Company Meets Q1 Revenue, Gross Margin,
and EPS Guidance
Provides Second Quarter 2015
Guidance Revenue to
Decline 5% to 9% Sequentially, Gross
Margin to Decline about 2% and
GAAP EPS to be 4.0 to
5.0 cents
- Net revenue decreased 8.0% year-over-year to $179.0
million.
- Gross margin for the quarter reached 25.7%, an increase
of 1.0% year-over-year and
sequentially.
- Large-sized panel driver sales increased by 18.4%
year-over-year, representing 32.2% of total
revenue.
- Small and medium-sized panel driver sales decreased by
21.5% year-over-year, representing 48.6% of total
revenue.
- Non-driver sales decreased by 2.2% year-over-year,
representing 19.2% of total revenue.
- First quarter 2015 GAAP net income decreased to $12.6
million, down 20.0% from the first quarter of 2014; GAAP earnings
per diluted ADS was 7.3 cents, down 20.0% from the same period last
year.
- First quarter 2015 Non-GAAP net income decreased to
$13.1 million, down 19.3% from the first quarter of 2014; Non-GAAP
earnings per diluted ADS was 7.6 cents, down 19.3% from the same
period last year.
- Company remains positive on its business outlook for
the second half of 2015.
Himax Technologies, Inc. (Nasdaq:HIMX)
("Himax" or "Company"), a leading supplier and
fabless manufacturer of display drivers and other semiconductor
products, announces financial results for the first quarter ended
March 31, 2015.
SUMMARY FINANCIALS
First Quarter 2015
Results Compared to First Quarter 2014 Results (USD in millions)
(unaudited) |
|
Q1 2015 |
Q1 2014 |
CHANGE |
Net Revenue |
$179.0 million |
$194.6 million |
-8.0% |
Gross Profit |
$46.0 million |
$48.0 million |
-4.1% |
Gross Margin |
25.7% |
24.7% |
+1.0% |
GAAP Net Income Attributable to
Shareholders |
$12.6 million |
$15.7 million |
-20.0% |
Non-GAAP Net Income Attributable to
Shareholders |
$13.1 million (1) |
$16.2 million (2) |
-19.3% |
GAAP EPS (Per Diluted ADS, USD) |
$0.073 |
$0.091 |
-20.0% |
Non-GAAP EPS (Per Diluted ADS, USD) |
$0.076 (1) |
$0.094 (2) |
-19.3% |
|
|
|
|
(1) Non-GAAP Net income
attributable to common shareholders and EPS excludes $0.4 million
of share-based compensation expenses, net of tax and $0.1 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 $0.2 million
non-cash acquisition related charges, net of tax. |
|
|
|
|
First Quarter 2015
Results Compared to Fourth Quarter 2014 Results (USD in millions)
(unaudited) |
|
Q1 2015 |
Q4 2014 |
CHANGE |
Net Revenue |
$179.0 million |
$227.2 million |
-21.2% |
Gross Profit |
$46.0 million |
$56.0 million |
-17.9% |
Gross Margin |
25.7% |
24.7% |
+1.0% |
GAAP Net Income Attributable to
Shareholders |
$12.6 million |
$15.6 million |
-19.6% |
Non-GAAP Net Income Attributable to
Shareholders |
$13.1 million (1) |
$16.1 million (2) |
-18.9% |
GAAP EPS (Per Diluted ADS, USD) |
$0.073 |
$0.091 |
-19.6% |
Non-GAAP EPS (Per Diluted ADS, USD) |
$0.076 (1) |
$0.094 (2) |
-19.0% |
|
|
|
|
(1) Non-GAAP Net income
attributable to common shareholders and EPS excludes $0.4 million
of share-based compensation expenses, net of tax and $0.1 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 $0.1 million
non-cash acquisition related charges, net of tax. |
"We are pleased to report that our 2015 first quarter revenue,
gross margin, GAAP and non-GAAP earnings per diluted ADS all met
our guidance for the quarter," stated Mr. Jordan Wu, President and
Chief Executive Officer of Himax. "As we previously cautioned,
ongoing softness in China's smartphone and tablet markets, which
was worsened by fewer working days due to the timing of Chinese New
Year, dampened our first quarter performance and near term outlook.
Following the soft overall market in the first quarter of 2015, the
semiconductor industry and Himax will likely continue to feel
pressure in the second quarter due to continuous weak demand in the
China smartphone market. As a semiconductor company, we are
subjected to customer forecast fluctuations and changes in market
conditions. We believe this is a normal occurrence in the industry
that should not affect our long-term growth prospects."
