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 2024 ended June 30, 2024.
“Given the prevailing macroeconomic uncertainty,
end customers remain conservative causing panel makers to take a
cautious stance and strictly control production to maintain low
inventory levels. This is adversely impacting IC demand, leading to
our conservative third quarter forecast,” said Mr. Jordan Wu,
President and Chief Executive Officer of Himax.
“During the second quarter in the automotive
market, car makers initially anticipated a sales boost due to
promotional activities and government subsidies especially in
China. Consequently, we saw a major uptick in the second quarter IC
sales along with the aggressive discount campaigns of car makers.
However, these intense campaigns did not generate the anticipated
sales growth and may have even triggered consumers to hesitate in
purchasing new cars, leading to disappointing car sales in China
for the second quarter and resulting in excessive inventories
throughout the supply chain. As a result, our panel customers have
begun to scale back their IC procurement in Q3 to manage inventory
levels. In comparison, the automotive markets in Europe and the
U.S. have remained relatively stable since last year, without
experiencing the dramatic fluctuations seen in China. As the leader
of the automotive display ICs, we serve a diverse range of brands
worldwide, with sales evenly distributed across all major markets.
However, since China is the world’s largest automotive market,
commanding over 30% of the global sales, fluctuations in China do
have a substantial impact on our business. Despite the recent
challenges, we remain optimistic about our automotive IC business
and are committed to the long-term innovation and development of
our automotive products. The automotive display market remains on
solid footing with a positive growth trajectory driven by versatile
innovations and technology advancements. Advanced and fancier
displays are increasingly becoming a major selling point for car
makers, driving the automotive display market towards a megatrend
of expanding quantities, sizes, and sophistication,” concluded Mr.
Jordan Wu.
Second Quarter 2024 Financial
Results
Himax net revenues registered $239.6 million, an
increase of 15.5% sequentially, exceeding guidance range of an 8%
to 13% increase. Gross margin came in at 32.0%, in line with
guidance range of 31.5% to 33.5%, up from 29.3% of the previous
quarter and 21.7% same period last year. The sequential growth was
driven by cost improvements and a favorable product mix, along with
increased sales in the automotive IC and Tcon product lines, both
of which have higher than corporate average gross margins. The
substantial improvement in gross margin from the same period last
year was primarily due to the one-time early termination expense
paid to foundry partners which eliminated minimum fulfillment
requirement constraints and high wafer costs set during the severe
industry capacity shortage. Consequently, Himax’s new wafer starts
are no longer bound by these restrictive terms. Additionally, Himax
can now leverage diverse foundry sources for optimal operational
efficiency and a significantly improved cost structure, thereby
maintaining the Company’s product competitiveness. Q2 profit per
diluted ADS was 16.9 cents, at the top end of the guidance range of
13.0 cents to 17.0 cents.
Revenue from large display drivers came in at
$39.0 million, reflecting a sequential increase of 24.7%. The
increase was predominantly driven by customer restocking in TV and
monitor ICs after several quarters of muted demand, as well as
increased orders in preparation for shopping festivals. Both TV and
monitor ICs sales posted substantial double-digit increases quarter
over quarter. In contrast, Q2 notebook IC sales declined slightly
following strong restocking in the previous quarter. Sales of large
panel driver ICs accounted for 16.3% of total revenues for the
quarter, compared to 15.1% last quarter and 19.3% a year ago.
Small and medium-sized display driver revenue reached $158.8
million, marking a sequential increase of 10.1% and surpassing the
guidance due to stronger-than-anticipated sales in the TDDI
products for automotive, smartphone and tablet. In Q2, automotive
driver sales, encompassing both traditional DDIC and TDDI,
increased by a decent high-teens sequentially and more than 50%
year-over-year. Despite expectations of weakening electric vehicle
demand, both automotive DDIC and TDDI sales experienced sequential
growth in Q2 thanks to the Company’s robust design-win pipeline in
TDDI and customers’ continuous restocking momentum in DDIC since
end of Q1. Himax’s automotive business, comprising drivers, Tcon,
and OLED sales, remained the largest revenue contributor in the
second quarter, representing over 47% of total sales. Meanwhile, Q2
tablet IC sales slightly increased sequentially, surpassing
guidance of a decline, fueled by leading customers' new model
ramp-ups. Conversely, smartphone driver sales declined as expected
during a subdued festival season characterized by sluggish demand.
The small and medium-sized driver IC segment accounted for 66.3% of
total sales for the quarter, compared to 69.5% in the previous
quarter and 63.9% a year ago.
Second quarter revenues from its non-driver business reached
$41.8 million, up 30.6% from the previous quarter, due to a
resurgence in orders for its Tcon products for TV, monitor,
automotive as well as OLED tablet. Himax’s automotive local dimming
Tcon, where Himax dominates the market, has been swiftly adopted by
major panel makers, Tier 1 suppliers, and car manufacturers
worldwide, boasting well over one hundred design-win projects with
only a small number of design awards having commenced mass
production. This momentum is further fueled by the rapid expansion
of project awards across continents, positioning Himax for strong
growth, mirroring the success Himax has achieved in automotive
TDDI. Tcon business represented over 10% of its total sales in the
second quarter. Non-driver products accounted for 17.4% of total
revenues, as compared to 15.4% in the previous quarter and 16.8% a
year ago.
Operating expenses for the second quarter were
$47.3 million, a decrease of 6.7% from the previous quarter and a
decline of 11.1% from a year ago. The sequential decrease was
primarily driven by decreases in tape-out expenses. The
year-over-year decrease was primarily due to reduced tape-out
expenses and a decline in the annual bonuses for the amortized
tranches of the previous years’ bonuses. Amid ongoing macroeconomic
challenges, the Company is strictly enforcing budget and expense
controls to manage these conditions.
Q2 operating income was $29.3 million or 12.2%
of sales, compared to -0.9% of sales for the same period last year
and 4.8% of sales last quarter. Both the sequential and
year-over-year increases were primarily due to higher sales and an
improved gross margin. Second-quarter after-tax profit was $29.6
million, or 16.9 cents per diluted ADS, compared to $12.5 million,
or 7.1 cents per diluted ADS last quarter, and $0.9 million, or 0.5
cents in the same period last year. The after-tax profit for the
first half was $42.1 million, or 24.1 cents per diluted ADS, a
significant increase from $15.8 million, or 9.1 cents, for the same
period last year.
