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 fourth quarter and full year 2021 ended December 31, 2021.
“We are upbeat about our year ahead growth
prospect, backed by a few product areas, notably the automotive and
ultralow power AI image sensing businesses, which we feel confident
will stay strong regardless of the macroeconomic concerns. We
anticipate these two products, both with good gross margin, will
outgrow other product lines in 2022. Robust demand for our
traditional automotive driver IC is backed by strong foundry
capacity support while automotive TDDI is on track to experience
exponential growth throughout 2022 and beyond. We expect to reach
10 million units cumulative shipment in automotive TDDI in as
soon as the second quarter of this year. As the contribution of
automotive revenue grows, it will better position our product mix
in terms of both profit margin and business visibility,” said Mr.
Jordan Wu, President and Chief Executive Officer of Himax.
“Looking ahead into 2022, backed by more secured
foundry capacity than last year and an advanced product portfolio,
we are well positioned to continue to grow our top line and will
continue to work toward maintaining a high gross margin, one of our
major long term business goals. Wherein, we anticipate further
revenue and profit growth in 2022,” concluded Mr. Jordan Wu.
Fourth Quarter 2021 Financial
Results
Himax recorded net revenues of $451.9 million,
an increase of 7.4% sequentially and an increase of 63.9% compared
to the same period last year. Gross margin was 51.8%, an increase
from the already high level of 51.7% in the third quarter and above
guidance of around 50%. Non-IFRS profit per diluted ADS was 84.9
cents, exceeding the estimates of 78.0 cents to 83.0 cents. IFRS
profit per diluted ADS was 81.5 cents, higher than guidance range
of 74.5 cents to 79.5 cents.
Revenue from large display drivers was $125.0
million in Q4, up 6.3% sequentially and nearly double
year-over-year. Monitor revenue came in better than expected, up
more than 30% sequentially, ahead of prior guidance of a more than
20% increase, due to accelerated orders for high-end monitors from
certain end customers. Notebook sales continued strong growth
momentum, delivering double digit sequential growth as a result of
strong shipment of high-end products to world-leading notebook
vendors. As expected, the fourth quarter TV IC revenue was down
single digit sequentially on the backdrop of a sluggish global TV
market. In some cases where TV customers who borne shipment
liability to the company and suffered business headwinds, under
mutual consent, Himax redirected their allocated foundry capacity
towards IT displays where demand stayed strong. It was through such
efficient operating execution that Himax was able to achieve sales
growth for the large display driver business despite the slow TV
market and further reinforce the business relationships with
strategic customers. Large panel driver ICs accounted for 27.7% of
total revenues for this quarter, compared to 27.9% in the third
quarter of 2021 and 23.3% a year ago.
Small and medium-sized display drivers saw resilient sales with
revenue of $276.6 million, up 9.6% sequentially and up more than
50% year-over-year. The automotive segment has repeatedly been the
fastest growing sector among its small and medium-sized display
driver segment with the sales up more than 20% sequentially this
quarter. It is worth highlighting that the e-paper business,
another product in small and medium-sized driver lineup and one
with decent margin, enjoyed more than 80% sequential growth in Q4.
Small and medium-sized driver IC segment accounted for 61.2% of
total sales for the quarter, compared to 59.9% in the previous
quarter and 64.5% a year ago. In Q4, smartphone, tablet and
automotive driver businesses contributed about the same sales with
automotive significantly outgrowing the other two segments, a trend
that the company believes will continue over the next few
years.
Fourth quarter smartphone sales reached $91.3
million, up double digit sequentially and up more than 30% compared
to the same period last year due mainly to higher shipment to key
customers despite the outbreak of Covid-19 variants weighing down
the worldwide smartphone market. The smartphone segment represented
around 20% of total sales in Q4. Himax’s supply for smartphone was
still limited by the total capacity accessible to Himax where the
company could only support shipment to select end customers.
Amidst a slow tablet market, tablet revenue
reached $85.8 million, a decline of single digit sequentially but
up around 30% year over year. The decline was caused by shrinking
traditional DDIC shipment while TDDI sales were slightly better
than the record level in Q3 and represented the eighth consecutive
quarter of growth since initial production from the first quarter
of 2020. Himax maintained its leading market share position in the
non-iOS tablet market with accelerated TDDI penetration among
leading name-brands. Tablet revenue in this quarter accounted for
19.0% of the total sales.
Fourth quarter driver IC revenue for automotive
set another record, amounting to $89.1 million, up more than 20%
sequentially and up more than 130% year-over-year, thanks to its
strong shipment in higher-end DDIC products, rising TDDI shipment
as well as market share gains across numerous automotive customers.
As panels inside vehicles continue to grow in quantity, size, and
include more advanced features, the company expects to see
sustainable robust growth in automotive business.
Fourth quarter revenue from its non-driver
businesses was $50.3 million, slightly down sequentially and up
around 50% year-over-year. Himax is pleased to report that
the company’s ultralow power AI image sensing total solution
successfully entered into mass production in Q4 last year for a
major tech name over a mainstream application. The company reached
this major milestone just one year after it delivered the first
samples, a remarkable achievement and an illustration of the
robustness of AI solution. CMOS image sensor sales were up
mid-teens while Tcon business decreased by low teens sequentially
as a result of slow demand in TV and Chromebook. However, on a
year-over-year basis, Tcon sales were up more than 70%, a
reflection of its leading position across 4K/8K TV, gaming monitor,
and low power notebook. Non-driver products in Q4 accounted
for 11.1% of total revenues, as compared to 12.2% in the third
quarter of 2021 and 12.2% a year ago.
Non-IFRS Gross margin for the fourth quarter
sustained at a high level of 51.8%, a continuation from 51.7% of
last quarter and greatly increased from 31.2% of the same period
last year. The higher gross margin was a reflection of better
mix towards higher end product areas and a more favorable IC
pricing environment resulting from tight foundry capacity. IFRS
gross margin was also 51.8% for the quarter.
Non-IFRS operating expenses for the fourth
quarter were $48.5 million, up 9.1% from the previous quarter and
up 11.5% from a year ago. The sequential increase was a result of a
one-time cash bonus at the end of December to further reward
employees for the remarkable financial results while the
year-over-year increase was caused mainly by increased salary. IFRS
operating expenses were $56.0 million for the fourth quarter, down
18.2% from the preceding quarter but up 27.9% from a year ago. The
difference was mainly due to the annual bonus compensation which
the company awards employees at the end of September each year.
Reflecting the higher sales and better gross margin, the fourth
quarter non-IFRS operating income was $185.5 million, or 41.1% of
sales, versus 41.2% of sales in the last quarter. Again, the Q4
operating income reached a historical high. Non-IFRS after-tax
profit was $148.4 million, or 84.9 cents per diluted ADS, a new
record high and increase from $138.9 million, or 79.5 cents per
diluted ADS last quarter.
Full Year 2021 Financial
Results
Revenues totaled $1,547.1 million in 2021,
representing 74.4% growth over that of 2020. The ongoing effects of
the pandemic, coupled with foundry capacity shortage, created a
challenging operating environment, yet also provided favorable
conditions for IC vendors such Himax with overall market
demand far outpacing supply. Among Himax’s three major product
categories, small and medium-sized display drivers posted the
highest growth of 86.8% year-over-year in 2021 with sales totaling
$963.5 million. The Company saw extraordinary business momentum
particularly in tablet and automotive areas in 2021 as leading
non-iOS tablet brands all adopted Himax’s tablet TDDI solutions and
automotive displays continued to evolve at a rapid rate in the
number, size and sophistication. Automotive sales enjoyed the
highest growth among all product lines in 2021, up more than 110%
while sales for tablet IC, its top sales contributor in 2021, grew
77.0%. Smartphone and e-paper sales were up more than 85% and 23%
respectively in 2021.
Revenue from large panel display drivers totaled
$397.9 million in 2021, representing an annual growth of 65.3%.
During the pandemic, the surge in IT demand boosted company's
notebook display IC sales significantly, up more than 370%, whereas
monitor display sales increased more than 30%. TV sales were also
up by more than 40% despite the dip in worldwide TV shipments
during the second half of the year. Non-driver products sales
totaled $185.7 million, an increase of 42.0% from last year. The
increase was mainly from Tcon sales, more than double
year-over-year amidst the growing needs for high frame rate and
high-resolution displays. CMOS image sensor business, severely
capped by capacity constraint throughout the year, was up
mid-single digit from the strong demand in notebook and web camera
for work-from-home and online education. This annual sales increase
was offset by WLO, as the legacy product of a major customer
gradually decreased.
