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 2022 ended June 30, 2022.
“The sudden halt in demand, together with the
length of our production lead time, has led to elevated inventory
level for Q3. While in the midst of this inventory offloading
cycle, we are naturally cutting back on new orders with our
suppliers. However, the contracts that we entered with foundries
and backend suppliers when the industry experienced unprecedented
demand in 2021 may incur charges if the minimum purchase orders are
not fulfilled. While the negotiations with suppliers are still
ongoing as we seek ways to increase flexibility in executing the
agreements, such supplier charges have already been factored in for
our Q3 guidance and is the predominant factor for the Q3 gross
margin contraction,” said Mr. Jordan Wu, President and Chief
Executive Officer of Himax.
“We believe our inventory will peak in Q3 as we
curtail our new wafer starts and our customers continue to restock
after inventory digestion. On the revenue front, we believe the
growth will be restored in Q4, boosted by healthy demand for
automotive and tablet segments where there is better visibility.
The sequential decline in Q4 gross margin will likely be modest as
there is still solid price support from a few product areas,
notably automotive, Tcon, AMOLED and AI image sensing, which all
together now account for more than 40% of total sales. Our
automotive sales, especially, have a high likelihood of a strong
fourth quarter rebound from the trough of Q3. From a longer-term
perspective, we are very optimistic about our automotive business
and continue to look to expand our leading market position,”
concluded Mr. Jordan Wu.
Second Quarter 2022 Financial
Results
Himax net revenues were $312.6 million decreased
24.3% sequentially but were within its updated guidance of a
decline of 22% to 27%. Gross margin came in at 43.6%, a decrease
from 47.0% last quarter, but within its initial guidance of around
43% to 45%. Non-IFRS profit per diluted ADS was 43.9 cents, at
upper range of the updated guidance of 40.0 to 45.0 cents. IFRS
profit per diluted ADS was 40.4 cents, at high end of the updated
guidance of 36.5 to 41.5 cents.
Revenue from large display drivers was $68.6
million in Q2, a decrease of 38.0% sequentially. TV and notebook IC
revenues were down double digit sequentially due to customers’
inventory control on the backdrop of slowing end market
sell-through and reduced business visibility. Monitor IC sales
declined sequentially in Q2 but increased more than 100%
year-over-year for the six months ended June 30, 2022, thanks to
substantial shipment growth for high-end areas such as high frame
rate gaming monitor. Large panel driver IC sales accounted for
22.0% of total revenues for this quarter, compared to 26.8% last
quarter and 23.4% a year ago.
Small and medium-sized display revenue was $201.6 million, a
decline of 22.0% sequentially. Automotive business, as was the case
in Q1, was once again the largest revenue contributor in Q2,
representing over 30% of total sales. The Company expects this
upward trend in automotive sales contribution to continue
throughout 2022. Meanwhile, for AMOLED business, Himax successfully
piloted the production of its total solution covering DDIC and Tcon
for the premium tablet of a global leading name as the sole source
supplier. Q2 AMOLED business accounted for more than 4% of total
sales. Small and medium-sized driver IC segment accounted for 64.5%
of total sales for the quarter, compared to 62.6% in the previous
quarter and 63.1% a year ago.
Automotive IC sales in Q2 decreased low teens
sequentially as the market was adversely impacted by logistical
hurdles brought on by China city lockdowns. However, on a
year-over-year basis, automotive IC sales for the quarter were up
almost 100% thanks to broad design-win coverage and better product
mix. Himax automotive IC sales in the first half were up 130%
year-over-year despite macroeconomic headwinds and supply chain
disruption.
Q2 smartphone and tablet revenues both declined
double digit sequentially as channel inventories across panel
houses, OEMs and end brands remained stubbornly high against the
backdrop of continued sluggish demand. Both smartphone and tablet
driver IC sales represented almost equal sales weighting in the
second quarter. Himax’s e-paper business grew more than 100%
sequentially in the second quarter, stemming from increasing demand
by a leading customer along with the catch-up shipments that were
delayed last quarter due to logistical disruptions from lockdowns
in China.
Second quarter revenue from its non-driver businesses was $42.4
million, slightly down from a quarter ago. Tcon business was flat
sequentially, supported by increasing Tcon shipment for automotive,
AMOLED for tablet and high-end displays. Tcon business represented
over 8% of total sales in Q2. Non-driver products in Q2 accounted
for 13.5% of total revenues, as compared to 10.6% in the previous
quarter and 13.5% a year ago.
Non-IFRS gross margin for the second quarter was
43.6%, a decrease from 47.0% of last quarter and 47.5% of the same
period last year. As the Company previously reported, there were
two primary factors that adversely impacted its margin profile.
First, price adjustments in support of its non-automotive customers
amidst soft demand worldwide. Second, its cost of goods sold for Q2
reflected the higher foundry prices from the previous quarter. IFRS
gross margin was also 43.6% for the quarter.
Non-IFRS operating expenses for the second
quarter were $45.0 million, up 2.1% from the previous quarter and
up 14.4% from a year ago. The sequential increase was caused mainly
by increased R&D expenses while year-over-year expenses
increased because of higher salary and R&D expenses. IFRS
operating expenses were $52.6 million for the second quarter, up
2.1% from the preceding quarter and up 32.9% from a year ago. The
higher IFRS figures were mainly due to the tranche of annual bonus
compensation which Himax awards employees at the end of September
each year. The 2021 annual bonus compensation including RSUs and
cash awards totaled $74.7 million, out of which $24.8 million was
immediately vested and recognized in the third quarter of 2021. The
remainder will be equally vested in three tranches at the first,
second and third anniversaries of the grant date. The remaining
compensation expenses will be recognized on a straight-line basis
over the vesting period of each tranche.
Second quarter non-IFRS operating income was
$91.5 million, or 29.3% of sales, versus 36.3% of sales in the last
quarter and 36.8% of sales from a year ago. Non-IFRS after-tax
profit was $76.8 million, or 43.9 cents per diluted ADS, decreased
from $121.9 million, or 69.7 cents per diluted ADS, last
quarter.
Balance Sheet and Cash Flow
Himax had $461.6 million of cash, cash
equivalents and other financial assets as of June 30, 2022,
compared to $270.4 million at the same time last year and $447.1
million a quarter ago. The higher cash balance was mainly from $9.1
million of operating cash inflow during the quarter and payments
received from customers to secure their long-term chip supply.
Himax had $49.5 million of long-term unsecured loans as of the end
of Q2, of which $6.0 million was the current portion. It’s worth
noting that Himax’s cash balance at the end of Q3 will be
substantially reduced following the annual cash dividend payout of
$217.9 million in July. The annual dividend of $1.25 per ADS is
equivalent to 50% of last year’s net profit. The payout ratio was
lower than Himax’s historical average, reflecting its decision to
reserve cash in the light of macroeconomic uncertainty.
The Company’s Q2 inventories were $337.3
million, up from $253.1 million last quarter and up from $134.2
million a year ago. The higher inventory level reflected the abrupt
drop in demand triggered by strict customer inventory control due
to sluggish end market demand and reduced visibility which led to
growing customer inventory, particularly in consumer electronics.