Balance Sheet and Cash Flow
Himax had $253.8 million of cash, cash equivalents and other
financial assets at the end of June 2024, compared to $277.4
million a quarter ago and $219.5 million at the same time last
year. The sequential decrease in cash balance was primarily due to
customer refunds for their deposits made during the industry-wide
capacity shortage, along with a strategic investment of
approximately $16 million in FOCI through private placement. The
cash balance reduction was partially offset by an operating cash
inflow of $26.9 million during the quarter. Compared to the
operating cash inflow of $56.7 million in Q1, the sequential
decrease was mainly attributable to reduced sales over the
preceding two quarters, leading to lower receivables. Additionally,
the increase in accounts payable in Q2 was a result of higher Q1
wafer orders, as the Company anticipated larger shipment volumes in
Q2. Other significant operating cash outflows in Q2 included annual
income tax payments. Looking ahead to Q3, Himax anticipates a
decline in cash, cash equivalents, and other financial assets,
primarily due to a payment of $50.7 million for annual dividends to
shareholders. Himax also expects to distribute a total of
approximately $30.7 million for employee bonus awards at the end of
this quarter, which includes around $11.3 million for the
immediately vested portion of this year’s awards, with the actual
amount subject to the final Board decision, and $19.4 million for
vested awards granted over the past three years.
The Company’s inventories as of June 30, 2024
were $203.7 million, similar to $201.9 million last quarter,
indicating a well-managed and balanced inventory level. Accounts
receivable at the end of June 2024 was $242.4 million, up from
$212.3 million last quarter and $239.0 million a year ago. DSO was
99 days at the quarter end, as compared to 93 days last quarter and
90 days a year ago. Second quarter capital expenditures were $4.6
million, versus $2.7 million last quarter and $2.9 million a year
ago. The second quarter capex was mainly for R&D related
equipment and in-house tester for the Company’s IC design
business.
Outstanding Share
As of June 30, 2024, Himax had 174.7 million ADS
outstanding, unchanged from last quarter. On a fully diluted basis,
the total number of ADS outstanding for the second quarter was
175.1 million.
Q3 2024 Outlook
Given the prevailing macroeconomic uncertainty,
end customers remain conservative causing panel makers to take a
cautious stance and strictly control production to maintain low
inventory levels. This is adversely impacting IC demand, leading to
Himax’s conservative third quarter forecast.
During the second quarter in the automotive
market, car makers initially anticipated a sales boost due to
promotional activities and government subsidies especially in
China. Consequently, Himax saw a major uptick in the second quarter
IC sales along with the aggressive discount campaigns of car
makers. However, these intense campaigns did not generate the
anticipated sales growth and may have even triggered consumers to
hesitate in purchasing new cars, leading to disappointing car sales
in China for the second quarter and resulting in excessive
inventories throughout the supply chain. As a result, Himax’s panel
customers have begun to scale back their IC procurement in Q3 to
manage inventory levels. In comparison, the automotive markets in
Europe and the U.S. have remained relatively stable since last
year, without experiencing the dramatic fluctuations seen in China.
As the leader of the automotive display ICs, Himax serves a diverse
range of brands worldwide, with sales evenly distributed across all
major markets. However, since China is the world’s largest
automotive market, commanding over 30% of the global sales,
fluctuations in China do have a substantial impact on its business.
Moving forward, Himax will navigate the current challenging
business environment through close collaborations with panel makers
and Tier 1 suppliers, meticulously managing its wafer starts and
closely monitoring customer demands. The automotive IC business is
Himax’s largest revenue contributor, accounting for over 47% of our
total revenues in Q2, significantly higher than peers.
Despite the recent challenges, Himax remains optimistic about
its automotive IC business and is committed to the long-term
innovation and development of its automotive products. The
automotive display market remains on solid footing with a positive
growth trajectory driven by versatile innovations and technology
advancements. Advanced and fancier displays are increasingly
becoming a major selling point for car makers, driving the
automotive display market towards a megatrend of expanding
quantities, sizes, and sophistication. As the leading player in the
automotive display IC market, Himax is well-positioned to be the
key beneficiary of the trend. Himax commands a 40% global market
share in traditional automotive DDIC and holds an even larger share
in both the automotive TDDI and local dimming Tcon markets. In
addition to offering the most comprehensive range of automotive IC
products for LCD panels, Himax is actively expanding into the
automotive OLED panel market, forming strategic partnerships with
major leading panel makers in Korea, China and Japan to develop
comprehensive solutions encompassing DDIC, Tcon, and touch
controller ICs. This proactive approach positions Himax to navigate
industry shifts and capitalize on the anticipated wide-spread
adoption of OLED displays in the high-end vehicles, further
solidifying its market leadership.
During the quarter, Himax announced two
substantial strategic investments. First, in an effort to
strengthen the long-term partnership with FOCI, Himax, as a
strategic investor, acquired a 5.3% equity stake through private
placement. The partnership integrates Himax’s Wafer Level Optics
(“WLO”) expertise and FOCI's optical fiber know-how to create
innovative, world-leading Linear-drive Pluggable Optics (“LPO”) and
Co-Packaged Optics (“CPO”) solutions for advanced Multi-Chip
Modules (“MCMs”) required for the fast-growing cloud AI and
high-speed computing markets. This collaboration not only
highlights the application versatility of the WLO technology and
Himax’s market leadership but also underscores the significant
potential of Himax’s WLO in advancing LPO/CPO technology, which is
vital for the advancement of cloud AI and high-speed computing.
Separately, Himax invested in the U.S.-based Obsidian Sensors,
whose revolutionary high-resolution thermal imaging sensors meet
the growing demand of thermal imaging across various industries,
including automotive, security, surveillance, drones, and military.
This investment broadens the Company’s portfolio of imaging
sensors, which, when meshed with Himax’s ultralow power WiseEye AI,
enable enhanced sensor fusion possibilities for endpoint AI
applications. The Obsidian investment positions Himax at the
forefront of machine vision AI applications, delivering high
effectiveness particularly in harsh environments and completely
dark scenarios.
As the Company looks ahead, Himax’s focus
remains on enhancing profitability, strengthening operational
resilience, and improving adaptability to the evolving market.
Himax continues to optimize the Company’s cost structure and
reinforce its supplier diversification strategies for foundries as
well as backend packaging and testing. At the same time, Himax
remains committed to stringent expense control, set to further
reduce operating expenses compared to last year. For reference,
Himax achieved a 4% year-over-year reduction in operating expenses
in 2023.
Display Driver IC
Businesses
LDDIC
In Q3 2024, Himax anticipates a double-digit sequential revenue
decrease for large display driver ICs, primarily due to subdued
monitor and TV IC sales, set to decline double digit and single
digit respectively, following substantial order replenishment in
preparation for shopping festivals in the previous quarter.
Procurements from Himax’s leading panel customers have become more
conservative due to sluggish market conditions driven by
worse-than-expected shopping festival sales. However, notebook IC
sales are poised for a decent increase, bolstered by robust order
replenishment from the Company’s leading panel customers.
