Himax Technologies, Inc. (Nasdaq: HIMX) (“Himax” or “Company”), a
leading supplier and fabless manufacturer of display drivers and
other semiconductor products, announced its financial results for
the third quarter 2022 ended September 30, 2022.
“As we continue to tread through this inventory
offloading cycle, we are cautiously managing our new wafer starts,
trying to strike a balance between inventory level and foundry
contract fulfillment. A silver lining among the clouds is the
automotive segment where visibility is relative better. This allows
us to continue to maintain new orders to our foundry partners and
back-end suppliers. Continuous orders in such segments coupled with
our successful negotiation with suppliers will reduce the incurred
charges in Q4 from contracts to secure capacity as compared to the
third quarter. Judging by our current business pipeline and
production plan, we believe our inventory level has reached the
peak at the end of the third quarter,” said Mr. Jordan Wu,
President and Chief Executive Officer of Himax.
“Despite the soft demand, we remain upbeat about
our top line growth from several revenue streams that we consider
our high visibility group, notably automotive, AMOLED, Tcon and
WiseEye™ AI image sensing. We believe our 2022 full year automotive
business growth will reach around 50% despite the challenging
environment and expect growth momentum, especially for TDDI, to
extend into 2023 for another stellar year of strong growth.
Separately, our WiseEye AI image sensing and AMOLED business are
poised to deliver an impactful contribution next year,” concluded
Mr. Jordan Wu.
Third Quarter 2022 Financial
Results
Himax net revenues $213.6 million decreased
31.7% sequentially but exceeded its guidance of a decrease of
around 35% to 39% sequentially. Increased sales momentum in its
small and medium-sized display driver segment contributed to the
better-than-expected sales results. Gross margin came in at 36.3%,
a decrease from 43.6% last quarter, but at the mid-range of the
guidance range of 35.5% to 37.5%. Non-IFRS profit per diluted ADS
was 17.0 cents, beating guidance of 11.6 cents to 15.6 cents. IFRS
profit per diluted ADS was 4.8 cents, exceeding guidance of 0.2
cents to 4.2 cents.
Revenue from large display drivers was $41.3
million in Q3, a decrease of 39.8% sequentially and below what the
Company typically sees on a seasonal basis. Customers across the
board from brands to panel houses continued to impose stringent
inventory control measures on the backdrop of slowing end market
sell-through and de-stocking pressure. As guided, all three large
display driver sectors, covering TV, monitor and notebook, were
down double digit sequentially. Large panel driver IC sales
accounted for 19.3% of total revenues for this quarter, compared to
22.0% last quarter and 27.9% a year ago.
Small and medium-sized display revenue was
$141.4 million, a decline of 29.9% sequentially, primarily a result
of the prolonged inventory reduction effort of Himax’s smartphone
and tablet customers. Smartphone and tablet driver IC sales
contributions were approximately equal in the third quarter.
Despite the challenging macro environment, the Company continues to
gain traction with its leading driver solutions being adopted by
more customers for their next generation products. As an
illustration, its proprietary tablet TDDI solution once again was
adopted by Xiaomi for their latest premium tablet and 2-in-1
laptop, where Himax’s TDDI supports larger sized, high frame rate
display and high precision active stylus features as well as the
most touch channels in the market to offer superior touch
sensitivity. Meanwhile, for AMOLED business, Himax’s global leading
customer had more AMOLED premium tablet models commence mass
production this quarter where the Company provides the total
solution covering DDIC and Tcon as their sole source supplier. In
the third quarter, its AMOLED sales, including DDIC and Tcon, were
up more than 45% sequentially and accounted for more than 8% of
total sales.
Q3 automotive business was once again the
largest revenue contributor, representing over 35% of total sales.
However, Q3 automotive sales declined double digit sequentially as
guided as customers continued with strict inventory control
measures to de-stock from the accumulation during China city
lockdowns in the previous quarter. Yet, on a year-over-year basis
automotive IC sales increased more than 80% for the nine months
ended September 30, 2022, a result of its comprehensive product
coverage and increasing design-wins for the Company’s automotive
TDDI. For Himax’s e-paper business, another product in small and
medium-sized driver lineup, sales declined double digit
quarter-over-quarter due to customers downsizing their annual
business plans amid a weak consumer electronics market. Small and
medium-sized driver IC segment accounted for 66.2% of total sales
for the quarter, compared to 64.5% in the previous quarter and
59.9% a year ago.
Third quarter revenue from its non-driver
businesses was $30.9 million, down 26.9% from a quarter ago. As
expected, its Tcon business was down double digit sequentially,
pressured by lower shipment for TV, monitor and notebook markets.
Yet, Tcon shipment for automotive enjoyed decent growth and Himax
anticipates its business momentum to accelerate in the coming
quarters. Tcon business represented more than 7% of total sales in
the third quarter. Non-driver products in Q3 accounted for 14.5% of
total revenues, as compared to 13.5% in the previous quarter and
12.2% a year ago.
Non-IFRS gross margin for the third quarter was
36.3%, a decrease from 43.6% of last quarter. As the Company
previously reported, the incurred charges from agreements it
entered with foundries and backend suppliers for securing capacity
were the predominant factors that adversely impacted Himax’s margin
profile in the third quarter. Price erosion because of inventory
de-stocking also contributed to the margin contraction. IFRS gross
margin was 36.0% for the quarter.
Non-IFRS operating expenses for the third
quarter were $46.7 million, slightly up by 3.8% from the previous
quarter and 5.0% from a year ago. The sequential increase was
caused mainly by increased salary expenses while year-over-year
expenses increased because of higher salary and R&D expenses.
IFRS operating expenses were $72.9 million for the third quarter,
up 38.5% from the preceding quarter and 6.4% 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 2022 annual bonus compensation including RSUs and
cash awards was in line with the guidance it mentioned on its last
earnings call that totaled $39.6 million, out of which $18.5
million, or 8.5 cents per diluted ADS, was immediately vested and
recognized in the third quarter of 2022. 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.
Third quarter non-IFRS operating income was
$30.9 million, or 14.5% of sales, versus 29.3% of sales in the last
quarter and 41.2% of sales from a year ago. Non-IFRS after-tax
profit was $29.8 million, or 17.0 cents per diluted ADS, decreased
from $76.8 million, or 43.9 cents per diluted ADS last quarter.
Balance Sheet and Cash Flow
Himax had $227.9 million of cash, cash
equivalents and other financial assets as of September 30, 2022,
compared to $250.8 million at the same time last year and $461.6
million a quarter ago. Himax cash balance at the end of the third
quarter substantially declined following the annual cash dividend
payout of $217.9 million in July. The Company had $48.0 million of
long-term unsecured loans as of the end of Q3, of which $6.0
million was the current portion.
The Company’s inventories as of September 30,
2022 were $410.1 million, up from $337.3 million last quarter and
up from $160.9 million a year ago. The elevated inventory level
reflects the abrupt drop in demand triggered by strict customer
inventory control due to sluggish end demand and murky visibility.
The excess customer inventory, particularly in consumer
electronics, adversely affected its sales, resulting in high
inventory levels as its production always begins months in advance.
Accounts receivable at the end of September 2022 was $253.3
million, down from $371.0 million last quarter and from $400.9
million a year ago. DSO was 74 days at the quarter end, as compared
to 100 days a year ago and 93 days from last quarter. Third quarter
capital expenditures were $3.4 million, versus $2.5 million last
quarter and $2.1 million a year ago. The third quarter capex was
mainly for R&D related equipment for its IC design
business.
Outstanding Share
As of September 30, 2022, Himax had 174.4
million ADS outstanding, little changed from last quarter. On a
fully diluted basis, total number of ADS outstanding for the third
quarter was 174.7 million.
