Company Exceeds Q3
Revenue, Meets Gross Margin and EPS Guidance
Provides Fourth Quarter 2015 Guidance Revenue to Be
Flat to 5% Up Sequentially, Gross Margin to Be Flat to Slightly Up,
and GAAP EPS per ADS to Be 1.0 to 3.0 Cents
- Net revenue decreased 2.1% sequentially to $165.6
million, exceeding guidance.
- Gross margin for the quarter came in at 21.8%, a
sequential decrease of 200 bpts.
- Large-sized panel driver sales represented 30.5% of
total revenue in Q3 2015, while small and medium-sized panel driver
sales represented 50.9% of total revenue, and non-driver sales
represented 18.6% of total revenue.
- Q3 2015 GAAP net loss came in at $2.3 million or 1.4
cents versus GAAP net income of $8.8 million, or 5.1 cents in Q2
2015; Q3 2015 Non-GAAP net income decreased to $1.7 million or 1.0
cent versus $9.3 million or 5.4 cents in Q2 2015.
- Company remains positive on its long term business
outlook.
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 third quarter ended
September 30, 2015.
SUMMARY FINANCIALS
Third
Quarter 2015 Results Compared to
Third Quarter 2014 Results (USD
in millions) (unaudited) |
|
|
|
|
|
|
|
Q3
2015 |
Q3
2014 |
CHANGE |
|
Net Revenue |
$165.6 million |
$222.3 million |
-25.5% |
|
Gross Profit |
$36.1 million |
$54.4 million |
-33.7% |
|
Gross Margin |
21.8% |
24.5% |
-2.7% |
|
GAAP Net Income (Loss) Attributable to
Shareholders |
$(2.3) million |
$11.1 million |
-120.9% |
|
Non-GAAP Net Income Attributable to
Shareholders |
$1.7 million (1) |
$19.1 million (2) |
-91.2% |
|
GAAP EPS (Per Diluted ADS, USD) |
$(0.014) |
$0.065 |
-120.9% |
|
Non-GAAP EPS (Per Diluted ADS, USD) |
$0.010 (1) |
$0.111 (2) |
-91.2% |
|
|
|
|
|
|
(1) Non-GAAP Net income
attributable to common shareholders and EPS excludes $3.9 million
of share-based compensation expenses, net of tax and $0.1 million
non-cash acquisition related charge, net of tax. |
|
(2) Non-GAAP Net income
attributable to common shareholders and EPS excludes $7.9 million
of share-based compensation expenses, net of tax and $0.1 million
non-cash acquisition related charges, net of tax. |
|
|
Third Quarter 2015
Results Compared to Second Quarter 2015 Results
(USD in millions)
(unaudited) |
|
|
Q3 2015 |
Q2 2015 |
CHANGE |
Net Revenue |
$165.6 million |
$169.2 million |
-2.1% |
Gross Profit |
$36.1 million |
$40.3 million |
-10.5% |
Gross Margin |
21.8% |
23.8% |
-2.0% |
GAAP Net Income (Loss) Attributable to
Shareholders |
$(2.3) million |
$8.8 million |
-126.4% |
Non-GAAP Net Income Attributable to
Shareholders |
$1.7 million (1) |
$9.3 million (2) |
-82.0% |
GAAP EPS (Per Diluted ADS, USD) |
$(0.014) |
$0.051 |
-126.4% |
Non-GAAP EPS (Per Diluted ADS, USD) |
$0.010 (1) |
$0.054 (2) |
-82.0% |
|
|
|
|
(1) Non-GAAP Net income
attributable to common shareholders and EPS excludes $3.9 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. |
"Our 2015 third quarter revenue exceeded guidance, gross margin,
GAAP and non-GAAP earnings per diluted ADS all met at the low end
of our guidance for the quarter," stated Mr. Jordan Wu, President
and Chief Executive Officer of Himax. "During our second quarter
earnings call, we stayed conservative given economic instability
continued to add uncertainty to consumer electronics demands. As a
consequence, we anticipated gross margin to be under pressure as
panel prices has softened."
Mr. Wu concluded: "Areas of sales that exceeded guidance is
aligned to our continued success in gaining market share in China,
and rush orders that emerged in later part of the quarter. While
still maneuvering carefully in a market with low visibility, we
remain optimistic about our active and ongoing design-in activities
with leading customers in both driver IC and non-driver products.
Moreover, our confidence in our LCOS and WLO product offerings for
the AR market never waned with current and prospective design
clients which include brand leading US and global companies."
Third Quarter 2015
Revenue Breakdown by Product Line (USD in millions)
(unaudited) |
|
|
|
|
|
|
|
Q3 2015 |
% |
Q3 2014 |
% |
% Change |
Display drivers for large‐sized
panels |
$50.5 |
30.5% |
$61.2 |
27.5% |
‐17.5% |
Display drivers for small/medium‐sized
panels |
$84.3 |
50.9% |
$113.3 |
51.0% |
‐25.6% |
Non‐driver products |
$30.8 |
18.6% |
$47.8 |
21.5% |
‐35.6% |
Total |
$165.6 |
100.0% |
$222.3 |
100.0% |
‐25.5% |
|
|
|
|
|
|
|
Q3 2015 |
% |
Q2 2015 |
% |
% Change |
Display drivers for large‐sized panels |
$50.5 |
30.5% |
$54.3 |
32.1% |
‐6.9% |
Display drivers for small/medium‐sized
panels |
$84.3 |
50.9% |
$82.8 |
48.9% |
+1.8% |
Non‐driver products |
$30.8 |
18.6% |
$32.1 |
19.0% |
‐4.2% |
Total |
$165.6 |
100.0% |
$169.2 |
100.0% |
‐2.1% |
Himax's third quarter revenue was $165.6 million, higher
than the guided $154.0 to $160.7 million. Overall, driver IC sales
came in better than guidance across all applications during the
quarter. The gap between guidance and actual shipments mainly came
from rush orders toward the quarter end. Revenue from large panel
display drivers was $50.5 million, a decrease of 6.9% sequentially,
and down 17.5% from the third quarter of 2014. Large panel driver
IC accounted for 30.5% of total revenues for the third quarter,
compared to 32.1% in the last quarter and 27.5% a year ago.