Looking ahead in the notebook sector, Himax has made a strategic
effort to position the Company to capitalize on the anticipated
rising demands for two new market areas, namely LCD displays
equipped with touch features and OLED displays, both expected to
enjoy decent penetration in premium notebook and the upcoming AI PC
markets. Leveraging Himax’s industry leadership in TDDI solutions
for tablet market, it is working closely with LCD panel customers
in the development of in-cell TDDI and new generation Tcon
solutions for LCD displays. Concurrently, Himax has made
significant strides in OLED technology for notebook in strategic
partnerships with leading panel manufacturers in Korea and China,
developing state-of-the-art touch controllers, DDIC and Tcon
solutions. Some of the projects above, including in-cell TDDI for
mainstream LCD notebooks and Tcon and DDIC for OLED notebooks, are
slated for mass production in the second half of this year with
leading panel customers. The Company is optimistic that the
notebook segment will act as a strong growth catalyst for Himax as
it moves into 2025.
SMDDIC
Q3 SMDDIC revenue is expected to decline low-teens sequentially.
Impacted by customers’ destocking measures, especially for the
Chinese market, automotive revenue in Q3 is expected to decrease
high teens sequentially, following high-teens growth of both DDIC
and TDDI in Q2. That being said, through the first 9 months of the
year, Himax’s automotive driver IC sales are still set to grow
mid-teens year-over-year, driven by continued expansion of TDDI
adoption across all major end customers. Himax has secured over 450
TDDI design-win projects, with only approximately 30% currently in
mass production, indicating significant growth potential going
forward. Meanwhile, a trend is emerging where more customers are
opting for Himax’s TDDI or LTDI, along with its local dimming Tcon,
as their standard development platform for creating new automotive
displays of various sizes. This growing adoption of more of Himax’s
automotive IC offerings also signifies an increase in content value
for Himax on a per-panel basis. Himax is widely recognized as the
leader in the automotive display IC market, offering the industry's
broadest range of products, from traditional DDIC and TDDI to
advanced technologies such as local dimming Tcon, LTDI, and OLED.
Himax is committed to continuously enhancing Himax’s product
portfolio to meet customers diverse and evolving needs. Himax’s
newly introduced TDDI incorporating local dimming Tcon in one chip
exemplifies this commitment to providing customers with more
options, as the new solution is ideal for smaller panels that
usually require only 1 to 2 ICs for cost considerations while still
equipped with advanced touch and local dimming features.
On Q3 smartphone IC sales, the Company expects a decent
double-digit increase sequentially thanks to new product launches
by key customers during the quarter. In contrast to the positive
outlook in smartphone business, Q3 tablet sales are projected to
decline sequentially, as end customers prolong their replacement
cycles in response to challenging economic conditions.
For the automotive OLED market, Himax has formed
strategic alliances with leading panel manufacturers in Korea,
China and Japan. Leveraging Himax’s leadership in automotive LCD
technology and OLED design expertise, these partnerships further
strengthen the Company’s presence in the market. The Company offers
a comprehensive suite of OLED solutions for automotive, including
DDIC, Tcon, and on-cell touch controllers, ensuring complete
coverage of customer requirements. Notably, the Company’s
meticulously engineered OLED on-cell touch controllers set a new
standard, boasting an industry-leading touch signal-to-noise ratio
of over 45 dB, greatly enhancing sensitivity. This allows
automotive displays to maintain proper functionality under
challenging conditions, such as glove-wearing and wet finger
operations. Himax is pleased to share that its OLED on-cell touch
controller for automotive has entered production this quarter. With
additional projects set for mass production soon, the Company
anticipates sales of its OLED on-cell touch controller to further
bolster Company’s revenues starting 2025.
Beyond Himax’s automotive OLED sector, the
Company has made notable advances in the tablet and notebook
sectors with top OLED panel manufacturers in Korea and China.
Himax’s comprehensive OLED product offerings, encompassing DDIC,
Tcon, and touch controllers, have led to several new projects that
are on track to enter mass production later in the year. Regarding
smartphone OLED, the current market drawdown of Himax’s customers
has prompted it to revise Company’s production timeline to next
year. Despite these challenges, Himax is actively collaborating
with customers in Korea and China and have several verification and
partnership projects currently in progress.
Non-Driver Product Categories
Timing Controller (Tcon)
Himax anticipates a double-digit sequential
decline in Q3 Tcon sales as customers pulled forward their
inventory purchases during the prior quarter particularly for
monitor application. However, Himax’s automotive Tcon business is
expected to achieve a decent double-digit growth in Q3, despite the
current headwinds in the automotive market, fueled by the shipment
of new projects from previously secured design-wins. Since only a
small portion of the secured design-wins are currently in mass
production, Himax anticipates significant growth potential for its
automotive Tcon business in the coming years.
While ongoing weak macroeconomic conditions
continue to subdue demand in consumer electronics, some of its
newly developed Tcon ICs for OLED tablets and ePaper displays are
starting to show promising results. In the tablet segment, Himax is
expanding its product lineup and strengthening its position in the
high-value-added OLED market, building on Himax’s early success in
the tablet OLED market. For the rapidly growing ePaper market,
Himax recently made a joint announcement with E Ink, the global
leader in ePaper market, to unveil T2000, a state-of-the-art,
next-generation color ePaper Tcon. ePaper stands out for its energy
efficiency, consuming power only during screen updates. Leveraging
Himax’s decades of expertise in image display processing and Tcon
design, the T2000 Tcon accelerates screen updates for a better
viewing experience while greatly reducing power consumption of the
ePaper display. Additionally, the T2000 features an exclusive
handwriting processing accelerator, enabling seamless, nearly
lag-free handwriting while boosting prompt display responsiveness
on ePaper displays without requiring a SoC. It also enables richer
and more vibrant colors, enhancing the display’s visual appeal
across a broad spectrum of E Ink’s color ePaper platforms. The
collaboration opens new possibilities for color ePaper applications
in eReaders, ePaper, digital signages, and more.
WiseEyeTM
Ultralow Power AI Sensing
Himax’s WiseEye™ Ultralow Power AI Sensing is a
cutting-edge endpoint AI integration solution featuring proprietary
ultralow power AI processors, always-on CMOS image sensors, and
advanced CNN-based AI algorithm. In the fast-changing AI landscape,
WiseEye AI technology stands out for its expertise in on-device
tinyML microcontroller solutions, characterized by remarkably low
power consumption, operating at just single-digit milliwatts,
making it possible to add AI functionalities to battery-powered
endpoint devices. Himax’s WiseEye technology is creating new
opportunities for companies such as DESMAN, China’s leading
high-end smart door lock vendor, who introduced the world’s first
smart door locks with 24/7 sentry monitoring and real-time event
recording with the fancy AI features achieved while still
maintaining over six months of battery operation. Himax’s
collaboration with DESMAN has sparked increased interests from
other door lock vendors across various continents to develop
innovative value-added AI features such as parcel recognition,
smart anti-pinch protection and biometric access. Notably, some of
the Company’s customers are currently evaluating its newly
introduced WiseEye PalmVein solution which offers effortless,
keyless and highly secure biometric access for entry control.
