0% of last year’s net profit
demonstrates the Company’s continued support for its shareholder
base and strong confidence in the outlook for revenues and earnings
growth in 2016 as well as its long-term growth prospect.
Share Buyback Update
As of June 30, 2016, Himax had 171.9 million ADS
outstanding, unchanged from last quarter. On a fully diluted basis,
the total ADS outstanding are 172.4 million.
2016 Investor Outreach and
Conferences
Ms. Jackie Chang, CFO and Ms. Penny Lin,
internal IR Manager, and Mr. John Mattio, Himax’s US-based IR, will
maintain corporate access for shareholders and attend future
investor conferences in the U.S. and Asia. If you are interested in
speaking with the management, please contact Himax’s US or
Taiwan-based investor relations contact at the numbers below.
Business Updates
The increasing momentum of the Company’s large
panel driver IC sales will continue to come from China and the
world’s accelerating 4K TV adoption. Himax’s smartphone driver IC
business has rebounded well this year, reflecting its leading
position in Chinese smartphone market where the Company’s end brand
customers are performing strongly, and better demand are stimulated
by rising 4G adoption. Leveraging on its technology leader and
early mover advantage in AMOLED driver and pure in-cell TDDI
technology, Himax is well positioned to benefit from increasing
adoption of AMOLED and pure in-cell displays. For non-driver
products, the true highlight of the year will be LCOS microdisplay
and WLO products, which are integral parts of the eco-system for
the booming AR sector. During the first three quarters of the year,
LCOS and WLO combined will grow more than ten times through
accelerating shipment to the Company’s existing AR customers. Himax
is also making good progress in new territories such as IoT and
machine vision with its CIS and WLO products, evidenced by more
design-ins and engagements with leading consumer electronic brands
and a leading international smartphone chipset maker. Overall, the
Company is seeing strong momentum across its major product lines
and feels very good about the growth prospect of 2016 and
beyond.
For reasons mentioned earlier, the Company’s
large panel driver IC sales and market share have further increased
this year. The Company expects its large panel IC revenue to grow
by double digit sequentially and more than 50% year-over-year. In
addition to benefiting from its leading market share in China and
in 4K TV, Himax is also leading the charge in new technology areas
such as 8K TV by working with its Chinese and Korean panel
customers.
The other segment in Himax’s driver business is
ICs used in small and medium-sized panels for applications
including smartphones, tablets and automotive. Demand for driver
ICs for smartphone has remained strong but the Company’s sales in
this area will likely be around flat sequentially in Q3, as
the Company can hardly make enough delivery for the surging rush
orders of late from Chinese and Korean end customers. However, it
will still grow around 20% year-over-year. The Company also
continues to see resolution upgrade in the second half of the year,
which should help mitigate some gross margin pressure for the
product segment. On AMOLED, demand has taken off as smartphone
brand customers increasingly adopt AMOLED panels in their premium
models. This trend has attracted more panel makers to ramp up their
investments in AMOLED manufacturing and accelerate their timetable
for the development and mass production of AMOLED panels. Himax has
been collaborating closely with multiple panel customers across
Korea, China and Japan for AMOLED product development and is seeing
more design-ins especially with key Chinese and Japanese panel
customers and smartphone makers. Such progress reaffirms its
technology leadership. Himax believes that AMOLED driver IC will
kick off a new growth cycle for its small panel driver IC business
starting 2017.
Automotive has been the best-performing category
among driver ICs used in small and medium-sized panels in recent
years. The Company expects the category’s Q3 revenue to grow double
digit sequentially and more than 30% year-over-year. The strong
growth will likely continue into the next few years. Its confidence
comes from the fact that higher resolution and larger panels are
becoming mainstream for automotive applications. With numerous top
automobile brands having been its indirect end customers, the
Company is well positioned to take advantage of this fast growing
market. Further, Himax’s driver ICs used in tablets resumed growth
in the first half and will continue to produce noteworthy growth in
the second half of the year, driven by the strength of
high-resolution displays of 10” and above. Overall, the Company
expects small and medium-sized driver IC segment in the third
quarter to be up by high-single-digit sequentially.
For the past few years, the non-driver business
segment has been the Company’s most exciting growth area and a
differentiator for Himax. New product developments continue to
evolve and gain traction, and the Company remains positive on the
long-term growth prospect of its non-driver businesses.
The Company expects high-single-digit growth in
its non-driver products for the third quarter. Sales of timing
controller, touch panel controller, ASIC chip, wafer level optics
and LCOS microdisplay will deliver strong growth this quarter,
partially offset by lower sales of the CMOS image
sensors.
Numerous on-cell design wins from leading
Chinese smartphone names have led to growing sales of the Company’s
touch panel controller in Q2 and it expects the growth to further
accelerate throughout the rest of 2016. Himax is also one of the
pioneers in offering TDDI solutions and are in partnerships with
essentially all of the display makers in the state-of-art pure
in-cell touch panel for joint technological development. The volume
shipment record from a leading Chinese smartphone customer
validates the Company’s leading pioneer position. The Company is
adding more design-wins and will start shipping in mass production
of its TDDI solutions to additional Chinese and Korean smartphone
customers and panel makers in the second half of 2016. Along with
AMOLED DDIC, TDDI is another major growth engine for its small
panel business starting from 2017.
The recent staggering success of Pokémon Go has
provided a looking glass into the future trajectory of the AR
technology and given one early answer for why and how you’d want it
to. Since its launch just over a month ago, the AR game has taken
the digital world by storm with already more than 100 million app
downloads and 20 million active users. Thanks to the viral
popularity of Pokémon Go, AR is now getting the attention and
consumer validation that the Company, at Himax, has always known to
be possible. While the Company must give credit where it is due,
the AR technology used by Pokémon Go today is still quite
primitive. Compared to the AR/MR technologies being developed by
Himax’s customers and partners, Pokémon Go pales in comparison in
terms of how AR can bring alive the consumer experience to interact
directly with the physical environment with more sophisticated
holographic imagery, 3D sensing and real-time surroundings
detection. If you have not seen demonstration of AR devices
already, its holographic imagery will actually appear on your desk,
your chair or walking next to you on the street. Moreover, the
world of AR is much more than just gaming. It represents a next
generation computing platform. Future versions of the technology
will cover both commercial and consumer uses and will be much more
sophisticated and produce an endless stream of uses. These could
include daily computing in a virtual office, social networking,
teleconferencing, etc. Due to the eye-opening effect of Pokémon Go,
those who thought AR required several more years to gain traction
are changing their models as the game, almost overnight, elevated
AR to mass-market and added 10's of billions of dollars to its
market potential in the next few years. A new and lucrative
marketing tool on top of AR software and applications are being
created that will catapult AR device development and intensify
further investment in the sector. The Company believes the path
Pokémon Go started will prompt an AR industry that most didn’t
think possible before.
