Company Meets Q1
Revenues, Gross Margin and EPS
Guidance
Provides Q2 2014 Guidance Revenues to be
Flat Sequentially, GAAP EPS 13.0 to 15.0 cents
- Net revenues
increased by 10.8% year-over-year to $194.6
million.
- Small and medium-sized panel driver sales and
non-driver sales increased by 21.5% and 44.5% year-over-year
respectively, representing 56.9% and 18.1% of total
revenues in Q1
2014.
- Q1 2014 gross margin reached
24.7% and met guidance for the
quarter.
- Q1 2014 GAAP net income increased to $15.7 million, up
12.0% from Q1 2013. GAAP earnings per diluted ADS was 9.1 cents, up
11.5% from Q1 2013.
- Q1 2014 Non-GAAP net income increased to $16.2 million,
up 8.0% from Q1 2013. Non-GAAP earnings per diluted ADS was 9.4
cents, up 7.6% from Q1 2013.
- Company maintains positive full year 2014 outlook and
expects revenue and earnings growth to continue.
Himax
Technologies, Inc.
(Nasdaq:HIMX) ("Himax" or
"Company"), a leading supplier and fabless manufacturer of
display drivers and other semiconductor products, today announced
financial results for the first quarter ended March 31, 2014.
SUMMARY FINANCIALS
First Quarter 2014
Results Compared to First Quarter 2013 Results (USD in millions)
(unaudited) |
|
|
|
|
|
Q1 2014 |
Q1 2013 |
CHANGE |
Net Revenues |
$194.6 million |
$175.7 million |
+10.8% |
Gross Profit |
$48.0 million |
$43.2 million |
+11.2% |
Gross Margin |
24.7% |
24.6% |
+0.1% |
GAAP Net Income Attributable to
Shareholders |
$15.7 million |
$14.0 million |
+12.0% |
Non-GAAP Net Income Attributable to
Shareholders |
$16.2 million (1) |
$15.0 million (2) |
+8.0% |
GAAP EPS (Per Diluted ADS, USD) |
$0.091 |
$0.082 |
+11.5% |
Non-GAAP EPS (Per Diluted ADS, USD) |
$0.094 (1) |
$0.088 (2) |
+7.6% |
|
(1) Non-GAAP Net income
attributable to common shareholders and EPS excludes $0.3 million
of share-based compensation expenses, net of tax and $0.2 million
non-cash acquisition related charges, net of tax. |
(2) Non-GAAP Net income
attributable to common shareholders and EPS excludes $0.4 million
of share-based compensation expenses, net of tax and $0.6 million
non-cash acquisition related charge, net of tax. |
First Quarter 2014
Results Compared to Fourth Quarter 2013 Results (USD in millions)
(unaudited) |
|
|
|
|
|
Q1 2014 |
Q4 2013 |
CHANGE |
Net Revenues |
$194.6 million |
$195.2 million |
-0.3% |
Gross Profit |
$48.0 million |
$49.0 million |
-2.0% |
Gross Margin |
24.7% |
25.1% |
-0.4% |
GAAP Net Income Attributable to
Shareholders |
$15.7 million |
$ 15.8 million |
-0.7% |
Non-GAAP Net Income Attributable to
Shareholders |
$16.2 million (1) |
$ 16.6 million (2) |
-2.4% |
GAAP EPS (Per Diluted ADS, USD) |
$0.091 |
$0.092 |
-0.7% |
Non-GAAP EPS (Per Diluted ADS, USD) |
$0.094 (1) |
$ 0.097 (2) |
-2.4% |
|
(1) Non-GAAP Net income
attributable to common shareholders and EPS excludes $0.3 million
of share-based compensation expenses, net of tax and $0.2 million
non-cash acquisition related charges, net of tax. |
(2) Non-GAAP Net income
attributable to common shareholders and EPS excludes $0.3 million
of share-based compensation expenses, net of tax and $0.5 million
non-cash acquisition related charges, net of tax. |
"We are pleased to report another quarter of year over year
growth and meeting our guidance for revenues, gross margin and
EPS", stated Mr. Jordan Wu, President and Chief Executive Officer
of Himax. "Of particular note, our performance for the first
quarter of the year was on par sequentially with the last quarter
of 2013 – a good performance considering the Chinese New Year
holidays. Though we see some headwinds during the second quarter
with a certain end-customer's inventory position, we expect this to
clear in the second half of the year. We often times need to
remind investors of the normal volatility in the semi industry to
which we are not immune. We believe the strategies we put in
place years ago to diversify our customer base and product segments
provide us a level of insulation not enjoyed by many of our
competitors. We remain excited about our growth opportunities
in all of our product segments, including our core business segment
in display drivers for large, small and medium-sized panels."