WiseEye PalmVein is part of Himax’s WiseEye AI
module business, integrating Himax WiseEye2 AI processor, AoS CMOS
sensor, and the Company’s proprietary palm vein authentication
algorithm. Himax sees growing traction and extensive engineering
activities for this contactless biometric authentication solution
that can authenticate an individual's identity in under 100
milliseconds while consuming just a few milliwatts of power. This
represents a significant breakthrough in security technology by
enabling biometric authentication in battery-powered devices. With
outstanding accuracy and robust liveness check capabilities, palm
vein authentication significantly reduces the risk of duplication
or spoofing compared to conventional fingerprint or face
recognition, making it an ideal choice for indoor security, login
authentication, and other access control applications. WiseEye
PalmVein upholds robust security standards while offering
best-in-class power efficiency, making it the only solution
suitable for battery-powered devices. Himax is collaborating with
vendors across various sectors globally, including door lock,
access control, notebook and automotive. While just launched at the
beginning of the year, WiseEye PalmVein has already been
successfully adopted by a U.S. customer for smart security and is
set to commence mass production starting the end of this year. The
Company believes WiseEye PalmVein will profoundly impact the
security industry and unlock new opportunities for battery-powered
devices across various use cases.
To broaden WiseEye AI’s market reach and shorten
customer development cycles, Himax also provides seamlessly
integrated plug-and-play WiseEye Modules and no-code/low-code AI
development platforms, featuring diverse context-aware AI
algorithms that customers can reprogram or fine-tune with minimal
effort for real-world use cases. Himax’s recent announcement with
NVIDIA TAO exemplifies this approach whereby its WiseEye Module
customers targeting AI deployment on resource-constrained endpoint
devices can easily optimize and quantize deep learning models with
pretrained enterprise-ready AI models and tools offered by NVIDIA.
This facilitates rapid democratization of endpoint AI applications
using cost-effective, production-ready AI modules for various use
cases.
Additionally, in response to growing AI-driven
demand towards machine-vision across various environments, Himax
recently made a strategic investment in Obsidian Sensors, a San
Diego-based company renowned for its revolutionary,
high-resolution, low-cost thermal sensors, offering unmatched
versatility by detecting heat differences even in complete
darkness, measuring temperature, and identifying distant objects.
This investment expands Himax’s image sensor portfolio beyond
optical sensors to include thermal sensors, a valuable complement
to Himax’s product suite which is now widened to cover harsh
sensing conditions such as heavy fog or complete darkness.
Moreover, this strategic investment promises synergy of the two
companies with Himax’s WiseEye AI aggregating data from both
optical and thermal imaging sensors for a truly holistic view of
the environment beyond human vision. In addition, Himax is engaged
in ongoing engineering collaborations that leverage Himax’s IC
design resources and know-how. Himax believes by integrating the
strength of Himax and Obsidian, the Company can seize new
opportunities in the expanding sensor and AI markets across
industrial, defense, security, consumer electronics, and automotive
sectors. As an illustration, the U.S. National Highway Traffic
Safety Administration (NHTSA) issued a new rule in April 2024,
mandating that Automatic Emergency Braking (AEB), including
Pedestrian AEB (PAEB), be implemented starting in 2029. This
regulation aims to significantly reduce rear-end and pedestrian
crashes. Similar rules are increasingly being mandated by
regulatory authorities worldwide. The novel ADAS (Advanced Driver
Assistance Systems) and AEB system, integrated with Obsidian’s
thermal sensors, provides clear vision in low-light and adverse
weather conditions such as fog, smoke, rain, and snow. This ensures
better driving safety and security, underscoring the trend and
significant potential demand for thermal imaging sensors.
Wafer Level Optics (WLO)
During the second quarter, Himax made a
strategic investment in FOCI, a Taiwan-based global leader for
silicon photonics connector, through a $16 million private
placement, resulting in a 5.3% equity stake. This collaboration
highlights the immense potential of Himax’s WLO technology for
LPO/CPO which are crucial for further advancing high-speed AI and
HPC technologies. Company’s partnership integrates FOCI's
proprietary LPO/CPO connector technology with Himax's nano-scale
Wafer Level Optics know-how to create an industry-leading optical
transmission solution catered for the most advanced multi-chip
modules, which demand enhanced bandwidth, improved data rate,
minimized signal loss, reduced latency, and lower energy
consumption, all for accommodating future-generation needs of
Generative AI and HPC. Currently, in close collaboration with world
leading AI semiconductor players and foundry partner, Himax is
working closely with FOCI on LPO/CPO development for products that
meet customers’ near-term production goals.
LPO/CPO technology is crucial for furthering
Generative AI and HPC and will continue to evolve rapidly to meet
the explosive demand in these areas. Himax is committed to
advancing the technology with FOCI, ensuring solutions stay at the
cutting edge and align with the multi-year roadmaps of roadmaps of
Himax’s AI chip and foundry partners/customers. The Company
believes this will generate new, long-lasting revenue streams for
Himax.
As FOCI is a company listed on the Taipei
Exchange (TPEx), the stock price and resulting “fair value”
reflected on Himax’s books change each day. These fluctuations have
been, and will continue to be, recognized by way of changes in
owners’ equity as a balance sheet item, not affecting Himax’s
profit and loss. As an illustration, based on the close of FOCI’s
stock price as of the end of June 2024, Himax made a “gain” of $9.6
million on Himax’s $16 million FOCI investment. However, the said
“gain” was not recorded as an investment profit in the Company’s Q2
financial statements and instead was booked as an increase in
owners’ equity. Likewise, upon disposal, the resulting investment
gain or loss will also be recognized as a change of equity, through
retained earnings, thus not affecting the Company’s profit and loss
at the time of the disposal either. The accounting method the
Company choses reflects Himax’s long-term commitment to the FOCI
investment.
With over a decade of experience in WLO, Himax
has developed diverse designs across a broad spectrum, including 3D
sensing, AR/VR devices, biomedical inspection, and optical
communication, just to name a few. These technologies have been
widely adopted by some of the world's most prominent tech
companies, with cumulative shipments reaching more than 600 million
units. Himax anticipates WLO playing an even more decisive role in
the next-generation optical technology landscape, thanks to its
versatile, high-precision, lightweight and small form factor
characteristics that are not feasible with alternative
technologies. In addition to the progress made in LPO/CPO, Himax is
seeing an increase in engineering projects with globally recognized
leaders who are leveraging Himax’s WLO expertise for their upcoming
AR/VR devices, underscoring the widespread recognition of the
Company’s technology.