Q4 2022 Outlook
The near-term economic outlook appears bleak in
the face of elevated inflation and rapidly rising interest rates
which are hurting the market along with the ongoing fallout from
China city lockdowns and geopolitical conflict. For the display
application market, end brands are downsizing their panel
procurements which consequently triggers panel makers to further
lower fab utilization. Against this backdrop, Himax’s business
visibility remains limited, especially in consumer centric
products. As the Company continues to tread through this inventory
offloading cycle, it is cautiously managing its new wafer starts,
trying to strike a balance between inventory level and foundry
contract fulfillment. A silver lining among the clouds is the
automotive segment where visibility is relative better. This allows
the Company to continue to maintain new orders to its foundry
partners and back-end suppliers. Continuous orders in such segments
coupled with the Company’s successful negotiation with suppliers
will reduce the incurred charges in Q4 from contracts to secure
capacity as compared to the third quarter. Judging by the Company’s
current business pipeline and production plan, it believes its
inventory level has reached the peak at the end of the third
quarter.
Looking into Q4, the Company’s gross margin is
still under pressure due to price erosion from high inventory
offloading while the cost of goods sold remains high as the
inventory was sourced when foundry and back-end pricings were still
at high levels. Despite the soft demand, Himax remains upbeat about
its top line growth from several revenue streams that it considers
as its high visibility group, notably automotive, AMOLED, Tcon and
WiseEye AI image sensing. In the automotive business, Himax expects
TDDI sales momentum to pick up starting Q4 from the trough in the
third quarter. For automotive DDIC, however, customers are still in
the process of offloading their inventories accumulated intended
for the second quarter production which was severely disrupted by
the widespread China city lockdowns. The Company believes its 2022
full year automotive business growth will reach around 50% despite
the challenging environment and expect growth momentum, especially
for TDDI, to extend into 2023 for another stellar year of strong
growth. Separately, its WiseEye AI image sensing and AMOLED
business are poised to deliver an impactful contribution next year.
Himax expects WiseEye sales to grow nicely, backed by strong
business pipelines from a wide variety of new AI application
adoptions. Among Himax’s AMOLED deployments, its AMOLED for
smartphone will commence as a new sales stream next year on top of
the current AMOLED for tablet and automotive sales. The benefits
from the increasing contribution from these higher visibility
segments is two-fold. First, its overall corporate visibility
improves as their weighting increases. Second, the gross margin for
these segments is above Himax’s corporate average, lending support
to a more sustainable higher margin profile for the Company. Himax
expects these groups combined to account for more than 50% of total
sales in Q4 and believe their contribution weighting will continue
to increase for years to come.
Display Driver IC
Businesses
LDDIC
Q4 large display driver IC revenue is projected
to be flat sequentially off a low base after three consecutive
quarters of decline. Yet on a year-over-year basis this is still a
double-digit decline as the Company braces for a disappointing
year-end holiday season. On a positive note, the Company does see
TV panel prices showing signs of stabilization as customers have
started to replenish inventory particularly in mainstream models,
leading to positive momentum in its TV driver sales which are set
to increase single digit sequentially in Q4. Conversely, the
downward trend in its IT segment lingers on with further declines
expected in both notebook and monitor sales in the fourth quarter
on the backdrop of customers’ continuous tight inventory control
measures and the sluggish economy.
SMDDIC
Q4 SMDDIC revenue is expected to increase by
single digit sequentially. Q4 automotive driver IC sales are
anticipated to be flat sequentially following double digit decline
in Q3 as customers look to restock inventory. Sales for automotive
TDDI are poised to grow by double digit while those for traditional
driver IC are set to decrease single digit from the last quarter.
The business visibility for automotive segment into next year
remains much better than those of consumer centric products.
Smartphone driver IC revenue is set to be slightly down
sequentially, a result of lengthy inventory off-loading cycle amid
soft demand and limited visibility across those channels. Tablet
driver IC revenue, however, is projected to increase double digit
sequentially driven by replenishment momentum from leading
customers.
Automotive segment has more resilient
demand and is less vulnerable to the macro headwinds. As Himax has
previously discussed, automotive driver sales are now its largest
revenue contributor and set to represent over 35% of total sales in
Q4. The demand trends for automobile interiors continue to favor
more stylish and diverse designs, made possible with increasing
quantity and size of panels equipped with advanced display
technologies. As the leader in automotive display IC market, Himax
not only offers the most comprehensive automotive product portfolio
in the industry, ranging from traditional DDIC to new technologies
such as TDDI, local dimming Tcon, LTDI and AMOLED, it also is the
preferred partner that panel customers like to work with,
especially those looking to focus more on growing their automotive
business in order to compensate for the soft consumer electronic
business. As the pioneer of mass production for automotive TDDI and
backed by rapid expansion of automotive TDDI adoption, Himax
expects its automotive TDDI sales will be one of the primary
driving forces for its long-term business growth for years to come.
The automotive TDDI technology is essential for large sized,
interactive, stylish, and curved automotive displays. To date Himax
has acquired more than 200 automotive TDDI project awards with only
a small portion currently in mass production, implying an enormous
growth opportunity ahead. Himax’s TDDI design-win coverage
continues to quickly expand with panel makers, Tier-1s and auto
brands. Meanwhile, the Chinese government continues to support the
NEV industry with stimulus programs, which may accelerate the
adoption of premium automobile displays that adopt TDDI. Moreover,
Himax is well positioned with suppliers in support of its
automotive segment growth, leveraging diverse foundry sources for
optimal operational efficiency and benefit.
Furthermore, Himax is the first in the industry
to launch the cutting edge LTDI (Large Touch and Display Driver
Integration) automotive display solution specially designed for the
next generation extra-large-sized automotive displays, which are
typically larger than 30 inches. The LTDI adopts cascade-topology
technique allowing up to 30 chips seamlessly connected in support
of extra-large sized display and high-precision touch sensitivity,
creating a high entry barrier for potential competitors. This was
featured at CES 2022 early this year by one of Himax’s key
customers who showcased a 30-inch in-cell touch display powered by
Himax LTDI solution. More design collaborations are underway and
will debut in 2023 in some of the most modish automotive
vehicles.
For smartphone, much of its shipments to key
customers for their next generation new designs have been delayed
amidst deteriorating demand. As for tablet, shipments are on the
rise for premium models that adopt high end tablet TDDIs and
advanced AMOLED tablet solution, of which the Company offers both
DDIC and Tcon to certain leading brands. Q4 sales for these premium
tablet solutions are expected to increase more than 100%
sequentially and Himax believes momentum will accelerate into next
year, supported by demand for advanced specifications and higher
end displays.
E-paper driver business is expected to increase
double digit quarter-over-quarter, stemming from increasing
shipment of a large size display to a leading customer as their
sole supplier. Himax expects long-term demand for both e-paper and
e-signage to endure. E-reader demand is fueled by a growing
e-learning market along with increasing reading material over the
internet. E-signage market is also on an upswing as the product is
being more widely used in smart warehousing, smart retail and many
other fields to replace traditional signage. The Company continues
to collaborate with world-leading customers for certain ASIC and
Tcon projects with increased R&D efforts spent on their next
generation products toward larger size, higher resolution, and
colored e-paper displays.
On AMOLED, Himax continues to gear up for AMOLED
driver IC development jointly with major Korean and Chinese panel
makers in various applications. Q4 AMOLED sales are set to increase
by double digit sequentially and represent over 9% of total sales.