First Quarter 2014
Financial Results Breakdown by Product Line (USD in
millions) (unaudited) |
|
|
Q1
2014 |
% |
Q1
2013 |
% |
%
Change |
Display drivers for large-sized panels |
$ 48.6 |
25.0% |
$ 60.1 |
34.2% |
-19.2% |
Display drivers for small/medium-sized
panels |
$ 110.8 |
56.9% |
$ 91.3 |
51.9% |
21.5% |
Non-driver products |
$ 35.2 |
18.1% |
$ 24.3 |
13.9% |
44.5% |
|
|
|
|
|
|
|
Q1
2014 |
% |
Q4
2013 |
% |
%
Change |
Display drivers for large-sized panels |
$ 48.6 |
25.0% |
$ 46.8 |
24.0% |
3.9% |
Display drivers for small/medium-sized
panels |
$ 110.8 |
56.9% |
$ 113.0 |
57.9% |
-1.9% |
Non-driver products |
$ 35.2 |
18.1% |
$ 35.4 |
18.1% |
-0.8% |
Total revenues of $194.6 million for the first quarter of 2014
represented a 10.8 % increase from the first quarter of 2013 and a
0.3% decrease from the fourth quarter of 2013.
Revenues from large panel display drivers for the first quarter
of 2014 were $48.6 million, down 19.2% from the first quarter of
2013 and up 3.9% from the fourth quarter of 2013, accounting for
25.0% of total revenues for the first quarter of 2014. As
anticipated, the increase was a result of shipments from new and
existing customers and the increasing penetration of 4K TV's.
Sales of small and medium-sized drivers were $110.8 million for
the first quarter of 2014, up 21.5% from the first quarter of 2013
and down 1.9% from the fourth quarter of 2013. It accounted for
56.9% of total revenues for the first quarter of 2014 as compared
to 51.9% a year ago and 57.9% in the previous quarter. It is the
fifth consecutive quarter that the Company's small and medium-sized
driver's sales accounted for over half of total revenues. The
slight sequential decrease was mainly due to the 10 less working
days in China for Chinese New Year along with the increasing
competition in the smartphone market in which the Company has
foreseen last quarter.
Revenues from Himax's non-driver businesses were $35.2 million,
up 44.5% from the same period last year and down 0.8% sequentially.
Non-driver product accounted for 18.1% of total revenues, as
compared to 13.9% a year ago and 18.1% in the previous quarter. Of
the non-driver business segment, the main contributors included the
Company's timing controllers, programmable gamma OP, touch panel
controllers, CMOS image sensors, power management ICs, LED drivers,
LCOS microdisplay and ASIC service.
Gross margins were 24.7% for the three months ended March 31,
2014, down 40 basis points from 25.1% in the previous quarter and
up 10 basis points from 24.6% in the first quarter of 2013. The
Company mentioned in the last earnings call that it anticipated
pricing competition in China's smartphone market. Such competition
has attributed to the slight sequential decrease of the Company's
first quarter gross margin.
First quarter 2014 GAAP operating expenses were $28.9 million,
up 9.4% from a year ago and down 2.4% sequentially. Operating
expenses increased from the previous year due to higher salary
expenses for additional headcount, annual pay raises and certain
new product tape-outs during the quarter.
GAAP operating income for the first quarter of 2014 was $19.1
million or 9.8% of sales, up 14.0% year over year and down 1.6%
sequentially.
Reported GAAP net income for the first quarter was $15.7
million, or 9.1 cents per diluted ADS, compared to $14.0 million,
or 8.2 cents per diluted ADS, for the same period last year, and
$15.8 million, or 9.2 cents per diluted ADS, in the previous
quarter. GAAP net income grew 12.0% year over year and stay about
flat from the previous quarter. We achieved bottom-line improvement
of $1.7 million year-over-year, thanks to increased revenues from
small and medium-sized driver and non-driver product segments.
Non-GAAP net income in the first quarter was $16.2 million, or
9.4 cents per diluted ADS, representing a growth of 8.0%
year-over-year and a slight decline of 2.4% sequentially. Non-GAAP
EPS per diluted ADS grew 7.6% from the same period last year and
declined 2.4% over the previous quarter.
Balance Sheet and Cash Flow
The Company had $139.7 million of cash, cash equivalents and
marketable securities at the end of March 2014, down from $158.9
million at the same time last year and up from $128.1 million a
quarter ago. On top of the above cash position, restricted cash was
$108.3 million at the end of the quarter. The restricted cash is
mainly used to guarantee the company's short term loan for the same
amount. Himax is debt-free.