For non-driver IC businesses, Himax expects
revenue to decline high teens sequentially in the third
quarter.
Third Quarter 2024 Guidance |
Net Revenue: |
Decrease 12.0% to 17.0% sequentially |
Gross Margin: |
Around 30%, depending on final product mix |
Profit: |
1.5 cents to 4.5 cents per diluted ADS |
|
As the Company done historically, Himax will grant employees’
annual bonus, including RSUs and cash awards, on or around
September 30 this year. The third quarter guidance for profit per
diluted ADS has taken into account the expected 2024 annual bonus,
which, subject to Board approval, is now assumed to be around $12.5
million, out of which $11.3 million will be vested and expensed
immediately on the grant date. As a reminder, the total annual
bonus amount and the immediately vested portion are Himax’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 2024 to lead to higher third quarter operating expenses compared
to the other quarters of the year. In comparison, the annual bonus
for 2023 and 2022 were $10.4 million and $39.6 million
respectively, of which $9.7 million and $18.5 million vested
immediately.
In providing Himax’s Q3 financial guidance, the Q3 expense
related to employee bonus is estimated to be $14.2 million,
comprised of $11.3 million, the immediately vested portion of this
year’s bonus, and $2.9 million, the amortized portion of the
previous years’ unvested bonuses. For the sake of completeness,
employee bonus expense in each of the last three quarters was also
around $2.9 million.
HIMAX TECHNOLOGIES SECOND QUARTER 2024 EARNINGS CONFERENCE
CALL |
DATE: |
|
Thursday, August 8, 2024 |
TIME: |
U.S. |
8:00 a.m. EDT |
|
Taiwan |
8:00 p.m. |
|
|
|
Live Webcast (Video and Audio):
http://www.zucast.com/webcast/HlPPY5TZ |
Toll Free Dial-in Number (Audio Only): |
|
Hong Kong 2112-1444Taiwan 0080-119-6666Australia
1-800-015-763Canada 1-877-252-8508China (1) 4008-423-888China (2)
4006-786-286Singapore 800-492-2072UK 0800-068-8186United States (1)
1-800-811-0860United States (2) 1-866-212-5567 |
Dial-in Number (Audio Only): |
|
Taiwan Domestic Access 02-3396-1191International Access
+886-2-3396-1191 |
Participant PIN Code: 1134008 # |
|
If you choose to attend the call by dialing in via phone, please
enter the Participant PIN Code 1134008 # after the
call is connected. A replay of the webcast will be available
beginning two hours after the call on www.himax.com.tw. This
webcast can be accessed by clicking on this link or Himax’s
website, where the webcast can be accessed through August 8,
2025
About Himax Technologies, Inc.
Himax Technologies, Inc. (NASDAQ: HIMX) is a leading global
fabless semiconductor solution provider dedicated to display
imaging processing technologies. The Company’s display driver ICs
and timing controllers have been adopted at scale across multiple
industries worldwide including TVs, PC monitors, laptops, mobile
phones, tablets, automotive, ePaper devices, industrial displays,
among others. As the global market share leader in automotive
display technology, the Company offers innovative and comprehensive
automotive IC solutions, including traditional driver ICs, advanced
in-cell Touch and Display Driver Integration (TDDI), local dimming
timing controllers (Local Dimming Tcon), Large Touch and Display
Driver Integration (LTDI) and OLED display technologies. Himax is
also a pioneer in tinyML visual-AI and optical technology related
fields. The Company’s industry-leading WiseEyeTM Ultralow Power AI
Sensing technology which incorporates Himax proprietary ultralow
power AI processor, always-on CMOS image sensor, and CNN-based AI
algorithm has been widely deployed in consumer electronics and AIoT
related applications. While Himax optics technologies, such as
diffractive wafer level optics, LCoS microdisplays and 3D sensing
solutions, are critical for facilitating emerging AR/VR/metaverse
technologies. Additionally, Himax designs and provides touch
controllers, OLED ICs, LED ICs, EPD ICs, power management ICs, and
CMOS image sensors for diverse display application coverage.
Founded in 2001 and headquartered in Tainan, Taiwan, Himax
currently employs around 2,200 people from three Taiwan-based
offices in Tainan, Hsinchu and Taipei and country offices in China,
Korea, Japan, Germany, and the US. Himax has 2,727 patents granted
and 399 patents pending approval worldwide as of June 30, 2024.
http://www.himax.com.tw
Forward Looking Statements
Factors that could cause actual events or results to differ
materially from those described in this conference call include,
but are not limited to, the effect of the Covid-19 pandemic on the
Company’s business; general business and economic conditions and
the state of the semiconductor industry; market acceptance and
competitiveness of the driver and non-driver products developed by
the Company; demand for end-use applications products; reliance on
a small group of principal customers; the uncertainty of continued
success in technological innovations; our ability to develop and
protect our intellectual property; pricing pressures including
declines in average selling prices; changes in customer order
patterns; changes in estimated full-year effective tax rate;
shortage in supply of key components; changes in environmental laws
and regulations; changes in export license regulated by Export
Administration Regulations (EAR); exchange rate fluctuations;
regulatory approvals for further investments in our subsidiaries;
our ability to collect accounts receivable and manage inventory and
other risks described from time to time in the Company's SEC
filings, including those risks identified in the section entitled
"Risk Factors" in its Form 20-F for the year ended December 31,
2023 filed with the SEC, as may be amended.