Non-IFRS gross margin in 2021 was 48.5%, greatly
increased from 24.9% in 2020. The increase was mainly a reflection
of more favorable IC pricing and product mix resulting from the
tight foundry capacity as well as increasing contribution from high
margin product lines, especially in automotive, notebook drivers,
and Tcon.
Non-IFRS operating expenses were $171.5 million,
up $15.2 million, or 9.7% due to higher salary expenses and a cash
bonus the company awarded its employees at the end of December.
Despite the NT dollar appreciation against the U.S. Dollar during
2021, the currency fluctuations to Himax were of limited impact as
company’s accounting was US dollar-denominated, the same as the
bulk of company's buying and selling activities, thereby creating a
natural hedge. The stronger NT Dollar in 2021 did contribute to
around $4.6 million of operating expenses increase as Himax paid
the salaries of the Taiwan-based employees and much of the Taiwan
locally incurred expenses in NT Dollar. Yet, the non-IFRS operating
expense ratio of 2021 was reduced to 11.1% from 17.6% in 2020,
indicating Himax’s consistent and prudent management of operating
expenses. IFRS operating expenses were $203.6 million, up $40.7
million, or 25.0% compared to last year. The increase came mainly
from the vested portion of the annual bonus compensation the
company awards employees at the end of September each year.
Reflecting higher sales and better gross margin,
non-IFRS operating income was $578.3 million, or 37.4% of sales, an
increase of $513.7 million from $64.6 million in 2020. For the same
reason, but partially offset by increase of annual bonus
compensation, IFRS operating income was $545.0 million, in contrast
to $57.9 million in 2020.
Non-IFRS net profit for 2021 was $463.6 million,
or 265.1 cents per diluted ADS, up $411.2 million from $52.3
million, or 30.2 cents per diluted ADS in 2020. IFRS net profit for
the year was $436.9 million, or 249.8 cents, up $389.8 million from
$47.1 million, or 27.2 cents per diluted ADS in 2020. The upswing
in income was a result of better sales, higher gross margin along
with well-managed operating expenses.
Balance Sheet and Cash Flow
Himax had $364.4 million of cash, cash
equivalents and other financial assets as of December 31, 2021,
compared to $201.4 million at the same time last year and $250.8
million a quarter ago. The higher cash balance was mainly from
$182.2 million of operating cash inflow during the quarter and
payments received from customers for the purpose of securing their
long-term chip supply, partially offset by payments the company
made in order to secure its long-term foundry capacity. Restricted
cash was $154.1 million at the end of Q4, compared to $156.8
million a quarter ago and $104.0 million a year ago. The restricted
cash was mainly used to guarantee the short-term secured borrowings
for the same amount. The company had $52.5 million of long-term
unsecured loans as of the end of Q4, of which $6.0 million was
current portion.
The Company’s year-end inventories were $198.6
million, up from $160.9 million last quarter and up from $108.7
million a year ago. Amidst tight foundry capacity where demand
still far outpaces supply, Himax continues to pursue an aggressive
inventory buildup strategy. The vast majority of company’s
inventory position now is comprised of work-in-process goods, while
finished goods are promptly shipped as soon as they are available.
Accounts receivable at the end of December 2021 was $410.2 million,
slightly up from $400.9 million last quarter and up from $243.6
million a year ago due to higher sales. DSO was 97 days at the
quarter end, as compared to 100 days both a year ago and from last
quarter. Fourth quarter capital expenditures were $2.0 million,
versus $2.1 million last quarter and $0.8 million a year ago. The
fourth quarter capex was mainly for R&D related equipment and
in-house tester of company’s IC design business. Total capital
expenditures for the year were $7.6 million, mainly for design
tools, R&D related equipment as well as in-house tester of IC
design business as compared to $5.8 million in 2020.
Outstanding Share
As of December 31, 2021, Himax had 174.3 million
ADS outstanding, unchanged from last quarter. On a fully diluted
basis, total number of ADS outstanding for the fourth quarter was
174.8 million.
Q1 2022 Outlook
Company’s spectacular results in 2021 were
achieved thanks to macro level tailwinds, its efforts to secure
solid capacity, and a steadfast focus on optimizing product mix and
solidifying strategic customer relationships. All of these factors
contributed to the record sales and profit margins. Look
ahead into 2022, against the backdrop of the industry-wide foundry
capacity shortage which is expected to extend well into 2022, the
visibility into certain areas of consumer electronics is rather
limited with global consumption potentially impacted by the ongoing
COVID-19 pandemic, port congestion, worldwide inflationary pressure
and worries over geographical conflict. However, the company is
upbeat about its year ahead growth prospect, backed by a few
product areas, notably the automotive and ultralow power AI image
sensing businesses, which it feels confident will stay strong
regardless of the macroeconomic concerns. Himax anticipates
these two products, both with good gross margin, will outgrow other
product lines in 2022. Robust demand for company's traditional
automotive driver IC is backed by strong foundry capacity support
while automotive TDDI is on track to experience exponential growth
throughout 2022 and beyond. Himax expects to reach 10 million units
cumulative shipment in automotive TDDI in as soon as the second
quarter of this year. In the first quarter of 2022, its automotive
product sales, including traditional driver IC, TDDI, Tcon and OLED
driver, are expected to represent more than 25% of its total sales.
As the contribution of automotive revenue grows, it will better
position company’s long-term product mix in terms of both profit
margin and business visibility. Meanwhile, the company is highly
encouraged by the early success it has seen with ultralow power AI
image sensing business thus far after a leading customer adopted it
for a mainstream application. Himax expects to see more design-wins
awarded across a broad customer base and a high variety of
applications leading to robust sales growth for this new high
margin product line.
Himax expects the supply-demand imbalance to
continue throughout 2022, especially on the mature nodes that the
company is primarily anchored to. Himax has been proactive in this
regard, continuing to pursue new partnerships and agreements to
increase its available capacity and achieve 2022 business goals. In
the meantime, the company entered contractual agreements with the
vast majority of panel makers and, in some instances, select
leading end customers where they prepay or make a deposit to secure
their long-term chip supply which in turn also improves company’s
business visibility.
While pricing has stabilized recently on both
the foundry and customer sides, the company guided for a modest
sequential decline in gross margin for the first quarter due to a
couple of factors. First, company’s cost of goods sold this quarter
represents pricing from the previous quarter when foundries were
still raising their prices. Second, in the fourth quarter the
company benefitted from expedited orders from customers who paid a
premium and it has since seen a decrease in such orders during Q1.
On a year over year basis, however, company’s first quarter margin
will still be substantially higher.
Looking ahead into 2022, backed by more secured
foundry capacity than last year and an advanced product portfolio,
Himax is well positioned to continue to grow company's top line and
will continue to work toward maintaining a high gross margin, one
of company’s major long term business goals. The company
anticipates further revenue and profit growth in 2022.
Display Driver IC
Businesses
LDDIC
Historically, the first quarter has seasonally
been the slowest of the year due to the Lunar New Year holidays. In
addition, Himax is seeing softness in certain market segments and
intensified China local competition. Nevertheless, Himax is armed
with a diversified and comprehensive product offering covering TV,
monitor and notebook, which provides us with the flexibility to
take actions in tandem with company’s customers and suppliers to
direct production towards the sectors with stronger
demands. For the first quarter, large display driver IC
revenue is projected to be flat to slightly down sequentially, but
this will represent an increase of around 70% year-over-year.
Despite the low season, TV IC sales are expected to be around flat
sequentially in the first quarter anchored by high-end and
large-sized TV IC shipments to key accounts. Conversely, the
company expects both monitor and notebook IC sales to drop from
last quarter due mainly to panel customers’ inventory adjustments
in response to the slowing sales momentum after consecutive strong
quarterly increases.
Foreseeing the continuation of the prevailing
foundry shortage and the demand for advanced displays to remain
strong, Himax continues to move toward higher end markets while
providing advanced driver ICs and Tcons for a one-stop shopping
experience, focusing on higher end displays and premium models for
the respective leading end customers in TV, monitor and notebook
markets. The company is also supporting further feature upgrades
for customers’ next generation products, including high-speed
interface, low power consumption, higher refresh rate,
ultra-large-sized, high-aspect-ratio and curved-view design. All
these will help boost its profit margins and represent a high
barrier of entry that differentiates Himax from China local
competition. Himax remains positive on company’s large display
driver business for 2022.