Inventories as of March 31, 2014 were $172.3 million, up from
$138.3 million a year ago and down from $177.4 million at December
31, 2013. The lower inventory was a result of increased shipment in
the quarter. The Company expects the inventory level to continue to
decline by the end of the second quarter. Accounts receivable at
the end of March 2014 were $204.5 million as compared to $189.9
million a year ago and $200.7 million last quarter. DSO was 95 days
at end of March, 2014, as compared to 97 days a year ago and 95
days at end of the last quarter.
Net cash inflow from operating activities for the first quarter
was $9.3 million as compared to cash inflow of $29.4 million for
the first quarter of 2013 and cash outflow of $3.1 million for the
fourth quarter of 2013. The decline year over year was mainly due
to higher accounts receivables as a result of higher sales this
quarter. The sequential increase was mainly the reflection of lower
inventory at the end of this quarter.
Capital expenditures were $2.7 million in the first quarter
versus $4.7 million a year ago and $3.9 million last quarter. The
capital expenditure in the first quarter consisted mainly of
purchases of certain equipment for the Company's in-house testers
for R&D, LCOS and MEMS product lines.
Share Buyback Update
As of March 31, 2014, the Company had 170.5 million ADS
equivalents outstanding, unchanged from the last quarter. On a
fully diluted basis, the total number of ADS outstanding is 172.2
million.
May and June 2014 Investor Outreach and
Conferences
Ms. Jackie Chang, CFO, Ms. Stephanie Kuo, IR Manager, and John
Mattio, US-Based IR, will host investor meetings in May and June.
If you are interested in meeting with the Company's senior
executives in a one-on-one session or group session, please contact
Himax's US or Taiwan-based investor relations contact at the
numbers below.
Business Updates
In Himax's large panel, driver IC business, the Company believes
driver ICs for TVs will be the main growth product in this segment
and offsetting any softness of notebooks and monitors ICs. The
reason for the growth in large panel driver IC's for TVs are
attributed to new customers, increased TV sales in China, and 4K
TVs rolling off production lines. Though this remains a competitive
and mature market, the Company believes its innovation enables them
to continue pursuing new technologies and growth opportunities that
will strengthen the Company's large panel driver IC business, which
is the longest standing business segment. The Company remains
positive on the outlook of this segment in 2014 and beyond.
The other segment in the Company's driver business are ICs used
in small and medium-sized panels for applications including
smartphones, tablets and automotive. Though smartphones have, and
will continue to drive sales growth in this segment, the inventory
correction by one of the Company's major Korean end-customers will
result in a decline in the Company's second quarter smartphone IC
sales. Offsetting the customer-specific inventory correction is the
Company's continued growth in the Chinese smartphone market during
the second quarter. The Company sees market momentum in China
carrying strongly into the second half of the year as 4G LTE
adoption and resolution upgrades to HD go mainstream. The Company's
customer base in China is highly diversified and not one
end-customer there is 10% or more of the Company's driver IC sales
for smartphones.
Included in the small and medium-sized panel IC are also drivers
for tablet and automotive displays which have been growing
steadily. Himax believes it is a market leader in the tablet space
particularly in the fastest growing tablet market in the world,
China. The Company also reported new revenues from globally-branded
customers which are new entrants to its customer list for
tablet sales.
For the small and medium-sized driver segment, compared to the
previous quarter, the Company expects revenues to be down for
driver ICs for smartphones, to be flat for tablets and to rise for
automotive. The total small and medium-sized driver segment is
expected to finish the quarter flat to slightly down as a result.
Notwithstanding the short term set back in the second quarter, The
Company is positive on the third quarter prospect and it believe
sales for this segment will rebound strongly from there.
The Company believes that its non-driver product line is a key
differentiator versus many of its competitors. The Company's
expertise in image processing and human interface related
technologies, together with its driver IC products make Himax a
comprehensive solution provider to its customers. The Company
believes its non-driver products including CMOS image sensor, touch
panel controller, power management IC and ASIC service are set to
grow significantly in the second quarter. Himax expects the
business category to grow double-digit in Q2, and the momentum to
continue throughout 2014 and beyond.
The Company's CMOS image sensors delivered strong, sequential
sales growth in the first quarter of approximately
30%. Himax's two and five megapixel CMOS image sensors are
contributors in the segment which includes a customer base of
select international brands and Chinese 'white-box' OEMs.