The halt in demand adversely affected Himax’s sales and in turn
caused elevated inventory levels as its production always begins
months in advance. Accounts receivable at the end of June 2022 was
$371.0 million, down from $442.2 million last quarter but up from
$329.0 million a year ago. DSO was 93 days at the quarter end, as
compared to 88 days a year ago and 96 days from last quarter.
Second quarter capital expenditures were $2.5
million, versus $3.6 million last quarter and $1.4 million a year
ago. The second quarter capex was mainly for R&D related
equipment for IC design business.
Outstanding Share
As of June 30, 2022, Himax had 174.3 million ADS
outstanding, unchanged from last quarter. On a fully diluted basis,
total number of ADS outstanding for the second quarter was 174.8
million.
Q3 2022 Outlook
Several macro level factors continue to present
significant headwinds to Himax’s business while also clouding
visibility as the Company enters the second half of the year.
Decades-high inflation, rapidly rising interest rates in addition
to the ongoing war and potential for more China city lockdowns have
caused widespread disruption to demand. Faced with frozen demand,
piled-up inventory, and eroding panel prices, end brands are
downsizing their panel procurement plans. Consequently, panel
makers all initiated downward and extended fab utilization
adjustments along with rigorous IC inventory cuts. The sudden halt
in demand, together with the length of Company's production lead
time, has led to elevated inventory level for Q3. While in the
midst of this inventory offloading cycle, the Company is naturally
cutting back on new orders with its suppliers. However, the
contracts that the Company entered with foundries and backend
suppliers when the industry experienced unprecedented demand in
2021 may incur charges if the minimum purchase orders are not
fulfilled. While the negotiations with suppliers are still
ongoing as Himax seeks ways to increase flexibility in executing
the agreements, such supplier charges have already been factored in
for its Q3 guidance and is the predominant factor for the Q3 gross
margin contraction.
While the Company is uncertain about when the
current business environment could turnaround, Himax believes its
inventory will peak in Q3 as the Company curtails its new wafer
starts and its customers continue to restock after inventory
digestion. On the revenue front, Himax believes the growth will be
restored in Q4, boosted by healthy demand for automotive and tablet
segments where there is better visibility. Yet LDDIC sector is
still set to remain sluggish for the remainder of the year.
Against the backdrop of challenging market conditions, Himax
expects its Q4 gross margin to be still under pressure because the
cost of goods sold still reflects high pricing from previous
quarters while inventory offloading could lead to selling price
erosion. However, the sequential decline in Q4 gross margin will
likely be modest as there is still solid price support from a
few product areas, notably automotive, Tcon, AMOLED and AI image
sensing, which all together now account for more than 40% of total
sales. Himax’s automotive sales, especially, have a high likelihood
of a strong fourth quarter rebound from the trough of Q3. From a
longer-term perspective, Himax is very optimistic about its
automotive business and continue to look to expand its leading
market position.
Display Driver IC
Businesses
LDDIC
Q3 large display driver IC revenue is projected to decline by
double digit sequentially, and below what the Company typically
sees on a seasonal basis, as customers impose tight inventory
control measures to reduce near-term inventory due to continuous
deterioration of forecast visibility from their customers. The
outlook for large size driver IC business remains soft with
moderating TV sell-through and muted Chromebook sales, while
monitor customers exercise strict inventory control. Q3 monitor,
notebook and TV IC sales are expected to decline double digit,
reflecting the overall market softness, reduced business visibility
and de-stocking pressure from Company’s customers.
SMDDIC
Q3 SMDDIC revenue is expected to decline double
digit sequentially. Himax’s Q3 automotive driver IC sales are
anticipated to be down double digit sequentially as customers
de-stock inventory accumulated during the second quarter when
production was severely disrupted by the widespread city lockdowns
in China. However, the extent of the sequential revenue decline for
automotive is likely to be less than those suffered by other
product areas while business visibility into Q4 and next year are
also much better for Company’s automotive business. As indicated
earlier, despite the Q3 decline, Himax expects its automotive
driver IC sales to see strong business momentum in Q4 with TDDI
sales outgrowing those of DDIC. Himax expects its automotive TDDI
business to continue to be a key driver of high-margin growth for
Himax for many quarters to come. In the meantime, smartphone and
tablet driver IC sales are set to decline double digit, a result of
the ongoing deterioration of forecast visibility as Himax’s
customers prolong their efforts to reduce inventory amidst the
backdrop of soft demand and the weaker macro environment.
Automotive now is Himax’s largest revenue
contributor, set to represent over 35% of total sales in Q3. Himax
is poised to sustain its leading position and dominant global
market share as it offers the most comprehensive automotive product
portfolio ranging from traditional DDIC to new technologies such as
TDDI, local dimming Tcon, LTDI and AMOLED. Additionally, the
Company is the pioneer of mass production for TDDI, a technology
that is essential for large sized, interactive, stylish, and curved
automotive displays. While TDDI is still in early stage of mass
deployment for automotive market, it is on track to be a fast
growing segment. Himax is glad to report that it expects its
automotive TDDI to reach a milestone of over 10 million units
cumulatively shipped by the end of Q3. TDDI adoption rate for
automotive has been advancing at a rapid pace and Himax’s
design-win coverage continues to quickly expand with panel makers,
Tier-1s and auto brands. Meanwhile, China’s government recently
created incentives to stimulate more NEV sales which may trigger
accelerating adoption of high-end automotive displays that
incorporate in-cell TDDI. While Himax’s automotive sales growth for
2022 might be less than previously predicted, the growing reliance
on automotive electrification and smart cabin dictates that
semiconductor content values are increasing rapidly per vehicle.
The Company will be a key beneficiary of these trends and expect to
see sustainable growth in the automotive market on top of the
already strong 2021 base.Both smartphone and tablet product lines
are expected to decline double digit sequentially as earlier
stated. With that said, Himax’s shipments for high-end AMOLED
tablet where it provides both DDIC and Tcon to certain leading
brands, are on the rise with momentum expected to last in the
foreseeable future. As for smartphone, despite being awarded a
growing number of projects by brand customers, much of its
shipments to key customers for their next generation new designs
that support higher frame rate, ultra slim bezel and higher
resolution features have been postponed in the midst of excess
inventory for their older models on the backdrop of frozen end
market demand.
E-paper driver business is another product in
small and medium-sized driver lineup. E-paper business is expected
to decline double digit quarter-over-quarter due to customers
downsizing their annual business plans amid soft consumer
electronics market. As the world continues to transition toward
green energy and carbon footprint reduction, the Company expects
long-term demand for e-paper to endure. Therefore, Himax continues
to collaborate with world-class customers for certain ASIC projects
with increased R&D efforts spent on their next generation
products toward larger size, higher resolution, and colored e-paper
displays. Himax is glad to report that one of its e-paper ASICs in
collaboration with E Ink for their latest e-book solution was
awarded “Best Choice Award” of COMPUTEX 2022. The ASIC enables fast
handwriting speed for e-paper display, while also greatly improving
the average latency of the display with reduced power consumption,
characteristics that are critical for next generation e-paper
devices.