Although the overall large panel revenue decreased year-over-year,
Himax's driver IC business for TVs outperformed the market, growing
more than 25% during the first three quarters versus the market
growth of around 11%. This was due to market share gains in the
Chinese panel manufacturer market and increasing 4K TV panel builds
in China. The overall weakness in the Company's combined large
panel DDIC segment was a result of decreasing demand from monitor
and NB sectors.
Revenues for small and medium-sized drivers were $84.3 million,
up 1.8% sequentially and down 25.6% from the same period last year.
Driver ICs for small and medium-sized applications accounted for
50.9% of total sales for the third quarter, as compared to 48.9% in
the previous quarter and 51.0% a year ago. During the quarter,
geographically, revenues to Korean end customers grew sequentially
while those to Chinese smartphone OEMs declined. On the other hand,
the year-over-year decline was a continuous reflection of weak
smartphone and tablet markets this year, worsened by key Korean
customer strategically increasing the weight of AMOLED panels in
their smartphone product portfolio which Himax hasn't been able to
service yet.
Revenues from Himax's non-driver businesses were $30.8 million,
down 4.2% sequentially and down 35.6% from the same period last
year. Non-driver products accounted for 18.6% of total revenues, as
compared to 19.0% in the previous quarter and 21.5% a year ago.
CMOS image sensor business was the main factor behind the decline.
CIS aside, Himax's non-driver products were down only slightly year
over year due to a soft consumer electronics market. The Company's
CMOS image sensors experienced a series of slow quarters this year
even though it remains one of the market share leaders in notebook
application. The reason for this is found in the weak demand of low
end smartphones, the main target market for Himax's 2MP and 5MP
sensors. At the same time, the Company wasn't able to ramp 8MP and
13MP at the planned pace. Overall, during the first three quarters
of this year, CMOS image sensors sales declined more than 50%.
GAAP gross margin for the third quarter of 2015 was 21.8%, a 200
basis points decrease from 23.8% in the previous quarter and down
270 basis points from 24.5% in the same period last year. As
guided, the Company anticipated this result due to pricing pressure
of DDIC products and lower NRE income. During the quarter, panel
makers have become very cost sensitive, pressured by weakening
demands and decreasing panel prices. The Company's gross margin
demonstrated this consequence. Various costs-down measures have
already been under way, yet cycle time difference between inventory
build-up and actual product shipment hindered the benefit from
emerging quick enough. The Company expects the driver IC pricing
pressure to overhang for the next few quarters. However, Himax does
anticipate increasing new development activities, largely in the
areas of LCOS and WLO, which will result in additional NRE incomes
to lift the Company's gross margin. More importantly, such
development activities will eventually lead to mass production,
enhancing the Company's gross margin even further in the long
run.
Third quarter GAAP operating expenses were $38.5 million, up
22.6% from the previous quarter and down 7.8% from a year ago. The
significant sequential increase was caused by the higher RSU
expense in the third quarter which was considered in the Company's
guidance. Himax managed to keep its year-to-date GAAP operating
expenses flat year over year while it continued to pursue new
business opportunities. As an annual practice, Himax rewards
employees with annual bonus at the end of September each year which
always leads to an increase in the third quarter GAAP operating
expenses compared to the other quarters of the year. This year, the
annual bonus compensation, including shares and cash payout,
totaled $5.0 million, out of which $4.5 million was vested
immediately and expensed in the third quarter of 2015. In
comparison, the annual bonus compensation was much higher at $15.1
million last year, out of which $9.3 million was vested
immediately.
Excluding the RSU charge, Himax's third quarter operating
expenses were $34.0 million, up 8.3% from the previous quarter and
up 4.6% from the same quarter 2014. Both increases were related to
increased salary expenses caused by higher engineering headcount,
annual salary raises, and continued project tape-outs. This is in
line with the repeated indications the Company made before that
despite ongoing expense control in response to macro uncertainty,
it is still expanding in its LCOS and WLO businesses. The combined
total headcount of the two areas is expected to be up by around 200
during 2015.
GAAP operating loss for the third quarter of 2015 was $2.5
million or -1.5% of sales, compared to operating income of $8.9
million last quarter and $12.6 million the same period last
year.
Reported GAAP net loss for the third quarter was $2.3 million,
or 1.4 cents per diluted ADS, compared to GAAP net income of $8.8
million, or 5.1 cents per diluted ADS, in the previous quarter and
GAAP net income of $11.1 million, or 6.5 cents per diluted ADS, for
the same period last year. The sequential profit decline was caused
by lowered revenue and gross margin, and higher operating expenses.
Likewise, the year over year revenue and gross margin also declined
but lower operating expenses helped offset some of the bottom line
pressure. The Q3 2015 GAAP net loss also reflects an additional
$3.7 million income tax resulting from NTD devaluation against the
USD in the quarter, which, for obvious reason, was not counted in
the guidance provided in the last earnings call. The Company make
timely adjustments, when deemed necessary, to reflect the effect of
NTD/USD exchange fluctuation on its taxation.
