Company Meets
Q4 2018
Revenue, Gross Margin Guidance, Including
a Revaluation Gain on Investment, EPS Exceeds 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 fourth quarter ended December 31, 2018.
In the fourth quarter 2018, Himax delivered
solid growth in the areas of TDDI, WLO and large display driver IC
as anticipated. Reflecting seasonality, inventory correction by
smartphone customers and a stagnating smartphone demand, first
quarter 2019 revenue and gross margin is set to decrease
sequentially. Looking into 2019, on the backdrop of an uncertain
global economy, the TV panel market is overshadowed by concerns of
over-supply and the global smartphone sales are projected to suffer
some decline. Himax is targeting some top line growth with upside
momentum coming from TV and automotive markets as well as
significantly more TDDI shipments for smartphone application, where
the Company only made a small amount of shipment last year when it
suffered from foundry capacity shortage. Himax will continue to
advance its technologies across key strategic areas. Fully aware
that it is operating in an uncertain macro environment, the Company
is also putting cost control at the top of its agenda list,
targeting to continuing R&D activities across all its strategic
areas without raising R&D expenses from the last year. Total
opex is budgeted to be at around the same level as that of last
year excluding the anticipated increase in depreciation arising
primarily from the construction of the new fab.
“For large display driver IC business in 2019,
while the market is facing the challenge of potential oversupply,
we are seeing continued strength in our business, backed by our
core customers’ solid leading customer engagements and ongoing
capacity expansions. After a lot of engineering efforts, we are now
better prepared than last year in terms getting the right foundry
capacity support from our strategic vendors and have also
successfully secured additional COF packaging capacity to meet our
customers’ TV and monitor demands. Nevertheless, our Q1 large
display driver business is likely to decrease by high single digit
sequentially due to seasonality and customers’ inventory
correction,” said Mr. Jordan Wu, President and Chief Executive
Officer of Himax.
“For the small and medium-sized business in
2019, while we are positive on the trend of higher TDDI penetration
in smartphone and our much improved TDDI supply, our TDDI business
will nevertheless be challenged by the anticipated lackluster sales
of global smartphone market and the expected decline of TDDI’s
average sales price as competition intensifies. To gain market
share in 2019, we are working to secure more design wins by
offering new generation TDDI solutions. The new solutions can
enable narrow bezel panel design without the usage of COF
packaging, which not only is costly but also suffers from serious
supply constraint. Several leading panel makers are now sampling
panels with its new TDDI solution. Reflecting seasonality, weak
global smartphone market and traditional discrete driver IC is
being quickly replaced by TDDI and AMOLED, our Q1 sales into the
smartphone market is expected to decrease close to 30%
sequentially. In our automotive business segment, the demands for
more sophisticated and higher performing displays are still rising
with automakers. Himax remains the leader in all key technologies
including TDDI, AMOLED and local dimming timing controller for the
next generation display for automotive. We are scheduled to start
shipping the world’s first TDDI design for automotive displays
within 2019. Q1 revenue in small and medium-sized driver IC
business is set to decrease by high-teens sequentially,” said Mr.
Jordan Wu.
“For the non-driver areas, we expect
sequentially lower WLO shipment volume in the first quarter of 2019
as per our customer’s demand forecast. The much-reduced shipment
will negatively impact our Q1 gross margin as lower utilization
will lead to higher equipment depreciation and factory overhead on
a per unit basis. As to the 3D sensing business, we have
participated in most of the smartphone OEMs’ ongoing 3D sensing
projects covering all three types of technologies, namely
structured light, active stereo camera (ASC) and time-of-flight.
Depending on customers’ needs, we provide 3D sensing total solution
or just the projector or optics inside the module. We have
highlighted in the last earnings call that the 3D sensing adoption
for Android smartphone market remains low. The adoption is hindered
primarily by the prevailing high hardware cost of 3D sensing, the
long development lead time required to integrate it into the
smartphone and the lack of killer applications. Reacting to their
lukewarm response, we are working on the next generation 3D sensing
with an aim to leapfrog the market by providing high performance,
easy to adopt and yet cost friendly total solutions, targeting
majority of the Android smartphone players. We have a solid product
roadmap and plan including new architecture, new algorithm to make
it happen. We believe that 3D sensing will be widely used by more
Android smartphone makers when more killer applications become
available and the ecosystem is able to substantially lower the cost
of adoption while offering easy to use, fully integrated total
solutions, for which Himax is playing a key part. For non-driver IC
business, we expect revenue to decrease by over 30% sequentially in
the first quarter, driven mainly by lower WLO shipment,” said Mr.
Jordan Wu.