Mr. Wu concluded: "Regardless of the near term performance, we
remain committed to our long-term growth strategy. We have
successfully implemented a multi-year plan to diversify our
products and customer base. China panel manufacturers' aggressive
capacity expansion across all panel sizes will also work in our
favor. We also see further catalysts for growth in our CMOS image
sensor, LCOS, and WLO businesses starting in the second half of
this year, and we remain positive on the business outlook during
this period."
First Quarter 2015
Financial Results Breakdown by Product Line (USD in
millions) (unaudited) |
|
Q1 2015 |
% |
Q1 2014 |
% |
% Change |
Display drivers for large-sized panels |
$57.6 |
32.2% |
$48.6 |
25.0% |
+18.4% |
Display drivers for small/medium-sized
panels |
$87.0 |
48.6% |
$110.8 |
56.9% |
-21.5% |
Non-driver products |
$34.4 |
19.2% |
$35.2 |
18.1% |
-2.2% |
Total |
$179.0 |
100.0% |
$194.6 |
100.0% |
-8.0% |
|
|
|
|
|
|
|
Q1 2015 |
% |
Q4 2014 |
% |
% Change |
Display drivers for large-sized panels |
$57.6 |
32.2% |
$65.5 |
28.8% |
-12.1% |
Display drivers for small/medium-sized
panels |
$87.0 |
48.6% |
$114.8 |
50.5% |
-24.2% |
Non-driver products |
$34.4 |
19.2% |
$46.9 |
20.7% |
-26.5% |
Total |
$179.0 |
100.0% |
$227.2 |
100.0% |
-21.2% |
Himax's first quarter revenue of $179.0 million represented an
8.0% decrease from the first quarter of 2014, and a 21.2%
sequential decrease from the fourth quarter of 2014. Revenue from
large panel display drivers was $57.6 million, which is an increase
of 18.4% from the first quarter of 2014, and down 12.1%
sequentially. Large panel driver IC accounted for 32.2% of total
revenue for the first quarter, compared to 25.0% a year ago and
28.8% in the last quarter. The year-over-year increase in large
panel display revenue was a result of market share gain, with the
sequential decrease caused by a slow-down in notebook and monitor
markets, and lower shipments of 4K TVs from the Company's customers
in this business segment. The year-over-year increase in large
panel display revenue was a result of market share gain.
Revenue for small and medium-sized drivers was $87.0 million,
down 21.5% from the same period last year and down 24.2%
sequentially. Driver IC revenue for small and medium-sized
applications accounted for 48.6% of total sales for the first
quarter, as compared to 56.9% a year ago, and 50.5% in the previous
quarter. It is the first quarter that Himax saw substantial
quarter-over-quarter and year-over-year decline in its small and
medium-sized driver sales since the smartphone boom that lifted
this segment in 2011. As the Company has forecasted since the third
quarter of 2014, the small and medium driver IC weakness is
particularly significant in China, and the overall market sentiment
is low. China's smartphone vendors, lacking new government stimulus
programs, have remained cautious as they are forced to try new
sales channels such as e-commerce and direct sales points to
replace the previous approach of selling through telecom operators.
Although these new channels appear to represent a strong growth
engine for the market in the future, they do not yet have the size
to offset the loss in the telecom market. Another factor adding to
current weakness is a significant decline in Chinese exports due to
Chinese smartphone manufacturers' concerns that a strong RMB would
further compress their already thin profit margins.
Revenue from Himax's non-driver businesses were $34.4 million,
down 2.2% from the same period last year and down 26.5%
sequentially. Non-driver products accounted for 19.2% of total
revenue, as compared to 18.1% a year ago, and 20.7% in the previous
quarter. Within the non-driver business segment, the main
contributors included timing controllers, programmable gamma OP,
touch panel controllers, CMOS image sensors, power management ICs,
LCOS microdisplays, and ASIC services. As the Company reported in
the last earnings call, many of the growth engines in its
non-driver business segment were affected by the weakness in the
Chinese market for all panel sizes, particularly in the smartphone
and tablet segments, which resulted in the sequential decline.
Gross margin for the first quarter of 2015 was 25.7%, a 100
basis point increase from the same period last year and from the
previous quarter, both at 24.7%. Gross margin expansion came from
lower revenue percentage of driver ICs used in China smartphones,
yet it only met the low end of Himax's guidance due to continuous
price pressure.