Excluding share-based compensation and acquisition-related
charges, non-GAAP net income for the third quarter of 2015 was $1.7
million, or 1.0 cents per diluted ADS, compared to $9.3 million
last quarter and $19.1 million the same period last year.
Balance Sheet and Cash Flow
Himax had $126.0 million of cash, cash equivalents, and
marketable securities at the end of September 2015, down from
$164.5 million last quarter and down from $147.7 million during the
same time last year. The Company made a cash RSU payment of $4.5
million and a dividend of $51.4 million during the quarter. In
addition to its cash position, Himax's restricted cash was
$180.4million 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 September 30, 2015 were $177.7 million, down
from $189.6 million last quarter and up from $157.1 million for the
same period last year. As indicated on the last earnings call,
the Company was able to lower inventory levels starting the third
quarter and will continuously monitor its progress. Accounts
receivable at the end of September 2015 were $168.0 million, as
compared to $182.3 million last quarter and $218.8 million for the
same period last year. DSO was 89 days at end of September 30,
2015, as compared to 95 days at end of the last quarter and 97 days
the same period a year ago. The decrease of DSO was due to more
efficient cash collection from credit sales.
Net cash inflow from operating activities for the third quarter
of 2015 was $14.1 million, as compared to cash outflow of $13.8
million for the second quarter of 2015 and cash inflow of $22.8
million for the third quarter of 2014. The quarter-over-quarter
increase was due to lower purchasing costs and income tax payment
in the third quarter. The year-over-year decline was mainly due to
a decrease in accounts payable at the end of the quarter, offset by
lower accounts receivable in the quarter.
Capital expenditures were $2.6 million during the third quarter
of 2015 versus $2.0 million last quarter and $2.1 million for the
same period last year. Among other things, Himax continued to
expand its clean room facilities for WLO product lines, and
purchase LCOS manufacturing equipment during the quarter.
Share Buyback Update
As of September 30, 2015, Himax had 171.9 million ADSs
outstanding, little changed from the last quarter. On a fully
diluted basis, the total number of ADSs outstanding is 171.9
million.
2015 Investor Outreach and Conferences
Ms. Jackie Chang, CFO, Ms. Nadiya Chen and Ms. Penny Lin,
internal IR Managers, and Mr. John Mattio, Himax's US-Based IR,
will maintain corporate access for shareholders 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
The past three quarters have been marked by macro uncertainties
and soft demand across consumer electronics in general. Amidst the
unfavorable market environment, Himax continues to solidify its
leading position through technology advancement and customer
engagement. In the meantime, the Company is still working closely
with top tier partners in developing products which are exploring
new frontiers of technologies. Himax stands out from its peers
because of such innovative and forward looking activities. The
Company's confidence in growth opportunities are further reaffirmed
by the progress of its core business, such as TDDI products for
smartphones and tablets, and market share gains for large panel
driver ICs. Himax's LCOS and WLO businesses, while still in small
volume, entered pilot production with a top tier customer in the
third quarter. Equally important for LCOS and WLO, the Company is
pleased to see quite a few new project engagements with exciting
potentials during the quarter, some of which involve applications
other than head mounted display (HMD).
In Himax's large panel driver sector, the Company is pleased to
report that, after a slow third quarter, driver ICs for TV will
regain momentum in Q4 as a result of increasing shipments to
Chinese panel customers, who have been continually ramping capacity
during the year and bringing more on line. It is especially worth
mentioning that Himax's engineering collaboration and design-in
activities with Chinese panel customers remain robust despite the
soft sentiment and the Company is encouraged that there will
be additional two to four Gen 8.5 and one Gen 10.5 Chinese panel
fabs ready for mass production from now till 2018. This new
capacity will translate into future growth opportunities for Himax.
On top of strong projections for TV, the Company is also seeing
sequential growth for driver ICs for NB and monitor thanks to
recovering demand. Thus, it expects to see double-digit growth in
large panel DDIC in the fourth quarter. The large panel driver IC
will remain one of the key growth areas for Himax's business going
forward.
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. Fourth quarter sales for
smartphones are likely to decrease from Himax's primary Korean end
customer. However, the Company expects the sales for smartphones
from its Chinese customers to grow modestly in the fourth quarter
2015 as they launch new models. As highlighted in the previous
earnings call, Himax was positive that the resolutions would trend
above HD720, especially to FHD, from the third quarter. This
has successfully played out and the Company expects the trend to
continue in the fourth quarter and beyond. As a testament to this
trend, Himax is glad to see key design-wins in the pipeline.
For driver ICs used in tablets, demands have stabilized after
declining for quite a few quarters and those for 10" and above have
been on the rise in China. This is a favorable trend and the
momentum should carry through 2016.
Among driver ICs used in small and medium-sized panels, the
best-performing category in 2015 is automotive applications. Himax
remains confident that it should see year-over-year growth for this
segment since more and more panels are going into automobiles as
navigation systems, central displays, and smart rear-view mirrors.
Himax has comprehensive coverage of all panel makers in automotive
sector across Japan, Korea, China and Taiwan, and have successfully
secured many of their key projects pipelined for the next few
years.
Despite these positive trends, they are mostly 2016 stories.
Looking at the fourth quarter, the market conditions remain
lukewarm although Himax is starting to see signs of recovery. The
Company's small and medium-sized driver segment looks to decline by
high single digit in the quarter sequentially.
For the past few years, Himax's non-driver business segment has
been its most exciting growth segment and a differentiator for the
Company. New product development continues to evolve and gain
traction, and Himax remains positive on the long-term growth
prospect of its non-driver businesses.