Having invested in related technologies for over
15 years, Himax is uniquely positioned as the provider of choice
for microdisplay and related optics, both critical enablers to the
AR device. AR is projected by many market research firms to be
grabbing a lion’s share in the addressable market of AR/VR product
segment. With little competition, the Company continues to work
with 30+ new and existing customers for various AR devices, many of
which you have seen news from lately. The Company’s design
engagements now cover leading companies in a wide variety of
industries such as gaming, search, mobile, social media, military,
automotive, wearable, and toy. Many of the Company’s customers have
committed huge amounts of R&D and capital to capture the
rapidly expanding future of this game changing product
category.
Himax expects revenues and shipments of its LCOS
and WLO will continue to accelerate during the second half of 2016.
Further new launches of AR products from more customers, as well as
increasing shipment of existing customers, could greatly lift the
Company’s sales of these two product areas during 2017. With little
new capital investment, the Company will be able to substantially
enlarge its output to meet additional demands through
de-bottlenecking and continuous yield improvement. Looking beyond
2017, however, the Company will need further capacity for its LCOS
and WLO products to address the strong demand anticipated out of
the busy design-in activities that it is having right
now.
The Company is pleased to report that it has
just kick-started its expansion plan for next generation LCOS and
WLO production lines. Backed upon its customers' demands and
feedbacks, the expansion plan includes a major increase of new
capacity based upon state-of-the-art processes largely developed
from within. The new production lines will not only offer far
better cost and product quality for mass production, it is also a
major technology advancement for very high end products of the
future. The total investment is now budgeted to be $80 to $100
million for monthly capacities of 3,000 12” wafer input for LCOS
and 6,000 8” equivalent mother glass input for WLO. The actually
output volume can vary widely, depending on the size of the chips.
For LCOS, a 12” wafer can yield between 80 and 1,500 chips on the
Company’s existing product designs, while for WLO, an 8” mother
glass can produce as many as thousands of chips or as few as less
than ten. The scheduled mass production is end of 2017 to early
2018. The new capacity will be located at a newly acquired land
adjacent to its headquarters in Tainan which is 5 hectares in size,
some 1.6 times the size of its current headquarters. The investment
will be financed through the Company’s internal resources and
existing bank facilities. The current plan only uses around 20% of
the land; the Company will therefore still have plenty of room for
future expansion. It has also reserved sufficient space in the
building for customers’ future consignment needs. Part of its
existing WLO equipment is purchased by Himax’s customer and
consigned to the Company.
To sum up, the next generation expansion will
substantially enlarge Himax’s existing capacity and lift its
technology to another level, thereby further strengthening the
Company’s leadership position in the AR sector worldwide. The
Company believes this is just the beginning of a long term growth
story.
Of note about LCOS and WLO, they enjoy better
margin compared to the Company’s corporate average. The margin will
be further lifted with new designs from a more diversified customer
base and, in particular, the commencement of the new fabs’ mass
production. Himax expects the expansion project will enjoy a
phenomenal return on investment in the years to come.
For VR applications, the Company has been
developing customized driver chips for next generation OLED panels
with two top-notch VR players. Additionally, it has started to
engage with certain VR customers to develop their AR devices. Himax
expects mass production to start in late 2016 to early
2017.
Himax continues to make good progress in two new
smart sensor areas which it announced earlier by collaborating with
certain heavyweight partners, including leading consumer
electronics brands and a leading international smartphone chipset
maker. By pairing a DOE integrated WLO laser diode collimator with
a near infrared (NIR) CIS, the Company is offering the most
effective total solution for 3D sensing and detection in the
smallest form factor which can be easily integrated into next
generation smartphones, AR/VR devices and consumer electronics.
Similarly, the ultra-low-power QVGA CMOS image sensor can also be
bundled with the Company’s WLO module to support super low power
computer vision to enable new applications across mobile devices,
consumer electronics, surveillance, drones, IoT and artificial
intelligence. The Company will report the business developments in
these new territories in due course. Regarding other CIS products,
Himax maintains a leading position in laptop application and will
increase shipments for multimedia applications.
Third Quarter 2016
Guidance
The Company is providing the following financial
guidance for the third quarter of 2016:
|
Net Revenue: |
|
To be up 5.0% to 10.0% sequentially, representing a
27.5% to 33.6% year-over-year growth |
|
Gross Margin: |
|
To be flat to slightly down sequentially, as compared
to 21.8% reported in the third quarter of 2015 |
|
GAAP EPS: |
|
6.0 to 8.0 cents per diluted ADS, as compared to net
loss of 1.4 cents reported in the third quarter of 2015 |
|
Non-GAAP EPS(1): |
|
10.0 to 12.0 cents per diluted ADS, as compared to 1.0
cents reported in the third quarter of 2015 |
(1) Non-GAAP EPS excludes share-based
compensation and acquisition-related charges
As the Company has done in the past, its third
quarter GAAP earnings per diluted ADS guidance has taken into
account its expected 2016 grant of restricted share units, or RSUs,
to the Himax team at the end of September. The 2016 RSUs, subject
to Himax’s Board approval, is now assumed to be around $11.5
million, of which approximately $8.1 million, representing 4.0
cents per diluted ADS, will be vested and expensed immediately on
September 30th, the grant date. In comparison, the 2015 RSUs
totaled $5.0 million, out of which $4.5 million, representing 2.0
cents per diluted ADS, was vested immediately. The grant of RSUs
would lead to higher third quarter GAAP operating expenses compared
to the other quarters of the year.
In providing the above earnings guidance, the
Company has assumed a 13.5% income tax rate for 2016, calculated
based on exchange rate of NTD 31.4 against the USD, which is also
the exchange rate as of beginning of August 2016.