Himax’s AMOLED business, including Tcon and driver, is slated for
strong growth in the next few years. For AMOLED tablet product, it
provides both AMOLED driver and Tcon, and is the sole source
supplier for one global leading brand. For automotive AMOLED
display, Himax continues to win project awards for the Company’s
flexible AMOLED driver and Tcon with both conventional car makers
and NEV vendors. Finally, Himax is making good progress with
leading panel houses for the development of AMOLED display drivers
for smartphone, TV and notebook applications. The Company expects
to start shipping smartphone AMOLED drivers around the middle of
2023. As a reminder, for smartphone AMOLED display driver, Himax
already has secured meaningful capacity and continues to look to
expand it moving forward.
Non-Driver Product
Categories
TCON
The Company anticipates Q4 Tcon sales to
increase by high teens sequentially, bolstered by higher shipment
of automotive products for both LCD and AMOLED displays. For the
AMOLED display market, it successfully commenced production of
AMOLED Tcons for tablet and automotive. Himax also made good
progress strategically with leading panel makers on AMOLED notebook
Tcon, which features advanced eDP1.5, providing higher resolution,
higher refresh rate as well as improved image quality to the
notebook. On LCD display for automotive, its position remains
unchallenged in automotive Tcon for local dimming technology, which
not only enhances display contrast for better viewing and driver
safeguard under various ambient light conditions, but also provides
effective power saving, critical for EVs and larger sized displays.
With years of strenuous work on this high entry barrier technology,
Himax has won numerous awards from various OEMs, Tier-1 and car
makers’ premium new car models, some of which have already
commenced mass production. The Company anticipates Q4 automotive
Tcon sales to increase more than 80% year-over-year and represent
around 2% of total sales with additional projects slated for
meaningful volume shipment starting in 2023. Additionally, Himax is
undertaking new design developments supporting even larger panel
sizes and higher resolution with more named customers. Himax
expects to gain traction with more shipments to key customers in
upcoming quarters and is optimistic about the long-term potential
of its Tcon business with secured capacity from its foundry
partners in pursuit of long-term sustainable growth.
Ultralow Power WiseEye AI image
sensing
Himax's WiseEye AI image sensing total solution
incorporates the Company’s proprietary ultralow power AI processor,
always-on CMOS image sensor, and CNN-based AI algorithm. For
WiseEye business for notebook, the Company continues to support a
range of Dell’s new models where Himax remains the key supplier for
leading-edge ultralow power AI processor and always-on CMOS image
sensor.
In order to capture the vast opportunity
presented in the emerging notebook AI application market, Himax has
extended deployment of in-house development of new algorithms to
advance its AI capabilities while partnering with leading notebook
CPU players aiming to expand its partnerships with leading global
laptop names to propel this business forward. In addition to
features such as human presence, look-away and onlooker detections,
Himax is also working on a variety of enriched new AI features and
use cases to broaden possible applications with end customers for
next generation smart notebooks.
Aside from notebook, its highly integrated
WiseEye total solution, featuring ultralow power tinyML vision AI
in a tiny form factor, is a perfect fit for many
resource-constrained and battery-powered end point applications, a
new AI area which is now ardently explored by AI communities. One
successful example worth highlighting is the strong adoption with
meaningful shipment of Himax’s AI solution in Automatic Meter
Reading. The Company’s power efficient AI can help existing
conventional water meters operate with a battery pack for over 5
years for real-time water consumption readout and detection of
abnormalities such as water leakage. Attracted by the simplicity of
installation and superb low power performance, dozens of water
authorities, utility companies, meter OEM/ODMs and/or IoT network
providers across the globe have commenced joint development
projects with Himax. Moreover, the Company has additional WiseEye
AI customer engagements in areas such as video conference device,
shared bike parking, medical capsule endoscope, automotive, smart
office, battery cam and surveillance, just to name a few. Decent
volume shipment is anticipated within the next few quarters.
As the Company focuses on scaling adoption in
this relatively untapped market, it continues to build alliances
with numerous AI partners and communities to make its AI solution
more accessible. To that end, during the upcoming CES 2023, several
of its proprietary ultralow power WiseEye AI solutions will be
showcased jointly with its ecosystem partners and customers in
various applications, including smart home, smart agriculture, and
surveillance, just to name a few. Also on display will be
applications embedded with Himax’s Intelli-Sensing Module, a
solution that offers numerous pre-trained machine learning models
with a plug-and-play design that makes it possible to drastically
reduce the significant entry barriers for AI or system developers
in deploying computer vision and machine learning AI capabilities
to the end point devices. Himax welcomes all interested parties to
stop by to learn more about its AI product line and see them
in action.
Himax recently announced the divestiture of its
fully owned subsidiary Emza Visual Sense. As it mentioned in press
release, this transaction will not affect the existing business
with Dell. The divestiture does not change Himax’s ultralow power
WiseEye AI Image Sensing business model where it will continue to
develop its own algorithms and work with third-party algorithm
partners. Furthermore, the Company is more committed than ever to
strengthening its WiseEye product roadmap and retaining its
leadership position in ultralow power AI processor and image sensor
for end-point AI applications. As a demonstration of this
commitment, at CES 2023, Himax will also debut its next generation
AI processor, code-named WE2. The WE2 AI processor features Arm
based Cortex CPU and Ethos NPU, rich sets of sensor control
interfaces, industrial grade security and cryptography engines, and
multi-layer power management architecture to offer superb tinyML
computing performance, optimal energy efficiency and best-in-case
security and privacy assurance. The WE2 AI processor offers 40%
peak power savings and 30-fold inference speed, implying over 50
times power efficiency on a per inference basis compared to the
first generation WE1 which is already leading the industry among AI
processors aiming for similar target markets. Several leading
laptop names and CPU players have shown strong interest in Himax’s
WE2 processor to support diverse AI features of their next
generation smart notebooks. Himax is very excited about the
potential for WE2 and believes it is well positioned to capture the
vast end-point AI opportunities presented ahead.
Optical product line-up/
Metaverse
Himax’s optical related product lines covers
WLO, LCoS and 3D Sensing. Himax is one of the few companies in the
technology industry with optical design capabilities and years of
proven track record of mass production. Himax continues to work on
strengthening its optical-related technology suite while
collaborating with some of the world’s largest technology companies
that are deeply committed to investing in its development. Himax is
well positioned to play an enabling role in this exciting new
industry as it evolves.
Himax’s leading-edge front-lit LCoS microdisplay
features light-weight, small form factor, and full color with
unique characteristics of high illumination and low power
consumption. One notable highlight in Q3 is a design-win with a
partner for new AR glasses with Himax’s front-lit LCoS
microdisplays which assists hearing-impaired people through audio
to text translation that is projected onto the AR glasses on a real
time basis. Small volume shipment commenced during Q3. In addition,
Himax also started shipment of front-lit LCoS microdisplay in Q3
for a customer’s assisted-reality type hands-free head-mounted
device that sits below a person’s line of sight to assist workers
to access real time working information.
On human interface sensing. Himax is seeing
increasing adoption of its optical components and/or 3D sensing
technologies that enable new ways people interact with AR and VR
applications. On 3D gesture control, its WLO technology is deployed
to empower 3D perception sensing for precise controller-free
gesture recognition in VR devices. The collaboration is ongoing
with a leading VR player with promising progress with volume
production expected during 2023. On 3D scanning for object
reconstruction, Himax’s 3D sensing technology, which incorporates
both its 3D projector and 3D decoder, is being deployed by a
leading customer’s 3D scanning device for the purpose of generating
real time digital twins, avatar and 3D environment surroundings
that ultimately help users transit and connect seamlessly between
physical and digital worlds.
While still early in the lifecycle for optical
and metaverse related products, the ongoing commitment by the
world’s technology leaders alongside expanding interest in its
potential suggests this next generation technology is poised for
significant growth in the years to come. The Company is excited
that it is at the forefront of optical innovation for this nascent
industry and believes it has potential to be a long-term growth
driver for its business.
For non-driver IC business, the Company expects
revenue to increase high teens sequentially in the fourth
quarter.