Himax's touch panel controller product line grew sequentially
since several of its on-cell design-wins entered mass production at
multiple major end customers. The Company believes on-cell
shipments will continue to grow beyond 2015. On top of that, Himax
is also excited about its technological advances and product
development progress in the latest pure in-cell technology. Himax
is one of the pioneers in offering one-chip solutions integrating
driver IC and touch panel controller, or TDDI. Driven by leading
TFT-LCD makers, the industry is moving towards pure in-cell panels,
which remains poised to start production this quarter in small
volume. Himax is seeing a growing number of end product customers
showing high interest in TDDI as a spec for high end devices. Since
itis in partnerships with essentially all of the leading panel
manufacturers in pure in-cell touch for joint technological
development, Himax feels there is a strong market for the Company
going forward with less competition. Himax believes it will
contribute more significantly beyond 2H16.
Though a leader in the driver IC space, the Company is still a
new comer in the high end CMOS image sensor business. Himax
launched 8MP and 13MP in 2014 but missed the market opportunity due
to a lack of some of the new product features for high end phones,
notably Phase Detection Auto Focus (PDAF) that enables fast auto
focus when taking pictures or recording videos. PDAF was first
adopted in iPhone6 and has since become a popular feather for new
designs of high end smartphones. The Company is catching up fast.
Himax believes it will be one of the few players capable of
providing PDAF-equipped CMOS image sensors in the very near future.
The Company will report in due course.
During the past few months, Himax has received concerns from
investors about its LCOS and WLO businesses and how things are
evolving given the Company defined the 2H of 2015 as an inflection
point, and yet there are no significant volume results to date. The
Company would like to reiterate its confidence and commitment to
these businesses. On the horizon of new technologies, Himax sees
augmented reality (AR) as one of few disruptive technologies on
radar screens of its brand customers and consumers. Having invested
in the technologies for over 15 years, the Company is uniquely
positioned as the provider of choice for microdisplay and related
optics to enable AR. LCOS microdisplay and a highly customized
optical system are to account for one of the parts with the highest
value in the bill-of-material (BOM) of any AR products. In addition
to HMD, Himax's LCOS also enables next generation, full color
heads-up displays (HUD) for automotives. Separately, the Company's
WLO has been adopted to be microdisplay wave-guides for HMD by some
customers. It can also be used in completely different
applications, such as array cameras and special purpose
sensors.
The Company's LCOS and WLO businesses hit an inflection point in
September with pilot production shipment made to a major customer.
The Company continues to plan its expansion based on indications
from its customers. Himax would like to remind investors that its
success is tied to its customers'. The Company will only enjoy mass
volume when its customers successfully commercialize this new
product concept.
While still in nascent stages, HMD, especially those for AR
application, look set to become a valuable enterprise and business
tool with consumer adoption to follow a few years later. From where
the Company stands, Himax is witness to accelerating activity in
the AR space along with significant investment activity across
leading semiconductor companies and end product players. Looking
back on the past 15 years, Himax has invested more than $100
million in LCOS and WLO technologies, close to $15 million this
year alone. Himax has been careful in these investments as the
Company understands it can't risk sacrificing short term profits
too much despite its long term optimism. The Company's commitment
and vision have led to a solid and unrivaled top notch customer
portfolio.
Overall, Himax expects its non-driver segment to decline by mid
single digits sequentially in the fourth quarter.
Fourth Quarter 2015
Guidance
The Company is providing the following financial guidance for
the fourth quarter of 2015:
Net Revenue: |
To be flat to 5% up from the third
quarter of 2015 |
Gross Margin: |
To be flat to slightly up from the third
quarter of 2015 |
GAAP EPS: |
1.0 to 3.0 cents per diluted ADS, as
compared to -1.4 cents reported in the third quarter of 2015 |
As of November 9th, 2015, the NTD stood at 32.66 against the
USD, significantly depreciated from the 30.86 at the end of June.
This would lead to approximately $5.4 million more income tax
charge for Himax than otherwise for 2015 full year. As it has
already made approximately $3.7 million, or 2.2 cents per diluted
ADS, of adjustment in the third quarter, the Company has included
another $1.7 million, or 1.0 cents per diluted ADS, of additional
income tax charge in the fourth quarter guidance, assuming that the
exchange rate at the end year stands at exactly the same level as
that of today. Obviously, the final outcome will depend on the
actual exchange rate at the end of the year.
HIMAX TECHNOLOGIES THIRD QUARTER
2015 EARNINGS CONFERENCE
CALL
DATE: |
Thursday, November 12, 2015 |
TIME: |
U.S. 8:00 a.m. EST |
|
Taiwan 9:00 p.m. |
DIAL IN: |
U.S. +1 (866) 444-9147 |
|
INTERNATIONAL+1(678)
509-7569 |
CONFERENCE ID |
58792044 |
WEBCAST: |
http://edge.media-server.com/m/p/zgwy4k63 |
A replay of the call will be available beginning two hours after
the call through 11:59 p.m. US EST on November 19, 2015 (12:59 p.m.