Fourth Quarter 2018 Financial
Results
The fourth quarter revenues of $191.0 million
represented an increase of 1.4% sequentially and an increase of
5.5% year-over-year. The revenues increase in the quarter was
attributed to the production outputs of newly added foundries for
both large display driver ICs and TDDI chips. WLO shipment volume
to an anchor customer also increased sequentially. Gross margin was
24.3%, up 90 basis points sequentially. IFRS earnings per diluted
ADS were 4.9 cents, compared to the guidance range of 1.5 to 3.6
cents. Non-IFRS earnings per diluted ADS were 5.0 cents, compared
to the guidance range of 1.7 to 3.8 cents. The better-than-expected
earnings were due to a revaluation gain of 1.7 cents per diluted
ADS from an AI startup investment made in November 2017.
Revenue from large display drivers was $74.2
million, up 12.0% sequentially, and up 27.1% year-over-year, driven
by Chinese panel customers’ continued ramping of new LCD fabs where
Himax has solid design-in penetration. Large panel driver ICs
accounted for 38.9% of its total revenues for the fourth quarter,
compared to 35.2% in the third quarter of 2018 and 32.3% a year
ago.
Revenue for small and medium-sized display
drivers came in at $79.8 million, down 6.0% sequentially and down
1.8% year-over-year. The driver ICs for the segment accounted for
41.8% of total sales for the fourth quarter, as compared to 45.1%
in the third quarter of 2018 and 44.9% a year ago. Sales into
smartphones were up 20.1% sequentially, thanks to higher sales from
TDDI but offset by decreased shipment in traditional driver IC for
smartphones. Display drivers for tablet and other consumer products
also declined over 30% sequentially.
Driver IC revenue for automotive applications
stayed strong for the fourth quarter reaching $32.9 million, down
3.0% sequentially but up 33% year-over-year, accounting for 21% of
its driver IC revenue.
Revenues from non-driver businesses were $37.0
million, down 0.5% sequentially and down 10.8% from last year.
Non-driver products accounted for 19.3% of total revenues, as
compared to 19.7% in the third quarter of 2018 and 22.8% a year
ago. The fourth quarter saw continued growth of WLO shipments
sequentially, but CIS and timing controller experienced some
decline in revenue. The year-over-year decrease was due mainly to
lower WLO and timing controller shipments.
IFRS gross margin for the fourth quarter was
24.3%, up 90 basis points sequentially and down 30 basis points
from the same period last year, both a result of product mix.
IFRS operating expenses were $41.0 million in
the fourth quarter, down 5.3% from the preceding quarter and up
1.8% from a year ago. The year-over-year increase was primarily a
result of increased R&D expenses. The sequential expense
decrease was mainly caused by the difference of the $3.9 million of
RSU charge, offset by R&D and salary expenses increase of $1.6
million. As an annual practice, Himax grants annual RSUs to its
staff at the end of September each year, which, given all other
things equal, leads to higher third quarter IFRS operating expenses
compared to the other quarters of the year. The fourth quarter RSU
expense was $0.02 million while it was $3.9 million in the third
quarter. Excluding the RSU expense, operating expenses increased
4.0% from the previous quarter and up 2.0% year-over-year. The QoQ
increase was mainly the result of higher R&D expenses during
the fourth quarter.
IFRS operating margin for the fourth quarter was
2.8%, up from 2.4% in the same period last year and up from 0.4% in
the prior quarter. The IFRS operating income increased 575.8%
sequentially and increased 24.8% year-over-year. The sequential
increase was primarily a result of higher gross margin and lower
RSU expense. The year-over-year increase was a result of higher
sales offset by higher operating expenses.
Fourth quarter non-IFRS operating income was
$5.7 million, or 3.0% of sales, up from 2.6% for the same period
last year and up from 2.9% a quarter ago.
IFRS profit for the fourth quarter was $8.5
million, or 4.9 cents per diluted ADS, compared to $0.9 million, or
0.5 cents per diluted ADS, in the previous quarter and $23.5
million, or 13.6 cents per diluted ADS, a year ago. The sequential
increase was a result of higher sales, lower RSU expense and the
revaluation gain on investment mentioned earlier. The
year-over-year decrease was, however, mainly the result of an
investment gain of $20.7 million booked in the fourth quarter 2017
as the Company disposed of a direct investment in Q317 which
accounted for 12 cents per diluted ADS. Excluding the investment
gains, IFRS profit for Q4 2018 was $5.6 million or 3.2 cents per
diluted ADS versus $2.8 million, or 1.6 cents per diluted ADS for
Q4 2017.
Fourth quarter non-IFRS profit was $8.7 million,
or 5.0 cents per diluted ADS, compared to $4.5 million, or 2.6
cents per diluted ADS last quarter and $23.8 million, or 13.8 cents
per diluted ADS the same period last year. The sequential and
year-over-year variance were from the same reasons stated above.
Excluding the investment gains, non-IFRS profit for Q4 2018 was
$5.8 million or 3.3 cents per diluted ADS versus $3.1 million or
1.8 cents per diluted ADS for Q4 2017.
Full Year 2018 Financial Results
The 2018 full year revenues totaled $723.6
million in 2018, representing a 5.6% increase over 2017.
