Company Meets
Q1 2018
Revenue Guidance,
Exceeds Gross Margin and
EPS Guidance
Himax Technologies, Inc. (Nasdaq:HIMX) (“Himax” or “Company”), a
leading supplier and fabless manufacturer of display drivers and
other semiconductor products, announced its financial results for
the first quarter ended March 31, 2018.
“The Company’s first quarter 2018 revenues came in
at the high end of our guidance while gross margin and IFRS loss
per diluted ADS were both better than guidance. The anticipated
sequential decline in revenue was mainly due to lower sales in the
smartphone segment in the small and medium-sized display driver
business reflecting seasonality and the overall weak smartphone
market, as well as the much reduced WLO shipment in the non-driver
businesses per the anchor customer’s demand forecast. Despite the
decline in the first quarter of 2018, Himax expects a solid rebound
in the second quarter overall and sequential growth across all
three major product categories,” said Mr. Jordan Wu, President and
Chief Executive Officer of Himax.
“Going into the second quarter, while our large
display driver IC business will continue benefiting from Chinese
panel customers’ ongoing capacity expansion and in-cell TDDI
shipment for smartphone in the small and medium display driver IC
business will benefit from the new model launches, the growth in
both segments would be somewhat offset by the foundry
capacity shortage issue. We are working very hard to source and
qualify additional foundry capacity in addition to securing more
capacity from the existing foundries. As to automotive segment, we
continue to have new projects going into mass production which were
design-wins of the prior years.”
“For the non-driver areas, we are optimistic
that WLO shipment to the anchor customer for the second quarter
will rise from that of the first quarter per customer’s forecast.
SLiM™, our structured light based 3D sensing total solution, which
we announced jointly with Qualcomm for Android-based smartphone
last August is ready for mass production. The Qualcomm/Himax
solution is by far the highest quality 3D sensing total solution
available for the Android market right now. However, because each
smartphone maker’s design and requirement for facial recognition
and online payment are somewhat different and therefore the
integration of structured light 3D sensing technologies into end
products, typically flagship or premium models, is taking longer
than we anticipated. We are now targeting the end of the year for
shipment to customers for their smartphones’ sales in the first
quarter of next year. As to the active stereoscopic camera (ASC) 3D
sensing solution plan that we unveiled in the last earnings call,
the joint development with an industry leading AP platform player
is well under way. The ASC 3D sensing solution, a lower cost
alternative to structured light 3D sensing solution for its
relatively simple projector, is targeting more mass market
smartphone models for facial recognition. Our goal is to have ASC
3D sensing solution ready for mass production by the end of this
year. Overall, we believe the 3D sensing adoption on Android
smartphone in 2018 would be limited but foresee the market demands
will increase substantially starting 2019. With our leading
technologies, proven manufacturing expertise, new solution roadmap
and alliance with leading AP providers, we believe we are well
positioned to be the partner of choice for Android smartphone
makers in their 3D sensing projects.”
“Last but not the least, we are pleased to
report an emerging optical fingerprint opportunity for the
non-driver CMOS image sensor business. Combining the leading
fingerprint solution design of our partner and a low-power CMOS
image sensor with superior sensitivity which we fully customized
for this purpose, a number of design-in projects are already
ongoing and we expect more to come,” added Mr. Wu. “Along with the
new smartphone designs featuring edge-to-edge displays, structured
light 3D sensing and ASC 3D sensing, both for facial recognition,
as well as under-display optical sensor for fingerprint
authentication are three new approaches for phone unlock and online
payment to replace the traditional home button with capacitive
fingerprint technology. Himax is uniquely positioned in that we
offer critical technologies in all of the three solutions and are
already a key player by forming different collaboration
partnerships for each of the three alternatives. They represent
immense revenue opportunities with much higher ASP and gross margin
versus our mainstream display driver IC business.”
First Quarter 2018 Financial
Results
The first quarter revenues of $162.9 million
represented a decrease of 10.1% sequentially and an increase of
4.9% year-over-year. Gross margin was 22.5%, 50 basis points higher
than guidance, but down 210 basis points sequentially. IFRS loss
per diluted ADS was 1.6 cents, better than the guidance range of
2.0 to 3.0 cents.
Revenue from large display drivers was $59.3
million, up 1.6% sequentially and up 0.1% year-over-year. Large
panel driver ICs accounted for 36.4% of Himax’s total revenues for
the first quarter, compared to 32.3% in the fourth quarter of 2017
and 38.2% a year ago. The first quarter is traditionally the bottom
of the year because it has fewer working days due to Chinese New
Year. Against seasonality, the Company’s large panel driver
business grew low-single-digit sequentially, driven by increasing
4K TV penetration and Chinese panel customers’ ramping of new LCD
fabs.
Revenue for small and medium-sized display
drivers came in at $71.7 million, down 11.8% sequentially and up
7.6% year-over-year, due to seasonality and the overall weak
smartphone market. The product segment accounted for 44.0% of total
sales for the first quarter, as compared to 44.9% in the fourth
quarter of 2017 and 42.9% a year ago. Sales into smartphones were
down 23.0% sequentially and declined 5.4% year-over-year. The
Company’s TDDI shipment in Q1 was still hindered by customers’ high
inventory despite its numerous design-wins for HD+ and FHD+
projects with top tier customers. However, Himax expects the
shipment of its TDDI chips to accelerate starting the second
quarter, but the volume would be somewhat offset by foundry
capacity constraint that the industry is facing right now.
Small and medium-sized driver IC sales for
automotive application recorded another historical quarter.
Revenue, against seasonality, went up 1% sequentially and close to
40% year-over-year. The quarterly revenue is now close to $25
million, reaching almost 20% of the total driver IC revenues.
Driver IC sales for tablets were down 9.2% sequentially but up 2.4%
year-over-year due to weak overall market demand in this product
segment.
Revenues from non-driver businesses were $31.9
million, down 23.2% sequentially but up 8.5% versus last year.
Non-driver products accounted for 19.6% of total revenues, as
compared to 22.8% in the last quarter and 18.9% a year ago. The
sequential decline was mainly due to lower than expected WLO
shipment, offset by higher NRE income. The year-over-year increase
was driven mainly by the WLO product shipment to a leading customer
and, to a lesser extent, rising sales of timing controllers, CMOS
image sensors and NRE income. Himax expects WLO shipment to
increase in the second quarter and rebound strongly in the second
half.
IFRS gross margin for the first quarter was
22.5%, down 210 basis points from the last quarter and down 60
basis points from the same period last year. The sequential margin
decline was due mainly to the reduced order from its WLO anchor
customer, resulting in higher depreciation and overhead charges on
a per unit basis.
IFRS operating expenses were $39.8 million in
the first quarter, down 1.1% from the preceding quarter but up
16.1% from a year ago. The significant year-over-year increase was
primarily the result of rising R&D expenses in the areas of 3D
sensing, WLO, TDDI, and high-end TV as well as annual merit
increase. In addition, NT dollar appreciation against the US dollar
caused the company’s salary expense to increase around $1.2 million
as Himax pays the bulk of its employee salaries in NT dollars.
IFRS operating margin for the first quarter was
-2.0%, down from 1.0% for the same period last year and 2.4% in the
previous quarter. The sequential decline was a result of lower
sales and lower gross margin. The year-over-year decrease was
caused by lower gross margin and higher expenses.
First quarter non-IFRS operating loss was $2.9
million or -1.8% of sales, down from 1.3% for the same period last
year and down from 2.6% a quarter ago. The sequential decline was a
result of lower sales and lower gross margin and the year-over-year
decrease was caused by lower gross margin and higher expenses.
IFRS loss for the first quarter was $2.8
million, or 1.6 cents per diluted ADS, compared to profit of $23.5
million, or 13.6 cents per diluted ADS, in the previous quarter and
profit of $1.2 million, or 0.7 cents per diluted ADS, a year ago.
The sequential decline was a result of lower sales and lower gross
margin. An investment gain of $20.7 million in the last quarter for
disposal of a direct investment in September 2017 also caused the
first quarter profit to decline. The year-over-year decrease was
caused by higher expenses.
First quarter non-IFRS loss was $2.6 million, or
1.5 cents per diluted ADS, compared to non-IFRS profit of $23.8
million, or 13.8 cents per diluted ADS last quarter and non-IFRS
profit of $1.6 million, or 1.0 cent in the same period last
year.
Balance Sheet and Cash Flow
Himax had $151.9 million of cash, cash
equivalents and other financial assets as of the end of March 2018,
compared to $199.5 million at the same time last year and $148.9
million a quarter ago. On top of the above cash position,
restricted cash was $147.0 million at the end of the quarter,
unchanged from $147.0 million in the preceding quarter and up from
$107.4 million a year ago. The restricted cash is mainly used to
guarantee the Company’s short-term borrowings for the same amount.
Himax continues to maintain a very strong balance sheet and remain
a debt-free company.
Himax’s inventories as of March 31, 2018 were
$148.0 million, down from $148.3 million a year ago and up from
$135.2 million a quarter ago. Accounts receivable at the end of
March 2018 were $166.6 million as compared to $169.1 million a year
ago and $188.8 million last quarter. DSO was 92 days at the end of
March 2018, as compared to 98 days a year ago and 101 days at end
of the last quarter.
Net cash inflow from operating activities for
the first quarter was $2.3 million as compared to an inflow of $5.5
million for the same period last year and an inflow of $8.3 million
for the last quarter. The decrease in operating cash flow is mainly
due to lower net profit.
Capital expenditures were $18.6 million in the
first quarter of 2018 versus $2.0 million a year ago and $15.5
million in the last quarter. The first quarter’s capital
expenditure consisted mainly of ongoing payments for the new
building’s construction, WLO capacity expansion and installation of
active alignment equipment to support Himax’s 3D sensing business.
Other CAPEX, primarily for the investment of design tools and
R&D related equipment for its traditional IC design business,
is around $1 million during the quarter.
Share Buyback Update
As of March 31, 2018, Himax had 172.1 million
ADS outstanding, unchanged from last quarter. On a fully diluted
basis, the total ADS outstanding are 172.5 million.
2018
Investor Outreach and Conferences
Ms. Jackie Chang, CFO, Ms. Ophelia Lin, internal
IR Deputy Director, Mr. Ken Liu, internal IR, and Mr. Greg
Falesnik, Himax’s US-based IR, will maintain corporate access for
shareholders and attend future investor conferences. If you are
interested in speaking with the management, please contact Himax’s
US or Taiwan-based investor relations contact at the numbers
below.
Business Updates
Himax expects a solid rebound in the second quarter overall and
sequential growth across all three major product categories.