Company Contacts:
Eric Li, Chief IR/PR OfficerHimax Technologies,
Inc.Tel: +886-6-505-0880Fax: +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 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 June
30, |
|
3 MonthsEndedMarch
31, |
|
2024 |
|
2023 |
|
2024 |
|
|
|
|
|
|
Revenues |
|
|
|
|
|
Revenues from third parties, net |
$ |
239,610 |
|
|
$ |
234,988 |
|
|
$ |
207,544 |
|
Revenues from related parties, net |
|
12 |
|
|
|
43 |
|
|
|
6 |
|
|
|
239,622 |
|
|
|
235,031 |
|
|
|
207,550 |
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of revenues |
|
163,038 |
|
|
|
183,961 |
|
|
|
146,805 |
|
Research and development |
|
36,201 |
|
|
|
41,433 |
|
|
|
39,664 |
|
General and administrative |
|
5,692 |
|
|
|
6,115 |
|
|
|
5,890 |
|
Sales and marketing |
|
5,434 |
|
|
|
5,664 |
|
|
|
5,162 |
|
Total costs and expenses |
|
210,365 |
|
|
|
237,173 |
|
|
|
197,521 |
|
|
|
|
|
|
|
Operating income (loss) |
|
29,257 |
|
|
|
(2,142 |
) |
|
|
10,029 |
|
|
|
|
|
|
|
Non operating income (loss): |
|
|
|
|
|
Interest income |
|
3,044 |
|
|
|
2,648 |
|
|
|
2,524 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
98 |
|
|
|
336 |
|
|
|
(7 |
) |
Foreign currency exchange gains, net |
|
403 |
|
|
|
528 |
|
|
|
941 |
|
Finance costs |
|
(1,014 |
) |
|
|
(1,717 |
) |
|
|
(1,018 |
) |
Share of losses of associates |
|
(107 |
) |
|
|
(175 |
) |
|
|
(221 |
) |
Other income |
|
4 |
|
|
|
4 |
|
|
|
29 |
|
|
|
2,428 |
|
|
|
1,624 |
|
|
|
2,248 |
|
Profit (loss) before income taxes |
|
31,685 |
|
|
|
(518 |
) |
|
|
12,277 |
|
Income tax expense (benefit) |
|
1,978 |
|
|
|
(1,247 |
) |
|
|
- |
|
Profit for the period |
|
29,707 |
|
|
|
729 |
|
|
|
12,277 |
|
Loss (profit)
attributable to noncontrolling interests |
|
(81 |
) |
|
|
159 |
|
|
|
221 |
|
Profit attributable to
Himax Technologies, Inc. stockholders |
$ |
29,626 |
|
|
$ |
888 |
|
|
$ |
12,498 |
|
|
|
|
|
|
|
Basic earnings per ADS
attributable to Himax Technologies, Inc. stockholders |
$ |
0.170 |
|
|
$ |
0.005 |
|
|
$ |
0.072 |
|
Diluted earnings per
ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
0.169 |
|
|
$ |
0.005 |
|
|
$ |
0.071 |
|
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
174,724 |
|
|
|
174,417 |
|
|
|
174,724 |
|
Diluted Weighted Average Outstanding ADS |
|
175,084 |
|
|
|
174,672 |
|
|
|
175,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
2024 |
|
2023 |
|
|
|
|
Revenues |
|
|
|
Revenues from third parties, net |
$ |
447,154 |
|
|
$ |
479,179 |
|
Revenues from related parties, net |
|
18 |
|
|
|
56 |
|
|
|
447,172 |
|
|
|
479,235 |
|
|
|
|
|
Costs and expenses: |
|
|
|
Cost of revenues |
|
309,843 |
|
|
|
359,570 |
|
Research and development |
|
75,865 |
|
|
|
80,860 |
|
General and administrative |
|
11,582 |
|
|
|
12,156 |
|
Sales and marketing |
|
10,596 |
|
|
|
11,208 |
|
Total costs and expenses |
|
407,886 |
|
|
|
463,794 |
|
|
|
|
|
Operating income |
|
39,286 |
|
|
|
15,441 |
|
|
|
|
|
Non operating income (loss): |
|
|
|
Interest income |
|
5,568 |
|
|
|
4,975 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
91 |
|
|
|
377 |
|
Foreign currency exchange gains (losses), net |
|
1,344 |
|
|
|
(7 |
) |
Finance costs |
|
(2,032 |
) |
|
|
(3,458 |
) |
Share of losses of associates |
|
(328 |
) |
|
|
(364 |
) |
Other income |
|
33 |
|
|
|
111 |
|
|
|
4,676 |
|
|
|
1,634 |
|
Profit before income taxes |
|
43,962 |
|
|
|
17,075 |
|
Income tax expense |
|
1,978 |
|
|
|
1,691 |
|
Profit for the period |
|
41,984 |
|
|
|
15,384 |
|
Loss attributable to
noncontrolling interests |
|
140 |
|
|
|
431 |
|
Profit attributable to
Himax Technologies, Inc. stockholders |
$ |
42,124 |
|
|
$ |
15,815 |
|
|
|
|
|
Basic earnings per ADS
attributable to Himax Technologies, Inc. stockholders |
$ |
0.241 |
|
|
$ |
0.091 |
|
Diluted earnings per
ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
0.241 |
|
|
$ |
0.091 |
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
174,724 |
|
|
|
174,417 |
|
Diluted Weighted Average Outstanding ADS |
|
175,056 |
|
|
|
174,653 |
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
IFRS Unaudited Condensed Consolidated Statements of
Financial Position |
(Amounts in Thousands of U.S. Dollars) |
|
|
|
June 30,2024 |
|
June 30,2023 |
|
March 31,2024 |
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
236,676 |
|
|
$ |
211,425 |
|
|
$ |
261,702 |
|
Financial assets at amortized cost |
|
|
11,408 |
|
|
|
8,079 |
|
|
|
14,334 |
|
Financial assets at fair value through profit or loss |
|
|
5,713 |
|
|
|
- |
|
|
|
1,380 |
|
Accounts receivable, net (including related parties) |
|
|
242,376 |
|
|
|
239,039 |
|
|
|
212,326 |
|
Inventories |
|
|
203,691 |
|
|
|
297,268 |
|
|
|
201,872 |
|
Income taxes receivable |
|
|
970 |
|
|
|
28 |
|
|
|
1,003 |
|
Restricted deposit |
|
|
453,000 |
|
|
|
369,300 |
|
|
|
453,000 |
|
Other receivable from related parties |
|
|
55 |
|
|
|
1,171 |
|
|
|
136 |
|
Other current assets |
|
|
54,463 |
|
|
|
109,334 |
|
|
|
60,051 |
|
Total current assets |
|
|
1,208,352 |
|
|
|
1,235,644 |
|
|
|
1,205,804 |
|
Financial assets at
fair value through profit or loss |
|
|
25,697 |
|
|
|
19,094 |
|
|
|
21,635 |
|
Financial assets at
fair value through other comprehensive
income |
|
|
27,974 |
|
|
|
313 |
|
|
|
1,889 |
|
Equity method
investments |
|