While volumes of CMOS image sensor shipments have increased,
the Company has reported that most of these shipments were for
higher costs, older generation CMOS image sensors. The sales of
these low margin products given their rather significant amount, is
the key reason why the Company's overall corporate gross margin in
the second quarter looks to stay flat or go slightly down. Without
it, the Company's overall gross margin for the quarter would have
continued to expand. Himax envisions the margins for this category
will increase as newer generation and higher-resolution, such as
the Company's eight megapixel CMOS image sensors, are shipped later
this year. The Company believes this will contribute to
significant sales growth and better gross margin in the second half
of the year.
Additionally, following multi-year design efforts, Himax now has
a competitive CMOS image sensor product line for automotive and
surveillance markets, both large, lucrative and fast-growing
markets. This is a market segment with a high barrier of entry
where special know-how is required. Collectively, the Company
expects the CMOS image sensor business to more than double in
2014.
The Company's touch panel controller product line is set to
triple in revenue sequentially in the second quarter as a result of
increasing shipments to tier-one, branded Asian customers and also
the Chinese white-box market. The Company's rapidly-growing market
share in the traditional touch panel market has provided it a
platform to develop new "in-cell' and "on-cell" touch panel
technologies which has placed us in a very competitive position for
the future. The development of new "in-cell" and "on-cell"
touch panel technologies are led by TFT-LCD makers which Himax's
teams are in close partnerships. Himax expects growth momentum in
touch panel controller to continue throughout the rest of 2014.
The Company is equally bullish on the growth of its ASIC
business. Having been awarded multiple new leading-edge
projects for tier-one international customers in the second
quarter, the Company sees this accomplishment as a validation of
its R&D competitiveness and capabilities. The Company expects
to generate more development fees for projects and expects the ASIC
segment to grow double-digit in the second quarter.
Lastly, Himax believes that it has and will maintain its lead in
the LCOS microdisplay market for some time. The Company strictly
abides by its policy not to release details on design
specifications and customers; however, the Company continues to
work with multiple customers, including top-notch names, on
multiple designs simultaneously and many of which involve
custom-built designs that are funded by customers' development fees
paid to Himax. The Company's LCOS microdisplay business will remain
the most exciting and significant long-term growth area for
Himax.
Second Quarter 2014 Guidance
The Company is providing the following financial guidance for
the second quarter of 2014:
Net Revenues: |
To be flat, as compared to the first quarter
of 2014 |
Gross Margin: |
To be flat to slightly down from the first
quarter of 2014 |
GAAP EPS(1): |
13.0 to 15.0 cents per diluted ADS,
as compared to 11.2 cents of Q2 2013 |
Non GAAP EPS(1) (2): |
13.2 to 15.2 cents per diluted ADS,
as compared to 11.7 cents of Q2 2013 |
|
(1) (2) GAAP and Non-GAAP EPS
includes the one-time benefit from the disposal of a Himax
investment gain of $12.24 million of which approximately
$10.53 million will be booked as income in the Company's second
quarter and accounted for in the Company's guidance for the
quarter. |
(2) Non-GAAP EPS excludes
share-based compensation and acquisition-related charges |
Himax has issued a press release on April 29th stating the
Company disposed of an investment in a US display company, which
was wholly acquired by a third party. The initial investment of
$4.0 million which was made in December 2013, has matured to a
total of $12.24 million one-time investment gain. Per the disposal
agreement, the Company will book $10.53 million in investment
income on the second quarter, and the remaining $1.71 million will
be accounted in or around April 2015. This one-time gain of $10.53
million will contribute to 5.0 cents of GAAP earnings attributable
to shareholders for the second quarter.
As a result of, GAAP earnings attributable to shareholders are
expected to be in the range of 13.0 to 15.0 cents per
diluted ADS based on 172.2 million fully-diluted ADSs. Non-GAAP
earnings attributable to shareholders are expected to be in the
range of 13.2 to 15.2 cents per diluted ADS based on the
same number of ADSs. The disposal of the investment netted 5.0
cents in EPS and has been included in the Company's Q2 2014
guidance.
Conference Call
Himax Technologies, Inc. will hold a conference call with
investors and analysts on Thursday, May 8, 2014 at 8:00 a.m. US
Eastern Daylight Savings Time and 8:00 p.m. Taiwan Time to discuss
the Company's first quarter 2014 financial results.