Revenue from large panel display drivers totaled
$260.5 million, an increase of 15.9% year-over-year, representing
36.0% of its total revenues, as compared to 32.8% in 2017.
Small and medium-sized driver sales totaled
$325.7 million, an increase of 6.8% year-over-year, representing
45.0% of its total revenues, as compared to 44.5% in 2017.
Non-driver products sales totaled $137.4
million, a decrease of 11.6% year-over-year, representing 19.0% of
its total sales, as compared to 22.7% a year ago. The
year-over-year decrease was due mainly to certain one-off customer
reimbursement totaling $13.3 million booked in Q3 2017 in relation
to the AR goggle business. Excluding $13.3 million, the
year-over-year decrease was 3.3%.
Gross margin in 2018 was 23.3%, down from 24.4%
in 2017. The year-over-year decrease was due primarily to the
one-off customer reimbursement in 2017 mentioned above.
IFRS operating expenses were $165.5 million, up
$6.9 million or 4.3% compared to last year. The increase was
primarily the result of increased R&D, salary and depreciation
expenses offset by reduced RSU charge.
2018 IFRS operating income of $3.4 million
represented a 59.5% decrease versus 2017 mainly for higher
operating expenses.
IFRS profit for the year was $8.6 million, or
5.0 cents per diluted ADS, versus $27.7 million or 16.1 cents per
diluted ADS, a decline of 69.0% from last year. Excluding the
investment gains that the Company has described earlier, IFRS EPS
for the year was 3.8 cents versus 4.1 cents from last year.
Non-IFRS profit for 2018 was $12.9 million, or
7.5 cents per diluted ADS, down 61.9% year-over-year. Again, the
year-over-year decline was due mainly to the investment gains
mentioned above. Excluding the investment gains, Non-IFRS EPS for
the year was 6.3 cents versus 7.7 cents from last year.
Balance Sheet and Cash Flow
Himax had $117.7 million of cash, cash
equivalents and other financial assets as of the end of December
2018, compared to $148.9 million at the same time last year and
$102.9 million a quarter ago. On top of the cash position,
restricted cash was $164.3 million at the end of the quarter, same
to the preceding quarter and up from $147.0 million a year ago. The
restricted cash is mainly used to guarantee the Company’s
short-term borrowing for the same amount.
Himax’s year-end inventories were $162.6
million, up from $145.8 million a quarter ago and up from $135.2
million at the same time last year. Accounts receivable at the end
of December 2018 were $189.3 million as compared to $188.8 million
a year ago and $187.6 million last quarter. DSO was 95 days, as
compared to 101 days a year ago and 96 days at end of the last
quarter.
Net cash inflow from operating activities for
the fourth quarter was $2.3 million as compared to an inflow of
$8.3 million for the same period last year and an inflow of $2.2
million last quarter. Cash inflow from operations in 2018 was $4.0
million as compared to $29.4 million in 2017. 2018’s operating cash
flow was lower mainly because, in response to capacity shortage of
foundry and certain packaging material, Himax had to keep the
inventory level higher than usual. The trend may continue into this
year.
Fourth quarter capital expenditures were $5.2
million, versus $15.5 million a year ago and $8.2 million last
quarter. The fourth quarter capex consisted mainly of ongoing
payments for the new building’s construction, WLO capacity
expansion and installation of active alignment capacity to support
its 3D sensing business. Total capital expenditure for the year was
$49.7 million, versus $39.3 million a year ago of which $7.6
million was for the investment of design tools and R&D related
equipment related to our traditional IC design business.
Other capital expenditure mainly investment in
land, a new office building and capacity expansion for 3D sensing
business, was $42 million in 2018 versus $33 million in 2017. In
2019, we anticipate continued payments for the above capex items to
be totaling around $39 million including land payment of $27.7
million, which will conclude the current phase of capital
expenditure.
Share Buyback Update
As of December 31, 2018, Himax had 172.1 million
ADS outstanding, unchanged from last quarter. On a fully diluted
basis, the total ADS outstanding are 172.6 million.
Q1 2019
Outlook
In the fourth quarter 2018, Himax delivered
solid growth in the areas of TDDI, WLO and large display driver IC
despite weak sentiment in the overall consumer electronics markets.
Looking into 2019, on the backdrop of an uncertain global economy,
the TV panel market is overshadowed by concerns of over-supply and
the global smartphone sales are projected to suffer some decline.
Himax is, however, still targeting some top line growth with upside
momentum coming from TV and automotive markets as well as
significantly more TDDI shipments for smartphone application, where
the Company only made a small amount of shipment last year as it
suffered from foundry capacity shortage. Himax will continue to
advance its technologies across key strategic areas. These include,
among others, next generation display driver technology for 8K TV
and AMOLED, 3D sensing for both mobile phone and non-mobile phone
applications and ultra-low power smart sensing where we are seeing
rising momentum in new applications such as smart home. Himax is
fully aware it’s operating in an uncertain macro environment, the
Company is also putting cost control at the top of its agenda list,
targeting to continuing R&D activities across all its strategic
areas without raising expenses from the last year. Total OPEX is
budgeted to be at around the same level as that of last year
excluding the anticipated increase in depreciation arising
primarily from the construction of the new fab described above.