Fourth Quarter 2022
Guidance
Net
Revenue: |
To increase
4.0% to 8.0% sequentially |
Non-IFRS Gross Margin: |
To be around 31.5% to 33.5%, depending on final product
mix |
Non-IFRS Profit: |
To be 21.0 cents to 24.0 cents per diluted ADS |
IFRS Profit: |
To be 17.8 cents to 20.8 cents per diluted ADS |
|
|
HIMAX TECHNOLOGIES THIRD QUARTER 2022
EARNINGS CONFERENCE CALL |
DATE: |
Thursday, Nov 10, 2022 |
TIME: |
U.S. 8:00 a.m.
EST |
|
Taiwan 9:00 p.m. |
WEBCAST: |
https://edge.media-server.com/mmc/p/h4xam55j |
PHONE REGISTRATION: |
https://register.vevent.com/register/BI2a6855bd74034982b641a33fb69b3816 |
If you choose to attend by phone, you need to
register first to obtain dial-in numbers for the call. Once
registered you will be emailed the dial-ins along with an option to
receive a call back at the start of the earnings call. Each
registrant will receive a unique personal PIN. A replay of the call
will be available beginning two hours after the call. The
conference webcast link is
https://edge.media-server.com/mmc/p/h4xam55j. This call is being
webcast by Nasdaq and can be accessed by clicking on this link
or Himax’s website, where the webcast can be accessed through
November 10, 2023.
Non-IFRS Financial Measures
Himax provides investors with gross profit,
gross margin, operating income, operating margin, profit
attributable to stockholders and diluted earnings per ADS
attributable to Himax Technologies, Inc. stockholders on a non-IFRS
basis to review and assess the Company's operating performance,
which is not required by, or presented in accordance with, IFRS.
The presentation of these non-IFRS financial measures are not
intended to be considered in isolation or as a substitute for
financial information prepared and presented in accordance with
IFRS.
Himax believes that providing certain of these
measures allow investors to identify underlying trends in the
Company’s business and enhance the overall understanding of the
Company’s past performance and future prospects with respect to key
metrics used by the Company in its financial and operational
decision-making. However, the use of the non-IFRS measure has
limitations as an analytical tool, and investors should not
consider them in isolation from, or as substitute for analysis of,
the Company’s results of operations or financial condition as
reported under IFRS. Further, non-IFRS financial measures may
differ from the non-IFRS information used by other companies,
including peer companies, and therefore its comparability may be
limited.
Reconciliations between IFRS and Non-IFRS
financial data are attached to this press release.
About Himax Technologies,
Inc.
Himax Technologies, Inc. (NASDAQ: HIMX) is a
fabless semiconductor solution provider dedicated to display
imaging processing technologies. Himax is a worldwide market leader
in display driver ICs and timing controllers used in TVs, laptops,
monitors, mobile phones, tablets, automotive, digital cameras, car
navigation, virtual reality (VR) devices and many other consumer
electronics devices. Additionally, Himax designs and provides
controllers for touch sensor displays, in-cell Touch and Display
Driver Integration (TDDI) single-chip solutions, AMOLED ICs, LED
driver ICs, power management ICs and LCoS micro-displays for
augmented reality (AR) devices and heads-up displays (HUD) for
automotive. The Company also offers CMOS image sensors, wafer level
optics for AR devices, 3D sensing and ultralow power WiseEye™ AI
image sensing, which are used in a wide variety of applications
such as mobile phone, tablet, laptop, TV, PC camera, automobile,
security, medical device, home appliance, AIoT, etc. Founded in
2001 and headquartered in Tainan, Taiwan, Himax currently employs
around 2,100 people from three Taiwan-based offices in Tainan,
Hsinchu and Taipei and country offices in China, Korea, Japan,
German, and the US. Himax has 2,980 patents granted and 417 patents
pending approval worldwide as of September 30, 2022. Himax has
retained its position as the leading display imaging processing
semiconductor solution provider to consumer electronics brands
worldwide.
Forward Looking Statements
Factors that could cause actual events or results to differ
materially from those described in this conference call include,
but are not limited to, the effect of the Covid-19 pandemic on the
Company’s business; general business and economic conditions and
the state of the semiconductor industry; market acceptance and
competitiveness of the driver and non-driver products developed by
the Company; demand for end-use applications products; reliance on
a small group of principal customers; the uncertainty of continued
success in technological innovations; our ability to develop and
protect our intellectual property; pricing pressures including
declines in average selling prices; changes in customer order
patterns; changes in estimated full-year effective tax rate;
shortage in supply of key components; changes in environmental laws
and regulations; changes in export license regulated by Export
Administration Regulations (EAR); exchange rate fluctuations;
regulatory approvals for further investments in our subsidiaries;
our ability to collect accounts receivable and manage inventory and
other risks described from time to time in the Company's SEC
filings, including those risks identified in the section entitled
"Risk Factors" in its Form 20-F for the year ended December 31,
2021 filed with the SEC, as may be amended.
Company Contacts:
Eric Li, Chief IR/PR
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
MonthsEnded September
30, |
|
3 MonthsEndedJune
30, |
|
2022 |
|
2021 |
|
2022 |
|
|
|
|
|
|
Revenues |
|
|
|
|
|
Revenues from third parties, net |
$ |
213,586 |
|
|
$ |
420,912 |
|
|
$ |
312,564 |
|
Revenues from related parties, net |
|
45 |
|
|
|
26 |
|
|
|
42 |
|
|
|
213,631 |
|
|
|
420,938 |
|
|
|
312,606 |
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of revenues |
|
136,828 |
|
|
|
204,213 |
|
|
|
176,245 |
|
Research and development |
|
55,749 |
|
|
|
51,399 |
|
|
|
40,355 |
|
General and administrative |
|
8,554 |
|
|
|
9,025 |
|
|
|
6,678 |
|
Sales and marketing |
|
8,555 |
|
|
|
8,057 |
|
|
|
5,566 |
|
Total costs and expenses |