On AMOLED. Himax continues to gear up for AMOLED
driver IC development jointly with major Korean and Chinese panel
makers in various applications. In the third quarter, AMOLED sales
are expected to increase more than 50% sequentially with more
AMOLED for tablet models commencing mass production this quarter.
Himax’s AMOLED business, including Tcon and driver, is expected to
amount to more than 8% of total sales in Q3 and slated for strong
growth in the next few years. As a reminder, Himax provides both
AMOLED driver and Tcon and are the sole source supplier for a
global leading tablet customer. In addition, the number of awarded
projects for its flexible AMOLED driver and Tcon for automotive is
also increasing with worldwide conventional car makers and NEV
vendors. Finally, the Company is making good progress with leading
panel houses for the development of AMOLED display drivers for
smartphone, TV and notebook applications. In light of serious
constraints on the capacity for smartphone AMOLED display driver in
the next few years, Himax has secured and continues to vie for more
such capacity for the future.
Non-Driver Product
Categories
TCON
The Company anticipates Q3 Tcon sales to decline
double digit sequentially, pressured by lower shipment for TV,
monitor and notebook markets. Yet, Tcon shipment for AMOLED tablet
and automotive sectors is set to enjoy decent growth and Himax
expects these two areas to see accelerating design-in momentum in
the coming quarters. Himax’s cutting-edge automotive local dimming
Tcon has won numerous awards and penetrated into OEMs, Tier-1 and
car makers’ premium new car models with some of which already
commencing mass production. The Company anticipates more than 50%
year-over-year sales growth of automotive Tcon which will represent
around 2% of total sales in the third quarter with additional
projects slated for bigger volume shipment starting 2023. For
AMOLED tablet Tcon, as reported earlier, in the second quarter, the
Company successfully commenced the mass production of tablet AMOLED
solution, including both Tcon and driver, to support a leading
tablet brand as the sole source supplier in their newly launched
tablet model. Additionally, Himax is undertaking new design
developments supporting even larger panel sizes with more named
customers. Himax expects to gain traction with more shipments to
key customers in upcoming quarters and are optimistic about the
long-term potential of its Tcon business with secured capacity from
foundry partners in pursuit of sustainable growth.
Ultralow power AI image
sensing
Himax ultralow power AI image sensing total
solution incorporates Company’s ultralow power CMOS image sensor,
its proprietary AI processor and CNN-based AI algorithm. On the AI
image sensing business for notebook, Himax continues to support
Dell’s production ramp up in a range of their new models. In
addition, a number of other leading laptop vendors and CPU platform
players have also shown interest in Himax’s AI total solution in an
effort to further broaden use cases for next generation notebooks.
In addition to presence, look-away and onlooker detections, Himax
is developing a variety of new context-aware AI features for next
generation smart notebook market.
Himax’s AI image sensing solution, featuring
ultralow power tinyML vision AI in a tiny form factor, is a perfect
fit for the resource-constrained and battery-powered end-point
applications, a new AI area which is now ardently explored by AI
communities. Automatic meter reading (AMR) is one of Company’s
successful showcases to the end-point AI industry where its AI
total solution has been adopted by several China vendors and
shipment is slated to begin in the second half of this year after
some delays caused by widespread lockdowns in China. Himax has also
kicked off projects jointly with water authorities, utility
companies, meter OEM/ODMs and/or IoT network providers from China,
Japan, Europe, and India over the past few quarters. Himax’s power
efficient AMR solution can operate with a battery pack for over 5
years and is easy to install over the existing conventional water
meters for real-time water consumption readout and detection of
abnormalities such as water leakage.
The Company is also seeing expanding adoption of
its tinyML based, end-point AI solution in new areas such as shared
bike parking, capsule endoscope and more broadly in areas of
automotive, smart office, smart home, agriculture and environmental
conservation. In smart office, Himax has several projects ongoing
with office automation ODMs where its ultralow power AI solution is
used for meeting room human presence detection and people counting
with an aim to save energy for lighting and temperature control.
For environmental conservation, Himax is collaborating with Seeed
Studio, Edge Impulse and hackster.io, jointly organizing the event
of "IoT Into the Wild Contest for Sustainable Planet 2022", aiming
to cluster AI experts around the world to tackle different
real-world environmental challenges. Himax is excited by the
traction this relatively new AI product line has generated and
expect to see increasing sales contribution through 2022 and
beyond.
Optical product line-up/
Metaverse
On Himax’s optical related product lines
covering WLO, LCoS and 3D Sensing. Himax continues to work on
strengthening its optical-related technologies, at the same time
better positioning itself to capture the vast opportunity presented
by the future of the metaverse. Equipped with exceptional know-how
and years of proven track record of mass production, Himax is
playing a key role in enabling next generation metaverse related
applications. Currently the Company has multiple intensive
collaborations ongoing with world-leading tech giants who are
aggressively investing in this emerging field with a lot of
potential.
First on LCoS microdisplay. Himax continues to
have steady joint-collaboration with leading tech names and OEMs
for their next generation products in AR glasses where Himax offers
leading edge front-lit LCoS microdisplay that features
light-weight, small form factor, and full color with unique
characteristics of high illumination and low power consumption,
which are critical for the success of future AR glasses. Himax has
received promising feedback thus far and will report more progress
in due course. Moving on to the update for 3D gesture control for
human interface sensing. Himax's WLO technology is deployed into 3D
camera to empower 3D perception sensing for precise gesture
control, a technology that can be applied to current AR/VR goggles
for controller-free gesture recognition. Last for an update on 3D
scanning and reconstruction project. The Company’s 3D sensing
technology is deployed for customer’s 3D scanning device for the
purpose of generating real time digital twins, avatar and 3D
environment surroundings. The collaboration is still underway, and
it expects to begin engineering build from the end of 2022.
While the opportunity in optical and metaverse
related products is vast, it is still very much in the early
innings. Himax is optimistic about its potential though and
continues to work to position its strong optical product portfolio
for future growth in the years to come.
For non-driver IC business, the Company expects
revenue to decline double digit sequentially in the third
quarter. Third Quarter 2022
Guidance
Net
Revenue: |
To Decrease
35% to 39% sequentially |
Non-IFRS Gross Margin: |
To be around 35.5% to 37.5%, depending on final product
mix |
Non-IFRS Profit: |
To be 11.6 cents to 15.6 cents per diluted ADS |
IFRS Profit: |
To be 0.2 cents to 4.2 cents per diluted ADS |
|
|
Similar to Himax’s usual practice, the Company will grant
employees’ annual bonus, including RSUs and cash awards, on or
around September 30 this year. The third quarter guidance for IFRS
profit per diluted ADS has taken into account the expected 2022
annual bonus, which, subject to Board approval, is now assumed to
be around $40 million, out of which $17.6 million, or 8.0 cents per
diluted ADS, will be vested and expensed immediately on the grant
date. As a reminder, the total annual bonus amount and the
immediately vested portion are Company’s current best estimates
only and the actual amounts could vary materially depending on,
among other things, its Q4 profit and the final Board decision for
the total bonus amount and its vesting scheme. As is the case for
previous years, Himax expects the annual bonus grant in 2022 to
lead to higher third quarter IFRS operating expenses compared to
the other quarters of the year. In comparison, the 2021 annual
bonus totaled $74.7 million, out of which $24.8 million was vested
immediately.