Comparing to the fourth quarter 2018 revenues,
Himax expects high single digit decline for large display driver
ICs, around high-teens decline for small and medium-sized display
driver IC and over 30% decline for its non-driver IC business in
the first quarter 2019.
Display
Driver IC
MarketLDDICLarge
display driver IC business enjoyed strong growth in the second half
of 2018 as 4K TV penetration continued to rise globally and China
continued to ramp brand new advanced generation LCD fabs.
Looking into 2019, while the market is facing the challenge of
potential oversupply, Himax is seeing continued strength in its
business, backed by its strong design-ins with certain LCD makers
who are leading the market in capacity and brand customer
engagements. Equally important, after a lot of engineering efforts,
the Company is now better prepared than last year in terms getting
the necessary capacity support from its strategic vendors. Notably,
most of Himax’s panel customers have completed qualifications of
its new foundry with their key customers and Himax has also
successfully secured additional COF packaging capacity to meet its
customers’ TV and monitor demands. Nevertheless, for the first
quarter, Himax expects large display driver business to decrease by
high single digit sequentially due to seasonality and customers’
inventory correction.
A number of TV makers showcased their 8K TV
technology at the recent CES. One of its industry leading customers
will be launching a new 8K TV model with Himax technology inside in
March. With its cost still high and true 8K content still scarce,
8K TV is unlikely to generate much sale in 2019. But 8K TV is a
strategic area for Himax because of its much higher display driver
and timing controller contents and high technical barrier of entry.
The Company is encouraged by the recent establishment of the 8K
Association to help develop 8K TV ecosystem and accelerate its
adoption. Besides TV, the Company is working with panel customers
to deploy 8K technology to new areas such as high-end gaming PC and
professional-purpose monitors.
SMDDICWith the ramping of the
newly added foundry, the Company’s capacity constraint for TDDI
shipment has largely been alleviated. In Q4 2018, Himax was able to
fulfill more customer orders with improved supply, thereby greatly
increased the TDDI revenue of Q4 2018 from the previous quarter.
Another notable milestone for TDDI during Q4 was that Himax secured
a marquee design win from a major Korean smartphone maker and are
already making mass production shipment in the first quarter,
although starting with a relatively modest volume.
While the Company is positive on the trend of
higher TDDI penetration in smartphone in 2019 and its much improved
TDDI supply, Himax’s TDDI business will nevertheless be challenged
by the anticipated weak lackluster sales of global smartphone
market and the expected decline of TDDI’s average sales price as
competition intensifies. To gain market share in 2019, Himax is
working to secure more design wins by offering new generation TDDI
solutions. The new solutions can enable narrow bezel panel design
without the usage of COF packaging, which not only is costly but
also suffers from serious supply constraint. Several leading
panel makers are now sampling panels with its new TDDI
solution.
As expected, its traditional discrete driver IC
sales into smartphone declined by over 25% sequentially in the
fourth quarter as the market is being quickly replaced by TDDI and
AMOLED. This segment accounted for less than 6% of its total sales
in the fourth quarter and will further shrink in 2019. Combining
TDDI and discrete smartphone driver, Himax's Q1 sales into the
smartphone market is expected to decrease close to 30% sequentially
due to seasonality and weak global smartphone market. However, the
Company expects a strong second half rebound in 2019.
On AMOLED product line, Himax has been
collaborating closely with leading panel makers across China for
product development. Himax believes AMOLED driver ICs will be one
of the long-term growth engines for its small panel driver IC
business.
During the fourth quarter, its automotive
business delivered a solid 33% year-over-year growth. The demands
for more sophisticated and higher performing displays are still
rising with automakers. Himax is pleased to see its
state-of-the-art technology for super large, end-to-end automotive
displays showcased at CES. In addition, the Company launched the
world’s first TDDI design for automotive displays and the
technology is scheduled to start shipping within 2019. Himax’s
technological prowess will continue to separate it from the rest
as, for the next generation display for automotive, Himax is the
leader in all key technologies including TDDI, AMOLED and local
dimming timing controller. Q1 revenue in this segment is, however,
set to decrease close to 10% sequentially, impacted by panel
customers’ inventory adjustment in response to the weak car sales
momentum caused by the US-China trade tension.
Himax’s tablet and consumer electronics
businesses declined more than 30% sequentially in Q4 2018, driven
by weak overall market sentiment. They accounted for less than 10%
of its total sales in the fourth quarter. The Company expects
business in both segments to further shrink in the first quarter by
high single digit sequentially.