First quarter 2015 GAAP operating expenses were $30.4 million,
up 5.1% from the same period a year ago and down 9.0% from the
previous quarter. Operating expenses increased from the first
quarter of 2014 due to higher expenses for additional headcount to
support new projects and annual salary increases. The
quarter-over-quarter operating expense decline reflected decreases
in R&D expenses and allowances for bad debt.
GAAP operating income for the first quarter of 2015 was $15.6
million or 8.7% of revenue, down 18.1% year-over-year and down
30.9% sequentially. The decline was mainly due to lower sales in
the quarter. Reported GAAP net income was $12.6 million, or 7.3
cents per diluted ADS, compared to $15.7 million, or 9.1 cents per
diluted ADS, for the same period last year, and $15.6 million, or
9.1 cents per diluted ADS, in the previous quarter. GAAP net income
declined 20.0% year-over-year and declined 19.6% from the previous
quarter.
Non-GAAP net income in the first quarter was $13.1 million, or
7.6 cents per diluted ADS, representing a decline of 19.3%
year-over-year and a decline of 18.9% sequentially. Non-GAAP
earnings per diluted ADS declined 19.3% from the same period last
year, and declined 19.0% over the previous quarter.
Balance Sheet and Cash Flow
Himax had $178.8 million of cash, cash equivalents, and
marketable securities at the end of March, 2015, up from $139.7
million during the same time last year, and down from $187.8
million last quarter. In addition to its strong cash position,
Himax's restricted cash was $130.2 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 remains a
debt-free company.
Inventories as of March 31, 2015 were $186.1 million, up from
$172.3 million for the same period last year and up from $166.1
million last quarter. As mentioned in the previous earnings call,
the Company foresaw higher inventory as a move to counter foundry
capacity constraints in 8" wafers, but expected customer restocking
after the Chinese New Year and into the second quarter of 2015. The
overall market weakness has resulted in less shipment in the
quarter and higher inventories. When market demand rebounds, the
Company believes it will be able to decrease these inventory
levels. Accounts receivable at the end of March 2015 were $192.7
million, as compared to $204.5 million for the same period last
year, and $219.4 million last quarter. DSO was 97 days at end of
March 31, 2015, as compared to 95 days the same period a year ago,
and 95 days at end of the last quarter.
Net cash outflow from operating activities for the first quarter
of 2015 was $3.7 million, as compared to cash inflow of $9.3
million for the first quarter of 2014, and cash inflow of $38.7
million last quarter. Both the year-over-year and sequential
declines were mainly due to higher inventory and a decrease in
accounts payable, offset by lower accounts receivable in the
quarter.
Capital expenditures were $1.8 million during the first quarter
of 2015 versus $2.7 million for the same period last year, and $2.4
million last quarter. Among other things, Himax expanded its clean
room facilities for its WLO product line during the quarter.
Share Buyback Update
As of March 31, 2015, Himax had 171.2 million ADSs outstanding,
which is unchanged from the last quarter. On a fully diluted basis,
the total number of ADSs outstanding is 172.2 million.
Fiscal Year 2014 Dividend Declaration
As announced in the press release issued on May 11th, Himax is
pleased to announce that its annual cash dividend will be 30 cents
per ADS in 2015, totaling $51.4 million. The dividends will be paid
out in July. Himax's dividend is determined primarily by the prior
year's profitability. The decision to pay out 77.5% of last year's
net profit demonstrates the Company's continued support for its
shareholder base and confidence in its long-term profitability.
2015 Investor Outreach and Conferences
Ms. Jackie Chang, CFO, Ms. Nadiya Chen and Ms. Penny Lin,
internal IR Managers, and Mr. Adam Holdsworth, Himax's US-Based IR,
will maintain investor marketing activities and attend future
investor conferences in the U.S. If you are interested in speaking
with Management and taking meetings with the Company, please
contact Himax's US or Taiwan-based investor relations contact at
the numbers below.
Business Updates
Following the soft overall market in the first quarter of 2015,
the semiconductor industry and Himax will likely continue to feel
pressure in the second quarter due to continuous weak demand in the
China smartphone market. As a result, the second quarter revenue is
unlikely to enjoy its usual rebound from the first quarter. Thus,
the Company anticipates gross margin will decline during the
quarter. Two additional factors that will impact gross margin
negatively in the second quarter are a slight decline of non-driver
products as a percentage of Himax's total revenue and lower NRE
(Non-Recurring Engineering) income. Himax expects non-driver sales
percentage to rise again in the second half of the year.