As a side note regarding a proposed resolution regarding the
company’s LTIP (Long-term Incentive Plan) at this year’s annual
general meeting to be held on August 16, 2022, Himax would like to
clarify that the proposal is to extend the duration of company’s
existing LTIP for another 3 years, rather than to initiate a new
plan. The Company grants an annual bonus, including cash and RSU,
to employees on or around September 30 every year to award them for
their devotion to the company. The existing LTIP, which was
initiated in 2011 for a duration of 5 years and thereafter extended
a couple of times at annual general meetings in the past few years,
will expire again on September 6, 2022. Therefore, unless the plan
is extended again this year or a new plan is initiated, for this
year’s annual bonus, the Company will be able to grant only cash to
employees at the end of September and lose RSU as the other means
of compensation. Himax believes RSU is an important incentive for
employees to focus on long term success of the company. As of the
end of June this year, among the total number of 20,000,000
authorized ordinary shares of the existing LTIP, 49% have already
been granted with the remaining 51% still valid to award Himax’s
employees if the plan is extended.
|
|
HIMAX TECHNOLOGIES SECOND QUARTER 2022 EARNINGS CONFERENCE
CALL |
DATE: |
Thursday,
Aug 11, 2022 |
TIME: |
U.S. 8:00 a.m. EDT |
|
Taiwan 8:00 p.m. |
WEBCAST: |
https://edge.media-server.com/mmc/p/r5og5y58 |
PHONE REGISTRATION: |
|
https://register.vevent.com/register/BIa86dc40e32ca474485de6315315fbb69 |
If you choose to attend by phone, you need to
register first to obtain dial-in numbers for the call. Once
registered you will be emailed the dial-ins along with an option to
receive a call back at the start of the earnings call. Each
registrant will receive a unique personal PIN. A replay of the call
will be available beginning two hours after the call. The
conference webcast link is
https://edge.media-server.com/mmc/p/r5og5y58. 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
11, 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, OLED ICs, LED
driver ICs, power management ICs and LCoS micro-displays for
augmented reality (AR) devices and heads-up displays (HUD) for
automotive. The Company also offers CMOS image sensors, wafer level
optics for AR devices, 3D sensing and ultralow power AI Image
Sensing, which are used in a wide variety of applications such as
mobile phone, tablet, laptop, TV, PC camera, automobile, security,
medical device, home appliance, AIoT, etc. Founded in 2001 and
headquartered in Tainan, Taiwan, Himax currently employs around
2,100 people from three Taiwan-based offices in Tainan, Hsinchu and
Taipei and country offices in China, Korea, Japan, Israel, and the
US. Himax has 3,004 patents granted and 435 patents pending
approval worldwide as of June 30, 2022. Himax has retained its
position as the leading display imaging processing semiconductor
solution provider to consumer electronics brands worldwide.
Forward Looking Statements
Factors that could cause actual events or
results to differ materially from those described in this
conference call include, but are not limited to, the effect of the
Covid-19 pandemic on the Company’s business; general business and
economic conditions and the state of the semiconductor industry;
market acceptance and competitiveness of the driver and non-driver
products developed by the Company; demand for end-use applications
products; reliance on a small group of principal customers; the
uncertainty of continued success in technological innovations; our
ability to develop and protect our intellectual property; pricing
pressures including declines in average selling prices; changes in
customer order patterns; changes in estimated full-year effective
tax rate; shortage in supply of key components; changes in
environmental laws and regulations; changes in export license
regulated by Export Administration Regulations (EAR); exchange rate
fluctuations; regulatory approvals for further investments in our
subsidiaries; our ability to collect accounts receivable and manage
inventory and other risks described from time to time in the
Company's SEC filings, including those risks identified in the
section entitled "Risk Factors" in its Form 20-F for the year ended
December 31, 2021 filed with the SEC, as may be amended.
Company Contacts:
Eric Li, Chief IR/PR
OfficerHimax Technologies, Inc.Tel: +886-6-505-0880 Fax:
+886-2-2314-0877Email:
hx_ir@himax.com.twwww.himax.com.tw Karen 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 America Tel:
+1-312-261-6430 Email: HIMX@mzgroup.us www.mzgroup.us
-Financial Tables-
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Profit or
Loss |
(These interim financials do not fully comply with IFRS
because they omit all interim disclosure required by
IFRS) |
(Amounts in Thousands of U.S. Dollars, Except Share and Per
Share Data) |
|
|
Three
MonthsEnded June
30, |
|
3 MonthsEndedMarch
31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
Revenues from third parties, net |
$ |
312,564 |
|
|
$ |
365,257 |
|
|
$ |
412,729 |
|
Revenues from related parties, net |
|
42 |
|
|
|
4 |
|
|
|
83 |
|
|
|
312,606 |
|
|
|
365,261 |
|
|
|
412,812 |
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of revenues |
|
176,245 |
|
|
|
191,665 |
|
|
|
218,921 |
|
Research and development |
|
40,355 |
|
|
|
28,924 |
|
|
|
39,295 |
|
General and administrative |
|
6,678 |
|
|
|
6,398 |
|
|
|