Taiwan time, November 20, 2015) on www.himax.com.tw and by
telephone at +1 (855) 859-2056 (US Domestic) or +1 (404) 537-3406
(International). The conference ID number is 58792044. This call is
being webcast by Nasdaq and can be accessed by clicking on this
link or Himax's website, where the webcast can be accessed through
November 12, 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 1,900 people from three Taiwan-based offices in Tainan,
Hsinchu and Taipei and country offices in China, Korea, Japan and
the US. Himax has 2,712 patents granted and 612 patents pending
approval worldwide as of September 30, 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 Share and
Per Share Data) |
|
|
|
|
|
Three Months
Ended September
30, |
Three Months Ended
June
30, |
|
2015 |
2014 |
2015 |
|
|
|
|
Net revenues |
$ 165,582 |
$ 222,317 |
$ 169,185 |
|
|
|
|
Costs and expenses: |
|
|
|
Cost of revenues |
129,510 |
167,948 |
128,885 |
Research and development |
27,907 |
28,377 |
22,640 |
General and administrative |
5,158 |
6,515 |
4,275 |
Sales and marketing |
5,468 |
6,921 |
4,511 |
Total costs and
expenses |
168,043 |
209,761 |
160,311 |
|
|
|
|
Operating
income(loss) |
(2,461) |
12,556 |
8,874 |
|
|
|
|
Non operating
income: |
|
|
|
Interest income |
116 |
167 |
204 |
Gains (losses) on sale of securities,
net |
32 |
(10) |
1,712 |
Equity in income (losses) of equity method
investees |
(119) |
14 |
(170) |
Foreign exchange gains (losses), net |
680 |
83 |
(382) |
Interest expense |
(152) |
(139) |
(107) |
Other income, net |
125 |
43 |
64 |
|
682 |
158 |
1,321 |
Earnings
(loss)before income
taxes |
(1,779) |
12,714 |
10,195 |
Income tax expense |
1,151 |
2,568 |
2,579 |
Net income
(loss) |
(2,930) |
10,146 |
7,616 |
Net loss attributable to
noncontrolling interests |
598 |
1,001 |
1,216 |
Net income
(loss) attributable to Himax
stockholders |
$ (2,332) |
$ 11,147 |
$ 8,832 |
|
|
|
|
Basic earnings
(loss) per ADS attributable to Himax
stockholders |
$ (0.014) |
$ 0.065 |
$ 0.051 |
Diluted earnings
(loss) per ADS attributable to Himax
stockholders |
$ (0.014) |
$ 0.065 |
$ 0.051 |
|
|
|
|
Basic Weighted Average
Outstanding ADS |
171,615 |
170,927 |
171,608 |
Diluted Weighted Average
Outstanding ADS |
171,936 |
171,797 |
172,206 |
|
Himax Technologies,
Inc. |
Unaudited Condensed
Consolidated Statements of Income |
(Amounts in Thousands
of U.S. Dollars, Except Share and
Per Share Data) |
|
|
|
|
Nine
Months Ended September
30, |
|
2015 |
2014 |
|
|
|
Net Revenues: |
$ 513,812 |
$ 613,363 |
|
|
|
Costs and expenses: |
|
|
Cost of revenues |
391,408 |
463,520 |
Research and
development |
71,847 |
69,051 |
General and
administrative |
13,926 |
15,291 |
Sales and marketing |
14,570 |
15,412 |
Total costs and
expenses |
491,751 |
563,274 |
|
|
|
Operating income |
22,061 |
50,089 |
|
|
|
Non operating
income: |
|
|
Interest income |
522 |
503 |
Gains on sale of securities, net |
1,834 |
10,497 |
Equity in losses of equity method
investees |
(339) |
(56) |
Foreign exchange gains (losses), net |
(15) |
318 |
Interest expense |
(373) |
(369) |
Other income, net |
203 |
127 |
|
1,832 |
11,020 |
Earnings before
income taxes |
23,893 |
61,109 |
Income tax expense |
7,646 |
12,344 |
Net income |
16,247 |
48,765 |
Net loss attributable to
noncontrolling interests |
2,818 |
2,208 |
Net income
attributable to Himax stockholders |
$ 19,065 |
$ 50,973 |
|
|
|
Basic earnings per ADS attributable
to Himax stockholders |
$ 0.111 |
$ 0.298 |
Diluted earnings per ADS attributable
to Himax stockholders |
$ 0.111 |
$ 0.297 |
|
|
|
Basic Weighted Average
Outstanding ADS |
171,610 |
170,922 |
Diluted Weighted Average
Outstanding ADS |
171,891 |
171,818 |
|
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 September 30, |
Three Months
Ended June 30, |
|
2015 |
2014 |
2015 |
Share-based compensation |
|
|
|
Cost of revenues |
$ 70 |
$ 85 |
$ 6 |
Research and development |
3,505 |
6,842 |
312 |
General and administrative |
530 |
1,456 |
133 |
Sales and marketing |
823 |
1,649 |
83 |
Income tax benefit |
(1,040) |
(2,142) |
(128) |
Total |
$ 3,888 |
$ 7,890 |
$ 406 |
|
|
|
|
The amount of
acquisition-related charges included in
applicable statements of income
categories is summarized as follows: |
|
|
|
|
|
|
|
Acquisition-related charges |
|
|
|
Research and development |
$ 220 |
$ 194 |
$ 194 |
Income tax benefit |
(94) |
(83) |
(83) |
Total |
$ 126 |
$ 111 |
$ 111 |
|
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: |
Nine
Months Ended September
30, |
|
2015 |
2014 |
Share-based compensation |
|
|
Cost of revenues |
$ 83 |
$ 115 |
Research and development |
4,129 |
7,298 |
General and administrative |
795 |
1,556 |
Sales and marketing |
990 |
1,763 |
Income tax benefit |
(1,295) |
(2,310) |
Total |
$ 4,702 |
$ 8,422 |
|
|
|
The amount of
acquisition-related charges included in
applicable statements of income
categories is summarized as follows: |
|
|
|
|
|
Acquisition-related charges |
|
|
Research and development |
$ 608 |
$ 656 |
Sales and marketing |
-- |
96 |
Income tax benefit |
(260) |
(291) |
Total |