In Himax's large panel driver IC business, TV applications will
be the main growth area, partially offsetting the softness of those
for notebooks and monitors. The forces behind growth in TV
applications include market share gains with several of Himax's
customers, sales of 4K TVs tracking better than the first quarter,
and display manufacturing capacity expansion in China. Himax is
confident that its large panel driver IC business will generate
double-digit growth this year.
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. Himax highlighted in its
previous earnings call that the Company will be monitoring
smartphone sell-through in China closely to see if a major rebound
is on the horizon. Unfortunately, its Chinese customers did not see
strong sell-through during the Chinese New Year and Labor Day
holidays, and therefore the Company remains cautious in its
short-term outlook for the smartphone market. As mentioned earlier,
the China market is experiencing sluggish consumer demand in
smartphones due to the lack of government subsidies and unfavorable
macro factors such as the strong RMB that negatively affects
exports. Himax believes these factors will continue to impact small
and medium-sized panel driver ICs longer than the market has
expected. Recent market statistics showed that the number of
smartphone subscribers in China is growing at a slow single digit
pace in 2015, and analysts are predicting flat year-over-year
smartphone shipments in China for 2015.
Himax's smartphone IC business in China also suffered from the
outcome of the recent competitive landscape where its main end
customer base, the traditional leading local and Korean names, has
been outcompeted by others. The Company's second quarter outlook is
also affected, as many of such end customers postponed their new
model launches from the second quarter to the second half of the
year. Regardless of the bearish market sentiment, Himax is working
on three product areas that will fuel the next growth ride. Further
resolution migration to QHD is raising the bar of driver IC design
and display development for the industry. Himax's QHD driver IC
shipment will start by the end of the second quarter and the
company believes this product transition is a promising trend for
the Company with less intensive competition. On top of the expected
resolution migration, Himax is also optimistic about the
contribution from two product areas, namely AMOLED driver IC and
TDDI, which integrates the driver and touch panel controllers into
one. On the AMOLED driver IC front, Himax collaborates closely with
multiple panel customers in Korea and China, some of which are
likely to see meaningful volume starting early next year. AMOLED
drivers require rather different know-how compared to those
for the traditional TFT LCD displays and often need
tailor-made design for each individual panel maker's special
technical requirements. There are few competitors in this
marketplace and Himax is well positioned, having been engaged by
numerous existing and new AMOLED panel makers in their new panel
developments. The progress of TDDI will be addressed later.
For driver ICs used in the tablet market, the tightening of
credit from the Chinese government has resulted in business
closures of some white-box tablet customers, which has resulted in
a decline of three consecutive quarters, and the Company is now
finally seeing this market improving in the second quarter. Himax's
observations remain that the trends in the mainstream tablet market
will be upgraded to 10" and above from the once popular sizes of 7"
to 9" with higher resolutions, which is a favorable trend to the
driver IC demand. However, its contribution to Himax's sales will
not be significant until 2016.
Among driver ICs used in small and medium-sized panels, the
best-performing category in 2015 are for automotive applications.
Himax has successfully engaged key panel manufacturers and module
houses for long-term partnerships. Himax anticipates second quarter
sales to be slightly stronger than the same quarter last year,
although the Company saw a slight decline sequentially versus the
first quarter of 2015. The Company believes this segment will
continue to grow in the second half of 2015. Himax's ICs are well
recognized by numerous tier 1 automobile brands globally, thus they
are well positioned to take advantage of this growing market.
To sum up, compared to the previous quarter, the Company's small
and medium-sized driver segment will decline high single digit in
the quarter sequentially.
On a side note, on the backdrop of soft market demand, Himax is
seeing gross margin pressure in driver ICs used in all panel sizes.
However, the Company remains focused on margin expansion and
continue to work on diversifying its products and customer base to
achieve this.
For the past few years, Himax's non-driver business segment has
been its most exciting growth engine. However, as several main
product areas in this segment share similar end markets with small
and medium panel driver ICs, a temporary setback in the first and
second quarter cannot be avoided this year and the Company is
forecasting for a high single digit decline for the quarter.
However, as new product development evolves, the Company remains
positive on the long-term growth prospect of its non-driver
businesses.