6,620 |
|
Sales and marketing |
|
5,566 |
|
|
|
4,248 |
|
|
|
5,622 |
|
Total costs and expenses |
|
228,844 |
|
|
|
231,235 |
|
|
|
270,458 |
|
|
|
|
|
|
|
Operating income |
|
83,762 |
|
|
|
134,026 |
|
|
|
142,354 |
|
|
|
|
|
|
|
Non operating income (loss): |
|
|
|
|
|
Interest income |
|
1,055 |
|
|
|
220 |
|
|
|
381 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
407 |
|
|
|
(21 |
) |
|
|
21 |
|
Foreign currency exchange gains (losses), net |
|
1,672 |
|
|
|
(559 |
) |
|
|
3,096 |
|
Finance costs |
|
(328 |
) |
|
|
(260 |
) |
|
|
(280 |
) |
Share of losses of associates |
|
(202 |
) |
|
|
(184 |
) |
|
|
(207 |
) |
Other income |
|
79 |
|
|
|
50 |
|
|
|
16 |
|
|
|
2,683 |
|
|
|
(754 |
) |
|
|
3,027 |
|
Profit before income taxes |
|
86,445 |
|
|
|
133,272 |
|
|
|
145,381 |
|
Income tax expense |
|
16,271 |
|
|
|
24,954 |
|
|
|
30,094 |
|
Profit for the period |
|
70,174 |
|
|
|
108,318 |
|
|
|
115,287 |
|
Loss attributable to
noncontrolling interests |
|
461 |
|
|
|
573 |
|
|
|
585 |
|
Profit attributable to
Himax Technologies, Inc. stockholders |
$ |
70,635 |
|
|
$ |
108,891 |
|
|
$ |
115,872 |
|
|
|
|
|
|
|
Basic earnings per ADS
attributable to Himax Technologies, Inc. stockholders |
$ |
0.404 |
|
|
$ |
0.623 |
|
|
$ |
0.663 |
|
Diluted earnings per
ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
0.404 |
|
|
$ |
0.623 |
|
|
$ |
0.663 |
|
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
174,694 |
|
|
|
174,667 |
|
|
|
174,694 |
|
Diluted Weighted Average Outstanding ADS |
|
174,823 |
|
|
|
174,729 |
|
|
|
174,824 |
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Profit or
Loss |
(Amounts in Thousands of U.S. Dollars, Except Share and Per
Share Data) |
|
|
|
|
Six MonthsEnded June 30, |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
Revenues from third parties, net |
|
|
$ |
725,293 |
|
|
$ |
674,240 |
|
Revenues from related parties, net |
|
|
|
125 |
|
|
|
24 |
|
|
|
|
|
725,418 |
|
|
|
674,264 |
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of revenues |
|
|
|
395,166 |
|
|
|
376,387 |
|
Research and development |
|
|
|
79,650 |
|
|
|
58,447 |
|
General and administrative |
|
|
|
13,298 |
|
|
|
12,170 |
|
Sales and marketing |
|
|
|
11,188 |
|
|
|
8,434 |
|
Total costs and expenses |
|
|
|
499,302 |
|
|
|
455,438 |
|
|
|
|
|
|
|
Operating income |
|
|
|
226,116 |
|
|
|
218,826 |
|
|
|
|
|
|
|
Non operating income (loss): |
|
|
|
|
|
Interest income |
|
|
|
1,436 |
|
|
|
415 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
|
428 |
|
|
|
(54 |
) |
Foreign currency exchange gains (losses), net |
|
|
|
4,768 |
|
|
|
(4 |
) |
Finance costs |
|
|
|
(608 |
) |
|
|
(520 |
) |
Share of losses of associates |
|
|
|
(409 |
) |
|
|
(458 |
) |
Other income |
|
|
|
95 |
|
|
|
61 |
|
|
|
|
|
5,710 |
|
|
|
(560 |
) |
Profit before income taxes |
|
|
|
231,826 |
|
|
|
218,266 |
|
Income tax expense |
|
|
|
46,365 |
|
|
|
43,653 |
|
Profit for the period |
|
|
|
185,461 |
|
|
|
174,613 |
|
Loss attributable to
noncontrolling interests |
|
|
|
1,046 |
|
|
|
1,174 |
|
Profit attributable to Himax Technologies, Inc.
stockholders |
|
|
$ |
186,507 |
|
|
$ |
175,787 |
|
|
|
|
|
|
|
Basic earnings per ADS attributable to Himax Technologies,
Inc. stockholders |
|
|
$ |
1.068 |
|
|
$ |
1.007 |
|
Diluted earnings per ADS attributable to Himax
Technologies, Inc. stockholders |
|
|
$ |
1.067 |
|
|
$ |
1.006 |
|
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
|
|
174,694 |
|
|
|
174,542 |
|
Diluted Weighted Average Outstanding ADS |
|
|
|
174,825 |
|
|
|
174,802 |
|
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 June 30, |
|
Three Months EndedMarch
31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
Share-based compensation |
|
|
|
|
|
Cost of revenues |
$ |
7 |
|
|
$ |
- |
|
|
$ |
7 |
|
Research and development |
|
501 |
|
|
|
- |
|
|
|
467 |
|
General and administrative |
|
159 |
|
|
|
- |
|
|
|
98 |
|
Sales and marketing |
|
62 |
|
|
|
- |
|
|
|
39 |
|
Income tax benefit |
|
(126 |
) |
|
|
- |
|
|
|
(122 |
) |
Total |
$ |
603 |
|
|
$ |
- |
|
|
$ |
489 |
|
|
|
|
|
|
|
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 |
|
|
$ |
276 |
|
Income tax benefit |
|
(65 |
) |
|
|
(64 |
) |
|
|
(64 |
) |
Total |
$ |
212 |
|
|
$ |
212 |
|
|
$ |
212 |
|
|
|
|
|
|
|
The amount of cash
award included in applicable statements of profit or loss
categories is summarized as follows: |
|
|
|
|
|
|
|
|
|
|
|
Cash award |
|
|
|
|
|
Cost of revenues |
$ |
77 |
|
|
$ |
- |
|
|
$ |
77 |
|
Research and development |
|
5,067 |
|
|
|
- |
|
|
|
5,068 |
|
General and administrative |
|
584 |
|
|
|
- |
|
|
|
583 |
|
Sales and marketing |
|
979 |
|
|
|
- |
|
|
|
978 |
|
Income tax benefit |
|
(1,393 |
) |
|
|
- |
|
|
|
(1,368 |
) |
Total |
$ |
5,314 |
|
|
$ |
- |
|
|
$ |
5,338 |
|
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: |
Six MonthsEnded June 30, |
|
|
|
|
2022 |
|
|
|
2021 |
|
Share-based compensation |
|
|
|
|
|
Cost of revenues |
|
|
$ |
14 |
|
|
$ |
- |
|
Research and development |
|
|
|
968 |
|
|
|
- |
|
General and administrative |
|
|
|
257 |
|
|
|
- |
|
Sales and marketing |
|
|
|
101 |
|
|
|
- |
|
Income tax benefit |
|
|
|
(248 |
) |
|
|
- |
|
Total |
|
|
$ |
1,092 |
|
|
$ |
- |
|
|
|
|
|
|
|
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 |
|
|
$ |
553 |
|
|
$ |
553 |
|
Income tax benefit |
|
|
|
(129 |
) |
|
|
(129 |
) |
Total |
|
|
$ |
424 |
|
|
$ |
424 |
|
|
|
|
|
|
|
The amount of cash award included in applicable statements
of profit or loss categories is summarized as