$ 348 |
$ 461 |
|
Himax Technologies,
Inc. |
GAAP Unaudited
Condensed Consolidated Balance
Sheets |
(Amounts in Thousands
of U.S. Dollars, Except Share and
Per Share Data) |
|
|
|
|
|
September
30,
2015 |
June
30,
2015 |
December
31,
2014 |
Assets |
|
|
|
Current
assets: |
|
|
|
Cash and cash
equivalents |
$ 106,387 |
$ 161,256 |
$ 185,466 |
Restricted cash and
cash equivalents |
180,442 |
130,000 |
130,179 |
Investments in
marketable securities available-for-sale |
19,625 |
3,262 |
2,377 |
Accounts
receivable, less allowance for doubtful accounts, sales returns and
discounts |
167,975 |
182,304 |
219,368 |
Inventories |
177,694 |
189,572 |
166,105 |
Deferred income
taxes |
4,216 |
4,977 |
7,740 |
Prepaid expenses
and other current assets |
23,520 |
18,860 |
18,341 |
Total
current assets |
679,859 |
690,231 |
729,576 |
Investment
securities |
11,211 |
11,211 |
11,211 |
Equity method
investments |
3,392 |
3,516 |
102 |
Property, plant and
equipment, net |
55,700 |
54,235 |
57,271 |
Deferred income
taxes |
1,492 |
656 |
477 |
Goodwill |
28,138 |
28,138 |
28,138 |
Other
intangible assets, net |
3,668 |
3,889 |
4,281 |
Other
assets |
2,142 |
2,304 |
1,938 |
|
105,743 |
103,949 |
103,418 |
Total
assets |
$ 785,602 |
$ 794,180 |
$ 832,994 |
Liabilities, Redeemable
noncontrolling interest and Equity |
|
|
|
|
Current
liabilities: |
|
|
|
Short-term
debts |
$ 180,000 |
$ 130,000 |
$ 130,000 |
Accounts
payable |
111,996 |
125,771 |
179,328 |
Income taxes
payable |
13,517 |
13,937 |
19,050 |
Deferred income
taxes |
34 |
35 |
35 |
Other accrued
expenses and other current liabilities |
35,781 |
79,119 |
26,992 |
Total
current liabilities |
341,328 |
348,862 |
355,405 |
Other
liabilities |
4,407 |
4,454 |
5,636 |
Total
liabilities |
345,735 |
353,316 |
361,041 |
|
|
|
|
Redeemable noncontrolling
interest |
3,656 |
3,656 |
3,656 |
Himax
stockholders' equity: |
|
|
|
Ordinary shares,
US$0.3 par value, 1,000,000,000 shares authorized;356,699,482
shares issued and 343,815,424 shares, 342,425,144 shares and
342,425,144 shares outstanding at September 30, 2015, June 30,
2015, and December 31, 2014, respectively |
107,010 |
107,010 |
107,010 |
Additional paid-in
capital |
107,238 |
108,808 |
107,808 |
Treasury shares, at
cost, 12,884,058 shares, 14,274,338 shares and 14,274,338 shares at
September 30, 2015, June 30, 2015, and December 31, 2014,
respectively |
(9,157) |
(10,144) |
(10,144) |
Accumulated other
comprehensive loss |
(723) |
(258) |
(316) |
Unappropriated
retained earnings |
233,082 |
238,299 |
268,266 |
Himax stockholders' equity |
437,450 |
443,715 |
472,624 |
Noncontrolling
interests |
(1,239) |
(6,507) |
(4,327) |
Total equity |
436,211 |
437,208 |
468,297 |
Total
liabilities, redeemable
noncontrolling interest and
equity |
$ 785,602 |
$ 794,180 |
$ 832,994 |
|
Himax Technologies,
Inc. |
Unaudited
Condensed Consolidated Statements of Cash
Flows |
(Amounts in
Thousands of
U.S.
Dollars) |
|
|
|
|
|
Three Months
Ended September
30, |
Three Months Ended
June
30, |
|
2015 |
2014 |
2015 |
|
|
|
|
Cash flows from operating
activities: |
|
|
|
Net income(loss) |
$ (2,930) |
$ 10,146 |
$ 7,616 |
Adjustments to reconcile net income to net
cash provided by (used in) operating activities: |
|
|
|
Depreciation and
amortization |
3,425 |
3,550 |
3,366 |
Share-based compensation
expenses |
472 |
695 |
534 |
Gain on disposals of property
and equipment |
(2) |
--- |
--- |
Gain on disposals of investment
securities |
--- |
--- |
(1,682) |
Losses (gains) on disposals of
marketable securities, net |
(32) |
10 |
(30) |
Equity in losses (gains) of
equity method investees |
119 |
(14) |
170 |
Deferred income tax expense
(benefit) |
(85) |
(300) |
1,660 |
Inventories write downs |
2,078 |
1,888 |
3,269 |
Changes in operating assets and
liabilities: |
|
|
|
Accounts receivable |
14,181 |
(19,779) |
10,422 |
Inventories |
9,800 |
7,305 |
(6,698) |
Prepaid expenses and other
current assets |
(5,533) |
(2,295) |
(1,967) |
Accounts payable |
(13,775) |
20,083 |
(22,886) |
Income taxes payable |
(425) |
1,344 |
(8,442) |
Other accrued expenses and
other current liabilities |
6,850 |
219 |
950 |
Other liabilities |
--- |
(3) |
(51) |
Net cash
provided by (used in)
operating activities |
14,143 |
22,849 |
(13,769) |
|
|
|
|
Cash flows from investing
activities: |
|
|
|
Purchases of property and
equipment |
(2,554) |
(2,058) |
(2,019) |
Proceeds from disposal of
property and equipment |
2 |
1 |
6 |
Purchases of available-for-sale
marketable securities |
(33,328) |
(5,023) |
(8,799) |
Proceeds from disposals of
available-for-sale marketable securities |
16,757 |
5,009 |
8,015 |
Purchases of equity method
investment |
--- |
--- |
(18) |
Proceeds from disposals of
investment securities |
--- |
--- |
1,682 |
Pledges of restricted
marketable securities |
(131) |
(195) |
(93) |
Repayments of refundable
deposits, net |
(204) |
(86) |
(87) |
Net cash
used in investing activities |
(19,458) |
(2,352) |
(1,313) |
|
Himax Technologies,
Inc. |
Unaudited
Condensed Consolidated Statements of Cash
Flows |
(Amounts in
Thousands of
U.S.