SMDDIC
In Q1, revenue is expected to slightly decline
by mid-single digit sequentially but increase around 30%
year-over-year. Sales for automotive drivers, again, are poised to
post another quarter of strong growth, up over 30% sequentially
while tablet sales are expected to be down mid-single digit
and smartphone IC business to decline double digit
sequentially.
First on automotive sector. Order backlog and
secured multi-year foundry capacity provide good long-term
visibility for Himax in the automotive display driver IC market
where the company has leading global market share of 40%. Backed by
strong design-win coverage with all major panel houses and numerous
car makers alongside an enlarged capacity, Himax expects the
automotive sector to be Himax’s No. 1 sales contributor starting
2022. The company is now targeting to double its automotive sales
again in 2022, on top of the already strong 2021 sales which went
up more than 110% from the year before. For the first quarter, its
automotive driver IC sales are expected to grow over 30%
sequentially, an increase of more than 170% year-over-year. More
specifically, the company expects the Q1 automotive DDIC sales,
still much larger than those of TDDI and AMOLED, to grow over 20%
sequentially, on its own accounting for more than 20% of total
sales. Notwithstanding the decent growth, Himax is still suffering
from a severe foundry capacity shortage for automotive DDIC which
is the area with the most severe shortage for the company right
now. The automotive TDDI, where the company is much better prepared
in terms of foundry capacity, is set to outgrow DDIC going forward.
Currently the company is leading the market with hundreds of
design-win TDDI projects across the board with world leading panel
makers, Tier-1s and automotive OEMs with just a small portion of
them already in mass production. Himax announced earlier that its
Gen 2 automotive TDDI, which Himax started ramping as recent as Q3
last year, achieved 1 million units during the first quarter of
shipment alone. The Gen 2 automotive TDDI has become the mainstream
product shortly after introduction to the market and already
dominates its shipments right now. Himax’s automotive TDDI shipment
reached around 1.4 million units in the fourth quarter last year
and the company expects to ship considerably over 3 million units
in Q1 this year. Automotive TDDI brings us not only much higher
content value on a per panel basis but is also harder to compete in
for late comers. Automotive TDDI, still a relatively new
technology, has become a major growth engine for Himax with the
accelerating momentum expected to carry over throughout 2022 and
the years ahead.
Looking at automotive display industry trends,
the car market continues to embrace sophisticated display
technologies and caters to interactive, stylish and curved designs
with ever improving display resolution and image quality. There is
also a shift towards more and larger size displays per vehicle than
ever before, all indicating much more driver IC demands. Himax is
the market leader in automotive display driver business covering
the entire spectrum of products and technologies, including the
industry’s most comprehensive traditional DDIC product offerings as
well as leading solutions for new technology areas such as TDDI,
local dimming Tcon, LTDI and OLED. For automotive TDDI, a
technology that is essential for large sized, stylish, and curved
automotive displays, Himax pioneered the mass production of the new
technology back in 2019 and have shipped cumulatively millions of
units since. Himax continues to dominate new project design-wins
with direct and indirect customers across the continents. For
larger than 30 inches, slim and curved automotive displays, the
company led the industry by introducing cutting-edge LTDI
technology that strives for a seamless incorporation of
sophisticated touch features with multi-chip design architecture.
Himax is encouraged by the progress made in recent quarters, having
increased design-win coverage across panel makers and engaged more
Tier-1s and OEMs for them to incorporate company’s LTDI into their
new vehicle models. Some of them are slated for mass production
starting the first half of 2023. With the commencement of TDDI mass
production and LTDI thereafter, Himax is confident that its overall
market share in the automotive display driver market will continue
to rise in the coming years.
The company expects Q1 smartphone IC business to
decline double digit sequentially, challenged by slowing sales in
the global smartphone market, inventory held in stock by smartphone
makers and, last but not least, longer production cycle of a new
product, a factor which is specific to Himax but only during this
quarter. In Q1, amidst the worldwide smartphone slowdown, the
company strategically initiated a product transition plan for key
customers’ next generation new designs that support higher frame
rate, ultra slim bezel and higher resolution features. The new
generation product is designed with more masking layers and
therefore requires longer production time, which, during the first
quarter of production, will lead to less output. The product’s
output is expected to be back to normal starting from the second
quarter.
Himax’s tablet sales are expected to decline
mid-single digit in Q1 due to worldwide tablet market adjustment
from a high level. However, company’s TDDI sales, bucking the
seasonality, are expected to be up low-single digit sequentially in
the first quarter, benefitted by the proactive adoption by all
leading non-iOS tablet names of Himax’s TDDI solutions. The company
continues to see an acceleration in TDDI penetration for tablets
following surging needs for larger sized displays, higher frame
rate and active stylus features. As the dominating tablet driver IC
supplier for literally all non-iOS tablet vendors, its TDDI
solutions continue to gain traction and are adopted broadly in
customers’ next generation tablet products. Among all, Himax is
seeing fast expanding education tablets where its tablet TDDI with
active stylus feature has been widely adopted by several leading
Chinese players.
Turning to the e-paper driver business, another
product in Himax’s small and medium-sized driver lineup. Its
e-paper business, which currently only represents a small portion
of total sales, is set to grow by more than 100% sequentially and
more than 240% year-over-year in Q1, driven by the early ramp up of
projects with leading customers and backed by long-term supply
agreements. Himax is collaborating with world-leading e-paper
customers for certain ASIC projects on their next generation
products. This consolidates company’s market presence in the
emerging e-reading and e-signage segments from 2022 and onward.
Next for an update on AMOLED. Himax continues to
gear up for the AMOLED driver IC development in partnership with
major Chinese and Korean panel makers. In Q1, its flexible AMOLED
driver and Tcon for automotive application successfully ramped up
for a customer’s flagship EV model. The number of awarded projects
for company’s automotive OLED ICs is growing with further EV
vendors. In addition, Himax’s OLED for tablet is expected to
commence mass production in the second quarter of this year with
Chinese panel makers. As for smartphone, the company continues to
commit R&D resources to AMOLED driver ICs through engagement
with top tier customers. In view of serious constraints on OLED
display driver capacity in the next few years, Himax has also
secured meaningful capacity for smartphone OLED drivers.
Non-Driver Product
Categories
TCON
The Company anticipates Q1 Tcon sales to
decrease single digit sequentially as a result of weaker demand in
TV and Chromebook notebook sectors. However, on a year-over-year
basis, Tcon sales will be up around 50%. The company is optimistic
about the long term growth prospects of the Tcon business where it
has successfully positioned itself for higher end and higher
value-added areas including 4K/8K TV, gaming monitor, and low power
notebook in view of consumers’ pursuance of various new types of
entertainment for film, television and gaming.
Additionally, Himax extends its Tcon product
reach into automotive and gaming TV markets. Himax’s cutting-edge
automotive local dimming Tcon has won numerous awards and
penetrated into OEMs and tier-1 car makers’ new premium models,
with some of them slated for mass production starting the second
quarter of 2022. In the gaming TV market, the company is also
leading the industry by introducing the world’s first 288Hz 8K TV
Tcon in collaboration with major TV panel makers. Himax believes
the Tcon segment will be one of the driving forces for its
non-driver business moving forward.
Ultralow power AI image
sensing
Himax’s ultralow power AI image sensing total
solution incorporates its ultralow power CMOS image sensor,
proprietary AI processor and CNN-based AI algorithm. As reported
earlier, the sizable order for a top-tier name customer’s
mainstream application successfully entered production in Q4 last
year, marking another impressive milestone for company’s new AI
business within just one year since its initial release. The
company will give further details after the end customer’s
official announcement. Himax has also made good progress on this
mainstream application with other leading vendors where the number
of design-in projects is increasing. In addition to the success
story, the second application Himax expects to see significant
volume is in automatic meter reading (AMR) where AI total solution
has been widely adopted by numerous customers across a wide
geographical area in China. Himax’s power-saving AI cameras,
deployed over the existing installed base of traditional water
meters, enable the water meter to automatically collect consumption
data with AI operating locally on the edge. The device transmits
only byte-sized metadata to the server for billing and in-time
detection of abnormal consumption or leakage, eliminating the need
for manual reading. The battery pack has a lifetime of over 5
years, greatly outperforming conventional AMR solutions which
usually are in a bulky form with large battery packs and, without
local AI capability, have to transmit massive image data to the
cloud to perform meter reading.