HIMAX TECHNOLOGIES FIRST QUARTER 2014 EARNINGS
CONFERENCE CALL
DATE: |
Thursday, May 8, 2014 |
TIME: |
U.S. 8:00 a.m. EDT |
|
Taiwan 8:00 p.m. |
DIAL IN: |
U.S. 1-877-407-4018 |
|
INTERNATIONAL:
1-201-689-8471 |
CONFERENCE ID: |
13580554 |
WEBCAST: |
http://public.viavid.com/index.php?id=108764 |
A replay of the call will be available beginning two hours after
the call through midnight May 15, 2014 (1 p.m. May 16, Taiwan time)
on www.himax.com.tw and by telephone at +1-877-870-5176 (US
Domestic) or +1-858-384-5517 (International). The conference ID
number is 13580554. This call is being webcast by ViaVid
Broadcasting and can be accessed by clicking on this
http://public.viavid.com/index.php?id=108764 or at ViaVid's website
at http://www.viavid.com, where the webcast can be accessed through
May 8, 2015.
About Himax Technologies, Inc.
Himax Technologies, Inc. (HIMX) is a fabless semiconductor
solution provider dedicated to display imaging processing
technologies. Himax is a worldwide market leader in display driver
ICs and timing controllers used in TVs, laptops, monitors, mobile
phones, tablets, digital cameras, car navigation, and many other
consumer electronics devices. Additionally, Himax designs and
provides controllers for touch sensor displays, LCOS micro-displays
used in palm-size projectors and head-mounted displays, LED driver
ICs, power management ICs, scaler products for monitors and
projectors, tailor-made video processing IC solutions and silicon
IPs. The company also offers digital camera solutions, including
CMOS image sensors and wafer level optics, which are used in a wide
variety of applications such as mobile phone, tablet, laptop, TV,
PC camera, automobile, security and medical devices. Founded in
2001 and headquartered in Tainan, Taiwan, Himax currently employs
over 1,600 people from three Taiwan-based offices in Tainan,
Hsinchu and Taipei and country offices in China, Korea, Japan and
the US. Himax has 2,287 patents granted and 953 patents pending
approval worldwide as of March 31, 2014. Himax has retained its
position as the leading display imaging processing semiconductor
solution provider to consumer electronics brands worldwide.
http://www.himax.com.tw
Forward Looking Statements
Factors that could cause actual events or results to differ
materially include, but not limited to, general business and
economic conditions and the state of the semiconductor industry;
market acceptance and competitiveness of the driver and non-driver
products developed by the Company; demand for end-use applications
products; reliance on a small group of principal customers; the
uncertainty of continued success in technological innovations; our
ability to develop and protect our intellectual property; pricing
pressures including declines in average selling prices; changes in
customer order patterns; changes in estimated full-year effective
tax rate; shortages in supply of key components; changes in
environmental laws and regulations; exchange rate fluctuations;
regulatory approvals for further investments in our subsidiaries;
our ability to collect accounts receivable and manage inventory and
other risks described from time to time in the Company's SEC
filings, including those risks identified in the section entitled
"Risk Factors" in its Form 20-F for the year ended December 31,
2013 filed with the SEC, as may be amended.
– FINANCIAL TABLES – |
|
Himax Technologies,
Inc. |
Unaudited Condensed
Consolidated Statements of Income |
(These interim
financials do not fully comply with US GAAP because they omit all
interim disclosure required by US GAAP) |
(Amounts in Thousands
of U.S. Dollars, Except Per Share Data) |
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31, |
Three Months Ended
December 31, |
|
2014 |
2013 |
2013 |
Revenues |
|
|
|
Revenues from third parties,
net |
$194,642 |
$131,717 |
$195,232 |
Revenues from related parties,
net |
-- |
44,019 |
-- |
|
194,642 |
175,736 |
195,232 |
|
|
|
|
Costs and expenses: |
|
|
|
Cost of revenues |
146,620 |
132,551 |
146,205 |