HIMAX TECHNOLOGIES SECOND QUARTER 2016
EARNINGS CONFERENCE CALL
|
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|
|
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DATE: |
|
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Thursday, August 11th, 2016 |
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TIME: |
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U.S. 8:00 a.m.
EDT |
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Taiwan 8:00 p.m. |
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DIAL IN: |
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U.S. +1 (866) 444-9147 |
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INTERNATIONAL +1 (678) 509-7569 |
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CONFERENCE ID |
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48151364 |
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WEBCAST: |
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http://edge.media-server.com/m/p/m75i8dmh |
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A replay of the call will be available beginning
two hours after the call through 11:59 p.m. US EDT on August 18th,
2016 (11:59 a.m. Taiwan time, August 19th, 2016) on
www.himax.com.tw and by telephone at +1 (855) 859-2056 (US
Domestic) or +1 (404) 537-3406 (International). The conference ID
number is 48151364. This call is being webcast by Nasdaq and can be
accessed by clicking on this link or Himax’s website, where the
webcast can be accessed through August 10th, 2017.
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, 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, LED driver ICs, power management ICs,
scaler products for monitors and projectors, tailor-made video
processing IC solutions, silicon IPs and LCOS micro-displays for
augmented reality (AR) devices and head-up displays (HUD) for
automotive. The Company also offers digital camera solutions,
including CMOS image sensors and wafer level optics which are used
in a wide variety of applications such as mobile phone, tablet,
laptop, TV, PC camera, automobile, security, medical devices and
Internet of Things. Founded in 2001 and headquartered in Tainan,
Taiwan, Himax currently employs around 2,000 people from three
Taiwan-based offices in Tainan, Hsinchu and Taipei and country
offices in China, Korea, Japan and the US. Himax has 2,878 patents
granted and 480 patents pending approval worldwide as of June 30th,
2016. Himax has retained its position as the leading display
imaging processing semiconductor solution provider to consumer
electronics brands worldwide.
http://www.himax.com.tw
Forward Looking Statements
Factors that could cause actual events or
results to differ materially include, but not limited to, 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; shortages in supply of key
components; changes in environmental laws and regulations; 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, 2015 filed with the SEC, as may be amended.
Company Contacts:
Jackie Chang, CFOHimax Technologies, Inc.Tel:
+886-2-2370-3999 Ext.22300 OrUS Tel: +1-949-585-9838 Ext.252Fax:
+886-2-2314-0877Email:
jackie_chang@himax.com.twwww.himax.com.tw
Penny Lin, Investor RelationsHimax
Technologies, Inc.Tel: +886-2-2370-3999 Ext.22320Fax:
+886-2-2314-0877 Email:
penny_lin@himax.com.tw www.himax.com.tw
Investor Relations - US Representative
John Mattio, FounderLamnia International, LLC.Tel: +1 (203) 885
-1099Direct: +1 (203) 885 -1058 Email: jmattio@lamniaintl.com
www.lamniaintl.com
– FINANCIAL TABLES –
| |
| Himax Technologies, Inc. |
| Unaudited Condensed Consolidated Statements of
Income |
| (These interim financials do not fully comply with US
GAAP because they omit all interim disclosure required by US
GAAP) |
| (Amounts in Thousands of U.S. Dollars, Except
Share and Per Share Data) |
| |
|
|
Three Months Ended June
30, |
|
Three Months Ended March
31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
201,074 |
|
|
$ |
169,185 |
|
|
$ |
180,319 |
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
| Cost of revenues |
|
148,596 |
|
|
|
128,885 |
|
|
|
133,144 |
|
| Research and development |
|
21,803 |
|
|
|
22,640 |
|
|
|
23,402 |
|
| General and administrative |
|
4,814 |
|
|
|
4,275 |
|
|
|
4,581 |
|
| Sales and marketing |
|
3,962 |
|
|
|
4,511 |
|
|
|
4,013 |
|
| Total costs and
expenses |
|
179,175 |
|
|
|
160,311 |
|
|
|
165,140 |
|
|
|
|
|
|
|
|
|
Operating income |
|
21,899 |
|
|
|
8,874 |
|
|
|
15,179 |
|
|
|
|
|
|
|
|
|
Non operating income
(loss): |
|
|
|
|
|
| Interest income |
|
329 |
|
|
|
204 |