|
209,686 |
|
|
|
272,694 |
|
|
|
228,844 |
|
|
|
|
|
|
|
Operating income |
|
3,945 |
|
|
|
148,244 |
|
|
|
83,762 |
|
|
|
|
|
|
|
Non operating income (loss): |
|
|
|
|
|
Interest income |
|
1,387 |
|
|
|
178 |
|
|
|
1,055 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
(67 |
) |
|
|
43 |
|
|
|
407 |
|
Foreign currency exchange gains, net |
|
1,181 |
|
|
|
226 |
|
|
|
1,672 |
|
Finance costs |
|
(843 |
) |
|
|
(269 |
) |
|
|
(328 |
) |
Share of losses of associates |
|
(164 |
) |
|
|
(282 |
) |
|
|
(202 |
) |
Other income |
|
120 |
|
|
|
89 |
|
|
|
79 |
|
|
|
1,614 |
|
|
|
(15 |
) |
|
|
2,683 |
|
Profit before income taxes |
|
5,559 |
|
|
|
148,229 |
|
|
|
86,445 |
|
Income tax expense (benefit) |
|
(2,449 |
) |
|
|
30,379 |
|
|
|
16,271 |
|
Profit for the period |
|
8,008 |
|
|
|
117,850 |
|
|
|
70,174 |
|
Loss attributable to
noncontrolling interests |
|
311 |
|
|
|
866 |
|
|
|
461 |
|
Profit attributable to
Himax Technologies, Inc. stockholders |
$ |
8,319 |
|
|
$ |
118,716 |
|
|
$ |
70,635 |
|
|
|
|
|
|
|
Basic earnings per ADS
attributable to Himax Technologies, Inc. stockholders |
$ |
0.048 |
|
|
$ |
0.680 |
|
|
$ |
0.404 |
|
Diluted earnings per
ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
0.048 |
|
|
$ |
0.680 |
|
|
$ |
0.404 |
|
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
174,695 |
|
|
|
174,677 |
|
|
|
174,694 |
|
Diluted Weighted Average Outstanding ADS |
|
174,735 |
|
|
|
174,692 |
|
|
|
174,823 |
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Profit or
Loss |
(Amounts in Thousands of U.S. Dollars, Except Share and Per
Share Data) |
|
|
|
Nine MonthsEnded September
30, |
|
2022 |
|
2021 |
|
|
|
|
Revenues |
|
|
|
Revenues from third parties, net |
$ |
938,879 |
|
|
$ |
1,095,152 |
|
Revenues from related parties, net |
|
170 |
|
|
|
50 |
|
|
|
939,049 |
|
|
|
1,095,202 |
|
|
|
|
|
Costs and expenses: |
|
|
|
Cost of revenues |
|
531,994 |
|
|
|
580,600 |
|
Research and development |
|
135,399 |
|
|
|
109,846 |
|
General and administrative |
|
21,852 |
|
|
|
21,195 |
|
Sales and marketing |
|
19,743 |
|
|
|
16,491 |
|
Total costs and expenses |
|
708,988 |
|
|
|
728,132 |
|
|
|
|
|
Operating income |
|
230,061 |
|
|
|
367,070 |
|
|
|
|
|
Non operating income (loss): |
|
|
|
Interest income |
|
2,823 |
|
|
|
593 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
361 |
|
|
|
(11 |
) |
Foreign currency exchange gains, net |
|
5,949 |
|
|
|
222 |
|
Finance costs |
|
(1,451 |
) |
|
|
(789 |
) |
Share of losses of associates |
|
(573 |
) |
|
|
(740 |
) |
Other income |
|
215 |
|
|
|
150 |
|
|
|
7,324 |
|
|
|
(575 |
) |
Profit before income taxes |
|
237,385 |
|
|
|
366,495 |
|
Income tax expense |
|
43,916 |
|
|
|
74,032 |
|
Profit for the period |
|
193,469 |
|
|
|
292,463 |
|
Loss attributable to
noncontrolling interests |
|
1,357 |
|
|
|
2,040 |
|
Profit attributable to
Himax Technologies, Inc. stockholders |
$ |
194,826 |
|
|
$ |
294,503 |
|
|
|
|
|
Basic earnings per ADS
attributable to Himax Technologies, Inc. stockholders |
$ |
1.115 |
|
|
$ |
1.687 |
|
Diluted earnings per
ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
1.115 |
|
|
$ |
1.685 |
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
174,694 |
|
|
|
174,587 |
|
Diluted Weighted Average Outstanding ADS |
|
174,753 |
|
|
|
174,823 |
|
Himax Technologies, Inc.Unaudited Supplemental Financial
Information(Amounts in Thousands of U.S.
Dollars) |
The amount of
share-based compensation included in applicable statements of
profit or loss categories is summarized as follows: |
Three MonthsEnded September
30, |
|
Three MonthsEndedJune
30, |
|
2022 |
|
2021 |
|
2022 |
Share-based compensation |
|
|
|
|
|
Cost of revenues |
$ |
454 |
|
|
$ |
675 |
|
|
$ |
7 |
|
Research and development |
|
13,719 |
|
|
|
17,200 |
|
|
|
501 |
|
General and administrative |
|
1,637 |
|
|
|
2,272 |
|
|
|
159 |
|
Sales and marketing |
|
2,387 |
|
|
|
3,124 |
|
|
|
62 |
|
Income tax benefit |
|
(3,776 |
) |
|
|
(4,773 |
) |
|
|
(126 |
) |
Total |
$ |
14,421 |
|
|
$ |
18,498 |
|
|
$ |
603 |
|
|
|
|
|
|
|
The amount of
acquisition-related charges included in applicable statements of
profit or loss categories is summarized as follows: |
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
charges |
|
|
|
|
|
Research and development |
$ |
250 |
|
|
$ |
275 |
|
|
$ |
277 |
|
Income tax benefit |
|
(57 |
) |
|
|
(64 |
) |
|
|
(65 |
) |
Total |
$ |
193 |
|
|
$ |
211 |
|
|
$ |
212 |
|
|
|
|
|
|
|
The amount of cash
award included in applicable statements of profit or loss
categories is summarized as follows: |
|
|
|
|
|
|
|
|
|
|
|
Cash award |
|
|
|
|
|
Cost of revenues |
$ |
296 |
|
|
$ |
432 |
|
|
$ |
77 |
|
Research and development |
|
6,174 |
|
|
|
810 |
|
|
|
5,067 |
|
General and administrative |
|
665 |
|
|
|
95 |
|
|
|
584 |
|
Sales and marketing |
|
1,361 |
|
|
|
245 |
|
|
|
979 |
|
Income tax benefit |
|
(1,655 |
) |
|
|
(76 |
) |
|
|
(1,393 |
) |
Total |
$ |
6,841 |
|
|
$ |
1,506 |
|
|
$ |
5,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc.Unaudited Supplemental Financial
Information(Amounts in Thousands of U.S.
Dollars) |
The amount of
share-based compensation included in applicable statements of
profit or loss categories is summarized as follows: |
Nine MonthsEnded September
30, |
|
2022 |
|
2021 |
Share-based compensation |
|
|
|
Cost of revenues |
$ |
468 |
|
|
$ |
675 |
|
Research and development |
|
14,687 |
|
|
|
17,200 |
|
General and administrative |
|
1,894 |
|
|
|
2,272 |
|
Sales and marketing |
|
2,488 |
|
|
|
3,124 |
|
Income tax benefit |
|
(4,024 |
) |
|
|
(4,773 |
) |
Total |
$ |
15,513 |
|
|
$ |
18,498 |
|
|
|
|
|
The amount of
acquisition-related charges included in applicable statements of
profit or loss categories is summarized as follows: |
|
|
|
|
|
|
|
Acquisition-related
charges |
|
|
|
Research and development |
$ |
803 |
|
|
$ |
828 |
|
Income tax benefit |
|
(186 |
) |
|
|
(193 |
) |
Total |
$ |
617 |
|
|
$ |
635 |
|
|
|
|
|
The amount of cash award included in applicable statements
of profit or loss categories is summarized as
follows: |
|
|
|
|
|
|
|
Cash award |
|
|
|
Cost of revenues |
$ |
450 |
|
|
$ |
432 |
|
Research and development |
|
16,309 |
|
|
|
810 |
|
General and administrative |
|