Display
Driver IC
MarketLarge display driver IC
business recorded low-single-digit growth in the first quarter
against seasonality due mainly to Himax’s Chinese panel customers’
capacity expansion and the market’s increasing 4K TV demands. As
many of the Company’s panel customers continue to ramp new fabs and
run the existing capacity at high utilization, Himax would likely
see continued growth in the second quarter, on the back of the
first quarter’s performance. Himax remains the market leader in the
large panel driver IC business in China and will be a major
beneficiary from China’s ongoing capacity expansion. In the last
earnings call, Himax highlighted that the whole industry is going
through a capacity shortage of 8” foundry where the vast majority
of large panel driver ICs are fabricated. Himax was not able to
fulfill some orders due to tight foundry capacity during the first
quarter. While the capacity shortage continued into the second
quarter when Himax still cannot fulfill all the orders, the Company
has successfully added a 12” fab into the pool of its foundry
capacity to ease the shortage issue. Himax expects to make small
volume shipment for TV related driver IC products from this fab
starting the second quarter. However, the ultimate ramping schedule
will depend on how fast Himax’s panel customers can go through
their customer qualification, something all the Company’s major
customers are working very hard on. With the 2020 Tokyo Olympics
approaching, TV makers are rushing to develop super high end
products with 8K resolution. Himax has recently secured another 8K
TV design win for a major panel maker and expects more to come in
the next few quarters. The Company expects a low-single-digit
sequential revenue growth for large display driver ICs, a
double-digit growth year-over-year.
Despite the first quarter decline in smartphone
display driver IC sales due to soft market demand and seasonality,
Himax sees smartphone makers starting to replenish inventory in the
second quarter in preparation for the launch of new phones, which
will benefit its second quarter business. Overall, Himax is
expecting a strong sequential growth for its smartphone business
and its HD+ and FHD+ TDDI shipment are set to ramp up in Q2 as the
Company indicated. TDDI represents a new source of revenue for
Himax with higher ASP and better margin than the traditional driver
IC, hence the Company expects the acceleration of TDDI shipment
will lead to improvement of its small and medium panel driver IC
product mix and contribute to overall sales growth in 2018.
Moreover, its new generation FHD+ TDDI with chip on film (COF)
package have secured design wins from leading Chinese smartphone
brands with mass production expected in the latter half of this
year. TDDI with COF package for LCD displays can enable super-slim
bezel design for premium smartphone models at a much lower cost
than having similar form factor using OLED displays. Similar to the
situation in the large display driver IC, the TDDI market is also
facing a foundry capacity shortage issue. While trying to get as
much capacity as it can from the existing foundries, Himax is
working very hard to source and qualify additional foundry capacity
for its TDDI ICs.
As to automotive segment, Himax continues to
have new projects going into mass production which were design-wins
of the prior years. In the first quarter, sales into automotive
sector have accounted for more than 15% of its total revenues and
it achieved a very significant milestone to gain the world’s first
TDDI design-wins for automotive application with mass production
target of late 2019 to 2020. Q2 revenue in this segment is set to
grow around 20% sequentially and around 50% year-over-year. Himax
has engaged all of the major automotive panel manufacturers
worldwide for long-term partnerships and secured many of their key
projects pipelined for the next few years.
Going into the second quarter, due to customers’
new launches of smartphones, increasing TDDI shipment and the fast
growing automotive display driver sales, Himax expects small and
medium-sized driver IC revenue to be up around 20% both
sequentially and year-over-year.
Non-Driver Product
CategoriesThe non-driver IC business segment has been the
Company’s most exciting growth area and a differentiator for the
Company in the past few years.
New Technologies Needed for Edge-to-Edge
Display3D sensing total solution is primarily targeting
the Android based smartphone at present. Nowadays new smartphone
designs feature edge-to-edge displays, removing home button and
minimizing border area to provide better viewing experience. Along
with the new design, three new approaches of biometric
authentication for phone unlock and online payments are emerging to
replace the traditional home button with capacitive fingerprint
technology. These three new solutions for the Android smartphones
are: structured light 3D sensing and active stereoscopic camera
(ASC) 3D sensing, both for facial recognition, as well as
under-display optical sensor for fingerprint authentication.
Naturally, all of these three solutions have
advantages and challenges. Himax thinks all three can fulfill
different demands and can therefore co-exist in the market place.
Structured light 3D sensing offers outstanding depth precision but
the cost is the highest for its complex projector design and
manufacturing. ASC is a lower cost alternative to structured light
3D for its relatively simple projector and the fact that it is
built on the existing dual camera ecosystem. It is, however,
constrained by more limited depth precision. Under-display
fingerprint, with a similar cost to the ASC solution, is the
closest alternative to the prevailing capacitive type fingerprint
which is already familiar to the consumer. However, under-display
fingerprint is limited to a single function of authentication
without the possibility for other applications such as gesture
sensing, photo enhancement or AR as can be achieved by the two 3D
sensing approaches. Himax enjoys a unique position in that it
offers critical technologies in all of the three solutions and are
already a key player by forming different collaboration
partnerships for each of the three alternatives. They represent
immense revenue opportunities with much higher ASP and gross margin
versus Himax’s mainstream display driver IC business.
Structured Light 3D
SensingSLiM™, Himax’s structured light based 3D sensing
total solution, which it announced jointly with Qualcomm last
August, brings together Qualcomm’s industry leading 3D algorithm
with Himax’s cutting-edge design and manufacturing capabilities in
optics and NIR sensors as well as its unique know-how in 3D sensing
system integration. The majority of the key technologies inside the
SLiMTM solution is developed and supplied by Himax itself. These
critical technologies include, on the projector end, DOE and
collimator utilizing its world leading WLO technology, a
tailor-made laser driver IC, and high precision active alignment
for the projector assembly; and on the receiver end, a high
efficiency near-infrared CMOS image sensor. Last but not least,
Himax also developed an ASIC by incorporating Qualcomm’s algorithm
for 3D depth decoding. The fact that all of these critical elements
are developed in-house puts Himax in a unique leading position. It
represents a very high barrier of entry for any potential
competition and a much higher ASP and better profit margin for
Himax.
The Qualcomm/Himax solution is by far the
highest quality 3D sensing total solution available for the Android
market right now. It has the industry’s best performance in all of
3D depth accuracy, indoor/outdoor sensitivity, power consumption
and dimensions. It has passed the toughest eye safety standards
with a proprietary glass broken detection mechanism to safeguard
the user from any potential harm. The Company is pleased to report
that the Himax SLiMTM solution is now ready for mass production. It
has delivered production ready samples to select smartphone makers
as well as their preferred facial recognition and secure online
payment ecosystem partners for their development into end products,
typically flagship or premium models. As each smartphone maker’s
design and requirement are somewhat different, such developments
are taking longer than we anticipated. Himax is now targeting the
end of the year for shipment to customers for their smartphones’
sales in the first quarter of next year.
Right now, Himax SLiMTM solution is only
available on Qualcomm Snapdragon premium mobile platforms. Equipped
with the ASIC for 3D depth decoding that Himax has developed, Himax
can extend the solution to more mid- to high-end platforms. This
initiative will make the SLiMTM solution more affordable for
smartphone makers as the price differential among different
application processor platforms can be very significant. With 3D
depth decoding handled by the ASIC, the smartphone’s AP can be
freed up for other applications and lower end platforms with less
computing power can be adopted for structured light 3D sensing.
Active Stereoscopic Camera 3D
SensingHimax unveiled its plan for a lower cost 3D sensing
solution with ASC technology in the last earnings call, targeting
more mass market smartphone models for facial recognition. The
Company is pleased to report that the joint development with an
industry leading AP platform player is well under way. The
collaboration leverages its WLO and DOE expertise, as well as
active alignment manufacturing know-how and high sensitivity NIR
sensors. The Company’s target is to have ASC 3D sensing solution
ready for mass production by the end of this year. Given the cost
benefit, it has attracted a lot of interest from potential
smartphone customers. While lower cost compared to structure light
3D, ASC will still represent a much higher ASP and better gross
margin potential for Himax.
Himax believes the 3D sensing adoption on
Android smartphone in 2018 would be limited but foresee the market
demands will increase substantially starting 2019. With its leading
technologies, proven manufacturing expertise, new solution roadmap
and alliance with leading AP providers, Himax believes it is well
positioned to be the partner of choice for Android smartphone
makers in their 3D sensing projects.
Optical
Fingerprint Optical fingerprint is an emerging
opportunity for Himax. Himax has been working with an industry
leading fingerprint solution provider to develop an under-display
optical fingerprint product in the last two years, targeting
smartphones using OLED displays. A number of design-in projects are
already ongoing and Himax expects more to come. Combining the
leading fingerprint solution design of its partner and a low-power
CMOS image sensor with superior sensitivity which Himax fully
customized for this purpose, this optical fingerprint solution is
able to deliver outstanding performance even under extreme
conditions such as ultra-low light or direct bright sunlight, or
when the finger is very cold or dry. Similar to 3D sensing, optical
fingerprint is new and complex with a high barrier of entry. Again,
the CMOS image sensor used in the solution will have a much higher
ASP and better margin than the Company’s traditional display driver
IC products.
WLOIn the last earnings call,
Himax reported that the Company’s WLO anchor customer had lowered
its volume for the first quarter. After the earnings call, the
customer made a further order reduction. The much reduced shipment
negatively impacted Himax’s Q1 gross margin as lower utilization of
its WLO fab led to much higher equipment depreciation and factory
overhead on a per unit basis. Judging by the customer’s forecast,
Himax is optimistic that the shipment for the second quarter will
rise from that of the first quarter and expect the volume to be
significantly higher in the second half. Meanwhile, Himax is very
encouraged by the progress of its new R&D projects with the
said customer for their future generation products centering around
its exceptional design know-how and mass production expertise in
WLO technology.
CAPEXHimax announced the
increase of the Phase I capital expenditure budget from $80 million
to $105 million in the last earnings call. The Phase I is being
executed as scheduled. Since February, the Company has been moving
in equipment and some manufacturing related staff to the new
building and started tuning the manufacturing process and
conducting production trial run for its 3D sensing solutions. Himax
has already achieved pretty satisfactory production yields in the
internal pilot production. Of the $105 million budget, $33 million
has been paid out in 2017 and another $17.5 million in the first
quarter 2018. The payment for the remaining $54.5 million is to be
made throughout the rest of 2018.
As Himax mentioned in the previous earnings
calls, the CAPEX budget for Phases I will be funded through Himax’s
internal resources and banking facilities, if so needed.
CMOS Image SensorHimax
continues to make great progress with its two machine vision sensor
product lines, namely, near infrared (“NIR”) sensor and
Always-on-Sensor (“AoSTM”). NIR sensor is a critical part of its
SLiMTM and ASC 3D sensing solutions. The Company’s NIR sensors’
overall performance, measured primarily by way of quantum
efficiency, is far ahead of those of its peers for 3D sensing. On
the AoS product line, Himax announced the full acquisition of Emza
in March. With the acquisition, Himax is now uniquely positioned to
provide ultra low power imaging sensing solutions, complete with
Himax’s industry leading super low power CIS design and Emza’s
unique AI-based computer vision algorithm. This will also help
Himax enter into markets beyond consumer electronics, such as
connected homes, smart buildings and security.