Himax's touch panel controller product line declined
approximately 20% sequentially in the first quarter. It anticipates
the softness to be carried into the second quarter. While the
discrete touch panel market is sluggish, Himax started to see its
on-cell products making its way into several major end customers
with new design-wins on track to start contributing to its top line
in the third quarter. Himax is also excited about its technological
advances and product development progress in the latest pure
in-cell technology, where Himax is one of the pioneers in offering
one-chip solutions integrating driver IC and touch panel
controllers, or TDDI. Driven by top-tier TFT-LCD makers, the
industry is moving towards pure in-cell panels, which is set to
start mass production in the second half of this year. The Company
is in partnership with essentially all of the leading panel
manufacturers in pure in-cell touch for joint technological
development, and feel there is a strong market for these products
ahead.
Himax's CMOS image sensors also experienced a down quarter since
4G smartphone adoption in China remained weak. The lack of
smartphone replacement demand hurt the shipments of Himax's high
end product offerings. The Company is optimistic of the possibility
of securing significant design-wins in the second half of the year
with its 8-megapixel and 13-megapixel sensors.
Regarding Himax's LCOS business, Himax continues to collaborate
with industry heavy weights on tailor made head mounted display
designs, and the Company remains enthusiastic about the products in
the pipeline. These products incorporate its LCOS technology and
are truly revolutionary in nature with breakthrough capabilities.
Himax's team continues to push technological limits to new levels
and integrate key components to its LCOS modules. As an integral
component provider of head-mounted displays, the Company stands by
its customers as they work on designs for this next generation
product segment. Himax's LCOS team has been very busy, gearing up
for early stage pilot production for some of its top tier customers
in their new head mounted devices.
Furthermore, the Company continues to partner with numerous
industry leading players using its cutting edge and
industry-dominant wafer level optics, or WLO, for the development
of three technologies of the future, namely array cameras, special
purpose sensors, and microdisplay wave-guides for head-mounted
displays. As its top-tier customers begin to mass produce products
embedding these new technologies, Himax, being in the heart of that
supply chain, should benefit significantly. To meet the anticipated
demand for its LCOS and WLO products, the Company started to expand
its production capacity in the first quarter of 2015. Himax will
report its progress in due course. However, the Company would like
to remind investors that it believes, similar to the HMD market,
while WLO can enable cutting edge products, such products are early
stage in nature. Himax, along with its partners, are pioneers in
these technologies and are committed to bring them into
commercialization.
Second Quarter 2015
Guidance
The Company is providing the following financial guidance for
the second quarter of 2015:
Net Revenue: |
To be down 5% to 9% as compared to the first
quarter of 2015 |
Gross Margin: |
To be down approximately 2% from the first
quarter of 2015 |
GAAP EPS: |
6.0 to 5.0 cents per diluted ADS, as compared
to 7.3 cents reported in the first quarter of 2015 |
Non GAAP EPS(1): |
4.3 to 5.3 cents per diluted ADS, as compared
to 7.6 cents reported in the first quarter of 2015 |
|
|
(1) Non-GAAP EPS excludes
share-based compensation and acquisition-related charges |
HIMAX TECHNOLOGIES FIRST QUARTER
2015 EARNINGS CONFERENCE
CALL
Himax Technologies, Inc. will hold a conference call with
investors and analysts to discuss the Company's first quarter 2015
financial results and the second quarter guidance.
DATE: |
Thursday, May 14, 2015 |
TIME: |
U.S. 8:00 a.m.
EDT |
|
Taiwan 8:00
p.m. |
DIAL IN: |
U.S. (855) 219-9220 |
|
INTERNATIONAL (973)
935-8720 |
CONFERENCE ID: |
36840753 |
WEBCAST: |
http://edge.media-server.com/m/p/8xz3ac3s |
A replay of the call will be available beginning two hours after
the call through midnight May 21, 2015 (12 p.m. May 21, Taiwan
time) on www.himax.com.tw and by telephone at +(855) 859-2056 (US
Domestic) or +(404) 537-3406 (International). The conference ID
number is 36840753. This call is being webcast by Nasdaq and can be
accessed through this link, or at Himax's website, where the
webcast can be available through May 14, 2016.