follows: |
|
|
|
|
|
|
|
|
|
|
Cash award |
|
|
|
|
|
Cost of revenues |
|
|
$ |
154 |
|
|
$ |
- |
|
Research and development |
|
|
|
10,135 |
|
|
|
- |
|
General and administrative |
|
|
|
1,167 |
|
|
|
- |
|
Sales and marketing |
|
|
|
1,957 |
|
|
|
- |
|
Income tax benefit |
|
|
|
(2,761 |
) |
|
|
- |
|
Total |
|
|
$ |
10,652 |
|
|
$ |
- |
|
|
|
|
|
|
|
Himax Technologies, Inc. |
IFRS Unaudited Condensed Consolidated Statements of
Financial Position |
(Amounts in Thousands of U.S. Dollars) |
|
|
|
June 30,2022 |
|
June 30,2021 |
|
March 31,2022 |
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
452,902 |
|
|
$ |
251,725 |
|
|
$ |
378,013 |
|
Financial assets at amortized cost |
|
|
8,539 |
|
|
|
13,542 |
|
|
|
23,987 |
|
Financial assets at fair value through profit or loss |
|
|
192 |
|
|
|
5,144 |
|
|
|
45,062 |
|
Accounts receivable, net (including related parties) |
|
|
371,033 |
|
|
|
329,023 |
|
|
|
442,220 |
|
Inventories |
|
|
337,312 |
|
|
|
134,243 |
|
|
|
253,055 |
|
Income taxes receivable |
|
|
39 |
|
|
|
91 |
|
|
|
56 |
|
Restricted deposit |
|
|
151,400 |
|
|
|
112,100 |
|
|
|
151,400 |
|
Other receivable from related parties |
|
|
1,381 |
|
|
|
1,209 |
|
|
|
1,214 |
|
Other current assets |
|
|
91,744 |
|
|
|
28,962 |
|
|
|
86,371 |
|
Total current assets |
|
|
1,414,542 |
|
|
|
876,039 |
|
|
|
1,381,378 |
|
Financial assets at
fair value through profit or loss |
|
|
14,037 |
|
|
|
13,902 |
|
|
|
13,679 |
|
Financial assets at
fair value through other comprehensive
income |
|
|
373 |
|
|
|
557 |
|
|
|
397 |
|
Equity method
investments |
|
|
3,994 |
|
|
|
4,205 |
|
|
|
3,982 |
|
Property, plant and
equipment, net |
|
|
128,839 |
|
|
|
137,031 |
|
|
|
131,639 |
|
Deferred tax
assets |
|
|
6,622 |
|
|
|
8,043 |
|
|
|
7,007 |
|
Goodwill |
|
|
28,138 |
|
|
|
28,138 |
|
|
|
28,138 |
|
Other intangible
assets, net |
|
|
5,948 |
|
|
|
7,147 |
|
|
|
6,353 |
|
Restricted
deposit |
|
|
34 |
|
|
|
35 |
|
|
|
35 |
|
Refundable
deposits |
|
|
174,779 |
|
|
|
79,154 |
|
|
|
181,129 |
|
Other non-current
assets |
|
|
13,524 |
|
|
|
437 |
|
|
|
15,456 |
|
|
|
|
376,288 |
|
|
|
278,649 |
|
|
|
387,815 |
|
Total assets |
|
$ |
1,790,830 |
|
|
$ |
1,154,688 |
|
|
$ |
1,769,193 |
|
Liabilities and
Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Current portion of long-term unsecured borrowings |
|
$ |
6,000 |
|
|
$ |
6,000 |
|
|
$ |
6,000 |
|
Short-term secured borrowings |
|
|
151,400 |
|
|
|
104,000 |
|
|
|
151,400 |
|
Accounts payable (including related parties) |
|
|
243,304 |
|
|
|
210,488 |
|
|
|
255,708 |
|
Income taxes payable |
|
|
71,112 |
|
|
|
39,587 |
|
|
|
123,295 |
|
Other payable to related parties |
|
|
2,167 |
|
|
|
2,804 |
|
|
|
2,041 |
|
Contract liabilities-current |
|
|
36,152 |
|
|
|
6,567 |
|
|
|
39,154 |
|
Other current liabilities |
|
|
286,606 |
|
|
|
88,506 |
|
|
|
69,907 |
|
Total current liabilities |
|
|
796,741 |
|
|
|
457,952 |
|
|
|
647,505 |
|
Long-term unsecured
borrowings |
|
|
43,500 |
|
|
|
49,500 |
|
|
|
45,000 |
|
Deferred tax
liabilities |
|
|
830 |
|
|
|
1,011 |
|
|
|
894 |
|
Contract
liabilities-non-current |
|
|
12,356 |
|
|
|
- |
|
|
|
12,056 |
|
Other non-current
liabilities |
|
|
96,271 |
|
|
|
32,561 |
|
|
|
74,968 |
|
|
|
|
152,957 |
|
|
|
83,072 |
|
|
|
132,918 |
|
Total liabilities |
|
|
949,698 |
|
|
|
541,024 |
|
|
|
780,423 |
|
Equity |
|
|
|
|
|
|
Ordinary shares |
|
|
107,010 |
|
|
|
107,010 |
|
|
|
107,010 |
|
Additional paid-in capital |
|
|
111,370 |
|
|
|
108,180 |
|
|
|
110,347 |
|
Treasury shares |
|
|
(5,761 |
) |
|
|
(5,788 |
) |
|
|
(5,761 |
) |
Accumulated other comprehensive income |
|
|
(1,453 |
) |
|
|
(545 |
) |
|
|
(777 |
) |
Retained earnings |
|
|
628,830 |
|
|
|
400,980 |
|
|
|
776,172 |
|
Equity attributable to owners of Himax Technologies,
Inc. |
|
|
839,996 |
|
|
|
609,837 |
|
|
|
986,991 |
|
Noncontrolling
interests |
|
|
1,136 |
|
|
|
3,827 |
|
|
|
1,779 |
|
Total equity |
|
|
841,132 |
|
|
|
613,664 |
|
|
|
988,770 |
|
Total liabilities and equity |
|
$ |
1,790,830 |
|
|
$ |
1,154,688 |
|
|
$ |
1,769,193 |
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(Amounts in Thousands of U.S. Dollars) |
|
|
Three MonthsEnded June 30, |
|
Three Months EndedMarch
31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Profit for the period |
|
$ |
70,174 |
|
|
$ |
108,318 |
|
|
$ |
115,287 |
|
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
5,411 |
|
|
|
5,449 |
|
|
|
5,376 |
|
Share-based compensation expenses |
|
|
729 |
|
|
|
- |
|
|
|
611 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
(407 |
) |
|
|
21 |
|
|
|
(21 |
) |
Interest income |
|
|
(1,055 |
) |
|
|
(220 |
) |
|
|
(381 |
) |
Finance costs |
|
|
328 |
|
|
|
260 |
|
|
|
280 |
|
Income tax expense |
|
|
16,271 |
|
|
|
24,954 |
|
|
|
30,094 |
|
Share of losses of associates |
|
|
202 |
|
|
|
184 |
|
|
|
207 |
|
Inventories write downs |
|
|
4,577 |
|
|
|
1,646 |
|
|
|
1,248 |
|
Unrealized foreign currency exchange losses (gains) |
|
|
(1,988 |
) |
|
|
544 |
|
|
|
(2,632 |
) |
|
|
|
94,242 |
|
|
|
141,156 |
|
|
|
150,069 |
|
Changes in: |
|
|
|
|
|
|
Accounts receivable (including related parties) |
|
|
71,217 |
|
|
|
(39,927 |
) |
|
|
(32,039 |
) |
Inventories |
|
|
(88,834 |
) |
|
|
(20,944 |
) |
|
|
(55,703 |
) |
Other receivable from related parties |
|
|
(168 |
) |
|
|
6 |
|
|
|
3 |
|
Other current assets |
|
|
4,157 |
|
|
|
(2,219 |
) |
|
|
465 |
|
Accounts payable (including related parties) |
|
|
(12,404 |
) |
|
|
17,895 |
|
|
|
7,283 |
|