|
|
|
229 |
|
| Dividend income |
|
700 |
|
|
|
- |
|
|
|
- |
|
| Gains (losses) on sale of
securities, net |
|
(49 |
) |
|
|
1,712 |
|
|
|
(41 |
) |
| Equity in losses of equity method
investees |
|
(198 |
) |
|
|
(170 |
) |
|
|
(161 |
) |
| Foreign currency exchange gains
(losses), net |
|
182 |
|
|
|
(382 |
) |
|
|
(215 |
) |
| Interest expense |
|
(190 |
) |
|
|
(107 |
) |
|
|
(179 |
) |
| Other income (losses), net |
|
1 |
|
|
|
64 |
|
|
|
(10 |
) |
|
|
|
775 |
|
|
|
1,321 |
|
|
|
(377 |
) |
|
Earnings before income
taxes |
|
22,674 |
|
|
|
10,195 |
|
|
|
14,802 |
|
| Income tax expense |
|
3,401 |
|
|
|
2,579 |
|
|
|
2,220 |
|
|
Net income |
|
19,273 |
|
|
|
7,616 |
|
|
|
12,582 |
|
| Net loss
attributable to noncontrolling interests |
|
514 |
|
|
|
1,216 |
|
|
|
506 |
|
| Net income
attributable to Himax Technologies, Inc. stockholders |
$ |
19,787 |
|
|
$ |
8,832 |
|
|
$ |
13,088 |
|
|
|
|
|
|
|
|
| Basic earnings per ADS attributable to
Himax Technologies, Inc. stockholders |
$ |
0.115 |
|
|
$ |
0.051 |
|
|
$ |
0.076 |
|
| Diluted
earnings per ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
0.115 |
|
|
$ |
0.051 |
|
|
$ |
0.076 |
|
|
|
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
172,303 |
|
|
|
171,608 |
|
|
|
172,303 |
|
|
Diluted Weighted Average Outstanding ADS |
|
172,385 |
|
|
|
172,206 |
|
|
|
172,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Himax Technologies, Inc. |
| Unaudited Condensed Consolidated Statements of
Income |
| (Amounts in Thousands of U.S. Dollars, Except
Share and Per Share Data) |
| |
|
|
|
|
Six Months Ended
June
30, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
$ |
381,393 |
|
|
$ |
348,230 |
|
|
|
|
|
|
|
|
| Costs and
expenses: |
|
|
|
|
|
| Cost of revenues |
|
|
|
281,740 |
|
|
|
261,898 |
|
| Research and development |
|
|
|
45,205 |
|
|
|
43,940 |
|
| General and administrative |
|
|
|
9,395 |
|
|
|
8,768 |
|
| Sales and marketing |
|
|
|
7,975 |
|
|
|
9,102 |
|
| Total costs and
expenses |
|
|
|
344,315 |
|
|
|
323,708 |
|
|
|
|
|
|
|
|
| Operating
income |
|
|
|
37,078 |
|
|
|
24,522 |
|
|
|
|
|
|
|
|
| Non
operating income
(loss): |
|
|
|
|
|
| Interest income |
|
|
|
558 |
|
|
|
406 |
|
| Dividend income |
|
|
|
700 |
|
|
|
- |
|
| Gains (losses) on sale of
securities, net |
|
|
|
(90 |
) |
|
|
1,802 |
|
| Equity in losses of equity method
investees |
|
|
|
(359 |
) |
|
|
(220 |
) |
| Foreign currency exchange losses,
net |
|
|
|
(33 |
) |
|
|
(695 |
) |
| Interest expense |
|
|
|
(369 |
) |
|
|
(221 |
) |
| Other income (losses), net |
|
|
|
(9 |
) |
|
|
78 |
|
| |
|
|
|
398 |
|
|
|
1,150 |
|
| Earnings
before income taxes |
|
|
|
37,476 |
|
|
|
25,672 |
|
| Income tax expense |
|
|
|
5,621 |
|
|
|
6,495 |
|
| Net
income |
|
|
|
31,855 |
|
|
|
19,177 |
|
| Net loss
attributable to noncontrolling interests |
|
|
|
1,020 |
|
|
|
2,220 |
|
| Net
income attributable to Himax
Technologies, Inc.
stockholders |
|
|
$ |
32,875 |
|
|
$ |
21,397 |
|
|
|
|
|
|
|
|
| Basic earnings per
ADS attributable to Himax Technologies,
Inc. stockholders |
|
|
$ |
0.191 |
|
|
$ |
0.125 |
|
| Diluted earnings
per ADS attributable to Himax Technologies,
Inc. stockholders |
|
|
$ |
0.191 |
|
|
$ |
0.124 |
|
|
|
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
|
|
172,303 |
|
|
|
171,608 |
|
|
Diluted Weighted Average Outstanding
ADS |
|
|
|
172,370 |
|
|
|
172,199 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| 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 income categories is
summarized as follows: |
Three Months Ended June
30, |
|
ThreeMonthsEndedMarch
31, |
| |
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
| Share-based
compensation |
|
|
|
|
|
| Cost of revenues |
$ |
27 |
|
|
$ |
6 |
|
|
$ |
26 |
|
| Research and development |
|
160 |
|
|
|
312 |
|
|
|
161 |
|
| General and administrative |
|
70 |
|
|
|
133 |
|
|
|
70 |
|
| Sales and marketing |
|
20 |
|
|
|
83 |
|
|
|
20 |
|
| Income tax benefit |
|
(47 |
) |
|
|
(128 |
) |
|
|
(48 |
) |
| Total |
$ |
230 |
|
|
$ |
406 |
|
|
$ |
229 |
|
| |
|
|
|
|
|
| The amount
of acquisition-related charges
included in applicable statements of
income categories is summarized as
follows: |
|
|
|
|
|
| |
|
|
|
|
|
| Acquisition-related
charges |
|
|
|
|
|
| Research and development |
$ |
246 |
|
|
$ |
194 |
|
|
$ |
246 |
|
| Income tax benefit |
|
(98 |
) |
|
|
|
|
(83 |
) |
|
|
(99 |
) |
| Total |
$ |
148 |
|
|
$ |
111 |
|
|
$ |
147 |
|
| |
|
|
|
|
|
| |
|
| 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 income categories is
summarized as follows: |
Six Months Ended