Research and development |
20,454 |
18,894 |
19,078 |
General and administrative |
4,270 |
3,929 |
4,938 |
Sales and marketing |
4,195 |
3,611 |
5,605 |
Total costs and
expenses |
175,539 |
158,985 |
175,826 |
|
|
|
|
Operating income |
19,103 |
16,751 |
19,406 |
|
|
|
|
Non operating income
(loss): |
|
|
|
Interest income |
123 |
14 |
153 |
Equity in losses of equity method
investees |
(75) |
(127) |
(32) |
Foreign exchange gains, net |
253 |
198 |
258 |
Interest expense |
(113) |
(80) |
(129) |
Other income (losses), net |
(239) |
14 |
347 |
|
(51) |
19 |
597 |
Earnings before income
taxes |
19,052 |
16,770 |
20,003 |
Income tax expense |
3,620 |
4,192 |
5,627 |
Net income |
15,432 |
12,578 |
14,376 |
Net loss attributable to
noncontrolling interests |
282 |
1,454 |
1,448 |
Net income attributable to Himax
stockholders |
$15,714 |
$14,032 |
$15,824 |
|
|
|
|
Basic earnings per ADS attributable
to Himax stockholders |
$0.092 |
$0.083 |
$0.093 |
Diluted earnings per ADS attributable
to Himax stockholders |
$0.091 |
$0.082 |
$0.092 |
|
|
|
|
Basic Weighted Average
Outstanding ADS |
170,920 |
169,970 |
170,920 |
Diluted Weighted Average
Outstanding ADS |
172,234 |
171,537 |
172,148 |
|
Himax Technologies,
Inc. |
Unaudited Supplemental
Financial Information |
(Amounts in Thousands
of U.S. Dollars) |
|
|
|
|
The amount of share-based
compensation included in applicable statements of income categories
is summarized as follows: |
|
|
|
|
Three
Months Ended March 31, |
Three Months Ended
December 31, |
|
2014 |
2013 |
2013 |
Share-based compensation |
|
|
|
Cost of revenues |
$15 |
$15 |
$15 |
Research and development |
228 |
312 |
234 |
General and administrative |
50 |
56 |
50 |
Sales and marketing |
57 |
73 |
57 |
Income tax benefit |
(83) |
(76) |
(84) |
Total |
$267 |
$380 |
$272 |
|
|
|
|
The amount of acquisition-related
charges included in applicable statements of income categories is
summarized as follows: |
|
|
|
|
|
|
|
Acquisition-related charges |
|
|
|
Research and development |
$268 |
$440 |
$436 |
Sales and marketing |
96 |
289 |
289 |
Income tax benefit |
(125) |
(125) |
(208) |
Total |
$239 |
$604 |
$517 |
|
Himax Technologies,
Inc. |
GAAP Unaudited
Condensed Consolidated Balance Sheets |
(Amounts in Thousands
of U.S. Dollars, Except Per Share Data) |
|
|
|
|
|
March 31, 2014 |
December 31,
2013 |
March 31, 2013 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$138,888 |
$127,320 |
$158,716 |
Restricted cash and cash
equivalents |
108,336 |
108,399 |
74,100 |
Investments in marketable
securities available-for-sale |
784 |
788 |
168 |
Accounts receivable, less
allowance for doubtful accounts, sales returns and discounts |
204,472 |
200,725 |
136,647 |
Accounts receivable from
related parties, less allowance for sales returns and
discounts |
--- |
--- |
53,286 |
Inventories |
172,335 |
177,399 |
138,331 |
Deferred income taxes |
8,965 |
9,974 |
13,662 |
Prepaid expenses and other
current assets |
13,721 |
15,052 |
13,047 |
Total current
assets |
$647,501 |
$639,657 |
$587,957 |
Investment securities |
$16,688 |
$21,877 |
$17,877 |
Equity method
investments |
111 |
190 |
151 |
Property, plant and equipment,
net |
59,063 |
60,588 |
57,580 |
Deferred income taxes |
2,172 |
2,135 |
4,190 |
Goodwill |
28,138 |
28,138 |
28,138 |
Other intangible assets,
net |
4,868 |
5,234 |
7,411 |
Other assets |
1,503 |
1,508 |
1,310 |
|
112,543 |
119,670 |
116,657 |
Total
assets |
$760,044 |
$759,327 |
$704,614 |
Liabilities and Equity |
|
|
|
Current liabilities: |
|
|
|
Short-term debts |
$105,500 |
$105,500 |
$73,000 |
Accounts payable |
139,112 |
151,290 |
149,233 |
Income taxes payable |
19,180 |
16,932 |
11,867 |
Other accrued expenses and
other current liabilities |
25,404 |
30,111 |
25,726 |
Total current
liabilities |
$289,196 |
$303,833 |
$259,826 |
Other liabilities |
2,899 |
3,279 |
3,134 |
Total
liabilities |
$292,095 |
$307,112 |
$262,960 |
|
|
|
|
Redeemable noncontrolling
interest |
$3,656 |
$3,656 |
--- |
Equity |
|
|
|
Himax stockholders'
equity: |
|
|
|
Ordinary shares, US$0.3 par