Other payable to related parties |
|
|
126 |
|
|
|
307 |
|
|
|
400 |
|
Contract liabilities |
|
|
(2,702 |
) |
|
|
(127 |
) |
|
|
3,326 |
|
Other current liabilities |
|
|
1,619 |
|
|
|
633 |
|
|
|
(1,409 |
) |
Other non-current liabilities |
|
|
5,805 |
|
|
|
(1,187 |
) |
|
|
3 |
|
Cash generated from operating activities |
|
|
73,058 |
|
|
|
95,593 |
|
|
|
72,398 |
|
Interest received |
|
|
1,171 |
|
|
|
317 |
|
|
|
115 |
|
Interest paid |
|
|
(328 |
) |
|
|
(260 |
) |
|
|
(280 |
) |
Income tax paid |
|
|
(64,785 |
) |
|
|
(10,453 |
) |
|
|
(233 |
) |
Net cash provided by operating activities |
|
|
9,116 |
|
|
|
85,197 |
|
|
|
72,000 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
|
(2,497 |
) |
|
|
(1,398 |
) |
|
|
(3,586 |
) |
Acquisitions of intangible assets |
|
|
(26 |
) |
|
|
(144 |
) |
|
|
(143 |
) |
Acquisitions of financial assets at amortized cost |
|
|
(1,134 |
) |
|
|
(2,658 |
) |
|
|
(6,125 |
) |
Proceeds from disposal of financial assets at amortized cost |
|
|
16,157 |
|
|
|
1,025 |
|
|
|
8,165 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
|
(27,543 |
) |
|
|
(13,007 |
) |
|
|
(45,571 |
) |
Proceeds from disposal of financial assets at fair value through
profit or loss |
|
|
70,316 |
|
|
|
14,797 |
|
|
|
1,697 |
|
Increase in refundable deposits |
|
|
- |
|
|
|
(59,563 |
) |
|
|
- |
|
Releases of restricted deposit |
|
|
- |
|
|
|
2,700 |
|
|
|
2,700 |
|
Net cash provided by (used in) investing
activities |
|
|
55,273 |
|
|
|
(58,248 |
) |
|
|
(42,863 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Payments of cash dividends |
|
|
- |
|
|
|
(20 |
) |
|
|
- |
|
Purchases of subsidiary shares from noncontrolling interests |
|
|
(301 |
) |
|
|
- |
|
|
|
- |
|
Repayments of long-term unsecured borrowings |
|
|
(1,500 |
) |
|
|
(1,500 |
) |
|
|
(1,500 |
) |
Proceeds from short-term secured borrowings |
|
|
51,400 |
|
|
|
60,000 |
|
|
|
134,400 |
|
Repayments of short-term secured borrowings |
|
|
(51,400 |
) |
|
|
(60,000 |
) |
|
|
(134,400 |
) |
Payment of lease liabilities |
|
|
(1,206 |
) |
|
|
(1,236 |
) |
|
|
(1,229 |
) |
Guarantee deposits received |
|
|
14,181 |
|
|
|
- |
|
|
|
15,614 |
|
Proceeds from exercise of employee stock options |
|
|
- |
|
|
|
35 |
|
|
|
- |
|
Net cash provided by (used in) financing
activities |
|
|
11,174 |
|
|
|
(2,721 |
) |
|
|
12,885 |
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents |
|
|
(674 |
) |
|
|
119 |
|
|
|
(33 |
) |
Net increase in cash
and cash equivalents |
|
|
74,889 |
|
|
|
24,347 |
|
|
|
41,989 |
|
Cash and cash
equivalents at beginning of period |
|
|
378,013 |
|
|
|
227,378 |
|
|
|
336,024 |
|
Cash and cash
equivalents at end of period |
|
$ |
452,902 |
|
|
$ |
251,725 |
|
|
$ |
378,013 |
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(Amounts in Thousands of U.S. Dollars) |
|
|
|
Six MonthsEnded June 30, |
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Profit for the period |
|
|
|
$ |
185,461 |
|
|
$ |
174,613 |
|
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
10,787 |
|
|
|
10,721 |
|
Share-based compensation expenses |
|
|
|
|
1,340 |
|
|
|
- |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
|
|
(428 |
) |
|
|
54 |
|
Interest income |
|
|
|
|
(1,436 |
) |
|
|
(415 |
) |
Finance costs |
|
|
|
|
608 |
|
|
|
520 |
|
Income tax expense |
|
|
|
|
46,365 |
|
|
|
43,653 |
|
Share of losses of associates |
|
|
|
|
409 |
|
|
|
458 |
|
Inventories write downs |
|
|
|
|
5,825 |
|
|
|
4,121 |
|
Unrealized foreign currency exchange gains |
|
|
|
|
(4,620 |
) |
|
|
(181 |
) |
|
|
|
|
|
244,311 |
|
|
|
233,544 |
|
Changes in: |
|
|
|
|
|
|
Accounts receivable (including related parties) |
|
|
|
|
39,178 |
|
|
|
(85,397 |
) |
Inventories |
|
|
|
|
(144,537 |
) |
|
|
(29,657 |
) |
Other receivable from related parties |
|
|
|
|
(165 |
) |
|
|
(9 |
) |
Other current assets |
|
|
|
|
4,622 |
|
|
|
(5,095 |
) |
Accounts payable (including related parties) |
|
|
|
|
(5,121 |
) |
|
|
37,017 |
|
Other payable to related parties |
|
|
|
|
526 |
|
|
|
232 |
|
Contract liabilities |
|
|
|
|
624 |
|
|
|
(55 |
) |
Other current liabilities |
|
|
|
|
210 |
|
|
|
314 |
|
Other non-current liabilities |
|
|
|
|
5,808 |
|
|
|
5,493 |
|
Cash generated from operating activities |
|
|
|
|
145,456 |
|
|
|
156,387 |
|
Interest received |
|
|
|
|
1,286 |
|
|
|
407 |
|
Interest paid |
|
|
|
|
(608 |
) |
|
|
(530 |
) |
Income tax paid |
|
|
|
|
(65,018 |
) |
|
|
(10,747 |
) |
Net cash provided by operating activities |
|
|
|
|
81,116 |
|
|
|
145,517 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
|
|
|
(6,083 |
) |
|
|
(3,414 |
) |
Acquisitions of intangible assets |
|
|
|
|
(169 |
) |
|
|
(144 |
) |
Acquisitions of financial assets at amortized cost |
|
|
|
|
(7,259 |
) |
|
|
(6,637 |
) |
Proceeds from disposal of financial assets at amortized cost |
|
|
|
|
24,322 |
|
|
|
1,702 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
|
|
|
(73,114 |
) |
|
|
(16,553 |
) |
Proceeds from disposal of financial assets at fair value through
profit or loss |
|
|
|
|
72,013 |
|
|
|
19,544 |
|
Proceeds from capital reduction of investment |
|
|
|
|
- |
|
|
|
151 |
|
Acquisitions of equity method investments |
|
|
|
|
- |
|
|
|
(598 |
) |
Increase in refundable deposits |
|
|
|
|
- |
|
|
|
(60,760 |
) |
Releases (pledges) of restricted deposit |
|
|
|
|
2,700 |
|
|
|
(7,994 |
) |
Net cash provided by (used in) investing
activities |
|
|
|
|
12,410 |
|
|
|
(74,703 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Payments of cash dividends |
|
|
|
|
- |