Dollars) |
|
|
|
|
|
Three Months
Ended September 30, |
Three Months Ended
June 30, |
|
2015 |
2014 |
2015 |
Cash flows from financing
activities: |
|
|
|
Excess tax benefits from
share-based compensation |
771 |
1,232 |
--- |
Proceeds from issuance of new
shares by subsidiaries |
1,466 |
--- |
--- |
Distribution of cash
dividends |
(51,364) |
(46,042) |
--- |
Proceeds from disposals of
subsidiary shares to noncontrolling interests by Himax Imaging,
Inc. |
8 |
2 |
7 |
Purchases of subsidiary shares
from noncontrolling interests |
(305) |
(902) |
(44) |
Pledge of restricted cash
equivalents (for borrowing of short-term debt) |
(50,000) |
(32,000) |
--- |
Proceeds from borrowing of
short-term debts |
130,000 |
195,000 |
50,000 |
Repayments of short-term
debts |
(80,000) |
(163,000) |
(50,000) |
Net cash
used in financing activities |
(49,424) |
(45,710) |
(37) |
Effect of foreign
currency exchange rate changes on
cash and cash equivalents |
(130) |
(9) |
13 |
Net
decrease in cash and cash
equivalents |
(54,869) |
(25,222) |
(15,106) |
Cash and cash equivalents at
beginning of period |
161,256 |
169,799 |
176,362 |
Cash and cash equivalents at end of
period |
$ 106,387 |
$144,577 |
$ 161,256 |
|
|
|
|
Supplemental disclosures of cash flow
information: |
|
|
|
Cash paid during the
period for: |
|
|
|
Interest expense |
$ 215 |
$ 139 |
$ 148 |
Income taxes |
$ 2,479 |
$ 2,328 |
$ 9,576 |
Supplemental disclosures of
non-cash investing and financing
activities: |
|
|
|
Dividend Payable |
$ --- |
$ --- |
$ 51,364 |
|
Himax Technologies,
Inc. |
Unaudited
Condensed Consolidated Statements of Cash
Flows |
(Amounts in
Thousands of
U.S.
Dollars) |
|
|
|
|
Nine
Months Ended September
30, |
|
2015 |
2014 |
Cash flows from operating
activities: |
|
|
Net income |
$ 16,247 |
$ 48,765 |
Adjustments to reconcile net income to net
cash provided by (used in) operating activities: |
|
|
Depreciation and
amortization |
10,757 |
10,689 |
Share-based compensation
expenses |
1,541 |
1,395 |
Gain on disposals of property
and equipment |
(2) |
--- |
Gain on disposal of investment
securities, net |
(1,770) |
(10,502) |
Losses (gains) on disposal of
marketable securities, net |
(64) |
5 |
Equity in losses of equity
method investees |
339 |
56 |
Deferred income tax
expense |
2,483 |
1,106 |
Inventories write downs |
7,340 |
5,306 |
Changes in operating assets and
liabilities: |
|
|
Accounts receivable |
51,239 |
(18,062) |
Inventories |
(18,929) |
14,954 |
Prepaid expenses and other
current assets |
(6,910) |
480 |
Accounts payable |
(67,332) |
4,663 |
Income taxes payable |
(5,726) |
(735) |
Other accrued expenses and
other current liabilities |
7,581 |
(3,078) |
Other liabilities |
(131) |
(3) |
Net cash
provided by (used in)
operating activities |
(3,337) |
55,039 |
|
|
|
Cash flows from investing
activities: |
|
|
Purchases of property and
equipment |
(6,415) |
(8,548) |
Proceeds from disposal of
property and equipment |
8 |
1 |
Purchases of available-for-sale
marketable securities |
(46,553) |
(17,514) |
Proceeds from disposals of
available-for-sale marketable securities |
29,200 |
15,170 |
Purchases of equity method
investment |
(3,708) |
--- |
Proceeds from disposals of
equity method investment |
179 |
--- |
Proceeds from disposals of
investment securities |
1,682 |
19,691 |
Pledges of restricted
marketable securities |
(227) |
(190) |
Repayments of refundable
deposits, net |
(317) |
(206) |
Net cash
provided by (used in)
investing activities |
(26,151) |
8,404 |
|
Himax Technologies,
Inc. |
Unaudited
Condensed Consolidated Statements of Cash
Flows |
(Amounts in
Thousands of
U.S.