The company is already seeing accelerated
deployment of AI solutions to a wide range of applications,
including notebook, home appliances, utility meter, automotive,
battery-powered surveillance camera, panoramic video conferencing,
and medical, among other things. Moreover, new design-in sockets
are on the way as it looks to leverage the collaboration with
leading cloud service partners, such as Microsoft Azure and Google
TensorFlow, on their edge-to-cloud platform to drive further
adoption on applications such as smart home, smart office,
healthcare, agriculture, retail and factory automation. Last but
not least, Himax is seeing numerous design-in activities of AI
solution for endoscope, an area the company is extremely excited
about that may represent an extraordinary game changer for the
health examination industry. Himax will report more detail in due
course. Himax is very encouraged by the traction this relatively
new product line has generated in a short amount of time and expect
to see increasing sales contribution through 2022 and
beyond.
Optical product line-up/
Metaverse
Given the recent surge of interest in the
metaverse and immersive technologies, the company would like to
give an update on its optical related product lines to which it has
committed years of R&D efforts. Himax’s LCoS, WLO and 3D
Sensing, three separate optical related technologies, may
individually or combined play a key role in enabling metaverse
devices.
To help users transit and connect seamlessly
between AR/VR devices and real-life, the right display and 3D
technologies are vital. AR glasses, considered one of the ideal
displays for metaverse applications, feature vision augmentation
onto the real-world environment, where users see through the
glasses with virtual objects and/or digital twins of real-life
objects projected by AR engines onto the glasses. For this, Himax
showcases Front-lit LCoS Microdisplay, one of the tiniest display
modules that offers significantly higher brightness, lighter
weight, and lower power consumption, all making the technology
ideal for AR headsets. To further enable AR glasses, Himax offers
WLO waveguide that propagates light patterns from the LCoS display
in a pre-defined path towards the eyes. Furthermore, for virtual
objects reconstruction or digital twin formation, Himax provides
industry leading WLO and 3D decoding technologies which are
essential in enabling both structured light and ToF (Time of
Flight) 3D sensing. The 3D sensing technology, when combined with
image sensors, can also enable 3D-based gesture recognition,
eliminating the need for handheld controllers and enhancing
perception of the environment, which make it an ideal technology
for contactless interface for AR/VR devices. In all these
technologies, Himax has a market-leading position with its
technology already embedded in various products of quite a few of
the biggest tech names in the business and have shipped hundreds of
millions in volume with proven product development and
manufacturing track records over the years.
While metaverse is still years away from mass
volume deployment, Himax is at the forefront of these key
technologies to enable the industry and the company is ready to
bring the metaverse to life through partnerships with tech
industry’s leading players who are aggressively investing in the
space. Himax will not miss the "next big thing" and are ready to
seize the opportunities ahead. Himax will report additional
progress in this new arena as it continues to develop.
For non-driver IC business, the Company expects
revenue to decline high teens sequentially in the first
quarter.First Quarter 2022
GuidanceComing off of the record revenue results from Q4
2021, the Company is providing the following financial guidance for
the first quarter of 2022, yet still better than the off-season
sales the company typically experiences during the Lunar New Year
season with fewer working days.
Net
Revenue: |
To decrease 5%
to 9% sequentially |
Non-IFRS Gross Margin: |
To be 46% to 48%, depending on final product mix |
Non-IFRS Profit: |
To be 67.0 cents to 73.0 cents per diluted ADS |
IFRS Profit: |
To be 63.5 cents to 69.5 cents per diluted ADS |
|
|
HIMAX TECHNOLOGIES FOURTH QUARTER AND FULL
YEAR 2021 EARNINGS CONFERENCE |
CALLDATE: |
Thursday, February 17, 2022 |
TIME: |
U.S. 8:00 a.m. EST |
|
Taiwan 9:00 p.m. |
DIAL IN: |
U.S. +1 (866) 444-9147 |
|
INTERNATIONAL +1 (678) 509-7569 |
CONFERENCE ID: |
2597192 |
WEBCAST: |
https://edge.media-server.com/mmc/p/o8xz8tbi |
A replay of the call will be available beginning
two hours after the call through 11:30 a.m. US EST on February 25,
2022 (12:30 a.m. Taiwan time, February 26, 2022) on
http://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 2597192. 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 February 17, 2023.
Non-IFRS Financial Measures
Himax provides investors with gross profit,
gross margin, operating income, operating margin, profit
attributable to stockholders and diluted earnings per ADS
attributable to Himax Technologies, Inc. stockholders on a non-IFRS
basis to review and assess the Company's operating performance,
which is not required by, or presented in accordance with, IFRS.
The presentation of these non-IFRS financial measures are not
intended to be considered in isolation or as a substitute for
financial information prepared and presented in accordance with
IFRS.
Himax believes that providing certain of these
measures allow investors to identify underlying trends in the
Company’s business and enhance the overall understanding of the
Company’s past performance and future prospects with respect to key
metrics used by the Company in its financial and operational
decision-making. However, the use of the non-IFRS measure has
limitations as an analytical tool, and investors should not
consider them in isolation from, or as substitute for analysis of,
the Company’s results of operations or financial condition as
reported under IFRS. Further, non-IFRS financial measures may
differ from the non-IFRS information used by other companies,
including peer companies, and therefore its comparability may be
limited.
Reconciliations between IFRS and Non-IFRS
financial data are attached to this press release.
About Himax Technologies,
Inc.
Himax Technologies, Inc. (NASDAQ: HIMX) is a
fabless semiconductor solution provider dedicated to display
imaging processing technologies. Himax is a worldwide market leader
in display driver ICs and timing controllers used in TVs, laptops,
monitors, mobile phones, tablets, automotive, digital cameras, car
navigation, virtual reality (VR) devices and many other consumer
electronics devices. Additionally, Himax designs and provides
controllers for touch sensor displays, in-cell Touch and Display
Driver Integration (TDDI) single-chip solutions, LED driver ICs,
power management ICs and LCoS micro-displays for augmented reality
(AR) devices and heads-up displays (HUD) for automotive. The
Company also offers CMOS image sensors, wafer level optics for AR
devices, 3D sensing and ultralow power smart sensing, which are
used in a wide variety of applications such as mobile phone,
tablet, laptop, TV, PC camera, automobile, security, medical
device, home appliance, AIoT, etc. Founded in 2001 and
headquartered in Tainan, Taiwan, Himax currently employs around
2,100 people from three Taiwan-based offices in Tainan, Hsinchu and
Taipei and country offices in China, Korea, Japan, Israel, and the
US. Himax has 3,041 patents granted and 482 patents pending
approval worldwide as of December 31, 2021. Himax has retained its
position as the leading display imaging processing semiconductor
solution provider to consumer electronics brands worldwide.
Forward Looking Statements
Factors that could cause actual events or results to differ
materially from those described in this conference call include,
but are not limited to, the effect of the Covid-19 pandemic on the
Company’s business; general business and economic conditions and
the state of the semiconductor industry; market acceptance and
competitiveness of the driver and non-driver products developed by
the Company; demand for end-use applications products; reliance on
a small group of principal customers; the uncertainty of continued
success in technological innovations; our ability to develop and
protect our intellectual property; pricing pressures including
declines in average selling prices; changes in customer order
patterns; changes in estimated full-year effective tax rate;
shortage in supply of key components; changes in environmental laws
and regulations; changes in export license regulated by Export
Administration Regulations (EAR); exchange rate fluctuations;
regulatory approvals for further investments in our subsidiaries;
our ability to collect accounts receivable and manage inventory and
other risks described from time to time in the Company's SEC
filings, including those risks identified in the section entitled
"Risk Factors" in its Form 20-F for the year ended December 31,
2020 filed with the SEC, as may be amended.