For the traditional human vision segments, Himax
sees strong demands in laptops and increasing shipments for
multimedia applications such as car recorders, surveillance,
drones, home appliances, and consumer electronics, among
others.
LCOSHimax’s main focus areas
are AR goggle devices and head-up-displays (HUD) for automotives.
While AR will take a few years to fully realize its market
potential, Himax has seen many companies, be the top name
multinationals or new start-ups, invest heavily to develop the
ecosystem -- applications, software, operating system, system
electronics, and optics. The Company continues to have active
engineering activities with several tier-1 tech names with ambition
to bring next generation smart glasses to the market. In addition,
Himax continues to make great progress in developing high-end
head-up display for automotives. Himax and its partners together
have secured a few design wins. Timing for such revenue
contribution would be 2019 the earliest. Himax believes LCOS
represents a significant long term growth opportunity for the
Company.
For non-driver IC business, Himax expects a
low-single-digit revenue growth sequentially in the second quarter,
and around 10% growth year-over-year.
Second Quarter
2018 Guidance
The Company is providing the following financial guidance for the
second quarter of 2018: |
Net
Revenue: |
|
To increase
9% to 14% sequentially, representing a double-digit year-over-year
growth |
Gross
Margin: |
|
To be around
23% sequentially, depending on final product mix |
IFRS
EPS: |
|
0.0 to 1.0
cent per diluted ADS |
|
|
|
Beginning January 1, 2018, Himax adopted
International Financial Reporting Standards ("IFRS") issued by the
International Accounting Standard Board ("IASB") to prepare its
consolidated financial statements. The Company doesn’t expect the
transition from US GAAP to IFRS to have any significant impact on
its financial results.
HIMAX TECHNOLOGIES FIRST QUARTER 2018
EARNINGS CONFERENCE CALL
DATE: |
|
Thursday, May 10, 2018 |
TIME: |
|
U.S. |
8:00 a.m.
EDT |
|
|
Taiwan |
8:00
p.m. |
DIAL
IN: |
|
U.S. +1 (866) 444-9147 |
|
|
INTERNATIONAL +1 (678) 509-7569 |
CONFERENCE ID: |
|
5288328 |
WEBCAST: |
|
https://edge.media-server.com/m6/p/wifc44z6 |
|
|
|
|
A replay of the call will be available beginning
two hours after the call through 10:59 a.m. US EDT on May 17th,
2018 (10:59 p.m. Taiwan time, May 17th, 2018) 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 5288328. 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 May 10, 2019.
About Himax Technologies, Inc.
Himax Technologies, Inc. (NASDAQ:HIMX) is a
fabless semiconductor solution provider dedicated to display
imaging processing technologies. Himax is a worldwide market leader
in display driver ICs and timing controllers used in TVs, laptops,
monitors, mobile phones, tablets, digital cameras, car navigation,
virtual reality (VR) devices and many other consumer electronics
devices. Additionally, Himax designs and provides controllers for
touch sensor displays, in-cell Touch and Display Driver Integration
(TDDI) single-chip solutions, LED driver ICs, power management ICs,
scaler products for monitors and projectors, tailor-made video
processing IC solutions, silicon IPs and LCOS micro-displays for
augmented reality (AR) devices and head-up displays (HUD) for
automotive. The Company also offers digital camera solutions,
including CMOS image sensors and wafer level optics for AR devices,
3D sensing and machine vision, which are used in a wide variety of
applications such as mobile phone, tablet, laptop, TV, PC camera,
automobile, security, medical devices and Internet of Things.
Founded in 2001 and headquartered in Tainan, Taiwan, Himax
currently employs around 2,150 people from three Taiwan-based
offices in Tainan, Hsinchu and Taipei and country offices in China,
Korea, Japan and the US. Himax has 2,999 patents granted and 439
patents pending approval worldwide as of March 31th, 2018. 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, 2017 filed with the SEC, as may be amended.
Company Contacts:
Jackie Chang, CFOHimax
Technologies, Inc.Tel: +886-2-2370-3999 Ext.22300 OrUS Tel:
+1-949-585-9838 Ext.252Fax: +886-2-2314-0877Email:
jackie_chang@himax.com.twwww.himax.com.tw
Ophelia Lin, Investor
RelationsHimax Technologies, Inc.Tel: +886-2-2370-3999
Ext.22202Fax: +886-2-2314-0877 Email:
ophelia_lin@himax.com.tw www.himax.com.tw
Ken Liu, Investor RelationsHimax Technologies,
Inc.Tel: +886-2-2370-3999 Ext.22513Fax: +886-2-2314-0877 Email:
ken_liu@himax.com.twwww.himax.com.tw
Investor Relations - US RepresentativeGreg
Falesnik, Managing DirectorMZ North AmericaTel:
+1-212-301-7130Email: greg.falesnik@mzgroup.us www.mzgroup.us
-Financial Tables-
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements
of Profit or
Loss |
(These interim financials do not fully comply
with IFRS because they omit all
interim disclosure required by
IFRS) |
(Amounts in Thousands of U.S. Dollars,
Except Share and Per Share
Data) |
|
|
Three Months
Ended March 31, |
|
Three Months
EndedDecember 31, |
|
2018 |
|
2017 |
|
2017 |
|
|
|
|
|
|
Revenues |
$ |
162,851 |
|
|
$ |
155,210 |
|
|
$ |
181,081 |
|
|
|
|
|
|
|
Costs
and expenses: |
|
|
|
|
|
Cost of
revenues |
|
126,254 |
|
|
|
119,309 |
|
|
|
136,499 |
|
Research
and development |
|
30,040 |
|
|
|
25,333 |
|
|
|
29,387 |
|
General
and administrative |
|
4,906 |
|
|
|
4,601 |
|
|
|
5,401 |
|
Sales and
marketing |
|
4,895 |
|
|
|
4,369 |
|
|
|
5,515 |
|
Total costs and expenses |
|
166,095 |
|
|
|
153,612 |
|
|
|
176,802 |
|
|
|
|
|
|
|
Operating income (loss) |
|
(3,244 |
) |
|
|
1,598 |
|
|
|
4,279 |
|
|
|
|
|
|
|
Non
operating income
(loss): |
|
|
|
|
|
Interest
income |
|
549 |
|
|
|
543 |
|
|
|
554 |
|
Changes
in fair value of financial assets at fair value through profit or
loss |
|
1 |
|
|
|
70 |
|
|
|
23,064 |
|
Share of
losses of associates |
|
(844 |
) |
|
|
(134 |
) |
|
|
(483 |
) |
Foreign
currency exchange losses, net |
|
(258 |
) |
|
|
(1,126 |
) |
|
|
(322 |
) |
Finance
costs |
|
(252 |
) |
|
|
(214 |
) |
|
|
(250 |
) |
Other
income, net |
|
4 |
|
|
|
48 |
|
|
|
10 |
|
|
|
(800 |
) |
|
|
(813 |
) |
|
|
22,573 |
|
Profit (loss) before income
taxes |
|
(4,044 |
) |
|
|
785 |
|
|
|
26,852 |
|
Income
tax expense (benefit) |
|
(728 |
) |
|
|
122 |
|
|
|
3,989 |
|
Profit (loss) for the period |
|
(3,316 |
) |
|
|
663 |
|
|
|
22,863 |
|
Loss attributable to noncontrolling
interests |
|
487 |
|
|
|
553 |
|
|
|
681 |
|
Profit (loss) attributable to Himax Technologies, Inc.
stockholders |
$ |
(2,829 |
) |
|
$ |
1,216 |
|
|
$ |
23,544 |
|
|
|
|
|
|
|
Basic
earnings (loss) per ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
(0.016 |
) |
|
$ |
0.007 |
|
|
$ |
0.136 |
|
Diluted earnings (loss) per ADS attributable to Himax
Technologies, Inc. stockholders |
$ |
(0.016 |
) |
|
$ |
0.007 |
|
|
$ |
0.136 |
|
|
|
|
|
|
|
Basic
Weighted Average Outstanding ADS |
|
172,499 |
|
|
|
172,399 |
|
|
|
172,499 |
|
Diluted Weighted Average Outstanding ADS |
|
172,536 |
|
|
|
172,424 |
|
|
|
172,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Supplemental Financial
Information |
(Amounts in Thousands of U.S.
Dollars) |
|
The
amount of share-based compensation included in applicable
statements of profit or loss categories is
summarized as follows: |
Three Months
Ended March 31, |
|
ThreeMonthsEndedDecember |
|
2018 |
|
2017 |
|
31, 2017 |
Share-based
compensation |
|
|
|
|
|
Cost of
revenues |
$ |
12 |
|
|
$ |
25 |
|
|
$ |
24 |
|
Research
and development |
|
57 |
|
|
|
139 |
|
|
|
40 |
|
General
and administrative |
|
9 |
|
|
|
38 |
|
|
|
14 |
|
Sales and
marketing |
|
13 |
|
|
|
28 |
|
|
|
15 |
|
Income
tax benefit |
|
(12 |
) |
|
|
(36 |
) |
|
|
(13 |
) |
Total |
$ |
79 |
|
|
$ |
194 |
|
|
$ |
80 |
|
|
|
|
|
|
|
The
amount of acquisition-related charges
included in applicable statements of
profit or loss categories is summarized as
follows: |
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related charges |
|
|
|
|
|
Research
and development |
$ |
246 |
|
|
$ |
246 |
|
|
$ |
247 |
|
Income
tax benefit |
|
(71 |
) |
|
|
(99 |
) |
|
|
(99 |
) |
Total |
$ |
175 |
|
|
$ |
147 |
|
|
$ |
148 |
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
IFRS Unaudited
Condensed Consolidated
Statements
of Financial
Position |
(Amounts in Thousands of U.S.