For first-quarter small and medium-sized driver
IC business, Himax expects revenue to decrease by high-teens
sequentially.
Non-Driver Product
CategoriesThe non-driver IC business segment has been the
Company’s most exciting growth area and a differentiator for Himax
in the past few years.
3D Sensing SolutionsHimax has
participated in most of the smartphone OEMs’ ongoing 3D sensing
projects covering all three types of technologies, namely
structured light, active stereo camera (ASC) and time-of-flight.
Depending on the customers’ needs, Himax provides 3D sensing total
solution or just the projector module or optics inside the module.
We have highlighted in the last earnings call that the 3D sensing
adoption for Android smartphone market remains low. The adoption is
hindered primarily by the prevailing high hardware cost of 3D
sensing and the long development lead time required to integrate it
into the smartphone. Instead of 3D sensing, most of the Android
phone makers have chosen the lower cost finger print technology
which can achieve similar phone unlock and online payment functions
with somewhat compromised user experience. Reacting to their
lukewarm response, Himax is working on the next generation 3D
sensing with its platform partners aiming to leapfrog the market by
providing high performance, easy to adopt and yet cost friendly
total solutions, targeting the majority of Android smartphone
players. Himax has a solid product roadmap and plan including new
architecture, new algorithm to make it happen. The development
progress is on track and the new solution is aiming for smartphone
customers’ 2020 models. Himax believes that 3D sensing will be
widely used by more Android smartphone makers when more killer
applications become available and the ecosystem is able to
substantially lower the cost of adoption while offering
easy-to-use, fully-integrated total solutions, for which Himax is
playing a key part. In the meantime, Himax is working closely with
a number of leading smartphone markers on multiple projects by
providing projector module or critical optical components targeting
their 2019 or 2020 models.
The Company has mentioned previously that 3D
sensing can have a wide range of applications beyond smartphone. It
has started to explore business opportunities in various industries
by leveraging its SLiMTM 3D sensing total solution. Such industries
are typically less sensitive to cost and always require a total
solution. Himax is collaborating with Kneron, an industry leader in
edge-based artificial intelligence in which we have made an equity
investment, to develop an AI-enabled 3D sensing solution targeting
security and surveillance markets. Himax is also working with
partners/customers on new applications covering home appliances and
industrial manufacturing.
WLOAs anticipated, the shipment
volume to its WLO anchor customer for the fourth quarter recorded a
double-digit sequential growth as a result of the customer’s
large-scale adoption in more models. The overall 2018 shipment
increased considerably year-over-year. However, lower first quarter
volume compared to the previous quarter is expected as per the
customer’s demand forecast. The much-reduced shipment will
negatively impact its Q1 gross margin as lower utilization will
lead to higher equipment depreciation and factory overhead on a per
unit basis. Nevertheless, the Q1 revenue will still record a
significant increase from the same time last year. In
addition, Himax is encouraged by the progress of the ongoing new
projects with the said customer for their next generation products
centering around its exceptional design know-how and mass
production expertise in WLO technology.
CMOS Image SensorOn CMOS image
sensor business updates, Himax continues to make great progress
with its machine-vision sensor product lines. Combining Himax’s
industry leading super low power CIS and ASIC designs with Emza’s
unique AI-based, ultra-low power computer vision algorithm, Himax
is uniquely positioned to provide ultra-low power, smart imaging
sensing total solutions. Himax is pleased with the status of
engagement with leading players in areas such as connected home,
smart building and security, all of which new frontiers for
Himax.
For traditional human vision segments, Himax
sees strong demands in laptop and increasing shipment for
multimedia applications such as car recorders, surveillance,
drones, home appliances, and consumer electronics, among
others.
LCOSIn 2018, many AR goggle
devices were launched, targeting primarily niche industrial or
business applications while top name multinationals continued to
invest heavily to develop the ecosystem -- applications, software,
operating system, system electronics, and optics. While AR goggles
will take a few more years to fully realize its market potential,
the Company believes LCOS remains the mainstream technology in this
space. The Company’s technology leadership and proven manufacturing
expertise, are evidenced by the growing list of AR goggle device
customers and ongoing engineering projects. In addition, Himax
continues to make great progress in developing high-end holographic
head-up displays for high-end automotive. One of its customers has
demonstrated its state-of-the-art HUD product with Himax LCOS
inside at the 2019 CES with extremely positive market reception.
LCOS for both goggle device and HUD represents much higher ASP and
gross margin for Himax and represents a long-term growth driver for
the Company. In the meantime, Himax is working with various
OEMs to bring LCOS microdisplays to mini projectors with revenue
contribution to start from 2019.
For non-driver IC business, we expect revenue to
decrease over 30% sequentially in the first quarter, driven mainly
by lower WLO shipment.