value, 1,000,000,000 shares authorized; 356,699,482 shares issued
and 341,049,418 shares, 341,049,418 shares, 339,149,508 shares
outstanding at March 31, 2014, December 31, 2013, and March 31,
2013, respectively |
$107,010 |
$107,010 |
$107,010 |
Additional paid-in capital |
106,997 |
106,636 |
104,320 |
Treasury shares, at cost,
15,650,064 shares, 15,650,064 shares and 17,549,974 shares at March
31, 2014, December 31, 2013, and March 31, 2013, respectively |
(11,120) |
(11,120) |
(12,469) |
Accumulated other comprehensive
loss |
(471) |
(412) |
(184) |
Unappropriated retained
earnings |
263,424 |
247,710 |
242,660 |
Himax stockholders'
equity |
$465,840 |
$449,824 |
$441,337 |
Noncontrolling
interests |
(1,547) |
(1,265) |
317 |
Total
equity |
$464,293 |
$448,559 |
$441,654 |
Total liabilities,
redeemable noncontrolling |
$760,044 |
$759,327 |
$704,614 |
|
Himax Technologies,
Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts in Thousands
of U.S. Dollars) |
|
|
|
|
|
Three
Months Ended March 31, |
Three Months Ended
December 31, |
|
2014 |
2013 |
2013 |
|
|
|
|
Cash flows from operating
activities: |
|
|
|
Net income |
$15,432 |
$12,578 |
$14,376 |
Adjustments to reconcile net income to net
cash provided by (used in) operating activities: |
|
|
|
Depreciation and
amortization |
3,619 |
3,155 |
3,843 |
Share-based compensation
expenses |
350 |
456 |
356 |
Loss on disposal of property
and equipment |
--- |
87 |
--- |
Gain on disposal of equity
method investment |
--- |
--- |
(54) |
Loss on disposal of investment
securities |
241 |
--- |
--- |
Loss on disposal of marketable
securities, net |
1 |
2 |
13 |
Valuation gain on financial
liabilities |
--- |
--- |
(160) |
Equity in losses of equity
method investees |
75 |
127 |
32 |
Deferred income tax
expense |
927 |
1,705 |
3,722 |
Inventories write downs |
1,735 |
2,429 |
3,179 |
Changes in operating assets and
liabilities: |
|
|
|
Accounts receivable |
(3,765) |
(900) |
1,503 |
Accounts receivable from
related parties |
--- |
19,970 |
--- |
Inventories |
3,329 |
(24,089) |
(20,964) |
Prepaid expenses and other
current assets |
1,328 |
104 |
(587) |
Accounts payable |
(12,178) |
13,687 |
(11,232) |
Income taxes payable |
2,249 |
2,099 |
(439) |
Other accrued expenses and
other current liabilities |
(4,037) |
(1,961) |
3,028 |
Other liabilities |
(1) |
(55) |
333 |
Net cash provided by
(used in) operating activities |
9,305 |
29,394 |
(3,051) |
|
|
|
|
Cash flows from investing
activities: |
|
|
|
Purchase of property and
equipment |
(2,709) |
(4,714) |
(3,925) |
Purchase of available-for-sale
marketable securities |
(3,311) |
(2,026) |
(6,354) |
Disposal of available-for-sale
marketable securities |
3,305 |
2,024 |
6,344 |
Purchase of investment
securities |
--- |
(5,189) |
(4,000) |
Disposal of investment
securities |
4,948 |
--- |
--- |
Cash decrease resulting from
change in consolidated entity |
--- |
--- |
(4) |
Release of restricted cash
equivalents and marketable securities |
66 |
4 |
24 |
Decrease (increase) in other
assets |
(6) |
16 |
(270) |
Net cash provided by
(used in) investing activities |
2,293 |
(9,885) |
(8,185) |
|
Himax Technologies,
Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts in Thousands
of U.S. Dollars) |
|
|
|
|
|
Three
Months Ended March 31, |
Three Months Ended
December 31, |
|
2014 |
2013 |
2013 |
Cash flows from financing
activities: |
|
|
|
Excess tax benefits from
share-based compensation |
--- |
--- |
1,271 |
Proceeds from issuance of new
shares by subsidiaries |
--- |
390 |
5,071 |
Proceeds from disposal of
subsidiary shares to noncontrolling interests by Himax Imaging,
Inc. |
10 |
78 |
--- |
Purchase of subsidiary shares
from noncontrolling |
--- |
--- |
(896) |
interests |
|
|
|
Release of restricted cash
equivalents (for borrowing of short-term debt) |
--- |
--- |
9,500 |
Proceeds from borrowing of
short-term debts |
86,500 |
73,000 |
19,000 |
Repayment of short-term
debts |
(86,500) |
(73,000) |
(28,500) |
Net cash provided by
financing activities |
10 |
468 |
5,446 |