June 30, |
| |
|
2016 |
|
|
|
2015 |
|
| Share-based
compensation |
|
|
|
| Cost of revenues |
$ |
53 |
|
|
$ |
13 |
|
| Research and development |
|
321 |
|
|
|
624 |
|
| General and administrative |
|
140 |
|
|
|
265 |
|
| Sales and marketing |
|
40 |
|
|
|
167 |
|
| Income tax benefit |
|
(95 |
) |
|
|
(255 |
) |
| Total |
$ |
459 |
|
|
$ |
814 |
|
| |
|
|
|
| The amount
of acquisition-related charges
included in applicable statements of
income categories is summarized as
follows: |
|
|
|
| |
|
|
|
| Acquisition-related
charges |
|
|
|
| Research and development |
$ |
492 |
|
|
$ |
388 |
|
| Income tax benefit |
|
(197 |
) |
|
|
|
|
(166 |
) |
| Total |
$ |
295 |
|
|
$ |
222 |
|
| |
|
|
|
| |
| Himax Technologies, Inc. |
| GAAP Unaudited Condensed
Consolidated Balance Sheets |
| (Amounts in Thousands of U.S. Dollars,
Except Share and Per Share
Data) |
| |
|
June
30, 2016 |
|
March
31, 2016 |
|
June
30, 2015 |
|
Assets |
|
|
|
|
|
|
| Current
assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
164,423 |
|
|
$ |
150,521 |
|
|
$ |
161,256 |
|
| Investments in marketable
securities available-for-sale |
|
|
14,917 |
|
|
|
17,441 |
|
|
|
3,262 |
|
| Accounts receivable, less allowance
for doubtful accounts, sales returns and discounts |
|
|
187,925 |
|
|
|
173,025 |
|
|
|
182,304 |
|
| Inventories |
|
|
186,655 |
|
|
|
182,814 |
|
|
|
189,572 |
|
| Deferred income taxes |
|
|
3,361 |
|
|
|
3,372 |
|
|
|
4,977 |
|
| Restricted cash, cash equivalents
and marketable securities |
|
|
138,000 |
|
|
|
180,451 |
|
|
|
130,000 |
|
| Prepaid expenses and other current
assets |
|
|
20,356 |
|
|
|
19,343 |
|
|
|
18,860 |
|
| Total current
assets |
|
|
715,637 |
|
|
|
726,967 |
|
|
|
690,231 |
|
|
Investment in non-marketable
equity securities |
|
|
10,780 |
|
|
|
11,211 |
|
|
|
11,211 |
|
| Equity method
investments |
|
|
3,277 |
|
|
|
3,490 |
|
|
|
3,516 |
|
|
Property, plant and
equipment, net |
|
|
51,056 |
|
|
|
52,654 |
|
|
|
54,235 |
|
| Deferred income
taxes |
|
|
1,074 |
|
|
|
982 |
|
|
|
656 |
|
|
Goodwill |
|
|
28,138 |
|
|
|
28,138 |
|
|
|
28,138 |
|
| Other
intangible assets, net |
|
|
3,665 |
|
|
|
3,913 |
|
|
|
3,889 |
|
| Restricted
marketable securities |
|
|
124 |
|
|
|
124 |
|
|
|
433 |
|
| Other
assets |
|
|
1,517 |
|
|
|
1,912 |
|
|
|
1,871 |
|
| |
|
|
99,631 |
|
|
|
102,424 |
|
|
|
103,949 |
|
| Total assets |
|
$ |
815,268 |
|
|
$ |
829,391 |
|
|
$ |
794,180 |
|
|
Liabilities, redeemable
noncontrolling interest and
equity |
|
|
|
|
| Current
liabilities: |
|
|
|
|
|
|
| Short-term debt |
|
$ |
138,000 |
|
|
$ |
180,000 |
|
|
$ |
130,000 |
|
| Accounts payable |
|
|
151,842 |
|
|
|
138,662 |
|
|
|
125,771 |
|
| Income taxes payable |
|
|
11,695 |
|
|
|
14,775 |
|
|
|
13,937 |
|
| Deferred income taxes |
|
|
140 |
|
|
|
141 |
|
|
|
35 |
|
| Other accrued expenses and other
current liabilities |
|
|
54,729 |
|
|
|
32,939 |
|
|
|
79,119 |
|
| Total current
liabilities |
|
|
356,406 |
|
|
|
366,517 |
|
|
|
348,862 |
|
| Other
liabilities |
|
|
3,783 |
|
|
|
4,647 |
|
|
|
4,454 |
|
| Total
liabilities |
|
|
360,189 |
|
|
|
371,164 |
|
|
|
353,316 |
|
|
|
|
|
|
|
|
|
| Redeemable
noncontrolling interest |
|
|
3,656 |
|
|
|
3,656 |
|
|
|
3,656 |
|
|
Equity |
|
|
|
|
|
|
| Himax
Technologies, Inc.
stockholders’ equity: |
|
|
|
|
|
|
| Ordinary shares, US$0.3
par value, 1,000,000,000 shares authorized; 356,699,482 shares
issued; and 343,815,424 shares, 343,815,424 shares and 342,425,144
shares outstanding at June 30, 2016, March 31, 2016 and June 30,
2015, respectively |
|
107,010 |
|
|
|
107,010 |
|
|
|
107,010 |
|
| Additional paid-in capital |
|
|
105,881 |
|
|
|
|
|
105,618 |
|
|
|
108,808 |
|
| Treasury shares, at cost,
12,884,058 shares, 12,884,058 shares and 14,274,338 shares at June
30, 2016, March 31, 2016 and June 30, 2015, respectively |
|
|
(9,157 |
) |
|
|
|
|
(9,157 |
) |
|
|
(10,144 |
) |
| Accumulated other comprehensive
loss |
|
|
(1,897 |
) |
|
|
|
|
(1,553 |
) |
|
|
(258 |
) |
| Unappropriated retained
earnings |
|
|
247,902 |
|
|
|
250,462 |
|
|
|
238,299 |
|
| Himax Technologies, Inc.
stockholders’ equity |
|
|
449,739 |
|
|
|
452,380 |
|
|
|
443,715 |
|
| Noncontrolling
interests |
|
|
1,684 |
|
|
|
2,191 |
|
|
|
(6,507 |
) |
| Total
equity |
|
|
451,423 |
|
|
|
454,571 |
|
|
|
437,208 |
|
| Total
liabilities, redeemable
noncontrolling interest and
equity |
|
$ |
815,268 |
|
|
$ |
829,391 |
|
|
$ |
794,180 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Himax Technologies, Inc. |
| Unaudited Condensed
Consolidated Statements of Cash Flows |
| (Amounts in
Thousands of
U.S.