Company Contacts:
Eric Li, Chief IR/PR
OfficerHimax Technologies, Inc.Tel: +886-6-505-0880 Fax:
+886-2-2314-0877Email:
hx_ir@himax.com.twwww.himax.com.twKaren Tiao, Investor
RelationsHimax Technologies, Inc.Tel: +886-2-2370-3999Fax:
+886-2-2314-0877Email: hx_ir@himax.com.twwww.himax.com.tw
Mark Schwalenberg, DirectorInvestor
Relations - US RepresentativeMZ North AmericaTel:
+1-312-261-6430Email: HIMX@mzgroup.uswww.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
December 31, |
|
3 Months Ended September
30, |
|
2021 |
|
2020 |
|
2021 |
|
|
|
|
|
|
Revenues |
|
|
|
|
|
Revenues from third parties, net |
$ |
451,820 |
|
|
$ |
275,770 |
|
|
$ |
420,912 |
|
Revenues from related parties, net |
|
75 |
|
|
|
- |
|
|
|
26 |
|
|
|
451,895 |
|
|
|
275,770 |
|
|
|
420,938 |
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of revenues |
|
217,919 |
|
|
|
189,774 |
|
|
|
204,213 |
|
Research and development |
|
41,540 |
|
|
|
33,100 |
|
|
|
51,399 |
|
General and administrative |
|
8,086 |
|
|
|
5,919 |
|
|
|
9,025 |
|
Sales and marketing |
|
6,399 |
|
|
|
4,787 |
|
|
|
8,057 |
|
Total costs and expenses |
|
273,944 |
|
|
|
233,580 |
|
|
|
272,694 |
|
|
|
|
|
|
|
Operating income |
|
177,951 |
|
|
|
42,190 |
|
|
|
148,244 |
|
|
|
|
|
|
|
Non operating income (loss): |
|
|
|
|
|
Interest income |
|
283 |
|
|
|
151 |
|
|
|
178 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
(273 |
) |
|
|
489 |
|
|
|
43 |
|
Foreign currency exchange gains (losses), net |
|
874 |
|
|
|
(134 |
) |
|
|
226 |
|
Finance costs |
|
(285 |
) |
|
|
(247 |
) |
|
|
(269 |
) |
Share of losses of associates |
|
(652 |
) |
|
|
(368 |
) |
|
|
(282 |
) |
Other income |
|
199 |
|
|
|
24 |
|
|
|
89 |
|
|
|
146 |
|
|
|
(85 |
) |
|
|
(15 |
) |
Profit before income taxes |
|
178,097 |
|
|
|
42,105 |
|
|
|
148,229 |
|
Income tax expense |
|
36,625 |
|
|
|
8,759 |
|
|
|
30,379 |
|
Profit for the period |
|
141,472 |
|
|
|
33,346 |
|
|
|
117,850 |
|
Loss attributable to
noncontrolling interests |
|
921 |
|
|
|
660 |
|
|
|
866 |
|
Profit attributable to
Himax Technologies, Inc. stockholders |
$ |
142,393 |
|
|
$ |
34,006 |
|
|
$ |
118,716 |
|
|
|
|
|
|
|
Basic earnings per ADS
attributable to Himax Technologies, Inc. stockholders |
$ |
0.815 |
|
|
$ |
0.196 |
|
|
$ |
0.680 |
|
Diluted earnings per
ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
0.815 |
|
|
$ |
0.195 |
|
|
$ |
0.680 |
|
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
174,694 |
|
|
|
173,481 |
|
|
|
174,677 |
|
Diluted Weighted Average Outstanding ADS |
|
174,767 |
|
|
|
174,121 |
|
|
|
174,692 |
|
Himax Technologies, Inc. |
|
Unaudited Condensed Consolidated Statements of Profit or
Loss |
|
(Amounts in Thousands of U.S. Dollars, Except Share and Per
Share Data) |
|
|
|
|
Twelve Months Ended December
31, |
|
2021 |
|
2020 |
|
|
|
|
Revenues |
|
|
|
Revenues from third parties, net |
$ |
1,546,972 |
|
|
$ |
887,282 |
|
Revenues from related parties, net |
|
125 |
|
|
|
- |
|
|
|
1,547,097 |
|
|
|
887,282 |
|
|
|
|
|
Costs and expenses: |
|
|
|
Cost of revenues |
|
798,519 |
|
|
|
666,501 |
|
Research and development |
|
151,386 |
|
|
|
122,265 |
|
General and administrative |
|
29,281 |
|
|
|
23,915 |
|
Sales and marketing |
|
22,890 |
|
|
|
16,675 |
|
Total costs and expenses |
|
1,002,076 |
|
|
|
829,356 |
|
|
|
|
|
Operating income |
|
545,021 |
|
|
|
57,926 |
|
|
|
|
|
Non operating income (loss): |
|
|
|
Interest income |
|
876 |
|
|
|
967 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
(284 |
) |
|
|
472 |
|
Foreign currency exchange gains (losses), net |
|
1,096 |
|
|
|
(327 |
) |
Finance costs |
|
(1,074 |
) |
|
|
(1,705 |
) |
Share of losses of associates |
|
(1,392 |
) |
|
|
(638 |
) |
Other income |
|
349 |
|
|
|
177 |
|
|
|
(429 |
) |
|
|
(1,054 |
) |
Profit before income taxes |
|
544,592 |
|
|
|
56,872 |
|
Income tax expense |
|
110,657 |
|
|
|
11,712 |
|
Profit for the period |
|
433,935 |
|
|
|
45,160 |
|
Loss attributable to
noncontrolling interests |
|
2,961 |
|
|
|
1,974 |
|
Profit attributable to
Himax Technologies, Inc. stockholders |
$ |
436,896 |
|
|
$ |
47,134 |
|
|
|
|
|
Basic earnings per ADS
attributable to Himax Technologies, Inc. stockholders |
$ |
2.502 |
|
|
$ |
0.273 |
|
Diluted earnings per
ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
2.498 |
|
|
$ |
0.272 |
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
174,614 |
|
|
|
172,854 |
|
Diluted Weighted Average Outstanding ADS |
|
174,867 |
|
|
|
173,383 |
|
Himax Technologies, Inc. |
Unaudited Supplemental Financial Information |
(Amounts in Thousands of U.S. Dollars) |
|
The amount of
share-based compensation included in applicable statements of
profit or loss categories is summarized as follows: |
|
Three Months Ended December
31, |
|
Three Months EndedSeptember
30, |
|
|
2021 |
|
2020 |
|
2021 |
Share-based compensation |
|
|
|
|
|
|
Cost of revenues |
|
$ |
7 |
|
|
$ |
- |
|
|
$ |
675 |
|
Research and development |
|
|
462 |
|
|
|
- |
|
|
|
17,200 |
|
General and administrative |
|
|
95 |
|
|
|
- |
|
|
|
2,272 |
|
Sales and marketing |
|
|
39 |
|
|
|
- |
|
|
|
3,124 |
|
Income tax benefit |
|
|
(123 |
) |
|
|
- |
|
|
|
(4,773 |
) |
Total |
|
$ |
480 |
|
|
$ |
- |
|
|
$ |
18,498 |
|
|
|
|
|
|
|
|
The amount of
acquisition-related charges included in applicable statements of
profit or loss categories is summarized as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
charges |
|
|
|
|
|
|
Research and development |
|
$ |
277 |
|
|
$ |
276 |
|
|
$ |
275 |
|
Income tax benefit |
|
|
(65 |
) |
|
|
(64 |
) |
|
|
(64 |
) |
Total |
|
$ |
212 |
|
|
$ |
212 |
|
|
$ |
211 |
|
|
|
|
|
|
|
|
The amount of cash
award included in applicable statements of profit or loss
categories is summarized as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash award |
|
|
|
|
|
|
Cost of revenues |
|
$ |
79 |
|
|
$ |
- |
|
|
$ |
432 |
|
Research and development |
|
|
5,066 |
|
|
|
- |
|
|
|
810 |
|
General and administrative |
|
|
583 |
|
|
|
- |
|
|
|
95 |
|
Sales and marketing |
|
|
978 |
|
|
|
- |
|
|
|
245 |
|
Income tax benefit |
|
|
(1,368 |
) |
|
|
- |
|
|
|
(76 |
) |
Total |
|
$ |
5,338 |
|
|
$ |
- |
|
|
$ |
1,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Supplemental Financial Information |
(Amounts in Thousands of U.S. Dollars) |
|
|
The amount
of share-based compensation included in applicable statements of
profit or loss categories is summarized as follows: |
Twelve Months Ended December
31, |
|
|
2021 |
|
2020 |
Share-based compensation |
|
|
|
|
Cost of revenues |
|
$ |
682 |
|
|
$ |
87 |
|
Research and development |
|
|
17,662 |
|
|
|
4,467 |
|
General and administrative |
|
|
2,367 |
|
|
|
368 |
|
Sales and marketing |
|
|
3,163 |
|
|
|