1,832 |
|
|
|
95 |
|
Sales and marketing |
|
3,318 |
|
|
|
245 |
|
Income tax benefit |
|
(4,416 |
) |
|
|
(76 |
) |
Total |
$ |
17,493 |
|
|
$ |
1,506 |
|
|
|
|
|
Himax Technologies, Inc. |
IFRS Unaudited Condensed Consolidated Statements of
Financial Position |
(Amounts in Thousands of U.S. Dollars) |
|
|
September 30,2022 |
|
September 30,2021 |
|
June 30,2022 |
Assets |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
219,745 |
|
|
$ |
229,197 |
|
|
$ |
452,902 |
|
Financial assets at amortized cost |
|
8,147 |
|
|
|
17,861 |
|
|
|
8,539 |
|
Financial assets at fair value through profit or loss |
|
- |
|
|
|
3,765 |
|
|
|
192 |
|
Accounts receivable, net (including related parties) |
|
253,284 |
|
|
|
400,897 |
|
|
|
371,033 |
|
Inventories |
|
410,071 |
|
|
|
160,947 |
|
|
|
337,312 |
|
Income taxes receivable |
|
41 |
|
|
|
93 |
|
|
|
39 |
|
Restricted deposit |
|
369,300 |
|
|
|
156,800 |
|
|
|
151,400 |
|
Other receivable from related parties |
|
1,230 |
|
|
|
1,209 |
|
|
|
1,381 |
|
Other current assets |
|
109,734 |
|
|
|
54,530 |
|
|
|
91,744 |
|
Total current assets |
|
1,371,552 |
|
|
|
1,025,299 |
|
|
|
1,414,542 |
|
Financial assets at
fair value through profit or loss |
|
14,466 |
|
|
|
13,943 |
|
|
|
14,037 |
|
Financial assets at
fair value through other comprehensive
income |
|
352 |
|
|
|
422 |
|
|
|
373 |
|
Equity method
investments |
|
3,293 |
|
|
|
3,920 |
|
|
|
3,994 |
|
Property, plant and
equipment, net |
|
127,598 |
|
|
|
133,874 |
|
|
|
128,839 |
|
Deferred tax
assets |
|
6,199 |
|
|
|
7,979 |
|
|
|
6,622 |
|
Goodwill |
|
28,138 |
|
|
|
28,138 |
|
|
|
28,138 |
|
Other intangible
assets, net |
|
5,571 |
|
|
|
7,004 |
|
|
|
5,948 |
|
Restricted
deposit |
|
32 |
|
|
|
36 |
|
|
|
34 |
|
Refundable
deposits |
|
162,924 |
|
|
|
87,001 |
|
|
|
174,779 |
|
Other non-current
assets |
|
10,809 |
|
|
|
20,285 |
|
|
|
13,524 |
|
|
|
359,382 |
|
|
|
302,602 |
|
|
|
376,288 |
|
Total assets |
$ |
1,730,934 |
|
|
$ |
1,327,901 |
|
|
$ |
1,790,830 |
|
Liabilities and
Equity |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Current portion of long-term unsecured borrowings |
$ |
6,000 |
|
|
$ |
6,000 |
|
|
$ |
6,000 |
|
Short-term secured borrowings |
|
369,300 |
|
|
|
151,400 |
|
|
|
151,400 |
|
Accounts payable (including related parties) |
|
191,971 |
|
|
|
226,290 |
|
|
|
243,304 |
|
Income taxes payable |
|
66,517 |
|
|
|
61,217 |
|
|
|
71,112 |
|
Other payable to related parties |
|
2,385 |
|
|
|
3,002 |
|
|
|
2,167 |
|
Contract liabilities-current |
|
34,481 |
|
|
|
19,058 |
|
|
|
36,152 |
|
Other current liabilities |
|
65,943 |
|
|
|
43,625 |
|
|
|
286,606 |
|
Total current liabilities |
|
736,597 |
|
|
|
510,592 |
|
|
|
796,741 |
|
Long-term unsecured
borrowings |
|
42,000 |
|
|
|
48,000 |
|
|
|
43,500 |
|
Deferred tax
liabilities |
|
754 |
|
|
|
947 |
|
|
|
830 |
|
Contract
liabilities-non-current |
|
12,356 |
|
|
|
- |
|
|
|
12,356 |
|
Other non-current
liabilities |
|
90,672 |
|
|
|
37,146 |
|
|
|
96,271 |
|
|
|
145,782 |
|
|
|
86,093 |
|
|
|
152,957 |
|
Total liabilities |
|
882,379 |
|
|
|
596,685 |
|
|
|
949,698 |
|
Equity |
|
|
|
|
|
Ordinary shares |
|
107,010 |
|
|
|
107,010 |
|
|
|
107,010 |
|
Additional paid-in capital |
|
111,404 |
|
|
|
108,108 |
|
|
|
111,370 |
|
Treasury shares |
|
(5,594 |
) |
|
|
(5,761 |
) |
|
|
(5,761 |
) |
Accumulated other comprehensive income |
|
(2,247 |
) |
|
|
(822 |
) |
|
|
(1,453 |
) |
Retained earnings |
|
637,149 |
|
|
|
519,696 |
|
|
|
628,830 |
|
Equity attributable to owners of Himax Technologies,
Inc. |
|
847,722 |
|
|
|
728,231 |
|
|
|
839,996 |
|
Noncontrolling
interests |
|
833 |
|
|
|
2,985 |
|
|
|
1,136 |
|
Total equity |
|
848,555 |
|
|
|
731,216 |
|
|
|
841,132 |
|
Total liabilities and equity |
$ |
1,730,934 |
|
|
$ |
1,327,901 |
|
|
$ |
1,790,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(Amounts in Thousands of U.S. Dollars) |
|
|
Three MonthsEnded September
30, |
|
Three MonthsEndedJune
30, |
|
|
2022 |
|
2021 |
|
2022 |
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Profit for the period |
|
$ |
8,008 |
|
|
$ |
117,850 |
|
|
$ |
70,174 |
|
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
5,359 |
|
|
|
5,292 |
|
|
|
5,411 |
|
Share-based compensation expenses |
|
|
662 |
|
|
|
97 |
|
|
|
729 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
67 |
|
|
|
(43 |
) |
|
|
(407 |
) |
Interest income |
|
|
(1,387 |
) |
|
|
(178 |
) |
|
|
(1,055 |
) |
Finance costs |
|
|
843 |
|
|
|
269 |
|
|
|
328 |
|
Income tax expense (benefit) |
|
|
(2,449 |
) |
|
|
30,379 |
|
|
|
16,271 |
|
Share of losses of associates |
|
|
164 |
|
|
|
282 |
|
|
|
202 |
|
Inventories write downs |
|
|
7,282 |
|
|
|
1,224 |
|
|
|
4,577 |
|
Unrealized foreign currency exchange losses (gains) |
|
|
1,034 |
|
|
|
27 |
|
|
|
(1,988 |
) |
|
|
|
19,583 |
|
|
|
155,199 |
|
|
|
94,242 |
|
Changes in: |
|
|
|
|
|
|
Accounts receivable (including related parties) |
|
|
117,749 |
|
|
|
(71,874 |
) |
|
|
71,217 |
|
Inventories |
|
|
(80,041 |
) |
|
|
(27,928 |
) |
|
|
(88,834 |
) |
Other receivable from related parties |
|
|
152 |
|
|
|
- |
|
|
|
(168 |
) |
Other current assets |
|
|
2,804 |
|
|
|
(455 |
) |
|
|
4,157 |
|
Other non-current assets |
|
|
- |
|
|
|
(19,460 |
) |
|
|
- |
|
Accounts payable (including related parties) |
|
|
(51,323 |
) |
|
|
15,802 |
|
|
|
(12,404 |
) |
Other payable to related parties |
|
|
219 |
|
|
|
198 |
|
|
|
126 |
|
Contract liabilities |
|
|
(1,671 |
) |
|
|
12,491 |
|
|
|
(2,702 |
) |
Other current liabilities |
|
|
(424 |
) |
|
|
1,896 |
|
|
|
1,619 |
|
Other non-current liabilities |
|
|
(4,151 |
) |
|
|
3,651 |
|
|
|
5,805 |
|
Cash generated from operating activities |
|
|
2,897 |
|
|
|
69,520 |
|
|
|
73,058 |
|
Interest received |
|
|
443 |
|
|
|
112 |
|
|
|
1,171 |
|
Interest paid |
|
|
(843 |
) |
|
|
(269 |
) |
|
|
(328 |
) |
Income tax paid |
|
|
(6,171 |
) |
|
|
(8,852 |
) |
|
|
(64,785 |
) |
Net cash provided by (used in) operating
activities |
|
|
(3,674 |
) |
|
|
60,511 |
|
|
|
9,116 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
|
(3,402 |
) |
|
|
(2,128 |
) |
|
|
(2,497 |
) |
Acquisitions of intangible assets |
|
|
- |
|
|
|
(283 |
) |
|
|
(26 |
) |
Acquisitions of financial assets at amortized cost |
|
|