|
3,034 |
|
|
|
6,127 |
|
|
|
3,173 |
|
Property, plant and
equipment, net |
|
|
125,900 |
|
|
|
121,674 |
|
|
|
128,938 |
|
Deferred tax
assets |
|
|
13,482 |
|
|
|
11,651 |
|
|
|
10,440 |
|
Goodwill |
|
|
28,138 |
|
|
|
28,138 |
|
|
|
28,138 |
|
Other intangible
assets, net |
|
|
791 |
|
|
|
876 |
|
|
|
851 |
|
Restricted
deposit |
|
|
31 |
|
|
|
32 |
|
|
|
31 |
|
Refundable
deposits |
|
|
221,856 |
|
|
|
205,237 |
|
|
|
221,886 |
|
Other non-current
assets |
|
|
19,611 |
|
|
|
9,371 |
|
|
|
20,728 |
|
|
|
|
466,514 |
|
|
|
402,513 |
|
|
|
437,709 |
|
Total assets |
|
$ |
1,674,866 |
|
|
$ |
1,638,157 |
|
|
$ |
1,643,513 |
|
Liabilities and
Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Short-term unsecured borrowings |
|
$ |
- |
|
|
$ |
289 |
|
|
$ |
- |
|
Current portion of long-term unsecured borrowings |
|
|
6,000 |
|
|
|
6,000 |
|
|
|
6,000 |
|
Short-term secured borrowings |
|
|
453,000 |
|
|
|
369,300 |
|
|
|
453,000 |
|
Accounts payable (including related parties) |
|
|
148,602 |
|
|
|
127,652 |
|
|
|
117,234 |
|
Income taxes payable |
|
|
8,669 |
|
|
|
18,894 |
|
|
|
11,071 |
|
Other payable to related parties |
|
|
102 |
|
|
|
2,266 |
|
|
|
92 |
|
Contract liabilities-current |
|
|
34,266 |
|
|
|
19,913 |
|
|
|
14,739 |
|
Other current liabilities |
|
|
112,831 |
|
|
|
176,379 |
|
|
|
116,558 |
|
Total current liabilities |
|
|
763,470 |
|
|
|
720,693 |
|
|
|
718,694 |
|
Long-term unsecured
borrowings |
|
|
31,500 |
|
|
|
37,500 |
|
|
|
33,000 |
|
Deferred tax
liabilities |
|
|
493 |
|
|
|
682 |
|
|
|
499 |
|
Contract
liabilities-non-current |
|
|
- |
|
|
|
46 |
|
|
|
- |
|
Other non-current
liabilities |
|
|
15,060 |
|
|
|
53,001 |
|
|
|
14,823 |
|
|
|
|
47,053 |
|
|
|
91,229 |
|
|
|
48,322 |
|
Total liabilities |
|
|
810,523 |
|
|
|
811,922 |
|
|
|
767,016 |
|
Equity |
|
|
|
|
|
|
Ordinary shares |
|
|
107,010 |
|
|
|
107,010 |
|
|
|
107,010 |
|
Additional paid-in capital |
|
|
115,336 |
|
|
|
113,761 |
|
|
|
114,982 |
|
Treasury shares |
|
|
(5,157 |
) |
|
|
(5,594 |
) |
|
|
(5,157 |
) |
Accumulated other comprehensive income |
|
|
8,688 |
|
|
|
(617 |
) |
|
|
(94 |
) |
Retained earnings |
|
|
631,573 |
|
|
|
610,841 |
|
|
|
653,007 |
|
Equity attributable to owners of Himax Technologies,
Inc. |
|
|
857,450 |
|
|
|
825,401 |
|
|
|
869,748 |
|
Noncontrolling
interests |
|
|
6,893 |
|
|
|
834 |
|
|
|
6,749 |
|
Total equity |
|
|
864,343 |
|
|
|
826,235 |
|
|
|
876,497 |
|
Total liabilities and equity |
|
$ |
1,674,866 |
|
|
$ |
1,638,157 |
|
|
$ |
1,643,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2024 |
|
2023 |
|
2024 |
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Profit for the period |
|
$ |
29,707 |
|
|
$ |
729 |
|
|
$ |
12,277 |
|
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
5,679 |
|
|
|
5,025 |
|
|
|
5,471 |
|
Share-based compensation expenses |
|
|
379 |
|
|
|
723 |
|
|
|
358 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
(98 |
) |
|
|
(336 |
) |
|
|
7 |
|
Interest income |
|
|
(3,044 |
) |
|
|
(2,648 |
) |
|
|
(2,524 |
) |
Finance costs |
|
|
1,014 |
|
|
|
1,717 |
|
|
|
1,018 |
|
Income tax expense (benefit) |
|
|
1,978 |
|
|
|
(1,247 |
) |
|
|
- |
|
Share of losses of associates |
|
|
107 |
|
|
|
175 |
|
|
|
221 |
|
Inventories write downs |
|
|
2,892 |
|
|
|
5,047 |
|
|
|
4,353 |
|
Unrealized foreign currency exchange losses (gains) |
|
|
628 |
|
|
|
(1,201 |
) |
|
|
(868 |
) |
|
|
|
39,242 |
|
|
|
7,984 |
|
|
|
20,313 |
|
Changes in: |
|
|
|
|
|
|
Accounts receivable (including related parties) |
|
|
(37,688 |
) |
|
|
13,116 |
|
|
|
15,704 |
|
Inventories |
|
|
(4,711 |
) |
|
|
32,920 |
|
|
|
11,083 |
|
Other receivable from related parties |
|
|
81 |
|
|
|
3 |
|
|
|
(67 |
) |
Other current assets |
|
|
(81 |
) |
|
|
(3,318 |
) |
|
|
2,298 |
|
Accounts payable (including related parties) |
|
|
35,172 |
|
|
|
10,207 |
|
|
|
13,202 |
|
Other payable to related parties |
|
|
11 |
|
|
|
(588 |
) |
|
|
(20 |
) |
Contract liabilities |
|
|
(1,820 |
) |
|
|
(13,097 |
) |
|
|
1,192 |
|
Other current liabilities |
|
|
423 |
|
|
|
1,665 |
|
|
|
(7,780 |
) |
Other non-current liabilities |
|
|
509 |
|
|
|
2,351 |
|
|
|
514 |
|
Cash generated from operating activities |
|
|
31,138 |
|
|
|
51,243 |
|
|
|
56,439 |
|
Interest received |
|
|
4,505 |
|
|
|
3,262 |
|
|
|
854 |
|
Interest paid |
|
|
(1,014 |
) |
|
|
(1,717 |
) |
|
|
(936 |
) |
Income tax refunded (paid) |
|
|
(7,680 |
) |
|
|
(51,093 |
) |
|
|
391 |
|
Net cash provided by operating activities |
|
|
26,949 |
|
|
|
1,695 |
|
|
|
56,748 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
|
(4,582 |
) |
|
|
(2,874 |
) |
|
|
(2,699 |
) |
Acquisitions of intangible assets |
|
|
(26 |
) |
|
|
- |
|
|
|
(118 |
) |
Acquisitions of financial assets at amortized cost |
|
|
(5,011 |
) |
|
|
(1,092 |
) |
|
|
(2,439 |
) |
Proceeds from disposal of financial assets at amortized cost |
|
|
8,051 |
|
|
|
1,134 |
|
|
|
500 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
|
(33,774 |
) |
|
|
(33,821 |
) |
|
|
(7,488 |
) |
Proceeds from disposal of financial assets at fair value through
profit or loss |
|
|
25,468 |
|
|
|
52,482 |
|
|
|
8,163 |
|
Acquisitions of financial assets at fair value through other
comprehensive income |
|
|
(17,164 |
) |
|
|
- |
|
|
|
- |
|