603 |
|
Income tax benefit |
|
|
(4,896 |
) |
|
|
(1,176 |
) |
Total |
|
$ |
18,978 |
|
|
$ |
4,349 |
|
|
|
|
|
|
The amount of
acquisition-related charges included in applicable statements of
profit or loss categories is summarized as follows: |
|
|
|
|
|
|
|
|
|
Acquisition-related
charges |
|
|
|
|
Research and development |
|
$ |
1,105 |
|
|
$ |
1,105 |
|
Income tax benefit |
|
|
(258 |
) |
|
|
(258 |
) |
Total |
|
$ |
847 |
|
|
$ |
847 |
|
|
|
|
|
|
The amount of cash award included in applicable statements
of profit or loss categories is summarized as
follows: |
|
|
|
|
|
|
|
|
|
Cash award |
|
|
|
|
Cost of revenues |
|
$ |
511 |
|
|
$ |
- |
|
Research and development |
|
|
5,876 |
|
|
|
- |
|
General and administrative |
|
|
678 |
|
|
|
- |
|
Sales and marketing |
|
|
1,223 |
|
|
|
- |
|
Income tax benefit |
|
|
(1,444 |
) |
|
|
- |
|
Total |
|
$ |
6,844 |
|
|
$ |
- |
|
|
|
|
|
|
Himax Technologies, Inc. |
IFRS Unaudited Condensed Consolidated Statements of
Financial Position |
(Amounts in Thousands of U.S. Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
336,024 |
|
|
$ |
229,197 |
|
|
$ |
184,938 |
|
Financial assets at amortized cost |
|
26,013 |
|
|
|
17,861 |
|
|
|
8,682 |
|
Financial assets at fair value through profit or loss |
|
2,345 |
|
|
|
3,765 |
|
|
|
7,799 |
|
Accounts receivable, net (including related parties) |
|
410,211 |
|
|
|
400,897 |
|
|
|
243,626 |
|
Inventories |
|
198,600 |
|
|
|
160,947 |
|
|
|
108,707 |
|
Income taxes receivable |
|
54 |
|
|
|
93 |
|
|
|
91 |
|
Restricted deposit |
|
154,100 |
|
|
|
156,800 |
|
|
|
104,000 |
|
Other receivable from related parties |
|
1,217 |
|
|
|
1,209 |
|
|
|
1,200 |
|
Other current assets |
|
64,280 |
|
|
|
54,530 |
|
|
|
35,368 |
|
Total current assets |
|
1,192,844 |
|
|
|
1,025,299 |
|
|
|
694,411 |
|
Financial assets at
fair value through profit or loss |
|
13,668 |
|
|
|
13,943 |
|
|
|
13,966 |
|
Financial assets at
fair value through other comprehensive
income |
|
410 |
|
|
|
422 |
|
|
|
742 |
|
Equity method
investments |
|
3,302 |
|
|
|
3,920 |
|
|
|
3,983 |
|
Property, plant and
equipment, net |
|
133,236 |
|
|
|
133,874 |
|
|
|
132,074 |
|
Deferred tax
assets |
|
7,191 |
|
|
|
7,979 |
|
|
|
15,739 |
|
Goodwill |
|
28,138 |
|
|
|
28,138 |
|
|
|
28,138 |
|
Other intangible
assets, net |
|
6,617 |
|
|
|
7,004 |
|
|
|
7,876 |
|
Restricted
deposit |
|
36 |
|
|
|
36 |
|
|
|
141 |
|
Refundable
deposits |
|
199,982 |
|
|
|
87,001 |
|
|
|
12,144 |
|
Other non-current
assets |
|
17,770 |
|
|
|
20,285 |
|
|
|
604 |
|
|
|
410,350 |
|
|
|
302,602 |
|
|
|
215,407 |
|
Total assets |
$ |
1,603,194 |
|
|
$ |
1,327,901 |
|
|
$ |
909,818 |
|
Liabilities and
Equity |
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term unsecured borrowings |
$ |
6,000 |
|
|
$ |
6,000 |
|
|
$ |
6,000 |
|
Short-term secured borrowings |
|
151,400 |
|
|
|
151,400 |
|
|
|
104,000 |
|
Accounts payable (including related parties) |
|
248,425 |
|
|
|
226,290 |
|
|
|
173,471 |
|
Income taxes payable |
|
96,552 |
|
|
|
61,217 |
|
|
|
13,466 |
|
Other payable to related parties |
|
1,641 |
|
|
|
3,002 |
|
|
|
2,572 |
|
Contract liabilities-current |
|
37,663 |
|
|
|
19,058 |
|
|
|
6,622 |
|
Other current liabilities |
|
59,544 |
|
|
|
43,625 |
|
|
|
46,111 |
|
Total current liabilities |
|
601,225 |
|
|
|
510,592 |
|
|
|
352,242 |
|
Long-term unsecured
borrowings |
|
46,500 |
|
|
|
48,000 |
|
|
|
52,500 |
|
Deferred tax
liabilities |
|
965 |
|
|
|
947 |
|
|
|
1,138 |
|
Contract
liabilities-non-current |
|
10,221 |
|
|
|
- |
|
|
|
- |
|
Other non-current
liabilities |
|
72,301 |
|
|
|
37,146 |
|
|
|
18,739 |
|
|
|
129,987 |
|
|
|
86,093 |
|
|
|
72,377 |
|
Total liabilities |
|
731,212 |
|
|
|
596,685 |
|
|
|
424,619 |
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares |
|
107,010 |
|
|
|
107,010 |
|
|
|
107,010 |
|
Additional paid-in capital |
|
108,841 |
|
|
|
108,108 |
|
|
|
107,293 |
|
Treasury shares |
|
(5,761 |
) |
|
|
(5,761 |
) |
|
|
(6,516 |
) |
Accumulated other comprehensive income |
|
(666 |
) |
|
|
(822 |
) |
|
|
(548 |
) |
Retained earnings |
|
660,300 |
|
|
|
519,696 |
|
|
|
272,937 |
|
Equity attributable to owners of Himax Technologies,
Inc. |
|
869,724 |
|
|
|
728,231 |
|
|
|
480,176 |
|
Noncontrolling
interests |
|
2,258 |
|
|
|
2,985 |
|
|
|
5,023 |
|
Total equity |
|
871,982 |
|
|
|
731,216 |
|
|
|
485,199 |
|
Total liabilities and equity |
$ |
1,603,194 |
|
|
$ |
1,327,901 |
|
|
$ |
909,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(Amounts in Thousands of U.S. Dollars) |
|
Three MonthsEnded December
31, |
|
Three Months Ended September
30, |
|
2021 |
|
2020 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
$ |
141,472 |
|
|
$ |
33,346 |
|
|
$ |
117,850 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
5,329 |
|
|
|
6,431 |
|
|
|
5,292 |
|
Reversal of credit losses recognized on accounts receivable |
|
(190 |
) |
|
|
- |
|
|
|
- |
|
Share-based compensation expenses |
|
603 |
|
|
|
- |
|
|
|
97 |
|
Gains on disposal of property, plant and equipment, net |
|
(147 |
) |
|
|
- |
|
|
|
- |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
273 |
|
|
|
(489 |
) |
|
|
(43 |
) |
Interest income |
|
(283 |
) |
|
|
(151 |
) |
|
|
(178 |
) |
Finance costs |
|
285 |
|
|
|
247 |
|
|
|
269 |
|
Income tax expense |
|
36,625 |
|
|
|
8,759 |
|
|
|
30,379 |
|
Share of losses of associates |
|
652 |
|
|
|
368 |
|
|
|
282 |
|
Inventories write downs |
|
4,103 |
|
|
|
2,224 |
|
|
|
1,224 |
|
Unrealized foreign currency exchange gains (losses) |
|
(799 |
) |
|
|
(221 |
) |
|
|
27 |
|
|
|
187,923 |
|
|
|
50,514 |
|
|
|
155,199 |
|
Changes in: |
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable (including related parties) |
|
(9,124 |
) |
|
|
(22,140 |
) |
|
|
(71,874 |
) |
Inventories |
|
(41,756 |
) |
|
|
16,418 |
|
|
|
(27,928 |
) |
Other receivable from related parties |
|
(8 |
) |
|
|
- |
|
|
|
- |
|
Other current assets |
|
(2,083 |
) |
|
|
(2,589 |
) |
|
|
(455 |
) |
Other non-current assets |
|
- |
|
|
|
- |
|
|
|
(19,460 |
) |
Accounts payable (including related parties) |
|
22,135 |
|
|
|
18,502 |
|
|
|
15,802 |
|
Other payable to related parties |
|
(1,361 |
) |
|
|
92 |
|
|
|
198 |
|
Contract liabilities |
|
28,826 |
|
|
|
3,848 |
|
|
|
12,491 |
|
Other current liabilities |
|
11,526 |
|
|
|
1,903 |
|
|
|
1,896 |
|
Other non-current liabilities |
|
(13,841 |
) |
|
|
1,284 |
|
|
|
3,651 |
|
Cash generated from operating activities |
|
182,237 |
|
|
|
67,832 |
|
|
|
69,520 |
|
Interest received |
|
333 |
|
|
|
217 |
|
|
|
112 |
|
Interest paid |
|
(275 |
) |
|
|
(313 |
) |
|
|
(269 |
) |
Income tax paid |
|
(47 |
) |
|
|
(28 |
) |
|
|
(8,852 |
) |
Net cash provided by operating activities |
|