|
|
|
(20 |
) |
Purchases of subsidiary shares from noncontrolling interests |
|
|
|
|
(301 |
) |
|
|
- |
|
Proceeds from short-term unsecured borrowings |
|
|
|
|
- |
|
|
|
10,000 |
|
Repayments of short-term unsecured borrowings |
|
|
|
|
- |
|
|
|
(10,000 |
) |
Repayments of long-term unsecured borrowings |
|
|
|
|
(3,000 |
) |
|
|
(3,000 |
) |
Proceeds from short-term secured borrowings |
|
|
|
|
185,800 |
|
|
|
157,000 |
|
Repayments of short-term secured borrowings |
|
|
|
|
(185,800 |
) |
|
|
(157,000 |
) |
Payment of lease liabilities |
|
|
|
|
(2,435 |
) |
|
|
(2,206 |
) |
Guarantee deposits received |
|
|
|
|
29,795 |
|
|
|
- |
|
Proceeds from exercise of employee stock options |
|
|
|
|
- |
|
|
|
1,152 |
|
Net cash provided by (used in) financing
activities |
|
|
|
|
24,059 |
|
|
|
(4,074 |
) |
Effect of foreign
currency exchange rate changes on cash and cash
equivalents |
|
|
|
|
(707 |
) |
|
|
47 |
|
Net increase in cash
and cash equivalents |
|
|
|
|
116,878 |
|
|
|
66,787 |
|
Cash and cash
equivalents at beginning of period |
|
|
|
|
336,024 |
|
|
|
184,938 |
|
Cash and cash
equivalents at end of period |
|
|
|
$ |
452,902 |
|
|
$ |
251,725 |
|
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 June 30, |
|
Three MonthsEndedMarch
31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
Revenues |
$ |
312,606 |
|
|
$ |
365,261 |
|
|
$ |
412,812 |
|
Gross profit |
|
136,361 |
|
|
|
173,596 |
|
|
|
193,891 |
|
Add: Share-based compensation
– cost of revenues |
|
7 |
|
|
|
- |
|
|
|
7 |
|
Add: Cash award – cost of
revenues |
|
77 |
|
|
|
- |
|
|
|
77 |
|
Gross profit excluding
share-based compensation and cash award |
|
136,445 |
|
|
|
173,596 |
|
|
|
193,975 |
|
Gross margin excluding
share-based compensation and cash award |
|
43.6 |
% |
|
|
47.5 |
% |
|
|
47.0 |
% |
Operating income |
|
83,762 |
|
|
|
134,026 |
|
|
|
142,354 |
|
Add: Share-based
compensation |
|
729 |
|
|
|
- |
|
|
|
611 |
|
Add: Acquisition-related
charges –intangible assets amortization |
|
277 |
|
|
|
276 |
|
|
|
276 |
|
Add: Cash award |
|
6,707 |
|
|
|
- |
|
|
|
6,706 |
|
Operating income excluding
share-based compensation, acquisition-related charges and cash
award |
|
91,475 |
|
|
|
134,302 |
|
|
|
149,947 |
|
Operating margin excluding
share-based compensation, acquisition-related charges and cash
award |
|
29.3 |
% |
|
|
36.8 |
% |
|
|
36.3 |
% |
Profit attributable to Himax
Technologies, Inc. stockholders |
|
70,635 |
|
|
|
108,891 |
|
|
|
115,872 |
|
Add: Share-based compensation,
net of tax |
|
603 |
|
|
|
- |
|
|
|
489 |
|
Add: Acquisition-related
charges, net of tax |
|
212 |
|
|
|
212 |
|
|
|
212 |
|
Add: Cash award, net of
tax |
|
5,314 |
|
|
|
- |
|
|
|
5,338 |
|
Profit attributable to Himax
Technologies, Inc. stockholders excluding share-based compensation,
acquisition-related charges and cash award |
|
76,764 |
|
|
|
109,103 |
|
|
|
121,911 |
|
Net margin attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation, acquisition-related charges and cash award |
|
24.6 |
% |
|
|
29.9 |
% |
|
|
29.5 |
% |
|
|
|
|
|
|
*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: |
|
|
|
Six MonthsEnded June 30, |
|
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
|
|
$ |
725,418 |
|
|
$ |
674,264 |
|
Gross profit |
|
|
|
330,252 |
|
|
|
297,877 |
|
Add: Share-based compensation
– cost of revenues |
|
|
|
14 |
|
|
|
- |
|
Add: Cash award – cost of
revenues |
|
|
|
154 |
|
|
|
- |
|
Gross profit excluding
share-based compensation and cash award |
|
|
|
330,420 |
|
|
|
297,877 |
|
Gross margin excluding
share-based compensation and cash award |
|
|
|
45.5 |
% |
|
|
44.2 |
% |
Operating income |
|
|
|
226,116 |
|
|
|
218,826 |
|
Add: Share-based
compensation |
|
|
|
1,340 |
|
|
|
- |
|
Add: Acquisition-related
charges –intangible assets amortization |
|
|
|
553 |
|
|
|
553 |
|
Add: Cash award |
|
|
|
13,413 |
|
|
|
- |
|
Operating income excluding
share-based compensation, acquisition-related charges and cash
award |
|
|
|
241,422 |
|
|
|
219,379 |
|
Operating margin excluding
share-based compensation, acquisition-related charges and cash
award |
|
|
|
33.3 |
% |
|
|
32.5 |
% |
Profit attributable to Himax
Technologies, Inc. stockholders |
|
|
|
186,507 |
|
|
|
175,787 |
|
Add: Share-based compensation,
net of tax |
|
|
|
1,092 |
|
|
|
- |
|
Add: Acquisition-related
charges, net of tax |
|
|
|
424 |
|
|
|
424 |
|
Add: Cash award, net of
tax |
|
|
|
10,652 |
|
|
|
- |
|
Profit attributable to Himax
Technologies, Inc. stockholders excluding share-based compensation,
acquisition-related charges and cash award |
|
|
|
198,675 |
|
|
|
176,211 |
|
Net margin attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation, acquisition-related charges and cash award |
|
|
|
27.4 |
% |
|
|
26.1 |
% |
|
|
|
|
|
|
*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 MonthsEndedJune
30, |
|
Six MonthsEndedJune
30, |
|
2022 |
|
2022 |
Diluted IFRS earnings per ADS attributable to Himax Technologies,
Inc. stockholders |
$ |
0.404 |
|
$ |
1.067 |
Add: Share-based compensation per ADS |
$ |
0.003 |
|
$ |
0.006 |
Add: Acquisition-related charges per ADS |
$ |
0.001 |
|
$ |
0.002 |
Add: Cash award per ADS |
$ |
0.030 |
|
$ |
0.061 |
|
|
|
|
Diluted non-IFRS earnings per ADS attributable to Himax
Technologies, Inc. stockholders excluding share-based compensation,
acquisition-related charges and cash award |
$ |
0.439 |
|
$ |
1.136 |
|
|
|
|
Numbers do not add up due to rounding |
|
|
|
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