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 1,700 people from three Taiwan-based offices in Tainan,
Hsinchu and Taipei and country offices in China, Korea, Japan and
the US. Himax has 2,575 patents granted and 738 patents pending
approval worldwide as of March 31, 2015. 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,
2014 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 |
Three Months |
|
Ended March
31, |
Ended December 31, |
|
2015 |
2014 |
2014 |
|
|
|
|
Net revenues |
$179,045 |
$194,642 |
$227,179 |
|
|
|
|
Costs and expenses: |
|
|
|
Cost of revenues |
133,013 |
146,620 |
171,140 |
Research and
development |
21,300 |
20,454 |
22,788 |
General and
administrative |
4,493 |
4,270 |
4,901 |
Sales and
marketing |
4,591 |
4,195 |
5,714 |
Total costs and
expenses |
163,397 |
175,539 |
204,543 |
|
|
|
|
Operating income |
15,648 |
19,103 |
22,636 |
|
|
|
|
Non operating income
(loss): |
|
|
|
Interest income |
202 |
123 |
225 |
Equity in losses of equity method
investees |
(50) |
(75) |
(24) |
Foreign exchange gains (losses), net |
(313) |
253 |
759 |
Interest expense |
(114) |
(113) |
(149) |
Other income (losses), net |
104 |
(239) |
938 |
|
(171) |
(51) |
1,749 |
Earnings before income
taxes |
15,477 |
19,052 |
24,385 |
Income tax expense |
3,916 |
3,620 |
9,247 |
Net income |
11,561 |
15,432 |
15,138 |
Net loss attributable to
noncontrolling interests |
1,004 |
282 |
487 |
Net income attributable to Himax
stockholders |
$12,565 |
$15,714 |
$15,625 |
|
|
|
|
Basic earnings per ADS attributable
to Himax stockholders |
$0.073 |
$0.092 |
$0.091 |
Diluted earnings per ADS attributable
to Himax stockholders |
$0.073 |
$0.091 |
$0.091 |
|
|
|
|
Basic Weighted Average
Outstanding ADS |
171,608 |
170,920 |
171,608 |
Diluted Weighted Average
Outstanding ADS |
172,185 |
172,234 |
172,161 |
|
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 |
Three Months |
|
Ended March
31, |
Ended December 31, |
|
2015 |
2014 |
2014 |
Share-based compensation |
|
|
|
Cost of revenues |
$7 |
$15 |
$6 |
Research and
development |
312 |
228 |
312 |
General and
administrative |
132 |
50 |
132 |
Sales and marketing |
84 |
57 |
84 |
Income tax benefit |
(127) |
(83) |
(127) |
Total |
$408 |
$267 |
$407 |
|
|
|
|
The amount of acquisition-related
charges included in applicable statements of income categories is
summarized as follows: |
|
|
|
|
|
|
|
Acquisition-related charges |
|
|
|
Research and
development |
$194 |
$268 |
$194 |
Sales and marketing |
-- |
96 |
-- |
Income tax benefit |
(83) |
(125) |
(83) |
Total |
$111 |
$239 |
$111 |
|
Himax Technologies,
Inc. |
GAAP Unaudited
Condensed Consolidated Balance Sheets |
(Amounts in Thousands
of U.S. Dollars, Except Per Share Data) |
|
March 31, |
December 31, |
March 31, |
|
2015 |
2014 |
2014 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$176,362 |
$185,466 |
$138,888 |
Restricted cash and cash
equivalents |
130,180 |
130,179 |
108,336 |
Investments in marketable
securities available-for-sale |
2,407 |
2,377 |
784 |
Accounts receivable, less
allowance for doubtful accounts, sales returns and
discounts |
192,715 |
219,368 |
204,472 |
Inventories |
186,143 |
166,105 |
172,335 |
Deferred income
taxes |
6,724 |
7,740 |
8,965 |
Prepaid expenses and other
current assets |
19,106 |
18,341 |
13,721 |
Total current
assets |
713,637 |
729,576 |
647,501 |
Investment securities |
11,211 |
11,211 |
16,688 |
Equity method
investments |
3,666 |
102 |
111 |
Property, plant and equipment,
net |
54,879 |
57,271 |
59,063 |
Deferred income
taxes |
566 |
477 |
2,172 |
Goodwill |
28,138 |
28,138 |
28,138 |
Other intangible assets,
net |
4,085 |
4,281 |
4,868 |
Other assets |
1,948 |
1,938 |
1,503 |
|
104,493 |
103,418 |
112,543 |
Total
assets |
$818,130 |
$832,994 |
$760,044 |
Liabilities, Redeemable
noncontrolling interest and |