Effect of foreign currency exchange
rate changes on cash and cash equivalents |
(40) |
2 |
20 |
Net increase (decrease) in cash and
cash equivalents |
11,568 |
19,979 |
(5,770) |
Cash and cash equivalents at
beginning of period |
127,320 |
138,737 |
133,090 |
Cash and cash equivalents at end of
period |
$138,888 |
$158,716 |
$127,320 |
|
|
|
|
Supplemental disclosures of cash flow
information: |
|
|
|
Cash paid during the period
for: |
|
|
|
Interest expense |
$113 |
$80 |
$129 |
Income taxes |
$481 |
$132 |
$58 |
|
Himax Technologies,
Inc. |
Non-GAAP Unaudited
Supplemental Data – Reconciliation Schedule |
(Amounts in Thousands
of U.S. Dollars) |
|
|
|
|
Gross Margin, Operating
Margin and Net Margin Excluding Share-based Compensation and
Acquisition-Related Charges: |
|
|
|
|
|
Three
Months Ended March 31, |
Three Months Ended
December 31, |
|
2014 |
2013 |
2013 |
Revenues |
$194,642 |
$175,736 |
$195,232 |
|
|
|
|
Gross profit |
48,022 |
43,185 |
49,027 |
Add: Share-based compensation – Cost of
revenues |
15 |
15 |
15 |
Gross profit excluding share-based
compensation |
48,037 |
43,200 |
49,042 |
Gross margin excluding share-based
compensation |
24.7% |
24.6% |
25.1% |
|
|
|
|
Operating income |
19,103 |
16,751 |
19,406 |
Add: Share-based compensation |
350 |
456 |
356 |
Operating income excluding share-based
compensation |
19,453 |
17,207 |
19,762 |
Add: Acquisition-related charges –Intangible
assets amortization |
364 |
729 |
725 |
Operating income excluding share-based
compensation and acquisition-related charges |
19,817 |
17,936 |
20,487 |
Operating margin excluding share-based
compensation and acquisition-related charges |
10.2% |
10.2% |
10.5% |
Net income attributable to Himax
stockholders |
15,714 |
14,032 |
15,824 |
Add: Share-based compensation, net of
tax |
267 |
380 |
272 |
Add: Acquisition-related charges, net of
tax |
239 |
604 |
517 |
Net income attributable to Himax stockholders
excluding share-based compensation and acquisition-related
charges |
16,220 |
15,016 |
16,613 |
Net margin attributable to Himax stockholders
excluding share-based compensation and acquisition-related
charges |
8.3% |
8.5% |
8.5% |
*Gross margin excluding
share-based compensation equals gross profit excluding share-based
compensation divided by revenues |
|
|
|
*Operating margin excluding
share-based compensation and acquisition-related charges equals
operating income excluding share-based compensation and
acquisition-related charges divided by revenues |
|
|
|
*Net margin attributable to Himax
stockholders excluding share-based compensation and
acquisition-related charges equals net income attributable to Himax
stockholders excluding share-based compensation and
acquisition-related charges divided by revenues |
|
|
|
|
Diluted Earnings Per ADS
Attributable to Himax stockholders Excluding Share-based
Compensation and Acquisition-Related Charges: |
|
|
|
|
|
Three Months Ended March 31,
2014 |
Diluted GAAP earning per ADS attributable to
Himax stockholders |
$0.091 |
Add: Share-based compensation per ADS |
$0.002 |
Add: Acquisition-related charges per ADS |
$0.001 |
|
|
Diluted non-GAAP earning per ADS attributable
to Himax stockholders excluding share-based compensation and
acquisition-related charges |
$0.094 |
|
|
Numbers do not add up due to rounding |
|
CONTACT: Company Contacts:
Jackie Chang, CFO
Himax Technologies, Inc.
Tel: +886-2-2370-3999 Ext.22300
Or
US Tel: +1-949-585-9838 Ext.252
Fax: +886-2-2314-0877
Email: jackie_chang@himax.com.tw
www.himax.com.tw
Stephanie Kuo, Investor Relations - Based in US
Himax Technologies, Inc.
Tel: +1-949-585-9838 Ext.221
Fax: +1-949-585-9598
Email: stephanie_kuo@himax.com.tw
www.himax.com.tw
Steven Lin, Investor Relations - Based in Taiwan
Himax Technologies, Inc.
Tel: +886-2-2370-3999 Ext.22320
Fax: +886-2-2314-0877
Email: stevenwy_lin@himax.com.tw
www.himax.com.tw
Investor Relations - US Representative
MZ North America
John Mattio, SVP
Tel: +1-212-301-7130
Email: john.mattio@mzgroup.us
www.mzgroup.us
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