Dollars) |
|
|
|
Three Months Ended June
30, |
|
Three Months Ended
March
31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
| Cash flows from
operating activities: |
|
|
|
|
|
|
| Net income |
|
$ |
19,273 |
|
|
$ |
7,616 |
|
|
$ |
12,582 |
|
| Adjustments to
reconcile net income to net cash provided by (used in) operating
activities: |
|
|
|
|
|
|
| Depreciation and amortization |
|
|
3,465 |
|
|
|
3,366 |
|
|
|
3,450 |
|
| Share-based compensation
expenses |
|
|
277 |
|
|
|
534 |
|
|
|
277 |
|
| Gain on disposals of investment
securities, net |
|
--- |
|
|
(1,682 |
) |
|
--- |
| Loss (gain) on disposals of
marketable securities, net |
|
|
49 |
|
|
|
(30 |
) |
|
|
41 |
|
| Equity in losses of equity method
investees |
|
|
198 |
|
|
|
170 |
|
|
|
161 |
|
| Deferred income tax expense
(benefit) |
|
|
(86 |
) |
|
|
1,660 |
|
|
|
(179 |
) |
| Inventories write downs |
|
|
3,186 |
|
|
|
3,269 |
|
|
|
2,710 |
|
| Changes in: |
|
|
|
|
|
|
| Accounts receivable |
|
|
(14,975 |
) |
|
|
10,422 |
|
|
|
4,199 |
|
| Inventories |
|
|
(7,027 |
) |
|
|
(6,698 |
) |
|
|
(14,150 |
) |
| Prepaid expenses and other current
assets |
|
|
296 |
|
|
|
(2,306 |
) |
|
|
(628 |
) |
| Accounts payable |
|
|
13,180 |
|
|
|
(22,886 |
) |
|
|
14,240 |
|
| Income taxes payable |
|
|
(3,082 |
) |
|
|
(8,442 |
) |
|
|
2,651 |
|
| Other accrued expenses and other
current liabilities |
|
|
(1,669 |
) |
|
|
1,289 |
|
|
|
(3,839 |
) |
| Other liabilities |
|
|
7 |
|
|
|
(51 |
) |
|
|
(10 |
) |
| Net cash
provided by (used in)
operating activities |
|
|
13,092 |
|
|
|
(13,769 |
) |
|
|
21,505 |
|
|
|
|
|
|
|
|
|
| Cash flows from
investing activities: |
|
|
|
|
|
|
| Purchases of property, plant and
equipment |
|
|
(1,680 |
) |
|
|
(2,019 |
) |
|
|
(2,202 |
) |
| Proceeds from disposal of property
and equipment |
|
--- |
|
|
6 |
|
|
--- |
| Purchases of available-for-sale
marketable securities |
|
|
(10,552 |
) |
|
|
(8,799 |
) |
|
|
(6,596 |
) |
| Proceeds from disposals of
available-for-sale marketable securities |
|
|
12,831 |
|
|
|
8,015 |
|
|
|
7,968 |
|
| Proceeds from disposals of
investment securities |
|
--- |
|
|
1,682 |
|
|
--- |
| Proceeds from capital reduction of
investment |
|
|
431 |
|
|
--- |
|
--- |
| Purchase of equity method
investment |
|
--- |
|
|
(18 |
) |
|
--- |
| Proceeds from (repayments of)
refundable deposits, net |
|
|
394 |
|
|
|
|
|
(87 |
) |
|
|
6 |
|
| Releases (pledges) of restricted
cash, cash equivalents and marketable securities |
|
|
451 |
|
|
|
(93 |
) |
|
|
(12 |
) |
| Other receivables from related
parties |
|
|
(1,000 |
) |
|
--- |
|
--- |
| Net cash
provided by (used in) investing
activities |
|
|
875 |
|
|
|
|
|
(1,313 |
) |
|
|
(836 |
) |
| |
| |
| Himax Technologies, Inc. |
| Unaudited Condensed
Consolidated Statements of Cash Flows |
| (Amounts in
Thousands of
U.S.
Dollars) |
|
|
|
Three Months Ended June
30, |
|
Three Months Ended March
31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
| Cash flows from
financing activities: |
|
|
|
|
|
|
| Proceeds from disposals of
subsidiary shares to noncontrolling interests by Himax Imaging,
Inc. |
|
$ |
1 |
|
|
$ |
7 |
|
|
$ |
--- |
|
| Purchases of subsidiary shares from
noncontrolling interests |
|
--- |
|
|
(44 |
) |
|
|
(1 |
) |
| Releases of restricted cash, cash
equivalents and marketable securities (for borrowing of short-term
debt) |
|
|
42,000 |
|
|
--- |
|
--- |
| Proceeds from short-term debt |
|
|
49,000 |
|
|
|
50,000 |
|
|
|
61,000 |
|
| Repayments of short-term debt |
|
|
(91,000 |
) |
|
|
(50,000 |
) |
|
|
|
|
(61,000 |
) |
| Net cash
provided by (used
in) financing
activities |
|
|
1 |
|
|
|
(37 |
) |
|
|
(1 |
) |
| Effect
of foreign currency exchange rate
changes on cash and cash equivalents |
|
|
(66 |
) |
|
|
13 |
|
|
|
24 |
|
| Net
increase
(decrease) in
cash and cash equivalents |
|
|
13,902 |
|
|
|
(15,106 |
) |
|
|
20,692 |
|
| Cash and cash
equivalents at beginning of period |
|
|
150,521 |
|
|
|
176,362 |
|
|
|
129,829 |
|
| Cash and cash
equivalents at end of period |
|
$ |
164,423 |
|
|
$ |
161,256 |
|
|
$ |
150,521 |
|
|
|
|
|
|
|
|
|
| Supplemental
disclosures of cash flow information: |
|
|
|
|
|
|
| Cash paid during the period
for: |
|
|
|
|
|
|
| Interest |
|
$ |
182 |
|
|
$ |
148 |
|
|
$ |
187 |
|
| Income taxes |
|
$ |
6,591 |
|
|
$ |
9,576 |
|
|
$ |
71 |
|
| |
|
|
|
|
|
|
| Supplemental
disclosures of investing activities affecting both
cash and non-cash items: |
|
|
|
|
|
|
| Purchases of property, plant and
equipment |
|
$ |
1,638 |
|
|
$ |
2,529 |
|
|
$ |
1,388 |
|
| Decrease (increase) in payable for
purchases of equipment and asset retirement obligations |
|
|
42 |
|
|
|
(510 |
) |
|
|
|
|
814 |
|
| Cash paid |
|
$ |
1,680 |
|
|
$ |
2,019 |
|
|
$ |
2,202 |
|
| |
|
|
|
|
|
|
| Supplemental
disclosures of non-cash investing and
financing activities: |
|
|
|
|
|
|
| Dividend payable |
|
$ |
22,348 |
|
|
$ |
51,364 |
|
|
$ |
--- |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
| Himax Technologies, Inc. |
| Unaudited Condensed
Consolidated Statements of Cash Flows |
| (Amounts in
Thousands of
U.S.