Dollars) |
|
|
|
March
31,2018 |
|
December
31,2017 |
|
March
31,2017 |
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
139,806 |
|
|
$ |
138,023 |
|
|
$ |
190,345 |
|
Financial
assets at amortized cost |
|
|
11,753 |
|
|
|
10,358 |
|
|
|
5,220 |
|
Financial
assets at fair value through profit or loss |
|
|
361 |
|
|
|
521 |
|
|
|
3,891 |
|
Accounts
receivable, net |
|
|
166,603 |
|
|
|
188,774 |
|
|
|
169,093 |
|
Inventories |
|
|
147,962 |
|
|
|
135,200 |
|
|
|
148,260 |
|
Income
taxes receivable |
|
|
45 |
|
|
|
53 |
|
|
|
41 |
|
Restricted deposit |
|
|
147,000 |
|
|
|
147,000 |
|
|
|
107,414 |
|
Other
receivable from related parties |
|
|
3,515 |
|
|
|
3,250 |
|
|
|
5,650 |
|
Other
current assets |
|
|
19,609 |
|
|
|
39,442 |
|
|
|
14,753 |
|
Total current assets |
|
|
636,654 |
|
|
|
662,621 |
|
|
|
644,667 |
|
Financial assets at fair value through profit or
loss |
|
|
1,600 |
|
|
|
1,600 |
|
|
|
10,562 |
|
Financial assets at fair value through other
comprehensive income |
|
|
1,522 |
|
|
|
1,522 |
|
|
|
1,680 |
|
Equity method investments |
|
|
9,905 |
|
|
|
10,739 |
|
|
|
2,235 |
|
Property, plant and
equipment, net |
|
|
95,953 |
|
|
|
84,575 |
|
|
|
46,517 |
|
Deferred tax assets |
|
|
8,199 |
|
|
|
7,713 |
|
|
|
7,811 |
|
Goodwill |
|
|
28,138 |
|
|
|
28,138 |
|
|
|
28,138 |
|
Other
intangible assets, net |
|
|
3,027 |
|
|
|
2,899 |
|
|
|
3,461 |
|
Restricted deposit |
|
|
481 |
|
|
|
470 |
|
|
|
132 |
|
Other
non-current assets |
|
|
8,579 |
|
|
|
2,916 |
|
|
|
2,370 |
|
|
|
|
157,404 |
|
|
|
140,572 |
|
|
|
102,906 |
|
Total assets |
|
$ |
794,058 |
|
|
$ |
803,193 |
|
|
$ |
747,573 |
|
Liabilities and
Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Short-term borrowings |
|
$ |
147,000 |
|
|
$ |
147,000 |
|
|
$ |
107,000 |
|
Financial
liability at amortized cost |
|
|
4,920 |
|
|
|
4,837 |
|
|
|
- |
|
Accounts
payable |
|
|
134,970 |
|
|
|
139,933 |
|
|
|
115,941 |
|
Accounts
payable to related party |
|
|
- |
|
|
|
- |
|
|
|
1,098 |
|
Income
taxes payable |
|
|
4,920 |
|
|
|
7,285 |
|
|
|
16,158 |
|
Other
payable to related party |
|
|
1,900 |
|
|
|
2,200 |
|
|
|
- |
|
Other
current liabilities |
|
|
44,701 |
|
|
|
42,471 |
|
|
|
29,936 |
|
Total current liabilities |
|
|
338,411 |
|
|
|
343,726 |
|
|
|
270,133 |
|
Financial liability at
amortized cost |
|
|
- |
|
|
|
- |
|
|
|
4,601 |
|
Net
defined benefit liabilities |
|
|
1,178 |
|
|
|
1,152 |
|
|
|
1,115 |
|
Deferred tax liabilities |
|
|
106 |
|
|
|
111 |
|
|
|
1,348 |
|
Other
non-current liabilities |
|
|
3,672 |
|
|
|
4,616 |
|
|
|
1,945 |
|
|
|
|
4,956 |
|
|
|
5,879 |
|
|
|
9,009 |
|
Total liabilities |
|
|
343,367 |
|
|
|
349,605 |
|
|
|
279,142 |
|
Equity |
|
|
|
|
|
|
Ordinary
shares |
|
|
107,010 |
|
|
|
107,010 |
|
|
|
107,010 |
|
Additional paid-in capital |
|
|
104,533 |
|
|
|
104,427 |
|
|
|
103,689 |
|
Treasury
shares |
|
|
(8,878 |
) |
|
|
(8,878 |
) |
|
|
(9,020 |
) |
Accumulated other comprehensive loss |
|
|
(322 |
) |
|
|
(446 |
) |
|
|
(1,186 |
) |
Retained
earnings |
|
|
250,574 |
|
|
|
253,210 |
|
|
|
268,032 |
|
Equity attributable to owners of Himax
Technologies, Inc. |
|
|
452,917 |
|
|
|
455,323 |
|
|
|
468,525 |
|
Noncontrolling interests |
|
|
(2,226 |
) |
|
|
(1,735 |
) |
|
|
(94 |
) |
Total equity |
|
|
450,691 |
|
|
|
453,588 |
|
|
|
468,431 |
|
Total liabilities and equity |
|
$ |
794,058 |
|
|
$ |
803,193 |
|
|
$ |
747,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts
in Thousands of
U.S.
Dollars) |
|
|
Three Months Ended March
31, |
|
ThreeMonths
EndedDecember31, |
|
|
2018 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
Cash
flows from operating activities: |
|
|
|
|
|
|
Profit (loss)
for the period |
|
$ |
(3,316 |
) |
|
$ |
663 |
|
|
$ |
22,863 |
|
Adjustments
for: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
5,098 |
|
|
|
3,439 |
|
|
|
5,098 |
|
Bad debt
expense |
|
|
- |
|
|
|
- |
|
|
|
155 |
|
Share-based compensation expenses |
|
|
91 |
|
|
|
229 |
|
|
|
93 |
|
Gain on
disposals of property, plant and equipment |
|
|
- |
|
|
|
(28 |
) |
|
|
(1 |
) |
Changes
in fair value of financial assets at fair value through profit or
loss |
|
|
(1 |
) |
|
|
(70 |
) |
|
|
(23,064 |
) |
Interest
income |
|
|
(549 |
) |
|
|
(543 |
) |
|
|
(554 |
) |
Finance
costs |
|
|
252 |
|
|
|
214 |
|
|
|
250 |
|
Income
tax expense (benefit) |
|
|
(728 |
) |
|
|
122 |
|
|
|
3,989 |
|
Share of
losses of associates |
|
|
844 |
|
|
|
134 |
|
|
|
483 |
|
Inventories write downs |
|
|
2,954 |
|
|
|
3,047 |
|
|
|
3,418 |
|
Foreign
currency exchange gains of financial assets |
|
|
(222 |
) |
|
|
- |
|
|
|
- |
|
|
|
|
4,423 |
|
|
|
7,207 |
|
|
|
12,730 |
|
Changes
in: |
|
|
|
|
|
|
Accounts
receivable |
|
|
22,171 |
|
|
|
23,473 |
|
|
|
(5,901 |
) |
Inventories |
|
|
(15,716 |
) |
|
|
(1,559 |
) |
|
|
(8,506 |
) |
Other
receivable from related parties |
|
|
(15 |
) |
|
|
- |
|
|
|
- |
|
Other
current assets |
|
|
(1,672 |
) |
|
|
(878 |
) |
|
|
(346 |
) |
Accounts
payable |
|
|
(4,963 |
) |
|
|
(26,328 |
) |
|
|
14,380 |
|
Accounts
payable to related party |
|
|
- |
|
|
|
522 |
|
|
|
- |
|
Other
payable to related party |
|
|
(300 |
) |
|
|
- |
|
|
|
850 |
|
Net
defined benefit liabilities |
|
|
26 |
|
|
|
41 |
|
|
|
(52 |
) |
Other
current liabilities |
|
|
(1,629 |
) |
|
|
2,627 |
|
|
|
(4,709 |
) |
Other
non-current liabilities |
|
|
(7 |
) |
|
|
495 |
|
|
|
(590 |
) |
Cash generated from operating activities |
|
|
2,318 |
|
|
|
5,600 |
|
|
|
7,856 |
|
Interest
received |
|
|
166 |
|
|
|
50 |
|
|
|
883 |
|
Interest
paid |
|
|
(170 |
) |
|
|
(137 |
) |
|
|
(170 |
) |
Income
tax paid |
|
|
(37 |
) |
|
|
(53 |
) |
|
|
(273 |
) |
Net cash provided by
operating activities |
|
|
2,277 |
|
|
|
5,460 |
|
|
|
8,296 |
|
|
|
|
|
|
|
|
Cash
flows from investing activities: |
|
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
|
(18,550 |
) |
|
|
(1,998 |
) |
|
|
(15,537 |
) |
Proceeds
from disposal of property, plant and equipment |
|
|
- |
|
|
|
28 |
|
|
|
87 |
|
Acquisitions of intangible assets |
|
|
(94 |
) |
|
|
(11 |
) |
|
|
(175 |
) |
Acquisitions of financial assets at amortized cost |
|
|
(1,897 |
) |
|
|
(454 |
) |
|
|
(756 |
) |
Proceeds
from disposal of financial assets at amortized cost |
|
|
754 |
|
|
|
446 |
|
|
|
- |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
|
(4,330 |
) |
|
|
(4,647 |
) |
|
|
(4,934 |
) |
Proceeds
from disposal of financial assets at fair value through profit or
loss |
|
|
26,506 |
|
|
|
6,074 |
|
|
|
15,088 |
|
Acquisition of business |
|
|
(700 |
) |
|
|
- |
|
|
|
- |
|
Acquisitions of equity method investments |
|
|
- |
|
|
|
- |
|
|
|
(6,945 |
) |
Increase
in refundable deposits |
|
|
(1 |
) |
|
|
(310 |
) |
|
|
(82 |
) |
Releases
(pledges) of restricted deposit |
|
|
(11 |
) |
|
|
(222 |
) |
|
|
195 |
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts
in Thousands of
U.S.
Dollars) |
|
|
Three Months Ended March
31, |
|
ThreeMonths
EndedDecember31, |
|
|
2018 |
|
2017 |
|
2017 |
Cash paid
for loan made to related parties |
|
$ |
(250 |
) |
|
$ |
- |
|
|
$ |
(1,750 |
) |
Cash
received from loan made to related party |
|
|
- |
|
|
|
1,500 |
|
|
|
2,650 |
|
Income
tax paid for disposal of financial assets at fair value through
profit or loss |
|
|
(2,187 |
) |
|
|
- |
|
|
|
- |
|
Net cash provided by (used in) investing
activities |
|
|
(760 |
) |
|
|
406 |
|
|
|
(12,159 |
) |
|
|
|
|
|
|
|
Cash
flows from financing activities: |
|
|
|
|
|
|
Proceeds
from issuance of new shares by subsidiary |
|
|
11 |
|
|
|
- |
|
|
|
105 |
|
Proceeds
from disposals of subsidiary shares to noncontrolling interests by
Himax Imaging, Inc. |
|
|
- |
|
|
|
4 |
|
|
|
- |
|
Release
of restricted deposit |
|
|
- |
|
|
|
31,000 |
|
|
|
- |
|
Proceeds
from short-term borrowings |
|
|
- |
|
|
|
27,161 |
|
|
|
27,000 |
|
Repayments of short-term borrowings |
|
|
- |
|
|
|
(58,161 |
) |
|
|
(27,000 |
) |
Net cash provided by
financing activities |
|
|
11 |
|
|
|
4 |
|
|
|
105 |
|
Effect of foreign currency
exchange rate changes on cash and cash
equivalents |
|
|
255 |
|
|
|
23 |
|
|
|
299 |
|
Net increase
(decrease) in
cash and cash equivalents |
|
|
1,783 |
|
|
|
5,893 |
|
|
|
(3,459 |
) |
Cash
and cash equivalents at beginning of period |
|
|
138,023 |
|
|
|
184,452 |
|
|
|
141,482 |
|
Cash
and cash equivalents at end of period |
|
$ |
139,806 |
|
|
$ |
190,345 |
|
|
$ |
138,023 |
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Non-IFRS
Unaudited Supplemental Data – Reconciliation
Schedule |
(Amounts in Thousands of U.S.