First Quarter 2019
Guidance |
The Company is providing
the following financial guidance for the first quarter of
2019: |
Net Revenue: |
|
To decrease 14% to 19%
sequentially |
Gross Margin: |
|
To be around 23%, depending on final
product mix |
IFRS Loss: |
|
To be around 1.0 to 3.0 cents per
diluted ADS |
The first quarter is traditionally the bottom of
the year in terms of sales because it has fewer working days due to
the Lunar New Year holidays. Customers’ inventory correction on
smartphone drivers, reflecting their conservative views for the
smartphone market, will also negatively impact our first quarter
sales.
HIMAX TECHNOLOGIES FOURTH QUARTER AND
FULL YEAR 2018 EARNINGS CONFERENCE CALL
DATE: |
Tuesday, February 19th, 2019 |
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: |
6147328 |
WEBCAST: |
https://edge.media-server.com/m6/p/5gyokkwq |
A replay of the call will be available beginning
two hours after the call through 11:30 a.m. US EST on February
26th, 2019 (00:30 a.m. Taiwan time, February 27th, 2019) 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 6147328. 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 February 19th, 2020.
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 heads-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, home appliance and Internet
of Things. Founded in 2001 and headquartered in Tainan, Taiwan,
Himax currently employs around 2,200 people from three Taiwan-based
offices in Tainan, Hsinchu and Taipei and country offices in China,
Korea, Japan, Israel, and the US. Himax has 2,984 patents granted
and 490 patents pending approval worldwide as of December 31st,
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.twwww.himax.com.tw
Sky Wang, Investor RelationsHimax Technologies,
Inc.US Tel: +1-949-585-9838 Ext.223Fax: +1-312-445-3643Email:
sky_wang@himax.com.twwww.himax.com.tw
Investor Relations - US RepresentativeJohn
Mattio, PresidentLamnia International Tel: +1-203-885-1058Email:
jmattio@lamniaintl.comwww.lamniaintl.com
-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 December 31, |
|
Three Months
Ended September |
|
2018 |
|
2017 |
|
30, 2018 |
|
|
|
|
|
|
Revenues |
$ |
191,006 |
|
$ |
181,081 |
|
$ |
188,383 |
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of
revenues |
144,624 |
|
136,499 |
|
144,241 |
Research
and development |
30,424 |
|
29,387 |
|
32,129 |
General
and administrative |
5,650 |
|
5,401 |
|
5,635 |
Sales and
marketing |
4,969 |
|
5,515 |
|
5,588 |
Total costs and expenses |
185,667 |
|
176,802 |
|
187,593 |
|
|
|
|
|
|
Operating income |
5,339 |
|
4,279 |
|
790 |
|
|
|
|
|
|
Non operating income
(loss): |
|
|
|
|
|
Interest
income |
605 |
|
554 |
|
603 |
Changes
in fair value of financial assets at fair value through profit or
loss |
2,104 |
|
23,064 |
|
(44) |
Foreign
currency exchange losses, net |
(68) |
|
(322) |
|
(285) |
Finance
costs |
(337) |
|
(250) |
|
(378) |
Share of
profit (losses) of associates |
1,397 |
|
(483) |
|
(549) |
Other
income |
176 |
|
10 |
|
9 |
|
3,877 |
|
22,573 |
|
(644) |
Profit before income
taxes |
9,216 |
|
26,852 |
|
146 |
Income
tax expense |
1,390 |
|
3,989 |
|
26 |
Profit for the period |
7,826 |
|
22,863 |
|
120 |
Loss attributable to noncontrolling
interests |
637 |
|
681 |
|
769 |
Profit
attributable to Himax Technologies, Inc. stockholders |
$ |
8,463 |
|
$ |
23,544 |
|
$ |
889 |
|
|
|
|
|
|
Basic earnings per ADS attributable to
Himax Technologies, Inc. stockholders |
$ |
0.049 |
|
$ |
0.136 |
|
$ |
0.005 |
Diluted
earnings per ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
0.049 |
|
$ |
0.136 |
|
$ |
0.005 |
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
172,540 |
|
172,499 |
|
172,500 |
Diluted Weighted Average Outstanding ADS |
172,556 |
|
172,518 |
|
172,530 |
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of
Profit or Loss |
(Amounts in Thousands of U.S. Dollars, Except
Share and Per Share Data) |
|
|
|
|
Twelve Months Ended
December
31, |
|
|
2018 |
|
2017 |
|
|
|
|
|
Revenues |
|
$ |
723,605 |
|
$ |
685,167 |
|
|
|
|
|
Costs and expenses: |
|
|
|
|
Cost of
revenues |
|
554,690 |
|
518,142 |
Research
and development |
|
123,037 |
|
117,662 |
General
and administrative |
|
21,823 |
|
20,461 |
Sales and
marketing |
|
20,670 |
|
20,543 |
Total costs and expenses |
|
720,220 |
|
676,808 |
|
|
|
|
|
Operating income |
|
3,385 |
|
8,359 |
|
|
|
|
|
Non operating income
(loss): |
|
|
|
|
Interest
income |
|
2,429 |
|
2,225 |
Changes
in fair value of financial assets at fair value through profit or
loss |
|
2,036 |
|
23,226 |
Foreign
currency exchange losses, net |
|
(369) |
|
(1,659) |
Finance
costs |
|
(1,232) |
|
(878) |
Share of
losses of associates |
|
(1,095) |
|
(1,200) |
Other
income |
|
1,866 |
|
19 |
|
|
3,635 |
|
21,733 |
Profit before income
taxes |
|
7,020 |
|
30,092 |
Income
tax expense |
|
994 |
|
4,554 |
Profit for the period |
|
6,026 |
|
25,538 |
Loss attributable to noncontrolling
interests |
|
2,543 |
|
2,142 |
Profit
attributable to Himax Technologies, Inc. stockholders |
|
$ |
8,569 |
|
$ |
27,680 |
|
|
|
|
|
Basic earnings per ADS attributable to
Himax Technologies, Inc. stockholders |
|
$ |
0.050 |
|
$ |
0.161 |
Diluted
earnings per ADS attributable to Himax Technologies, Inc.