Dollars) |
|
|
|
|
|
Six Months Ended
June
30, |
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
| Cash flows from
operating activities: |
|
|
|
|
|
|
| Net income |
|
|
|
$ |
31,855 |
|
|
$ |
19,177 |
|
| Adjustments to
reconcile net income to net cash provided by (used in) operating
activities: |
|
|
|
|
|
|
| Depreciation and amortization |
|
|
|
|
6,915 |
|
|
|
7,332 |
|
| Share-based compensation
expenses |
|
|
|
|
554 |
|
|
|
1,069 |
|
| Gain on disposals of equity method
investment |
|
|
|
--- |
|
|
(88 |
) |
| Gain on disposals of investment
securities, net |
|
|
|
--- |
|
|
(1,682 |
) |
| Loss (gain) on disposals of
marketable securities, net |
|
|
|
|
90 |
|
|
|
(32 |
) |
| Equity in losses of equity method
investees |
|
|
|
|
359 |
|
|
|
220 |
|
| Deferred income tax expense
(benefit) |
|
|
|
|
(265 |
) |
|
|
2,568 |
|
| Inventories write downs |
|
|
|
|
5,896 |
|
|
|
5,262 |
|
| Changes in: |
|
|
|
|
|
|
| Accounts receivable |
|
|
|
|
(10,776 |
) |
|
|
37,058 |
|
| Inventories |
|
|
|
|
(21,177 |
) |
|
|
(28,729 |
) |
| Prepaid expenses and other current
assets |
|
|
|
|
(332 |
) |
|
|
(361 |
) |
| Accounts payable |
|
|
|
|
27,420 |
|
|
|
(53,557 |
) |
| Income taxes payable |
|
|
|
|
(431 |
) |
|
|
(5,301 |
) |
| Other accrued expenses and other
current liabilities |
|
|
|
|
(5,508 |
) |
|
|
(285 |
) |
| Other liabilities |
|
|
|
|
(3 |
) |
|
|
(131 |
) |
| Net cash
provided by (used in)
operating activities |
|
|
|
|
34,597 |
|
|
|
(17,480 |
) |
|
|
|
|
|
|
|
|
| Cash flows from
investing activities: |
|
|
|
|
|
|
| Purchases of property, plant and
equipment |
|
|
|
|
(3,882 |
) |
|
|
(3,861 |
) |
| Proceeds from disposals of property
and equipment |
|
|
|
--- |
|
|
6 |
|
| Purchases of available-for-sale
marketable securities |
|
|
|
|
(17,148 |
) |
|
|
(13,225 |
) |
| Proceeds from disposals of
available-for-sale marketable securities |
|
|
|
|
20,799 |
|
|
|
12,443 |
|
| Proceeds from disposals
of investment securities |
|
|
--- |
|
|
1,682 |
|
| Proceeds from capital
reduction of investment |
|
|
|
431 |
|
|
--- |
| Purchase of equity method
investment |
|
|
|
--- |
|
|
(3,708 |
) |
| Proceeds from disposals
of equity method investment |
|
|
--- |
|
|
179 |
|
| Proceeds from
(repayments of) refundable deposits, net |
|
|
|
400 |
|
|
|
|
|
(113 |
) |
| Releases (pledges) of
restricted cash, cash equivalents and marketable securities |
|
|
|
439 |
|
|
|
(96 |
) |
| Other receivables from related
parties |
|
|
|
|
(1,000 |
) |
|
--- |
| Net cash
provided by (used in)
investing activities |
|
|
|
|
39 |
|
|
|
|
|
(6,693 |
) |
| |
| |
| Himax Technologies, Inc. |
| Unaudited Condensed
Consolidated Statements of Cash Flows |
| (Amounts in
Thousands of
U.S.
Dollars) |
|
|
|
|
|
Six Months Ended
June
30, |
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
| Cash flows from
financing activities: |
|
|
|
|
|
|
| Proceeds from disposals of
subsidiary shares to noncontrolling interests by Himax Imaging,
Inc. |
|
|
|
$ |
1 |
|
|
$ |
10 |
|
| Purchases of subsidiary shares from
noncontrolling interests |
|
|
|
|
(1 |
) |
|
|
(53 |
) |
| Releases of restricted cash, cash
equivalents and marketable securities (for borrowing of short-term
debt) |
|
|
|
|
42,000 |
|
|
--- |
| Proceeds from short-term debt |
|
|
|
|
110,000 |
|
|
|
190,000 |
|
| Repayments of short-term debt |
|
|
|
|
(152,000 |
) |
|
|
(190,000 |
) |
| Net cash
used in financing activities |
|
|
|
--- |
|
|
(43 |
) |
| Effect
of foreign currency exchange rate
changes on cash and cash equivalents |
|
|
|
|
(42 |
) |
|
|
6 |
|
| Net
increase (decrease) in
cash and cash equivalents |
|
|
|
|
34,594 |
|
|
|
(24,210 |
) |
| Cash and cash
equivalents at beginning of period |
|
|
|
|
129,829 |
|
|
|
185,466 |
|
| Cash and cash
equivalents at end of period |
|
|
|
$ |
164,423 |
|
|
$ |
161,256 |
|
|
|
|
|
|
|
|
|
| Supplemental
disclosures of cash flow information: |
|
|
|
|
|
|
| Cash paid during the period
for: |
|
|
|
|
|
|
| Interest expense |
|
|
|
$ |
369 |
|
|
$ |
222 |
|
| Income taxes |
|
|
|
$ |
6,662 |
|
|
$ |
9,676 |
|
| |
|
|
|
|
|
|
| Supplemental
disclosures of investing activities affecting both
cash and non-cash items: |
|
|
|
|
|
|
| Purchases of property, plant and
equipment |
|
|
|
$ |
3,026 |
|
|
$ |
3,911 |
|
| Decrease (increase) in payable for
purchases of equipment and asset retirement obligations |
|
|
|
|
856 |
|
|
|
(50 |
) |
| Cash paid |
|
|
|
$ |
3,882 |
|
|
$ |
3,861 |
|
| |
|
|
|
|
|
|
| Supplemental
disclosures of non-cash investing and
financing activities: |
|
|
|
|
|
|
| Dividend payable |
|
|
|
$ |
22,348 |
|
|
$ |
51,364 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
| Himax Technologies, Inc. |
| Non-GAAP Unaudited Supplemental Data –
Reconciliation Schedule |
| (Amounts in Thousands of U.S.