Dollars) |
|
Gross Margin, Operating Margin and Net Margin Excluding
Share-Based Compensation and
Acquisition-Related Charges: |
|
Three Months Ended March
31, |
|
ThreeMonths
EndedDecember31, |
|
2018 |
|
2017 |
|
2017 |
Revenues |
$ |
162,851 |
|
|
$ |
155,210 |
|
|
$ |
181,081 |
|
Gross
profit |
|
36,597 |
|
|
|
35,901 |
|
|
|
44,582 |
|
Add:
Share-based compensation – cost of revenues |
|
12 |
|
|
|
25 |
|
|
|
24 |
|
Gross profit
excluding share-based compensation |
|
36,609 |
|
|
|
35,926 |
|
|
|
44,606 |
|
Gross margin
excluding share-based compensation |
|
22.5% |
|
|
|
23.1% |
|
|
|
24.6% |
|
Operating
income (loss) |
|
(3,244) |
|
|
|
1,598 |
|
|
|
4,279 |
|
Add:
Share-based compensation |
|
91 |
|
|
|
230 |
|
|
|
93 |
|
Operating
income (loss) excluding share-based compensation |
|
(3,153) |
|
|
|
1,828 |
|
|
|
4,372 |
|
Add:
Acquisition-related charges –intangible assets amortization |
|
246 |
|
|
|
246 |
|
|
|
247 |
|
Operating
income (loss) excluding share-based compensation and
acquisition-related charges |
|
(2,907) |
|
|
|
2,074 |
|
|
|
4,619 |
|
Operating
margin excluding share-based compensation and acquisition-related
charges |
|
(1.8%) |
|
|
|
1.3% |
|
|
|
2.6% |
|
Profit (loss)
attributable to Himax Technologies, Inc. stockholders |
|
(2,829) |
|
|
|
1,216 |
|
|
|
23,544 |
|
Add:
Share-based compensation, net of tax |
|
79 |
|
|
|
194 |
|
|
|
80 |
|
Add:
Acquisition-related charges, net of tax |
|
175 |
|
|
|
147 |
|
|
|
148 |
|
Profit (loss)
attributable to Himax Technologies, Inc. stockholders excluding
share-based compensation and acquisition-related charges |
|
(2,575) |
|
|
|
1,557 |
|
|
|
23,772 |
|
Net margin
attributable to Himax Technologies, Inc. stockholders excluding
share-based compensation and acquisition-related charges |
|
(1.6%) |
|
|
|
1.0% |
|
|
|
13.1% |
|
|
|
|
|
|
|
*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 (loss)
excluding share-based compensation and acquisition-related charges
divided by revenues |
|
*Net margin attributable to Himax Technologies, Inc. stockholders
excluding share-based compensation and acquisition-related charges
equals profit (loss) attributable to Himax Technologies, Inc.
stockholders excluding share-based compensation and
acquisition-related charges divided by revenues |
|
|
|
Diluted Loss Per ADS Attributable to Himax
Technologies, Inc. Stockholders Excluding Share-based Compensation
and Acquisition-Related Charges: (Amounts in U.S.
Dollars) |
|
|
|
Three Months Ended
March
31, |
|
|
|
2018 |
Diluted IFRS loss per
ADS attributable to Himax Technologies, Inc. stockholders |
|
|
($0.016) |
Add:
Share-based compensation per ADS |
|
|
$0.000 |
Add:
Acquisition-related charges per ADS |
|
|
$0.001 |
|
|
|
|
Diluted non-IFRS loss
per ADS attributable to Himax Technologies, Inc. stockholders
excluding share-based compensation and acquisition-related
charges |
|
|
($0.015) |
|
|
|
|
Numbers do not add up due to rounding
|
|
Himax Technologies, Inc. |
Reconciliation of unaudited condensed
consolidated Statement of Financial Position as of December 31,
2017 |
(Amounts in Thousands of U.S.
Dollars) |
|
U.S. GAAP |
|
Effect of Transition to IFRS |
|
IFRS |
|
|
Items |
|
Amount |
|
RecognitionDifference |
|
PresentationDifference |
|
Amount |
|
Items |
|
Note |
Assets |
|
|
|
|
|
|
|
|
|
Assets |
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
Cash and
cash equivalents |
|
$ |
138,023 |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
138,023 |
|
Cash and cash equivalents |
|
|
Investments in marketable securities available-for-sale |
|
|
10,879 |
|
|
- |
|
|
|
(10,879 |
) |
|
|
- |
|
- |
|
A-1 |
- |
|
|
- |
|
|
- |
|
|
|
10,358 |
|
|
|
10,358 |
|
Financial
assets at amortized cost |
|
A-1 |
- |
|
|
- |
|
|
- |
|
|
|
521 |
|
|
|
521 |
|
Financial
assets at fair value through profit or loss |
|
A-1 |
Accounts
receivable, less allowance for doubtful accounts, sales returns and
discounts |
|
|
187,571 |
|
|
- |
|
|
|
1,203 |
|
|
|
188,774 |
|
Accounts
receivable, net |
|
B |
Inventories |
|
|
135,200 |
|
|
- |
|
|
|
- |
|
|
|
135,200 |
|
Inventories |
|
|
- |
|
|
- |
|
|
- |
|
|
|
53 |
|
|
|
53 |
|
Income
taxes receivable |
|
|
Restricted cash, cash equivalents and marketable securities |
|
|
147,000 |
|
|
- |
|
|
|
- |
|
|
|
147,000 |
|
Restricted deposit |
|
|
Other
receivables from related parties |
|
|
3,250 |
|
|
- |
|
|
|
- |
|
|
|
3,250 |
|
Other
receivable from related parties |
|
|
Prepaid
expenses and other current assets |
|
|
39,495 |
|
|
- |
|
|
|
(53 |
) |
|
|
39,442 |
|
Other
current assets |
|
|
Total current assets |
|
|
661,418 |
|
|
- |
|
|
|
1,203 |
|
|
|
662,621 |
|
Total current assets |
|
|
Investment in non-marketable equity
securities |
|
|
3,122 |
|
|
- |
|
|
|
(3,122 |
) |
|
|
- |
|
- |
|
A-2 |
- |
|
|
- |
|
|
- |
|
|
|
1,600 |
|
|
|
1,600 |
|
Financial assets at fair value through profit or
loss |
|
A-2 |
- |
|
|
- |
|
|
- |
|
|
|
1,522 |
|
|
|
1,522 |
|
Financial assets at fair value through
other comprehensive income |
|
A-2 |
Equity method investments |
|
|
10,739 |
|
|
- |
|
|
|
- |
|
|
|
10,739 |
|
Equity method investments |
|
|
Property, plant and equipment, net |
|
|
86,673 |
|
|
- |
|
|
|
(2,098 |
) |
|
|
84,575 |
|
Property, plant and equipment, net |
|
C |
Deferred tax assets |
|
|
7,688 |
|
|
(54 |
) |
|
|
79 |
|
|
|
7,713 |
|
Deferred tax assets |
|
D,F |
Goodwill |
|
|
28,138 |
|
|
- |
|
|
|
- |
|
|
|
28,138 |
|
Goodwill |
|
|
Other
intangible assets, net |
|
|
2,179 |
|
|
- |
|
|
|
720 |
|
|
|
2,899 |
|
Other
intangible assets, net |
|
C |
Restricted marketable securities |
|
|
470 |
|
|
- |
|
|
|
- |
|
|
|
470 |
|
Restricted deposit |
|
|
Other
assets |
|
|
1,628 |
|
|
(90 |
) |
|
|
1,378 |
|
|
|
2,916 |
|
Other
non-current assets |
|
C,F |
|
|
|
140,637 |
|
|
(144 |
) |
|
|
79 |
|
|
|
140,572 |
|
|
|
|
Total
assets |
|
$ |
802,055 |
|
$ |
(144 |
) |
|
$ |
1,282 |
|
|
$ |
803,193 |
|
Total
assets |
|
|
(Continued)
|
|
Himax Technologies, Inc. |
Reconciliation of unaudited condensed
consolidated Statement of Financial Position as of December 31,
2017 |
(Amounts in Thousands of U.S.
Dollars) |
|
U.S. GAAP |
|
Effect of Transition to IFRS |
|
IFRS |
|
|
Items |
|
Amount |
|
RecognitionDifference |
|
PresentationDifference |
|
Amount |
|
Items |
|
Note |
Liabilities, Redeemable noncontrolling interest and
Equity |
|
|
|
|
|
|
|
|
|
Liabilities and
Equity |
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
Short-term debt |
|
$ |
147,000 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
147,000 |
|
|
Short
term borrowings |
|
|
- |
|
|
- |
|
|
|
4,837 |
|
|
|
- |
|
|
|
4,837 |
|
|
Financial
liability at amortized cost |
|
A-3 |
Accounts
payable |
|
|
139,933 |
|
|
|
- |
|
|
|
- |
|
|
|
139,933 |
|
|
Accounts payable |
|
|
Income
taxes payable |
|
|
6,798 |
|
|
|
- |
|
|
|
487 |
|
|
|
7,285 |
|
|
Income
taxes payable |
|
E |
Other
payable to related party |
|
|
2,200 |
|
|
|
- |
|
|
|
- |
|
|
|
2,200 |
|
|
Accounts
payable to related party |
|
|
Other
accrued expenses and other current liabilities |
|
|
41,268 |
|
|
|
- |
|
|
|
1,203 |
|
|
|
42,471 |
|
|
Other
current liabilities |
|
B |
Total current liabilities |
|
|
337,199 |
|
|
|
4,837 |
|
|
|
1,690 |
|
|
|
343,726 |
|
|
Total current liabilities |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
1,152 |
|
|
|
1,152 |
|
|
Net
defined benefit liabilities |
|
F |
- |
|
|
- |
|
|
|
- |
|
|
|
111 |
|
|
|
111 |
|
|
Deferred tax liabilities |
|
D |
Other
liabilities |
|
|
6,287 |
|
|
|
- |
|
|
|
(1,671 |
) |
|
|
4,616 |
|
|
Other
non-current liabilities |
|
D,E,F |
|
|
|
6,287 |
|
|
|
- |
|
|
|
(408 |
) |
|
|
5,879 |
|
|
|
|
|
Total
liabilities |
|
|
343,486 |
|
|
|
4,837 |
|
|
|
1,282 |
|
|
|
349,605 |
|
|
Total
liabilities |
|
|
Redeemable noncontrolling interest |
|
|
3,656 |
|
|
|
(3,656 |
) |
|
|
- |
|
|
|
- |
|
|
- |
|
A-3 |
Equity |
|
|
|
|
|
|
|
|
|
Equity |
|
|
Himax Technologies, Inc.
stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc.
stockholders’ equity: |
|
|
Ordinary
shares |
|
|
107,010 |
|
|
|
- |
|
|
|
- |
|
|
|
107,010 |
|
|
Ordinary
shares |
|
|
Additional paid-in capital |
|
|
107,400 |
|
|
|
(2,973 |
) |
|
|
- |
|
|
|
104,427 |
|
|
Additional paid-in capital |
|
G |
Treasury
shares |
|
|
(8,878 |
) |
|
|
- |
|
|
|
- |
|
|
|
(8,878 |
) |
|
Treasury
shares |
|
|
Accumulated other comprehensive loss |
|
|
(1,430 |
) |
|
|
984 |
|
|
|
- |
|
|
|
(446 |
) |
|
Accumulated other comprehensive loss |
|
F |
Unappropriated retained earnings |
|
|
252,546 |
|
|
|
664 |
|
|
|
- |
|
|
|
253,210 |
|
|
Retained
earnings |
|
|
Himax Technologies, Inc. stockholders’
equity |
|
|
456,648 |
|
|
|
(1,325 |
) |
|
|
- |
|
|
|
455,323 |
|
|
Equity attributable to owners of Himax
Technologies, Inc. |
|
H |
Noncontrolling interests |
|
|
(1,735 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,735 |
) |
|
Noncontrolling interests |
|
|
Total equity |
|
|
454,913 |
|
|
|
(1,325 |
) |
|
|
- |
|
|
|
453,588 |
|
|
Total equity |
|
|
Total liabilities,
redeemable noncontrolling interest and
equity |
|
$ |
802,055 |
|
|
$ |
(144 |
) |
|
$ |
1,282 |
|
|
$ |
803,193 |
|
|
Total liabilities and equity |
|
|
(Concluded)
|
|
Himax Technologies, Inc. |
Reconciliation of unaudited condensed
consolidated statement of profit or loss for the twelve months
ended December 31, 2017 |
(Amounts in Thousands of U.S.
Dollars) |
|
U.S. GAAP |
|
Effect of Transition to IFRS |
|
I F R S |
|
|
Items |
|
Amount |
|
RecognitionDifference |
|
Presentation Difference |
|
Amount |
|
Items |
|
Note |
Revenues |
|
$ |
685,167 |
|
|
$ |
- |
|
|
$ |
- |
|
$ |
685,167 |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
and expenses: |
|
|
|
|
|
|
|
|
|
|
Costs
and expenses: |
|
|
Cost of
revenues |
|
|
518,142 |
|
|
|
- |
|
|
|
- |
|
|
518,142 |
|
|
Cost of
revenues |
|
|
Research
and development |
|
|
117,757 |
|
|
|
(95 |
) |
|
|
- |
|
|
117,662 |
|
|
Research
and development |
|
F,G |
General
and administrative |
|
|
20,614 |
|
|
|
(153 |
) |
|
|
- |
|
|
20,461 |
|
|
General
and administrative |
|
F,G |
Sales and
marketing |
|
|
20,504 |
|
|
|
39 |
|
|
|
- |
|
|
20,543 |
|
|
Sales and
marketing |
|
F,G |
Total costs and expenses |
|
|
677,017 |
|
|
|
(209 |
) |
|
|
- |
|
|
676,808 |
|
|
Total costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
8,150 |
|
|
|
209 |
|
|
|
- |
|
|
8,359 |
|
|
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non
operating income
(loss): |
|
|
|
|
|
|
|
|
|
|
Non
operating income
(loss): |
|
|
Interest
income |
|
|
2,225 |
|
|
|
- |
|
|
|
- |
|
|
2,225 |
|
|
Interest
income |
|
|
Gain on
sale of securities, net |
|
|
23,226 |
|
|
|
- |
|
|
|
- |
|
|
23,226 |
|
|
Changes
in fair value of financial assets at fair value through profit or
loss |
|
|
Equity in
losses of equity method investees |
|
|
(1,200 |
) |
|
|
- |
|
|
|
- |
|
|
(1,200 |
) |
|
Share of
losses of associates |
|
|
Foreign
currency exchange losses, net |
|
|
(1,517 |
) |
|
|
(142 |
) |
|
|
- |
|
|
(1,659 |
) |
|
Foreign
currency exchange losses, net |
|
F |
Interest
expense |
|
|
(565 |
) |
|
|
(313 |
) |
|
|
- |
|
|
(878 |
) |
|
Finance
costs |
|
A-3 |
Other
income, net |
|
|
19 |
|
|
|
- |
|
|
|
- |
|
|
19 |
|
|
Other
income, net |
|
|
|
|
|
22,188 |
|
|
|
(455 |
) |
|
|
- |
|
|
21,733 |
|
|
|
|
|
Earnings before income taxes |
|
|
30,338 |
|
|
|
(246 |
) |
|
|
- |
|
|
30,092 |
|
|
Profit before income taxes |
|
|
Income
tax expense |
|
|
4,520 |
|
|
|
34 |
|
|
|
- |
|
|
4,554 |
|
|
Income
tax expense |
|
F |
Net
income |
|
|
25,818 |
|
|
|
(280 |
) |
|
|
- |
|
|
25,538 |
|
|
Profit for the period |
|
|
Net
loss attributable to noncontrolling interests |
|
|
2,149 |
|
|
|
(7 |
) |
|
|
- |
|
|
2,142 |
|
|
Loss
attributable to noncontrolling interests |
|
F |
Net
income attributable to Himax Technologies, Inc.
stockholders |
|
$ |
27,967 |
|
|
$ |
(287 |
) |
|
$ |
- |
|
$ |
27,680 |
|
|
Profit attributable to Himax Technologies,
Inc. stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per ADS attributable to Himax Technologies, Inc.
stockholders |
|
$ |
0.162 |
|
|
|
|
|
|
|
$ |
0.161 |
|
|
Basic
earnings per ADS attributable to Himax Technologies, Inc.
stockholders |
|
|
Diluted earnings per ADS attributable to Himax
Technologies, Inc. stockholders |
|
$ |
0.162 |
|
|
|
|
|
|
|
$ |
0.161 |
|
|
Diluted earnings per ADS attributable to Himax
Technologies, Inc. stockholders |
|
|
Basic
Weighted Average Outstanding ADS |
|
|
172,425 |
|
|
|
|
|
|
|
|
172,425 |
|
|
Basic
Weighted Average Outstanding ADS |
|
|
Diluted Weighted Average Outstanding ADS |
|
|
172,452 |
|
|
|
|
|
|
|
|
172,452 |
|
|
Diluted Weighted Average Outstanding ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Reconciliation of unaudited condensed
consolidated statement of profit or loss for the three months ended
December 31, 2017 |
(Amounts in Thousands of U.S.
Dollars) |
|
U.S. GAAP |
|
Effect of Transition to IFRS |
|
I F R S |
|
|
Items |
|
Amount |
|
RecognitionDifference |
|
Presentation Difference |
|
Amount |
|
Items |
|
Note |
Revenues |
|
$ |
181,081 |
|
|
$ |
- |
|
|
$ |
- |
|
$ |
181,081 |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
and expenses: |
|
|
|
|
|
|
|
|
|
Costs
and expenses: |
|
|
Cost of
revenues |
|
|
136,499 |
|
|
|
- |
|
|
|
- |
|
|
136,499 |
|
|
Cost of
revenues |
|
|
Research
and development |
|
|
29,516 |
|
|
|
(129 |
) |
|
|
- |
|
|
29,387 |
|
|
Research
and development |
|
F,G |
General
and administrative |
|
|
5,413 |
|
|
|
(12 |
) |
|
|
- |
|
|
5,401 |
|
|
General
and administrative |
|
F,G |
Sales and
marketing |
|
|
5,532 |
|
|
|
(17 |
) |
|
|
- |
|
|
5,515 |
|
|
Sales and
marketing |
|
F,G |
Total costs and expenses |
|
|
176,960 |
|
|
|
(158 |
) |
|
|
- |
|
|
176,802 |
|
|
Total costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
4,121 |
|
|
|
158 |
|
|
|
- |
|
|
4,279 |
|
|
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non
operating income
(loss): |
|
|
|
|
|
|
|
|
|
Non
operating income
(loss): |
|
|
Interest
income |
|
|
554 |
|
|
|
- |
|
|
|
- |
|
|
554 |
|
|
Interest
income |
|
|
Gain on
sale of securities, net |
|
|
23,064 |
|
|
|
- |
|
|
|
- |
|
|
23,064 |
|
|
Changes
in fair value of financial assets at fair value through profit or
loss |
|
|
Equity in
losses of equity method investees |
|
|
(483 |
) |
|
|
- |
|
|
|
- |
|
|
(483 |
) |
|
Share of
losses of associates |
|
|
Foreign
currency exchange losses, net |
|
|
(277 |
) |
|
|
(45 |
) |
|
|
- |
|
|
(322 |
) |
|
Foreign
currency exchange losses, net |
|
F |
Interest
expense |
|
|
(170 |
) |
|
|
(80 |
) |
|
|
- |
|
|
(250 |
) |
|
Finance
costs |
|
A-3 |
Other
income, net |
|
|
10 |
|
|
|
- |
|
|
|
- |
|
|
10 |
|
|
Other
income, net |
|
|
|
|
|
22,698 |
|
|
|
(125 |
) |
|
|
- |
|
|
22,573 |
|
|
|
|
|
Earnings before income taxes |
|
|
26,819 |
|
|
|
33 |
|
|
|
- |
|
|
26,852 |
|
|
Profit before income taxes |
|
|
Income
tax expense |
|
|
3,957 |
|
|
|
32 |
|
|
|
- |
|
|
3,989 |
|
|
Income
tax expense |
|
F |
Net
income |
|
|
22,862 |
|
|
|
1 |
|
|
|
- |
|
|
22,863 |
|
|
Profit for the period |
|
|
Net
loss attributable to noncontrolling interests |
|
|
687 |
|
|
|
(6 |
) |
|
|
- |
|
|
681 |
|
|
Loss
attributable to noncontrolling interests |
|
F |
Net
income attributable to Himax Technologies, Inc.
stockholders |
|
$ |
23,549 |
|
|
$ |
(5 |
) |
|
$ |
- |
|
$ |
23,544 |
|
|
Profit attributable to Himax Technologies,
Inc. stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per ADS attributable to Himax Technologies, Inc.
stockholders |
|
$ |
0.137 |
|
|
|
|
|
|
$ |
0.136 |
|
|
Basic
earnings per ADS attributable to Himax Technologies, Inc.
stockholders |
|
|
Diluted earnings per ADS attributable to Himax
Technologies, Inc. stockholders |
|
$ |
0.137 |
|
|
|
|
|
|
$ |
0.136 |
|
|
Diluted earnings per ADS attributable to Himax
Technologies, Inc. stockholders |
|
|
Basic
Weighted Average Outstanding ADS |
|
|
172,499 |
|
|
|
|
|
|
|
172,499 |
|
|
Basic
Weighted Average Outstanding ADS |
|
|
Diluted Weighted Average Outstanding ADS |
|
|
172,518 |
|
|
|
|
|
|
|
172,518 |
|
|
Diluted Weighted Average Outstanding ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Reconciliation of unaudited condensed
consolidated Statement of Financial Position as of March 31,
2017 |
(Amounts in Thousands of U.S.