stockholders |
|
$ |
0.050 |
|
$ |
0.161 |
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
172,510 |
|
172,425 |
Diluted Weighted Average Outstanding ADS |
|
172,534 |
|
172,452 |
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 December 31, |
|
Three
MonthsEnded September
30, |
|
|
2018 |
|
2017 |
|
2018 |
Share-based
compensation |
|
|
|
|
|
|
Cost of revenues |
|
$ |
- |
|
$ |
24 |
|
$ |
66 |
Research
and development |
|
13 |
|
40 |
|
3,037 |
General
and administrative |
|
2 |
|
14 |
|
367 |
Sales and
marketing |
|
4 |
|
15 |
|
513 |
Income
tax benefit |
|
(4) |
|
(13) |
|
(865) |
Total |
|
$ |
15 |
|
$ |
80 |
|
$ |
3,118 |
|
|
|
|
|
|
|
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 |
|
$ |
310 |
|
$ |
247 |
|
$ |
631 |
Income
tax benefit |
|
(78) |
|
(99) |
|
(167) |
Total |
|
$ |
232 |
|
$ |
148 |
|
$ |
464 |
|
|
|
|
|
|
|
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: |
|
Twelve Months Ended
December
31, |
|
|
2018 |
|
2017 |
Share-based
compensation |
|
|
|
|
Cost of revenues |
|
$ |
90 |
|
$ |
204 |
Research
and development |
|
3,165 |
|
5,222 |
General
and administrative |
|
387 |
|
723 |
Sales and
marketing |
|
544 |
|
995 |
Income
tax benefit |
|
(894) |
|
(1,525) |
Total |
|
$ |
3,292 |
|
$ |
5,619 |
|
|
|
|
|
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 |
|
$ |
1,433 |
|
$ |
985 |
Income
tax benefit |
|
(387) |
|
(395) |
Total |
|
$ |
1,046 |
|
$ |
590 |
|
|
|
|
|
Himax Technologies, Inc. |
IFRS Unaudited
Condensed Consolidated
Statements
of Financial
Position |
(Amounts in Thousands of U.S.
Dollars) |
|
|
|
December
31,
2018 |
|
September
30, 2018 |
|
December
31,
2017 |
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
106,437 |
|
$ |
90,946 |
|
$ |
138,023 |
Financial
assets at amortized cost |
|
11,229 |
|
12,001 |
|
10,358 |
Financial
assets at fair value through profit or loss |
|
- |
|
- |
|
521 |
Accounts
receivable, net |
|
189,279 |
|
187,613 |
|
188,774 |
Inventories |
|
162,561 |
|
145,812 |
|
135,200 |
Income
taxes receivable |
|
72 |
|
45 |
|
53 |
Restricted deposit |
|
164,326 |
|
164,328 |
|
147,000 |
Other
receivable from related parties |
|
2,780 |
|
2,840 |
|
3,250 |
Other
current assets |
|
17,731 |
|
18,728 |
|
39,442 |
Total current assets |
|
654,415 |
|
622,313 |
|
662,621 |
Financial
assets at fair value through profit or loss |
|
9,768 |
|
1,529 |
|
1,600 |
Financial
assets at fair value through
other comprehensive income |
|
791 |
|
772 |
|
1,522 |
Equity method
investments |
|
4,064 |
|
9,356 |
|
10,739 |
Property, plant and
equipment, net |
|
111,067 |
|
109,198 |
|
84,575 |
Deferred
tax assets |
|
13,904 |
|
7,851 |
|
7,713 |
Goodwill |
|
28,138 |
|
28,138 |
|
28,138 |
Other
intangible assets, net |
|
10,778 |
|
12,899 |
|
2,899 |
Restricted
deposit |
|
130 |
|
131 |
|
470 |
Other
non-current assets |
|
3,623 |
|
2,695 |
|
2,916 |
|
|
182,263 |
|
172,569 |
|
140,572 |
Total assets |
|
$ |
836,678 |
|
$ |
794,882 |
|
$ |
803,193 |
Liabilities
and Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Short-term borrowings |
|
$ |
184,000 |
|
$ |
164,000 |
|
$ |
147,000 |
Financial
liability at amortized cost |
|
5,071 |
|
5,071 |
|
4,837 |
Accounts
payable |
|
150,500 |
|
141,553 |
|
139,933 |
Income