182,248 |
|
|
|
67,708 |
|
|
|
60,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
(2,020 |
) |
|
|
(824 |
) |
|
|
(2,128 |
) |
Acquisitions of intangible assets |
|
(41 |
) |
|
|
(9 |
) |
|
|
(283 |
) |
Acquisitions of financial assets at amortized cost |
|
(10,341 |
) |
|
|
(801 |
) |
|
|
(8,384 |
) |
Proceeds from disposal of financial assets at amortized cost |
|
2,300 |
|
|
|
737 |
|
|
|
4,009 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
(6,864 |
) |
|
|
(6,608 |
) |
|
|
- |
|
Proceeds from disposal of financial assets at fair value through
profit or loss |
|
8,258 |
|
|
|
1,603 |
|
|
|
1,339 |
|
Acquisition of a subsidiary, net of cash acquired |
|
- |
|
|
|
1,302 |
|
|
|
- |
|
Proceeds from capital reduction of investment |
|
- |
|
|
|
32 |
|
|
|
- |
|
Acquisitions of equity method investments |
|
- |
|
|
|
(792 |
) |
|
|
- |
|
Increase in refundable deposits |
|
(119,289 |
) |
|
|
(10,810 |
) |
|
|
(33,007 |
) |
Releases (pledges) of restricted deposit |
|
2,700 |
|
|
|
(3 |
) |
|
|
2,699 |
|
Cash received in advance from disposal of land |
|
- |
|
|
|
- |
|
|
|
3,075 |
|
Net cash used in investing activities |
|
(125,297 |
) |
|
|
(16,173 |
) |
|
|
(32,680 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
Payments of cash dividends |
|
- |
|
|
|
- |
|
|
|
(47,404 |
) |
Purchases of subsidiary shares from noncontrolling interests |
|
(1,475 |
) |
|
|
- |
|
|
|
(152 |
) |
Proceeds from short-term unsecured borrowings |
|
5,000 |
|
|
|
- |
|
|
|
- |
|
Repayments of short-term unsecured borrowings |
|
(5,000 |
) |
|
|
- |
|
|
|
- |
|
Repayments of long-term unsecured borrowings |
|
(1,500 |
) |
|
|
(1,500 |
) |
|
|
(1,500 |
) |
Proceeds from short-term secured borrowings |
|
221,400 |
|
|
|
47,000 |
|
|
|
233,200 |
|
Repayments of short-term secured borrowings |
|
(221,400 |
) |
|
|
(47,000 |
) |
|
|
(185,800 |
) |
Pledges of restricted deposit |
|
- |
|
|
|
- |
|
|
|
(47,400 |
) |
Payment of lease liabilities |
|
(1,237 |
) |
|
|
(768 |
) |
|
|
(1,225 |
) |
Guarantee deposits received |
|
54,050 |
|
|
|
- |
|
|
|
- |
|
Proceeds from exercise of employee stock options |
|
- |
|
|
|
3,281 |
|
|
|
30 |
|
Net cash provided by (used in) financing
activities |
|
49,838 |
|
|
|
1,013 |
|
|
|
(50,251 |
) |
Effect of foreign currency exchange rate changes on cash
and cash equivalents |
|
38 |
|
|
|
567 |
|
|
|
(108 |
) |
Net increase
(decrease) in cash and cash equivalents |
|
106,827 |
|
|
|
53,115 |
|
|
|
(22,528 |
) |
Cash and cash
equivalents at beginning of period |
|
229,197 |
|
|
|
131,823 |
|
|
|
251,725 |
|
Cash and cash
equivalents at end of period |
$ |
336,024 |
|
|
$ |
184,938 |
|
|
$ |
229,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(Amounts in Thousands of U.S. Dollars) |
|
Twelve MonthsEnded December
31, |
|
2021 |
|
2020 |
|
|
|
|
Cash flows from
operating activities: |
|
|
|
Profit for the period |
$ |
433,935 |
|
|
$ |
45,160 |
|
Adjustments for: |
|
|
|
Depreciation and amortization |
|
21,342 |
|
|
|
23,596 |
|
Reversal of credit losses recognized on accounts receivable |
|
(190 |
) |
|
|
- |
|
Share-based compensation expenses |
|
700 |
|
|
|
763 |
|
Gains on disposal of property, plant and equipment, net |
|
(147 |
) |
|
|
(244 |
) |
Changes in fair value of financial assets at fair value through
profit or loss |
|
284 |
|
|
|
(472 |
) |
Interest income |
|
(876 |
) |
|
|
(967 |
) |
Finance costs |
|
1,074 |
|
|
|
1,705 |
|
Income tax expense |
|
110,657 |
|
|
|
11,712 |
|
Share of losses of associates |
|
1,392 |
|
|
|
638 |
|
Inventories write downs |
|
9,448 |
|
|
|
11,919 |
|
Unrealized foreign currency exchange gains |
|
(953 |
) |
|
|
(239 |
) |
|
|
576,666 |
|
|
|
93,571 |
|
Changes in: |
|
|
|
Accounts receivable (including related parties) |
|
(166,395 |
) |
|
|
(78,297 |
) |
Inventories |
|
(99,341 |
) |
|
|
24,772 |
|
Other receivable from related parties |
|
(17 |
) |
|
|
- |
|
Other current assets |
|
(7,633 |
) |
|
|
(2,881 |
) |
Other non-current assets |
|
(19,460 |
) |
|
|
- |
|
Accounts payable (including related parties) |
|
74,954 |
|
|
|
57,335 |
|
Other payable to related parties |
|
(931 |
) |
|
|
352 |
|
Contract liabilities |
|
41,262 |
|
|
|
4,720 |
|
Other current liabilities |
|
13,736 |
|
|
|
1,134 |
|
Other non-current liabilities |
|
(4,697 |
) |
|
|
5,350 |
|
Cash generated from operating activities |
|
408,144 |
|
|
|
106,056 |
|
Interest received |
|
852 |
|
|
|
1,066 |
|
Interest paid |
|
(1,074 |
) |
|
|
(1,811 |
) |
Income tax paid |
|
(19,646 |
) |
|
|
(2,701 |
) |
Net cash provided by operating activities |
|
388,276 |
|
|
|
102,610 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Acquisitions of property, plant and equipment |
|
(7,562 |
) |
|
|
(5,786 |
) |
Proceeds from disposal of property, plant and equipment |
|
- |
|
|
|
249 |
|
Acquisitions of intangible assets |
|
(468 |
) |
|
|
(87 |
) |
Acquisitions of financial assets at amortized cost |
|
(25,362 |
) |
|
|
(3,829 |
) |
Proceeds from disposal of financial assets at amortized cost |
|
8,011 |
|
|
|
6,735 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
(23,417 |
) |
|
|
(19,743 |
) |
Proceeds from disposal of financial assets at fair value through
profit or loss |
|
29,141 |
|
|
|
12,068 |
|
Acquisition of a subsidiary, net of cash acquired |
|
- |
|
|
|
1,302 |
|
Proceeds from capital reduction of investment |
|
151 |
|
|
|
32 |
|
Acquisitions of equity method investments |
|
(598 |
) |
|
|
(792 |
) |
Increase in refundable deposits |
|
(213,056 |
) |
|
|
(13,992 |
) |
Pledges of restricted deposit |
|
(2,595 |
) |
|
|
(8 |
) |
Cash received in advance from disposal of land |
|
3,075 |
|
|
|
1,486 |
|
Net cash used in investing activities |
|
(232,680 |
) |
|
|
(22,365 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Payments of cash dividends |
|
(47,424 |
) |
|
|
(4 |
) |
Proceeds from issuance of new shares by subsidiaries |
|
- |
|
|
|
884 |
|
Purchases of subsidiary shares from noncontrolling interests |
|
(1,627 |
) |
|
|
- |
|
Proceeds from short-term unsecured borrowings |
|
15,000 |
|
|
|
208,137 |
|
Repayments of short-term unsecured borrowings |
|
(15,000 |
) |
|
|
(265,355 |
) |
Proceeds from long-term unsecured borrowings |
|
- |
|
|
|
60,000 |
|
Repayments of long-term unsecured borrowings |
|
(6,000 |
) |
|
|
(1,500 |
) |
Proceeds from short-term secured borrowings |
|
611,600 |
|
|
|
278,000 |
|
Repayments of short-term secured borrowings |
|
(564,200 |
) |
|
|
(338,000 |
) |
Releases (pledges) of restricted deposit |
|
(47,400 |
) |
|
|
60,000 |
|
Payment of lease liabilities |
|
(4,668 |
) |
|
|
(2,608 |
) |
Guarantee deposits received |
|
54,050 |
|
|
|
- |
|
Proceeds from exercise of employee stock options |