Dollars) |
|
|
|
Gross Margin, Operating Margin and Net Margin Excluding
Share-Based Compensation and
Acquisition-Related Charges: |
|
|
Three Months Ended June
30, |
|
Three Months Ended March
31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
| Revenues |
$ |
201,074 |
|
|
$ |
169,185 |
|
|
$ |
180,319 |
|
| Gross profit |
|
52,478 |
|
|
|
40,300 |
|
|
|
47,175 |
|
| Add: Share-based
compensation – cost of revenues |
|
27 |
|
|
|
6 |
|
|
|
26 |
|
| Gross profit excluding
share-based compensation |
|
52,505 |
|
|
|
40,306 |
|
|
|
47,201 |
|
| Gross margin excluding
share-based compensation |
|
26.1 |
% |
|
|
23.8 |
% |
|
|
26.2 |
% |
| Operating income |
|
21,899 |
|
|
|
8,874 |
|
|
|
15,179 |
|
| Add: Share-based
compensation |
|
277 |
|
|
|
534 |
|
|
|
277 |
|
| Operating income
excluding share-based compensation |
|
22,176 |
|
|
|
9,408 |
|
|
|
15,456 |
|
| Add:
Acquisition-related charges –intangible assets amortization |
|
246 |
|
|
|
194 |
|
|
|
246 |
|
| Operating income
excluding share-based compensation and acquisition-related
charges |
|
22,422 |
|
|
|
9,602 |
|
|
|
15,702 |
|
| Operating margin
excluding share-based compensation and acquisition-related
charges |
|
11.1 |
% |
|
|
5.7 |
% |
|
|
8.7 |
% |
| Net income attributable
to Himax Technologies, Inc. stockholders |
|
19,787 |
|
|
|
8,832 |
|
|
|
13,088 |
|
| Add: Share-based
compensation, net of tax |
|
230 |
|
|
|
406 |
|
|
|
229 |
|
| Add:
Acquisition-related charges, net of tax |
|
148 |
|
|
|
111 |
|
|
|
147 |
|
| Net income attributable
to Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
20,165 |
|
|
|
9,349 |
|
|
|
13,464 |
|
| Net margin attributable
to Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
10.0 |
% |
|
|
5.5 |
% |
|
|
7.5 |
% |
| |
|
|
|
|
|
| *Gross
margin excluding share-based compensation equals gross profit
excluding share-based compensation divided by revenues |
| *Operating
margin excluding share-based compensation and acquisition-related
charges equals operating income excluding share-based compensation
and acquisition-related charges divided by revenues |
| *Net
margin attributable to Himax Technologies, Inc. stockholders
excluding share-based compensation and acquisition-related charges
equals net income attributable to Himax Technologies, Inc.
stockholders excluding share-based compensation and
acquisition-related charges divided by revenues |
|
|
|
|
|
|
|
| Himax Technologies,
Inc.Non-GAAP Unaudited Supplemental Data –
Reconciliation Schedule(Amounts in Thousands of
U.S. Dollars) |
|
|
|
|
|
| Gross Margin, Operating Margin and Net Margin
Excluding Share-Based Compensation and Acquisition-Related
Charges: |
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
| Revenues |
|
|
$ |
381,393 |
|
|
$ |
348,230 |
|
| Gross profit |
|
|
|
99,653 |
|
|
|
86,332 |
|
| Add: Share-based
compensation – Cost of revenues |
|
|
|
53 |
|
|
|
13 |
|
| Gross profit excluding
share-based compensation |
|
|
|
99,706 |
|
|
|
86,345 |
|
| Gross margin excluding
share-based compensation |
|
|
|
26.1 |
% |
|
|
24.8 |
% |
| Operating income |
|
|
|
37,078 |
|
|
|
24,522 |
|
| Add: Share-based
compensation |
|
|
|
554 |
|
|
|
1,069 |
|
| Operating income
excluding share-based compensation |
|
|
|
37,632 |
|
|
|
25,591 |
|
| Add:
Acquisition-related charges –Intangible assets amortization |
|
|
|
492 |
|
|
|
388 |
|
| Operating income
excluding share-based compensation and acquisition-related
charges |
|
|
|
38,124 |
|
|
|
25,979 |
|
| Operating margin
excluding share-based compensation and acquisition-related
charges |
|
|
|
10.0 |
% |
|
|
7.5 |
% |
| Net income attributable
to Himax Technologies, Inc. stockholders |
|
|
|
32,875 |
|
|
|
21,397 |
|
| Add: Share-based
compensation, net of tax |
|
|
|
459 |
|
|
|
814 |
|
| Add:
Acquisition-related charges, net of tax |
|
|
|
295 |
|
|
|
222 |
|
| Net income attributable
to Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
|
|
33,629 |
|
|
|
22,433 |
|
| Net margin attributable
to Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
|
|
8.8 |
% |
|
|
6.4 |
% |
| |
|
|
|
|
|
| *Gross
margin excluding share-based compensation equals gross profit
excluding share-based compensation divided by revenues |
| *Operating
margin excluding share-based compensation and acquisition-related
charges equals operating income excluding share-based compensation
and acquisition-related charges divided by revenues |
| *Net
margin attributable to Himax Technologies, Inc. stockholders
excluding share-based compensation and acquisition-related charges
equals net income attributable to Himax Technologies, Inc.
stockholders excluding share-based compensation and
acquisition-related charges divided by revenues |
|
|
|
|
|
Diluted Earnings Per ADS Attributable to Himax
Technologies, Inc. stockholders Excluding Share-based Compensation
and Acquisition-Related Charges: (Amounts in U.S.
Dollars) |
| |
|
Three Months Ended June
30, |
|
Six Months Ended
June 30, |
| |
|
|
2016 |
|
|
|
2016 |
|
| |
Diluted GAAP earnings per ADS
attributable to Himax Technologies, Inc. stockholders |
$ |
0.115 |
|
|
$ |
0.191 |
|
| |
Add: Share-based compensation per
ADS |
$ |
0.001 |
|
|
$ |
0.003 |
|
| |
Add: Acquisition-related charges
per ADS |
$ |
0.001 |
|
|
$ |
0.002 |
|
| |
|
|
|
|
| |
Diluted non-GAAP earnings per ADS
attributable to Himax Technologies, Inc. stockholders excluding
share-based compensation and acquisition-related charges |
$ |
0.117 |
|
|
$ |
0.195 |
|
| |
|
|
|
|
| Numbers do
not add up due to rounding |
|
| |
|
Himax Technologies (NASDAQ:HIMX)
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Himax Technologies (NASDAQ:HIMX)
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Von Jul 2023 bis Jul 2024