Decrease in refundable deposits |
|
|
14 |
|
|
|
1,193 |
|
|
|
22,217 |
|
Net cash provided by (used in) investing
activities |
|
|
(27,024 |
) |
|
|
17,022 |
|
|
|
18,136 |
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Proceeds from issuance of new shares by subsidiary |
|
|
- |
|
|
|
- |
|
|
|
71 |
|
Purchases of subsidiaries shares from noncontrolling interests |
|
|
(190 |
) |
|
|
- |
|
|
|
- |
|
Proceeds from short-term unsecured borrowings |
|
|
- |
|
|
|
10,294 |
|
|
|
- |
|
Repayments of short-term unsecured borrowings |
|
|
- |
|
|
|
(10,000 |
) |
|
|
- |
|
Repayments of long-term unsecured borrowings |
|
|
(1,500 |
) |
|
|
(1,500 |
) |
|
|
(1,500 |
) |
Proceeds from short-term secured borrowings |
|
|
349,200 |
|
|
|
139,200 |
|
|
|
447,100 |
|
Repayments of short-term secured borrowings |
|
|
(349,200 |
) |
|
|
(139,200 |
) |
|
|
(447,100 |
) |
Payment of lease liabilities |
|
|
(1,565 |
) |
|
|
(1,202 |
) |
|
|
(1,148 |
) |
Guarantee deposits received (refunded) |
|
|
(21,514 |
) |
|
|
5 |
|
|
|
(1,868 |
) |
Net cash used in financing activities |
|
|
(24,769 |
) |
|
|
(2,403 |
) |
|
|
(4,445 |
) |
Effect of foreign
currency exchange rate changes on cash and cash
equivalents |
|
|
(182 |
) |
|
|
(1,175 |
) |
|
|
(486 |
) |
Net increase
(decrease) in cash and cash equivalents |
|
|
(25,026 |
) |
|
|
15,139 |
|
|
|
69,953 |
|
Cash and cash
equivalents at beginning of period |
|
|
261,702 |
|
|
|
196,286 |
|
|
|
191,749 |
|
Cash and cash
equivalents at end of period |
|
$ |
236,676 |
|
|
$ |
211,425 |
|
|
$ |
261,702 |
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(Amounts in Thousands of U.S. Dollars) |
|
Six MonthsEnded June 30, |
|
2024 |
|
2023 |
|
|
|
|
Cash flows from
operating activities: |
|
|
|
Profit for the period |
$ |
41,984 |
|
|
$ |
15,384 |
|
Adjustments for: |
|
|
|
Depreciation and amortization |
|
11,150 |
|
|
|
10,113 |
|
Share-based compensation expenses |
|
737 |
|
|
|
1,528 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
(91 |
) |
|
|
(377 |
) |
Interest income |
|
(5,568 |
) |
|
|
(4,975 |
) |
Finance costs |
|
2,032 |
|
|
|
3,458 |
|
Income tax expense |
|
1,978 |
|
|
|
1,691 |
|
Share of losses of associates |
|
328 |
|
|
|
364 |
|
Inventories write downs |
|
7,245 |
|
|
|
10,550 |
|
Unrealized foreign currency exchange gains |
|
(240 |
) |
|
|
(15 |
) |
|
|
59,555 |
|
|
|
37,721 |
|
Changes in: |
|
|
|
Accounts receivable (including related parties) |
|
(21,984 |
) |
|
|
22,109 |
|
Inventories |
|
6,372 |
|
|
|
63,115 |
|
Other receivable from related parties |
|
14 |
|
|
|
53 |
|
Other current assets |
|
2,217 |
|
|
|
(2,338 |
) |
Accounts payable (including related parties) |
|
48,374 |
|
|
|
26,399 |
|
Other payable to related parties |
|
(9 |
) |
|
|
(302 |
) |
Contract liabilities |
|
(628 |
) |
|
|
(33,208 |
) |
Other current liabilities |
|
(7,357 |
) |
|
|
377 |
|
Other non-current liabilities |
|
1,023 |
|
|
|
4,702 |
|
Cash generated from operating activities |
|
87,577 |
|
|
|
118,628 |
|
Interest received |
|
5,359 |
|
|
|
4,717 |
|
Interest paid |
|
(1,950 |
) |
|
|
(3,458 |
) |
Income tax paid |
|
(7,289 |
) |
|
|
(51,831 |
) |
Net cash provided by operating activities |
|
83,697 |
|
|
|
68,056 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Acquisitions of property, plant and equipment |
|
(7,281 |
) |
|
|
(5,707 |
) |
Acquisitions of intangible assets |
|
(144 |
) |
|
|
(11 |
) |
Acquisitions of financial assets at amortized cost |
|
(7,450 |
) |
|
|
(1,663 |
) |
Proceeds from disposal of financial assets at amortized cost |
|
8,551 |
|
|
|
1,675 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
(41,262 |
) |
|
|
(56,043 |
) |
Proceeds from disposal of financial assets at fair value through
profit or loss |
|
33,631 |
|
|
|
52,677 |
|
Acquisitions of financial assets at fair value through other
comprehensive income |
|
(17,164 |
) |
|
|
- |
|
Decrease (increase) in refundable deposits |
|
22,231 |
|
|
|
(63,066 |
) |
Net cash used in investing activities |
|
(8,888 |
) |
|
|
(72,138 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Proceeds from issuance of new shares by subsidiary |
|
71 |
|
|
|
- |
|
Purchases of subsidiaries shares from noncontrolling interests |
|
(190 |
) |
|
|
- |
|
Proceeds from short-term unsecured borrowings |
|
- |
|
|
|
10,294 |
|
Repayments of short-term unsecured borrowings |
|
- |
|
|
|
(10,000 |
) |
Repayments of long-term unsecured borrowings |
|
(3,000 |
) |
|
|
(3,000 |
) |
Proceeds from short-term secured borrowings |
|
796,300 |
|
|
|
425,400 |
|
Repayments of short-term secured borrowings |
|
(796,300 |
) |
|
|
(425,400 |
) |
Payment of lease liabilities |
|
(2,713 |
) |
|
|
(2,381 |
) |
Guarantee deposits received (refunded) |
|
(23,382 |
) |
|
|
5 |
|
Net cash used in financing activities |
|
(29,214 |
) |
|
|
(5,082 |
) |
Effect of foreign
currency exchange rate changes on cash and cash
equivalents |
|
(668 |
) |
|
|
(992 |
) |
Net increase
(decrease) in cash and cash equivalents |
|
44,927 |
|
|
|
(10,156 |
) |
Cash and cash
equivalents at beginning of period |
|
191,749 |
|
|
|
221,581 |
|
Cash and cash
equivalents at end of period |
$ |
236,676 |
|
|
$ |
211,425 |
|
|
|
|
|
|
|
|
|
Himax Technologies (NASDAQ:HIMX)
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