(720 |
) |
|
|
(8,384 |
) |
|
|
(1,134 |
) |
Proceeds from disposal of financial assets at amortized cost |
|
|
660 |
|
|
|
4,009 |
|
|
|
16,157 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
|
(30,179 |
) |
|
|
- |
|
|
|
(27,543 |
) |
Proceeds from disposal of financial assets at fair value through
profit or loss |
|
|
33,188 |
|
|
|
1,339 |
|
|
|
70,316 |
|
Increase in refundable deposits |
|
|
(6,131 |
) |
|
|
(33,007 |
) |
|
|
- |
|
Releases of restricted deposit |
|
|
- |
|
|
|
2,699 |
|
|
|
- |
|
Cash received in advance from disposal of land |
|
|
- |
|
|
|
3,075 |
|
|
|
- |
|
Net cash provided by (used in) investing
activities |
|
|
(6,584 |
) |
|
|
(32,680 |
) |
|
|
55,273 |
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Payments of cash dividends |
|
|
(217,873 |
) |
|
|
(47,404 |
) |
|
|
- |
|
Purchases of subsidiary shares from noncontrolling interests |
|
|
- |
|
|
|
(152 |
) |
|
|
(301 |
) |
Proceeds from long-term unsecured borrowings |
|
|
40,000 |
|
|
|
- |
|
|
|
- |
|
Repayments of long-term unsecured borrowings |
|
|
(41,500 |
) |
|
|
(1,500 |
) |
|
|
(1,500 |
) |
Proceeds from short-term secured borrowings |
|
|
668,700 |
|
|
|
233,200 |
|
|
|
51,400 |
|
Repayments of short-term secured borrowings |
|
|
(450,800 |
) |
|
|
(185,800 |
) |
|
|
(51,400 |
) |
Pledge of restricted deposit |
|
|
(217,900 |
) |
|
|
(47,400 |
) |
|
|
- |
|
Payment of lease liabilities |
|
|
(601 |
) |
|
|
(1,225 |
) |
|
|
(1,206 |
) |
Guarantee deposits received (refunded) |
|
|
(882 |
) |
|
|
- |
|
|
|
14,181 |
|
Proceeds from exercise of employee stock options |
|
|
- |
|
|
|
30 |
|
|
|
- |
|
Net cash provided by (used in) financing
activities |
|
|
(220,856 |
) |
|
|
(50,251 |
) |
|
|
11,174 |
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents |
|
|
(2,043 |
) |
|
|
(108 |
) |
|
|
(674 |
) |
Net increase
(decrease) in cash and cash equivalents |
|
|
(233,157 |
) |
|
|
(22,528 |
) |
|
|
74,889 |
|
Cash and cash
equivalents at beginning of period |
|
|
452,902 |
|
|
|
251,725 |
|
|
|
378,013 |
|
Cash and cash
equivalents at end of period |
|
$ |
219,745 |
|
|
$ |
229,197 |
|
|
$ |
452,902 |
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(Amounts in Thousands of U.S. Dollars) |
|
Nine MonthsEnded September
30, |
|
2022 |
|
2021 |
|
|
|
|
Cash flows from
operating activities: |
|
|
|
Profit for the period |
$ |
193,469 |
|
|
$ |
292,463 |
|
Adjustments for: |
|
|
|
Depreciation and amortization |
|
16,146 |
|
|
|
16,013 |
|
Share-based compensation expenses |
|
2,002 |
|
|
|
97 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
(361 |
) |
|
|
11 |
|
Interest income |
|
(2,823 |
) |
|
|
(593 |
) |
Finance costs |
|
1,451 |
|
|
|
789 |
|
Income tax expense |
|
43,916 |
|
|
|
74,032 |
|
Share of losses of associates |
|
573 |
|
|
|
740 |
|
Inventories write downs |
|
13,107 |
|
|
|
5,345 |
|
Unrealized foreign currency exchange gains |
|
(3,586 |
) |
|
|
(154 |
) |
|
|
263,894 |
|
|
|
388,743 |
|
Changes in: |
|
|
|
Accounts receivable (including related parties) |
|
156,927 |
|
|
|
(157,271 |
) |
Inventories |
|
(224,578 |
) |
|
|
(57,585 |
) |
Other receivable from related parties |
|
(13 |
) |
|
|
(9 |
) |
Other current assets |
|
7,426 |
|
|
|
(5,550 |
) |
Other non-current assets |
|
- |
|
|
|
(19,460 |
) |
Accounts payable (including related parties) |
|
(56,444 |
) |
|
|
52,819 |
|
Other payable to related parties |
|
745 |
|
|
|
430 |
|
Contract liabilities |
|
(1,047 |
) |
|
|
12,436 |
|
Other current liabilities |
|
(214 |
) |
|
|
2,210 |
|
Other non-current liabilities |
|
1,657 |
|
|
|
9,144 |
|
Cash generated from operating activities |
|
148,353 |
|
|
|
225,907 |
|
Interest received |
|
1,729 |
|
|
|
519 |
|
Interest paid |
|
(1,451 |
) |
|
|
(799 |
) |
Income tax paid |
|
(71,189 |
) |
|
|
(19,599 |
) |
Net cash provided by operating activities |
|
77,442 |
|
|
|
206,028 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Acquisitions of property, plant and equipment |
|
(9,485 |
) |
|
|
(5,542 |
) |
Acquisitions of intangible assets |
|
(169 |
) |
|
|
(427 |
) |
Acquisitions of financial assets at amortized cost |
|
(7,979 |
) |
|
|
(15,021 |
) |
Proceeds from disposal of financial assets at amortized cost |
|
24,982 |
|
|
|
5,711 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
(103,293 |
) |
|
|
(16,553 |
) |
Proceeds from disposal of financial assets at fair value through
profit or loss |
|
105,201 |
|
|
|
20,883 |
|
Proceeds from capital reduction of investment |
|
- |
|
|
|
151 |
|
Acquisitions of equity method investments |
|
- |
|
|
|
(598 |
) |
Increase in refundable deposits |
|
(6,131 |
) |
|
|
(93,767 |
) |
Releases (pledges) of restricted deposit |
|
2,700 |
|
|
|
(5,295 |
) |
Cash received in advance from disposal of land |
|
- |
|
|
|
3,075 |
|
Net cash provided by (used in) investing
activities |
|
5,826 |
|
|
|
(107,383 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Payments of cash dividends |
|
(217,873 |
) |
|
|
(47,424 |
) |
Purchases of subsidiary shares from noncontrolling interests |
|
(301 |
) |
|
|
(152 |
) |
Proceeds from short-term unsecured borrowings |
|
- |
|
|
|
10,000 |
|
Repayments of short-term unsecured borrowings |
|
- |
|
|
|
(10,000 |
) |
Proceeds from long-term unsecured borrowings |
|
40,000 |
|
|
|
- |
|
Repayments of long-term unsecured borrowings |
|
(44,500 |
) |
|
|
(4,500 |
) |
Proceeds from short-term secured borrowings |
|
854,500 |
|
|
|
390,200 |
|
Repayments of short-term secured borrowings |
|
(636,600 |
) |
|
|
(342,800 |
) |
Pledge of restricted deposit |
|
(217,900 |
) |
|
|
(47,400 |
) |
Payment of lease liabilities |
|
(3,036 |
) |
|
|
(3,431 |
) |
Guarantee deposits received |
|
28,913 |
|
|
|
- |
|
Proceeds from exercise of employee stock options |
|
- |
|
|
|
1,182 |
|
Net cash used in financing activities |
|
(196,797 |
) |
|
|
(54,325 |
) |
Effect of foreign
currency exchange rate changes on cash and cash
equivalents |
|
(2,750 |
) |
|
|
(61 |
) |
Net increase
(decrease) in cash and cash equivalents |
|
(116,279 |
) |
|
|
44,259 |
|
Cash and cash
equivalents at beginning of period |
|
336,024 |
|
|
|
184,938 |
|
Cash and cash
equivalents at end of period |
$ |
219,745 |
|
|
$ |
229,197 |