Dollars) |
|
U.S. GAAP |
|
Effect of Transition to IFRS |
|
IFRS |
|
|
Items |
|
Amount |
|
RecognitionDifference |
|
PresentationDifference |
|
Amount |
|
Items |
|
Note |
Assets |
|
|
|
|
|
|
|
|
|
Assets |
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
Cash and
cash equivalents |
|
$ |
190,345 |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
190,345 |
|
Cash and cash equivalents |
|
|
Investments in marketable securities available-for-sale |
|
|
9,111 |
|
|
- |
|
|
|
(9,111 |
) |
|
|
- |
|
- |
|
A-1 |
- |
|
|
- |
|
|
- |
|
|
|
5,220 |
|
|
|
5,220 |
|
Financial
assets at amortized cost |
|
A-1 |
- |
|
|
- |
|
|
- |
|
|
|
3,891 |
|
|
|
3,891 |
|
Financial
assets at fair value through profit or loss |
|
A-1 |
Accounts
receivable, less allowance for doubtful accounts, sales returns and
discounts |
|
|
167,681 |
|
|
- |
|
|
|
1,412 |
|
|
|
169,093 |
|
Accounts
receivable, net |
|
B |
Inventories |
|
|
148,260 |
|
|
- |
|
|
|
- |
|
|
|
148,260 |
|
Inventories |
|
|
- |
|
|
- |
|
|
- |
|
|
|
41 |
|
|
|
41 |
|
Income
taxes receivable |
|
|
Restricted cash, cash equivalents and marketable securities |
|
|
107,414 |
|
|
- |
|
|
|
- |
|
|
|
107,414 |
|
Restricted deposit |
|
|
Other
receivables from related parties |
|
|
5,650 |
|
|
- |
|
|
|
- |
|
|
|
5,650 |
|
Other
receivable from related parties |
|
|
Prepaid
expenses and other current assets |
|
|
14,794 |
|
|
- |
|
|
|
(41 |
) |
|
|
14,753 |
|
Other
current assets |
|
|
Total current assets |
|
|
643,255 |
|
|
- |
|
|
|
1,412 |
|
|
|
644,667 |
|
Total current assets |
|
|
Investment in non-marketable equity
securities |
|
|
12,242 |
|
|
- |
|
|
|
(12,242 |
) |
|
|
- |
|
|
|
A-2 |
- |
|
|
- |
|
|
- |
|
|
|
10,562 |
|
|
|
10,562 |
|
Financial assets at fair value through profit or
loss |
|
A-2 |
- |
|
|
- |
|
|
- |
|
|
|
1,680 |
|
|
|
1,680 |
|
Financial assets at fair value through
other comprehensive income |
|
A-2 |
Equity method investments |
|
|
2,235 |
|
|
- |
|
|
|
- |
|
|
|
2,235 |
|
Equity method investments |
|
|
Property, plant and equipment, net |
|
|
47,738 |
|
|
- |
|
|
|
(1,221 |
) |
|
|
46,517 |
|
Property, plant and equipment, net |
|
C |
Deferred tax assets |
|
|
6,597 |
|
|
(57 |
) |
|
|
1,271 |
|
|
|
7,811 |
|
Deferred tax assets |
|
D,F |
Goodwill |
|
|
28,138 |
|
|
- |
|
|
|
- |
|
|
|
28,138 |
|
Goodwill |
|
|
Other
intangible assets, net |
|
|
2,922 |
|
|
- |
|
|
|
539 |
|
|
|
3,461 |
|
Other
intangible assets, net |
|
C |
Restricted marketable securities |
|
|
132 |
|
|
- |
|
|
|
- |
|
|
|
132 |
|
Restricted deposit |
|
|
Other
assets |
|
|
1,778 |
|
|
(90 |
) |
|
|
682 |
|
|
|
2,370 |
|
Other
non-current assets |
|
C,F |
|
|
|
101,782 |
|
|
(147 |
) |
|
|
1,271 |
|
|
|
102,906 |
|
|
|
|
Total
assets |
|
$ |
745,037 |
|
$ |
(147 |
) |
|
$ |
2,683 |
|
|
$ |
747,573 |
|
Total
assets |
|
|
(Continued)
|
|
Himax Technologies, Inc. |
Reconciliation of unaudited condensed
consolidated Statement of Financial Position as of March 31,
2017 |
(Amounts in Thousands of U.S.
Dollars) |
|
U.S. GAAP |
|
Effect of Transition to IFRS |
|
IFRS |
|
|
Items |
|
Amount |
|
RecognitionDifference |
|
PresentationDifference |
|
Amount |
|
Items |
|
Note |
Liabilities, Redeemable noncontrolling interest and
Equity |
|
|
|
|
|
|
|
|
|
Liabilities and
Equity |
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
Short-term debt |
|
$ |
107,000 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
107,000 |
|
|
Short
term borrowings |
|
|
Accounts
payable |
|
|
115,941 |
|
|
|
- |
|
|
|
- |
|
|
|
115,941 |
|
|
Accounts payable |
|
|
Accounts
payable to related party |
|
|
1,098 |
|
|
|
- |
|
|
|
- |
|
|
|
1,098 |
|
|
Accounts
payable to related party |
|
|
Income
taxes payable |
|
|
15,632 |
|
|
|
- |
|
|
|
526 |
|
|
|
16,158 |
|
|
Income
taxes payable |
|
E |
Other
accrued expenses and other current liabilities |
|
|
28,524 |
|
|
|
- |
|
|
|
1,412 |
|
|
|
29,936 |
|
|
Other
current liabilities |
|
B |
Total current liabilities |
|
|
268,195 |
|
|
|
- |
|
|
|
1,938 |
|
|
|
270,133 |
|
|
Total current liabilities |
|
|
- |
|
|
- |
|
|
|
4,601 |
|
|
|
- |
|
|
|
4,601 |
|
|
Financial liability at
amortized cost |
|
A-3 |
- |
|
|
- |
|
|
|
(17 |
) |
|
|
1,132 |
|
|
|
1,115 |
|
|
Net
defined benefit liabilities |
|
F |
- |
|
|
- |
|
|
|
- |
|
|
|
1,348 |
|
|
|
1,348 |
|
|
Deferred tax liabilities |
|
D |
Other
liabilities |
|
|
3,680 |
|
|
|
- |
|
|
|
(1,735 |
) |
|
|
1,945 |
|
|
Other
non-current liabilities |
|
D,E,F |
|
|
|
3,680 |
|
|
|
4,584 |
|
|
|
745 |
|
|
|
9,009 |
|
|
|
|
|
Total
liabilities |
|
|
271,875 |
|
|
|
4,584 |
|
|
|
2,683 |
|
|
|
279,142 |
|
|
Total
liabilities |
|
|
Redeemable noncontrolling interest |
|
|
3,656 |
|
|
|
(3,656 |
) |
|
|
- |
|
|
|
- |
|
|
- |
|
A-3 |
Equity |
|
|
|
|
|
|
|
|
|
Equity |
|
|
Himax Technologies, Inc.
stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc.
stockholders’ equity: |
|
|
Ordinary
shares |
|
|
107,010 |
|
|
|
- |
|
|
|
- |
|
|
|
107,010 |
|
|
Ordinary
shares |
|
|
Additional paid-in capital |
|
|
106,591 |
|
|
|
(2,902 |
) |
|
|
- |
|
|
|
103,689 |
|
|
Additional paid-in capital |
|
G |
Treasury
shares |
|
|
(9,020 |
) |
|
|
- |
|
|
|
- |
|
|
|
(9,020 |
) |
|
Treasury
shares |
|
|
Accumulated other comprehensive loss |
|
|
(2,207 |
) |
|
|
1,021 |
|
|
|
- |
|
|
|
(1,186 |
) |
|
Accumulated other comprehensive loss |
|
F |
Unappropriated retained earnings |
|
|
267,228 |
|
|
|
804 |
|
|
|
- |
|
|
|
268,032 |
|
|
Retained
earnings |
|
|
Himax Technologies, Inc. stockholders’
equity |
|
|
469,602 |
|
|
|
(1,077 |
) |
|
|
- |
|
|
|
468,525 |
|
|
Equity attributable to owners of Himax
Technologies, Inc. |
|
H |
Noncontrolling interests |
|
|
(96 |
) |
|
|
2 |
|
|
|
- |
|
|
|
(94 |
) |
|
Noncontrolling interests |
|
F |
Total equity |
|
|
469,506 |
|
|
|
(1,075 |
) |
|
|
- |
|
|
|
468,431 |
|
|
Total equity |
|
|
Total liabilities,
redeemable noncontrolling interest and
equity |
|
$ |
745,037 |
|
|
$ |
(147 |
) |
|
$ |
2,683 |
|
|
$ |
747,573 |
|
|
Total liabilities and equity |
|
|
(Concluded)
|
|
Himax Technologies, Inc. |
Reconciliation of unaudited condensed
consolidated statement of profit or loss for the three months ended
March 31, 2017 |
(Amounts in Thousands of U.S.