|
1,182 |
|
|
|
3,707 |
|
Net cash provided by (used in) financing
activities |
|
(4,487 |
) |
|
|
3,261 |
|
Effect of foreign currency exchange rate changes on cash
and cash equivalents |
|
(23 |
) |
|
|
377 |
|
Net increase in cash
and cash equivalents |
|
151,086 |
|
|
|
83,883 |
|
Cash and cash
equivalents at beginning of period |
|
184,938 |
|
|
|
101,055 |
|
Cash and cash
equivalents at end of period |
$ |
336,024 |
|
|
$ |
184,938 |
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Non-IFRS Unaudited Supplemental Data – Reconciliation
Schedule |
(Amounts in Thousands of U.S. Dollars) |
|
Gross
Margin, Operating Margin and Net Margin Excluding Share-Based
Compensation, Acquisition-Related Charges and Cash
Award: |
|
Three MonthsEnded December
31, |
|
Three
MonthsEndedSeptember
30, |
|
2021 |
|
2020 |
|
2021 |
Revenues |
$ |
451,895 |
|
|
$ |
275,770 |
|
|
$ |
420,938 |
|
Gross profit |
|
233,976 |
|
|
|
85,996 |
|
|
|
216,725 |
|
Add: Share-based compensation
– cost of revenues |
|
7 |
|
|
|
- |
|
|
|
675 |
|
Add: Cash award – cost of
revenues |
|
79 |
|
|
|
- |
|
|
|
432 |
|
Gross profit excluding
share-based compensation and cash award |
|
234,062 |
|
|
|
85,996 |
|
|
|
217,832 |
|
Gross margin excluding share-based compensation and cash award |
|
51.8 |
% |
|
|
31.2 |
% |
|
|
51.7 |
% |
Operating income |
|
177,951 |
|
|
|
42,190 |
|
|
|
148,244 |
|
Add: Share-based
compensation |
|
603 |
|
|
|
- |
|
|
|
23,271 |
|
Add: Acquisition-related
charges –intangible assets amortization |
|
277 |
|
|
|
276 |
|
|
|
275 |
|
Add: Cash award |
|
6,706 |
|
|
|
- |
|
|
|
1,582 |
|
Operating income excluding
share-based compensation, acquisition-related charges and cash
award |
|
185,537 |
|
|
|
42,466 |
|
|
|
173,372 |
|
Operating margin excluding
share-based compensation, acquisition-related charges and cash
award |
|
41.1 |
% |
|
|
15.4 |
% |
|
|
41.2 |
% |
Profit attributable to Himax
Technologies, Inc. stockholders |
|
142,393 |
|
|
|
34,006 |
|
|
|
118,716 |
|
Add: Share-based compensation,
net of tax |
|
480 |
|
|
|
- |
|
|
|
18,498 |
|
Add: Acquisition-related
charges, net of tax |
|
212 |
|
|
|
212 |
|
|
|
211 |
|
Add: Cash award, net of
tax |
|
5,338 |
|
|
|
- |
|
|
|
1,506 |
|
Profit attributable to Himax
Technologies, Inc. stockholders excluding share-based compensation,
acquisition-related charges and cash award |
|
148,423 |
|
|
|
34,218 |
|
|
|
138,931 |
|
Net margin attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation, acquisition-related charges and cash award |
|
32.8 |
% |
|
|
12.4 |
% |
|
|
33.0 |
% |
|
|
|
|
|
|
*Gross margin
excluding share-based compensation and cash award equals gross
profit excluding share-based compensation and cash award divided by
revenues |
*Operating margin
excluding share-based compensation, acquisition-related charges and
cash award equals operating income excluding share-based
compensation, acquisition-related charges and cash award divided by
revenues |
*Net margin
attributable to Himax Technologies, Inc. stockholders excluding
share-based compensation, acquisition-related charges and cash
award equals profit attributable to Himax Technologies, Inc.
stockholders excluding share-based compensation,
acquisition-related charges and cash award divided by revenues |
Himax Technologies, Inc. |
Non-IFRS Unaudited Supplemental Data – Reconciliation
Schedule |
(Amounts in Thousands of U.S. Dollars) |
|
|
Gross
Margin, Operating Margin and Net Margin Excluding Share-Based
Compensation, Acquisition-Related Charges and Cash
Award: |
|
Twelve MonthsEnded December
31, |
|
2021 |
|
2020 |
Revenues |
$ |
1,547,097 |
|
|
$ |
887,282 |
|
Gross profit |
|
748,578 |
|
|
|
220,781 |
|
Add: Share-based compensation
– cost of revenues |
|
682 |
|
|
|
87 |
|
Add: Cash award – cost of
revenues |
|
511 |
|
|
|
- |
|
Gross profit excluding share-based compensation and cash award |
|
749,771 |
|
|
|
220,868 |
|
Gross margin excluding share-based compensation and cash award |
|
48.5 |
% |
|
|
24.9 |
% |
Operating income |
|
545,021 |
|
|
|
57,926 |
|
Add: Share-based
compensation |
|
23,874 |
|
|
|
5,525 |
|
Add: Acquisition-related
charges –intangible assets amortization |
|
1,105 |
|
|
|
1,105 |
|
Add: Cash award |
|
8,288 |
|
|
|
- |
|
Operating income excluding
share-based compensation, acquisition-related charges and cash
award |
|
578,288 |
|
|
|
64,556 |
|
Operating margin excluding
share-based compensation, acquisition-related charges and cash
award |
|
37.4 |
% |
|
|
7.3 |
% |
Profit attributable to Himax
Technologies, Inc. stockholders |
|
436,896 |
|
|
|
47,134 |
|
Add: Share-based compensation,
net of tax |
|
18,978 |
|
|
|
4,349 |
|
Add: Acquisition-related
charges, net of tax |
|
847 |
|
|
|
847 |
|
Add: Cash award, net of
tax |
|
6,844 |
|
|
|
- |
|
Profit attributable to Himax
Technologies, Inc. stockholders excluding share-based compensation,
acquisition-related charges and cash award |
|
463,565 |
|
|
|
52,330 |
|
Net margin attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation, acquisition-related charges and cash award |
|
30.0 |
% |
|
|
5.9 |
% |
|
|
|
|
*Gross margin
excluding share-based compensation and cash award equals gross
profit excluding share-based compensation and cash award divided by
revenues |
|
*Operating margin
excluding share-based compensation, acquisition-related charges and
cash award equals operating income excluding share-based
compensation, acquisition-related charges and cash award divided by
revenues |
|
*Net margin
attributable to Himax Technologies, Inc. stockholders excluding
share-based compensation, acquisition-related charges and cash
award equals profit attributable to Himax Technologies, Inc.
stockholders excluding share-based compensation,
acquisition-related charges and cash award divided by revenues |
|
Diluted
Earnings Per ADS Attributable to Himax Technologies, Inc.
Stockholders Excluding Share-based Compensation,
Acquisition-Related Charges and Cash Award: (Amounts in U.S.
Dollars) |
|
|
Three MonthsEndedDecember
31, |
|
Twelve Months
EndedDecember 31, |
|
|
2021 |
|
2021 |
Diluted IFRS earnings per ADS attributable to Himax Technologies,
Inc. stockholders |
|
$ |
0.815 |
|
$ |
2.498 |
Add: Share-based compensation per ADS |
|
$ |
0.003 |
|
$ |
0.109 |
Add: Acquisition-related charges per ADS |
|
$ |
0.001 |
|
$ |
0.005 |
Add: Cash award per ADS |
|
$ |
0.031 |
|
$ |
0.039 |
|
|
|
|
|
Diluted non-IFRS earnings per ADS attributable to Himax
Technologies, Inc. stockholders excluding share-based
compensation, acquisition-related charges and cash award |
|
$ |
0.849 |
|
$ |
2.651 |
Numbers do not add up due to rounding |
|
|
|
|
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