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Non-IFRS Unaudited Supplemental Data – Reconciliation
Schedule |
(Amounts in Thousands of U.S. Dollars) |
|
Gross
Margin, Operating Margin and Net Margin Excluding Share-Based
Compensation, Acquisition-Related Charges and Cash
Award: |
|
Three MonthsEnded September
30, |
|
Three MonthsEndedJune
30, |
|
2022 |
|
2021 |
|
2022 |
Revenues |
$ |
213,631 |
|
|
$ |
420,938 |
|
|
$ |
312,606 |
|
Gross profit |
|
76,803 |
|
|
|
216,725 |
|
|
|
136,361 |
|
Add: Share-based compensation
– cost of revenues |
|
454 |
|
|
|
675 |
|
|
|
7 |
|
Add: Cash award – cost of
revenues |
|
296 |
|
|
|
432 |
|
|
|
77 |
|
Gross profit excluding
share-based compensation and cash award |
|
77,553 |
|
|
|
217,832 |
|
|
|
136,445 |
|
Gross margin excluding share-based compensation and cash award |
|
36.3 |
% |
|
|
51.7 |
% |
|
|
43.6 |
% |
Operating income |
|
3,945 |
|
|
|
148,244 |
|
|
|
83,762 |
|
Add: Share-based
compensation |
|
18,197 |
|
|
|
23,271 |
|
|
|
729 |
|
Add: Acquisition-related
charges –intangible assets amortization |
|
250 |
|
|
|
275 |
|
|
|
277 |
|
Add: Cash award |
|
8,496 |
|
|
|
1,582 |
|
|
|
6,707 |
|
Operating income excluding
share-based compensation, acquisition-related charges and cash
award |
|
30,888 |
|
|
|
173,372 |
|
|
|
91,475 |
|
Operating margin excluding
share-based compensation, acquisition-related charges and cash
award |
|
14.5 |
% |
|
|
41.2 |
% |
|
|
29.3 |
% |
Profit attributable to Himax
Technologies, Inc. stockholders |
|
8,319 |
|
|
|
118,716 |
|
|
|
70,635 |
|
Add: Share-based compensation,
net of tax |
|
14,421 |
|
|
|
18,498 |
|
|
|
603 |
|
Add: Acquisition-related
charges, net of tax |
|
193 |
|
|
|
211 |
|
|
|
212 |
|
Add: Cash award, net of
tax |
|
6,841 |
|
|
|
1,506 |
|
|
|
5,314 |
|
Profit attributable to Himax
Technologies, Inc. stockholders excluding share-based compensation,
acquisition-related charges and cash award |
|
29,774 |
|
|
|
138,931 |
|
|
|
76,764 |
|
Net margin attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation, acquisition-related charges and cash award |
|
13.9 |
% |
|
|
33.0 |
% |
|
|
24.6 |
% |
|
|
|
|
|
|
*Gross margin
excluding share-based compensation and cash award equals gross
profit excluding share-based compensation and cash award divided by
revenues |
*Operating margin excluding share-based compensation,
acquisition-related charges and cash award equals operating income
excluding share-based compensation, acquisition-related charges and
cash award divided by revenues |
*Net margin attributable to Himax Technologies, Inc. stockholders
excluding share-based compensation, acquisition-related charges and
cash award equals profit attributable to Himax Technologies, Inc.
stockholders excluding share-based compensation,
acquisition-related charges and cash award divided by revenues |
Himax Technologies, Inc. |
|
Non-IFRS Unaudited Supplemental Data – Reconciliation
Schedule |
|
(Amounts in Thousands of U.S. Dollars) |
|
|
|
Gross
Margin, Operating Margin and Net Margin Excluding Share-Based
Compensation, Acquisition-Related Charges and Cash
Award: |
|
|
Nine MonthsEnded September
30, |
|
2022 |
|
2021 |
Revenues |
$ |
939,049 |
|
|
$ |
1,095,202 |
|
Gross profit |
|
407,055 |
|
|
|
514,602 |
|
Add: Share-based compensation
– cost of revenues |
|
468 |
|
|
|
675 |
|
Add: Cash award – cost of
revenues |
|
450 |
|
|
|
432 |
|
Gross profit excluding share-based compensation and cash award |
|
407,973 |
|
|
|
515,709 |
|
Gross margin excluding share-based compensation and cash award |
|
43.4 |
% |
|
|
47.1 |
% |
Operating income |
|
230,061 |
|
|
|
367,070 |
|
Add: Share-based
compensation |
|
19,537 |
|
|
|
23,271 |
|
Add: Acquisition-related
charges –intangible assets amortization |
|
803 |
|
|
|
828 |
|
Add: Cash award |
|
21,909 |
|
|
|
1,582 |
|
Operating income excluding
share-based compensation, acquisition-related charges and cash
award |
|
272,310 |
|
|
|
392,751 |
|
Operating margin excluding
share-based compensation, acquisition-related charges and cash
award |
|
29.0 |
% |
|
|
35.9 |
% |
Profit attributable to Himax
Technologies, Inc. stockholders |
|
194,826 |
|
|
|
294,503 |
|
Add: Share-based compensation,
net of tax |
|
15,513 |
|
|
|
18,498 |
|
Add: Acquisition-related
charges, net of tax |
|
617 |
|
|
|
635 |
|
Add: Cash award, net of
tax |
|
17,493 |
|
|
|
1,506 |
|
Profit attributable to Himax
Technologies, Inc. stockholders excluding share-based compensation,
acquisition-related charges and cash award |
|
228,449 |
|
|
|
315,142 |
|
Net margin attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation, acquisition-related charges and cash award |
|
24.3 |
% |
|
|
28.8 |
% |
|
|
|
|
*Gross margin
excluding share-based compensation and cash award equals gross
profit excluding share-based compensation and cash award divided by
revenues |
|
*Operating margin excluding share-based compensation,
acquisition-related charges and cash award equals operating income
excluding share-based compensation, acquisition-related charges and
cash award divided by revenues |
|
*Net margin attributable to Himax Technologies, Inc. stockholders
excluding share-based compensation, acquisition-related charges and
cash award equals profit attributable to Himax Technologies, Inc.
stockholders excluding share-based compensation,
acquisition-related charges and cash award divided by revenues |
|
Diluted
Earnings Per ADS Attributable to Himax Technologies, Inc.
Stockholders Excluding Share-based Compensation,
Acquisition-Related Charges and Cash Award: (Amounts in U.S.
Dollars) |
|
Three MonthsEndedSeptember
30, |
|
Nine MonthsEndedSeptember
30, |
|
2022 |
|
2022 |
Diluted IFRS earnings per ADS attributable to Himax Technologies,
Inc. stockholders |
$ |
0.048 |
|
$ |
1.115 |
Add: Share-based compensation per ADS |
$ |
0.083 |
|
$ |
0.089 |
Add: Acquisition-related charges per ADS |
$ |
0.001 |
|
$ |
0.004 |
Add: Cash award per ADS |
$ |
0.039 |
|
$ |
0.100 |
|
|
|
|
Diluted non-IFRS earnings per
ADS attributable to Himax Technologies, Inc. stockholders excluding
share-based compensation, acquisition-related charges and cash
award |
$ |
0.170 |
|
$ |
1.307 |
Numbers do not add up due to
rounding |
|
|
|
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