Dollars) |
|
U.S. GAAP |
|
Effect of Transition to IFRS |
|
IFRS |
|
|
Items |
|
Amount |
|
RecognitionDifference |
|
PresentationDifference |
|
Amount |
|
Items |
|
Note |
Revenues |
|
$ |
155,210 |
|
|
$ |
- |
|
|
$ |
- |
|
$ |
155,210 |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
and expenses: |
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
Cost of
revenues |
|
|
119,309 |
|
|
|
- |
|
|
|
- |
|
|
119,309 |
|
|
Cost of revenues |
|
|
Research
and development |
|
|
25,331 |
|
|
|
2 |
|
|
|
- |
|
|
25,333 |
|
|
Research and development |
|
G |
General
and administrative |
|
|
4,633 |
|
|
|
(32 |
) |
|
|
- |
|
|
4,601 |
|
|
General and administrative |
|
G |
Sales and
marketing |
|
|
4,364 |
|
|
|
5 |
|
|
|
- |
|
|
4,369 |
|
|
Sales and marketing |
|
G |
Total costs and expenses |
|
|
153,637 |
|
|
|
(25 |
) |
|
|
- |
|
|
153,612 |
|
|
Total costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
1,573 |
|
|
|
25 |
|
|
|
- |
|
|
1,598 |
|
|
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non
operating income
(loss): |
|
|
|
|
|
|
|
|
|
Non operating income
(loss): |
|
|
Interest
income |
|
|
543 |
|
|
|
- |
|
|
|
- |
|
|
543 |
|
|
Interest income |
|
|
Gain on
sale of securities, net |
|
|
70 |
|
|
|
- |
|
|
|
- |
|
|
70 |
|
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in
losses of equity method investees |
|
|
(134 |
) |
|
|
- |
|
|
|
- |
|
|
(134 |
) |
|
Share of losses of associates |
|
|
Foreign
currency exchange losses, net |
|
|
(1,033 |
) |
|
|
(93 |
) |
|
|
- |
|
|
(1,126 |
) |
|
Foreign currency exchange losses, net |
|
F |
Interest
expense |
|
|
(137 |
) |
|
|
(77 |
) |
|
|
- |
|
|
(214 |
) |
|
Finance costs |
|
A-3 |
Other
income, net |
|
|
48 |
|
|
|
- |
|
|
|
- |
|
|
48 |
|
|
Other income, net |
|
|
|
|
|
(643 |
) |
|
|
(170 |
) |
|
|
- |
|
|
(813 |
) |
|
|
|
|
Earnings before income taxes |
|
|
930 |
|
|
|
(145 |
) |
|
|
- |
|
|
785 |
|
|
Profit before income taxes |
|
|
Income
tax expense |
|
|
121 |
|
|
|
1 |
|
|
|
- |
|
|
122 |
|
|
Income tax expense |
|
F |
Net
income |
|
|
809 |
|
|
|
(146 |
) |
|
|
- |
|
|
663 |
|
|
Profit for the period |
|
|
Net
loss attributable to noncontrolling interests |
|
|
554 |
|
|
|
(1 |
) |
|
|
- |
|
|
553 |
|
|
Loss attributable to noncontrolling interests |
|
F |
Net
income attributable to Himax Technologies, Inc.
stockholders |
|
$ |
1,363 |
|
|
$ |
(147 |
) |
|
$ |
- |
|
$ |
1,216 |
|
|
Profit attributable to Himax Technologies,
Inc. stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per ADS attributable to Himax Technologies, Inc.
stockholders |
|
$ |
0.008 |
|
|
|
|
|
|
$ |
0.007 |
|
|
Basic earnings per ADS attributable to Himax Technologies,
Inc. stockholders |
|
|
Diluted earnings per ADS attributable to Himax
Technologies, Inc. stockholders |
|
$ |
0.008 |
|
|
|
|
|
|
$ |
0.007 |
|
|
Diluted earnings per ADS attributable to Himax
Technologies, Inc. stockholders |
|
|
Basic
Weighted Average Outstanding ADS |
|
|
172,399 |
|
|
|
|
|
|
|
172,399 |
|
|
Basic Weighted Average Outstanding ADS |
|
|
Diluted Weighted Average Outstanding ADS |
|
|
172,424 |
|
|
|
|
|
|
|
172,424 |
|
|
Diluted Weighted Average Outstanding ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to the reconciliation of the main differences:
A) Financial instruments
Under U.S. GAAP, investment securities consist
of investments in marketable securities and investments in
non-marketable equity securities. All of our investments in
marketable securities are classified as available-for-sale
securities and are reported at fair value. Investments in
non-marketable equity securities in which we do not have the
ability to exercise significant influence over the operating and
financial policies of the investee are stated at cost.
Under IFRS, IFRS 9 Financial Instruments
includes guidance on the classification and measurement of
financial instruments, a new expected credit loss model for
calculating impairment on financial assets, and the new general
hedge accounting requirements. It is effective for annual reporting
periods beginning on January 1, 2018. To better reflect the
presentation of the consolidated statements of financial position
as of March 31, 2018, we reclassified comparative period
information as follows:
A-1)
As of December 31, 2017, we had $10,879 thousand
reported as investment in marketable securities available-for-sale
under U.S. GAAP, that were reclassified to financial assets at
amortized cost and financial assets at fair value through profit or
loss-current, at amounts of $10,358 thousand and $521 thousand,
respectively, under IFRS.
As of March 31, 2017, we had $9,111 thousand
reported as investments in marketable securities available-for-sale
under U.S. GAAP, that were reclassified to financial assets at
amortized cost and financial assets at fair value through profit or
loss-current, at amounts of $5,220 thousand and $3,891 thousand,
respectively, under IFRS.
A-2)
As of December 31, 2017, we had $3,122 thousand
reported as investment in non-marketable equity securities under
U.S. GAAP, that were reclassified to financial assets at fair value
through profit or loss-noncurrent and financial assets at fair
value through other comprehensive income at amounts of $1,600
thousand and $1,522 thousand, respectively, under IFRS.
As of March 31, 2017, we had $12,242 thousand
reported as investment in non-marketable equity securities under
U.S. GAAP, that were reclassified to financial assets at fair value
through profit or loss-noncurrent and financial assets at fair
value through other comprehensive income at amounts of $10,562
thousand and $1,680 thousand, respectively, under IFRS.
A-3)
Under U.S. GAAP, we recognized redeemable
convertible preferred shares which were issued to a non-controlling
shareholder by Himax Display Inc., a consolidated subsidiary, as
temporary equity. The redeemable convertible preferred shares were
presented as redeemable noncontrolling interest and recognized at
fair value.
Under IFRS, we recognized the above-mentioned
redeemable convertible preferred shares as financial liability at
amortized cost using effective interest method.
As of December 31, 2017, we had $3,656 thousand
reported as redeemable noncontrolling interest under U.S. GAAP,
that were reclassified to financial liability at amortized
cost-current and recognized interest expense (finance costs) using
effective interest method which decreased the retained earnings by
$1,181 thousand. After the above adjustments, we had $4,837
thousand reported as financial liability at amortized cost-current
under IFRS.
For the twelve months and three months ended
December 31, 2017, interest expense (finance costs) was adjusted
for an increase of $313 thousand and $80 thousand,
respectively.
As of March 31, 2017, we had $3,656 thousand
reported as redeemable noncontrolling interest under U.S. GAAP,
that were reclassified to financial liability at amortized
cost-noncurrent and recognized interest expense (finance costs)
using effective interest method which decreased the retained
earnings by $945 thousand. After the above adjustments, we had
$4,601 thousand reported as financial liability at amortized
cost-noncurrent under IFRS.
For the three months ended March 31, 2017,
interest expense (finance costs) was adjusted for an increase of
$77 thousand.
B) Allowance of sales returns and discounts
Under U.S. GAAP, allowance for sales returns and
discounts were recognized as a reduction in revenue in the year the
related revenue is recognized based on historical experience. The
corresponding allowance for sales returns and discounts was
presented as a reduction in accounts receivable.
Under IFRS, the allowance for sales returns and
discounts is a present obligation with uncertain timing and an
amount that arises from past events and is therefore reclassified
as provisions.
As of December 31, 2017 and March 31, 2017, the
amounts reclassified from allowance for sales returns and discounts
to provisions were $1,203 thousand and $1,412 thousand,
respectively.
C) Property, plant and equipment, net
Under U.S. GAAP, property, plant, and equipment
typically consist of long-lived tangible assets used to create and
distribute an entity's products and including software.
Under IFRS, property, plant and equipment are
tangible items. Certain software that is not an integral part of
the related hardware and prepayment for equipment not shipped to
the factory are reclassified out from property, plant and equipment
as they do not meet the definition of property, plant and
equipment.
As of December 31, 2017, property, plant and equipment, net of
$2,098 thousand were reclassified to other intangible assets, net
and other non-current assets at amounts of $720 thousand and $1,378
thousand, respectively.
As of March 31, 2017, property, plant and
equipment, net of $1,221 thousand were reclassified to other
intangible assets, net and other non-current assets at amounts of
$539 thousand and $682 thousand, respectively.
D) Deferred tax assets and liabilities
Under U.S. GAAP, for a particular tax-paying
component of an entity and within a particular tax jurisdiction,
all current / non-current deferred tax liabilities and assets are
offset and presented as a single amount.
Under IFRS, deferred tax liabilities and assets
are offset only if the entity has a legally enforceable right to
offset current tax liabilities and assets.
As of December 31, 2017 and March 31, 2017, the
amounts reclassified from deferred tax assets to deferred tax
liabilities were $79 thousand and $1,271 thousand,
respectively.
E) Income taxes payable
Under U.S. GAAP, income taxes payable are
classified as current if cash payment is expected within 12 months;
if not, the amount is classified as noncurrent.
Under IFRS, income tax payables are classified
as current unless an unconditional right to defer payment for a
period greater than twelve months exists.
As of December 31, 2017 and March 31, 2017, the
amounts reclassified from other liabilities to income tax payables
were $487 thousand and $526 thousand, respectively.
F) Employee benefits
Under U.S. GAAP, actuarial gains and losses
arising in the period are recognized immediately in OCI and
amortized from accumulated OCI into the profit or loss over the
employees’ remaining service period.
Under IFRS, remeasurements of the net defined
benefit liability (asset) are recognized in OCI and are not
reclassified to profit or loss in a subsequent period.
As of December 31, 2017, net defined benefit
assets included in other assets, deferred tax assets and
remeasurements of the net defined benefit liability or asset
related to components of accumulated other comprehensive income
were adjusted for a decrease of $90 thousand, $54 thousand and an
increase of $984 thousand, respectively.
For the twelve months and three months ended
December 31, 2017, operating expense for employee benefits was
adjusted for a decrease of $108 thousand.
As of March 31, 2017, net defined benefit assets
included in other assets, net defined benefit liabilities, deferred
tax assets and remeasurements of the net defined benefit liability
or asset related to components of accumulated other comprehensive
income were adjusted for a decrease of $90 thousand, $17 thousand,
$57 thousand and an increase of $1,021 thousand, respectively.
G) Share-Based Compensation
Under U.S. GAAP, we recognized compensation
expense by straight-line method and recognized excess tax benefits
from share-based payments.
Under IFRS, we recognized compensation expense
by graded vesting and there is no requirement of recognizing excess
tax benefits under IFRS.
For the twelve months and three months ended
December 31, 2017, operating expense for share-based compensation
was adjusted for a decrease of $101 thousand and $50 thousand,
respectively.
For the three months ended March 31, 2017,
operating expense for share-based compensation was adjusted for a
decrease of $25 thousand.
H) Reconciliation of equity attributable to Himax from
U.S. GAAP to IFRS summarized below:
|
December
31,2017 |
|
March
31,2017 |
|
Note |
Equity
attributable to Himax under U.S. GAAP |
$ |
456,648 |
|
|
$ |
469,602 |
|
|
|
|
|
|
|
|
|
Financial
liability at amortized cost |
|
(1,181 |
) |
|
|
(945 |
) |
|
A-3 |
Employee
benefits |
|
(144 |
) |
|
|
(132 |
) |
|
F |
|
|
(1,325 |
) |
|
|
(1,077 |
) |
|
|
Equity
attributable to Himax under IFRS |
$ |
455,323 |
|
|
$ |
468,525 |
|
|
|
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