Dollars) |
|
|
|
|
Nine
Months Ended September
30, |
|
2015 |
2014 |
Cash flows from financing
activities: |
|
|
Excess tax benefits from
share-based compensation |
771 |
1,232 |
Proceeds from issuance of new
shares by subsidiaries |
1,466 |
--- |
Distribution of cash
dividends |
(51,364) |
(46,042) |
Proceeds from disposals of
subsidiary shares to noncontrolling interests by Himax Technologies
Limited |
--- |
83 |
Proceeds from disposals of
subsidiary shares to noncontrolling interests by Himax Imaging,
Inc. |
18 |
20 |
Purchases of subsidiary shares
from noncontrolling interests |
(358) |
(1,469) |
Pledge of restricted cash
equivalents (for borrowing of short-term debt) |
(50,000) |
(32,000) |
Proceeds from borrowing of
short-term debts |
320,000 |
281,500 |
Repayment of short-term
debts |
(270,000) |
(249,500) |
Net cash
used in financing activities |
(49,467) |
(46,176) |
Effect of foreign
currency exchange rate changes on
cash and cash equivalents |
(124) |
(10) |
Net
increase(decrease) in
cash and cash equivalents |
(79,079) |
17,257 |
Cash and cash equivalents at
beginning of period |
185,466 |
127,320 |
Cash and cash equivalents at end of
period |
$ 106,387 |
$ 144,577 |
|
|
|
Supplemental disclosures of cash flow
information: |
|
|
Cash paid during the period
for: |
|
|
Interest expense |
$ 437 |
$ 369 |
Income taxes |
$ 12,155 |
$ 13,227 |
|
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 September 30, |
Three Months Ended
June 30, |
|
2015 |
2014 |
2015 |
Revenues |
$ 165,582 |
$ 222,317 |
$ 169,185 |
|
|
|
|
Gross profit |
36,072 |
54,369 |
40,300 |
Add: Share-based compensation – Cost of
revenues |
70 |
85 |
6 |
Gross profit excluding share-based
compensation |
36,142 |
54,454 |
40,306 |
Gross margin excluding share-based
compensation |
21.8% |
24.5% |
23.8% |
|
|
|
|
Operating income (loss) |
(2,461) |
12,556 |
8,874 |
Add: Share-based compensation |
4,928 |
10,032 |
534 |
Operating income excluding share-based
compensation |
2,467 |
22,588 |
9,408 |
Add: Acquisition-related charges –Intangible
assets amortization |
220 |
194 |
194 |
Operating income excluding share-based
compensation and acquisition-related charges |
2,687 |
22,782 |
9,602 |
Operating margin excluding share-based
compensation and acquisition-related charges |
1.6% |
10.2% |
5.7% |
Net income (loss) attributable to Himax
stockholders |
(2,332) |
11,147 |
8,832 |
Add: Share-based compensation, net of
tax |
3,888 |
7,890 |
406 |
Add: Acquisition-related charges, net of
tax |
126 |
111 |
111 |
Net income attributable to Himax stockholders
excluding share-based compensation and acquisition-related
charges |
1,682 |
19,148 |
9,349 |
Net margin attributable to Himax stockholders
excluding share-based compensation and acquisition-related
charges |
1.0% |
8.6% |
5.5% |
|
|
|
|
*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 (loss) 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 (loss) attributable
to Himax stockholders excluding share-based compensation and
acquisition-related charges divided by revenues |
|
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: |
|
|
|
|
Nine
Months Ended September
30, |
|
2015 |
2014 |
Revenues |
$ 513,812 |
$ 613,363 |
|
|
|
Gross profit |
122,404 |
149,843 |
Add: Share-based compensation – Cost of
revenues |
83 |
115 |
Gross profit excluding share-based
compensation |
122,487 |
149,958 |
Gross margin excluding share-based
compensation |
23.8% |
24.4% |
|
|
|
Operating income |
22,061 |
50,089 |
Add: Share-based compensation |
5,997 |
10,732 |
Operating income excluding share-based
compensation |
28,058 |
60,821 |
Add: Acquisition-related charges –Intangible
assets amortization |
608 |
752 |
Operating income excluding share-based
compensation and acquisition-related charges |
28,666 |
61,573 |
Operating margin excluding share-based
compensation and acquisition-related charges |
5.6% |
10.0% |
Net income attributable to Himax
stockholders |
19,065 |
50,973 |
Add: Share-based compensation, net of
tax |
4,702 |
8,422 |
Add: Acquisition-related charges, net of
tax |
348 |
461 |
Net income attributable to Himax stockholders
excluding share-based compensation and acquisition-related
charges |
24,115 |
59,856 |
Net margin attributable to Himax stockholders
excluding share-based compensation and acquisition-related
charges |
4.7% |
9.8% |
|
|
|
*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: (Amounts in U.S.
Dollars) |
|
|
|
|
Three Months Ended September
30, |
Nine Months Ended
September 30, |
|
2015 |
2015 |
Diluted GAAP earnings (loss) per ADS
attributable to Himax stockholders |
$(0.014) |
$0.111 |
Add: Share-based compensation per ADS |
$0.023 |
$0.027 |
Add: Acquisition-related charges per ADS |
$0.001 |
$0.002 |
|
|
|
Diluted non-GAAP earnings per ADS
attributable to Himax stockholders excluding share-based
compensation and acquisition-related charges |
$0.010 |
$0.140 |
|
|
|
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
John Mattio, Founder
Lamnia International, LLC.
Tel: +1 (203) 885 -1099
Direct: +1 (203) 885 -1058
Email: jmattio@lamniaintl.com
www.lamniaintl.com
Himax Technologies (NASDAQ:HIMX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Himax Technologies (NASDAQ:HIMX)
Historical Stock Chart
From Apr 2023 to Apr 2024