|
|
|
Equity |
|
|
|
Current liabilities: |
|
|
|
Short-term debts |
$130,000 |
$130,000 |
$105,500 |
Accounts payable |
148,657 |
179,328 |
139,112 |
Income taxes payable |
22,187 |
19,050 |
19,180 |
Other accrued expenses and
other current liabilities |
27,677 |
27,027 |
25,404 |
Total current
liabilities |
328,521 |
355,405 |
289,196 |
Other liabilities |
5,546 |
5,636 |
2,899 |
Total
liabilities |
334,067 |
361,041 |
292,095 |
|
3,656 |
3,656 |
3,656 |
Redeemable noncontrolling
interest |
|
|
|
Equity |
|
|
|
Himax stockholders'
equity: |
|
|
|
Ordinary shares, US$0.3 par
value, 1,000,000,000 shares authorized; 356,699,482 shares issued
and 342,425,144 shares, 342,425,144 shares, 341,049,418 shares
outstanding at March 31, 2015, December 31, 2014, and March 31,
2014, respectively |
107,010 |
107,010 |
107,010 |
Additional paid-in
capital |
108,357 |
107,808 |
106,997 |
Treasury shares, at cost,
14,274,338 shares, 14,274,338 shares and 15,650,064 shares at March
31, 2015, December 31, 2014, and March 31, 2014, respectively |
(10,144) |
(10,144) |
(11,120) |
Accumulated other comprehensive
loss |
(311) |
(316) |
(471) |
Unappropriated retained
earnings |
280,831 |
268,266 |
263,424 |
Himax stockholders'
equity |
485,743 |
472,624 |
465,840 |
Noncontrolling
interests |
(5,336) |
(4,327) |
(1,547) |
Total
equity |
480,407 |
468,297 |
464,293 |
Total liabilities,
redeemable noncontrolling |
$818,130 |
$832,994 |
$760,044 |
interest and
equity |
|
|
|
|
Himax Technologies,
Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts in Thousands
of U.S. Dollars) |
|
Three
Months |
Three Months |
|
Ended March
31, |
Ended December 31, |
|
2015 |
2014 |
2014 |
|
|
|
|
Cash flows from operating
activities: |
|
|
|
Net income |
$11,561 |
$15,432 |
$15,138 |
Adjustments to reconcile net income to net
cash provided by (used in) operating activities: |
|
|
|
Depreciation and
amortization |
3,966 |
3,619 |
3,903 |
Bad debt expense |
--- |
--- |
554 |
Share-based compensation
expenses |
535 |
350 |
534 |
Gain on disposals of property
and equipment |
--- |
--- |
(2) |
Gain on disposals of equity
method investment |
(88) |
--- |
--- |
Loss on disposals of investment
securities |
--- |
241 |
--- |
Loss (gain) on disposals of
marketable securities, net |
(2) |
1 |
26 |
Valuation gain on financial
liabilities |
--- |
--- |
(1,255) |
Impairment loss on
investment |
--- |
--- |
309 |
Equity in losses of equity
method investees |
50 |
75 |
24 |
Deferred income tax
expense |
908 |
927 |
2,710 |
Inventories write downs |
1,993 |
1,735 |
2,892 |
Changes in operating assets and
liabilities: |
|
|
|
Accounts receivable |
26,636 |
(3,765) |
(1,149) |
Inventories |
(22,031) |
3,329 |
(11,858) |
Prepaid expenses and other
current assets |
590 |
1,328 |
573 |
Accounts payable |
(30,671) |
(12,178) |
23,375 |
Income taxes payable |
3,141 |
2,249 |
3,092 |
Other accrued expenses and
other current liabilities |
(219) |
(4,037) |
(184) |
Other liabilities |
(80) |
(1) |
(2) |
Net cash provided by
(used in) operating activities |
(3,711) |
9,305 |
38,680 |
|
|
|
|
Cash flows from investing
activities: |
|
|
|
Purchases of property and
equipment |
(1,842) |
(2,709) |
(2,383) |
Purchases of available-for-sale
marketable securities |
(4,426) |
(3,311) |
(6,252) |
Proceeds from disposals of
available-for-sale marketable securities |
4,428 |
3,305 |
6,851 |
Proceeds from disposals of
investment securities |
--- |
4,948 |
--- |
Proceeds from capital reduction
of investments |
--- |
--- |
1,168 |
Purchases of equity method
investment |
(3,690) |
--- |
--- |
Proceeds from disposals of
equity method investment |
179 |
--- |
--- |
Releases (pledges) of
restricted cash, cash equivalents and marketable securities |
(3) |
66 |
2,887 |
Repayments of refundable
deposits, net |
(26) |
(6) |
(31) |
Net cash provided by
(used in) investing activities |
(5,380) |
2,293 |
2,240 |
|
Himax Technologies,
Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts in Thousands
of U.S. Dollars) |
|
Three
Months |
Three Months |
|
Ended March
31, |
Ended December 31, |
|
2015 |
2014 |
2014 |
Cash flows from financing
activities: |
|
|
|
Proceeds from disposals of
subsidiary shares to noncontrolling interests by Himax Imaging,
Inc. |
3 |
10 |
18 |
Purchases of subsidiary shares
from noncontrolling |
(9) |
--- |
(46) |
interests |
|
|
|
Releases of restricted cash,
cash equivalents and marketable securities (for borrowing of
short-term debt) |
--- |
--- |
7,500 |
Proceeds from borrowing of
short-term debts |
140,000 |
86,500 |
136,000 |
Repayments of short-term
debts |
(140,000) |
(86,500) |
(143,500) |
Net cash
provided by (used in) financing activities |
(6) |
10 |
(28) |
Effect of foreign currency exchange
rate changes on cash and cash equivalents |
(7) |
(40) |
(3) |
Net increase (decrease) in cash and
cash equivalents |
(9,104) |
11,568 |
40,889 |
Cash and cash equivalents at
beginning of period |
185,466 |
127,320 |
144,577 |
Cash and cash equivalents at end of
period |
$176,362 |
$138,888 |
$185,466 |
|
|
|
|
Supplemental disclosures of cash flow
information: |
|
|
|
Cash paid during the period
for: |
|
|
|
Interest expense |
$74 |
$113 |
$223 |
Income taxes |
$100 |
$481 |
$84 |
|
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 |
Three Months |
|
Ended March
31, |
Ended December 31, |
|
2015 |
2014 |
2014 |
Revenues |
$179,045 |
$194,642 |
$227,179 |
|
|
|
|
Gross profit |
46,032 |
48,022 |
56,039 |
Add: Share-based compensation – Cost of
revenues |
7 |
15 |
6 |
Gross profit excluding share-based
compensation |
46,039 |
48,037 |
56,045 |
Gross margin excluding share-based
compensation |
25.7% |
24.7% |
24.7% |
|
|
|
|
Operating income |
15,648 |
19,103 |
22,636 |
Add: Share-based compensation |
535 |
350 |
534 |
Operating income excluding share-based
compensation |
16,183 |
19,453 |
23,170 |
Add: Acquisition-related charges –Intangible
assets amortization |
194 |
364 |
194 |
Operating income excluding share-based
compensation and acquisition-related charges |
16,377 |
19,817 |
23,364 |
Operating margin excluding share-based
compensation and acquisition-related charges |
9.1% |
10.2% |
10.3% |
Net income attributable to Himax
stockholders |
12,565 |
15,714 |
15,625 |
Add: Share-based compensation, net of
tax |
408 |
267 |
407 |
Add: Acquisition-related charges, net of
tax |
111 |
239 |
111 |
Net income attributable to Himax stockholders
excluding share-based compensation and acquisition-related
charges |
13,084 |
16,220 |
16,143 |
Net margin attributable to Himax stockholders
excluding share-based compensation and acquisition-related
charges |
7.3% |
8.3% |
7.1% |
|
|
|
|
*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,
2015 |
Diluted GAAP earnings per ADS attributable to
Himax stockholders |
$0.073 |
Add: Share-based compensation per ADS |
$0.002 |
Add: Acquisition-related charges per ADS |
$0.001 |
|
|
Diluted non-GAAP earnings per ADS
attributable to Himax stockholders excluding share-based
compensation and acquisition-related charges |
$0.076 |
|
|
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
Nadiya Chen, Investor Relations
Himax Technologies, Inc.
Tel: 886-2-2370-3999 Ext.22513
Fax: 886-2-2314-0877
Email: nadiya_chen@himax.com.tw
www.himax.com.tw
Penny Lin, Investor Relations
Himax Technologies, Inc.
Tel: 886-2-2370-3999 Ext.22320
Fax: 886-2-2314-0877
Email: penny_lin@himax.com.tw
www.himax.com.tw
Investor Relations - US Representative
PCG Advisory Group, LLC
Adam Holdsworth, Managing Director
Tel: +1-646-862-4607
Email: adamh@pcgadvisory.com
www.pcgadvisory.com
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