taxes payable |
|
6,007 |
|
1,839 |
|
7,285 |
Other
payable to related party |
|
3,797 |
|
2,250 |
|
2,200 |
Other
current liabilities |
|
41,780 |
|
37,799 |
|
42,471 |
Total current liabilities |
|
391,155 |
|
352,512 |
|
343,726 |
Net defined
benefit liabilities |
|
151 |
|
1,123 |
|
1,152 |
Deferred tax
liabilities |
|
1,759 |
|
2,692 |
|
111 |
Other
non-current liabilities |
|
1,326 |
|
2,760 |
|
4,616 |
|
|
3,236 |
|
6,575 |
|
5,879 |
Total liabilities |
|
394,391 |
|
359,087 |
|
349,605 |
Equity |
|
|
|
|
|
|
Ordinary
shares |
|
107,010 |
|
107,010 |
|
107,010 |
Additional paid-in capital |
|
104,749 |
|
106,781 |
|
104,427 |
Treasury
shares |
|
(8,819) |
|
(8,819) |
|
(8,878) |
Accumulated other comprehensive income |
|
(549) |
|
(1,820) |
|
(446) |
Retained
earnings |
|
244,157 |
|
236,299 |
|
253,210 |
Equity attributable to owners of Himax
Technologies, Inc. |
|
446,548 |
|
439,451 |
|
455,323 |
Noncontrolling
interests |
|
(4,261) |
|
(3,656) |
|
(1,735) |
Total equity |
|
442,287 |
|
435,795 |
|
453,588 |
Total liabilities and equity |
|
$ |
836,678 |
|
$ |
794,882 |
|
$ |
803,193 |
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts in
Thousands of
U.S.
Dollars) |
|
|
Three Months Ended December
31, |
|
Three Months Ended
September |
|
|
2018 |
|
2017 |
|
30,
2018 |
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Profit for the
period |
|
$ |
7,826 |
|
$ |
22,863 |
|
$ |
120 |
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
4,869 |
|
5,098 |
|
5,180 |
Expected
credit loss recognized on accounts receivable |
|
100 |
|
155 |
|
- |
Share-based compensation expenses |
|
19 |
|
93 |
|
205 |
Gain on
disposals of property, plant and equipment |
|
- |
|
(1) |
|
- |
Changes
in fair value of financial assets at fair value through profit or
loss |
|
(2,104) |
|
(23,064) |
|
44 |
Interest
income |
|
(605) |
|
(554) |
|
(603) |
Finance
costs |
|
337 |
|
250 |
|
378 |
Income
tax expense |
|
1,390 |
|
3,989 |
|
26 |
Share of
losses (profits) of associates |
|
(1,397) |
|
483 |
|
549 |
Inventories write downs |
|
6,003 |
|
3,418 |
|
5,200 |
Foreign
currency exchange losses of financial assets |
|
9 |
|
- |
|
167 |
|
|
16,447 |
|
12,730 |
|
11,266 |
Changes in: |
|
|
|
|
|
|
Accounts
receivable |
|
(1,766) |
|
(5,901) |
|
(11,327) |
Inventories |
|
(22,752) |
|
(8,506) |
|
(8,935) |
Other
receivable from related parties |
|
60 |
|
- |
|
(37) |
Other
current assets |
|
(583) |
|
(346) |
|
(461) |
Accounts
payable |
|
8,947 |
|
14,380 |
|
12,691 |
Other
payable to related party |
|
1,547 |
|
850 |
|
50 |
Net
defined benefit liabilities |
|
(99) |
|
(52) |
|
(2) |
Other
current liabilities |
|
1,770 |
|
(4,709) |
|
(706) |
Other
non-current liabilities |
|
(491) |
|
(590) |
|
(127) |
Cash generated from operating activities |
|
3,080 |
|
7,856 |
|
2,412 |
Interest
received |
|
916 |
|
883 |
|
265 |
Interest
paid |
|
(216) |
|
(170) |
|
(309) |
Income
tax paid |
|
(1,445) |
|
(273) |
|
(165) |
Net cash provided by operating
activities |
|
2,335 |
|
8,296 |
|
2,203 |
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
(5,218) |
|
(15,537) |
|
(8,159) |
Proceeds
from disposal of property, plant and equipment |
|
- |
|
87 |
|
1 |
Acquisitions of intangible assets |
|
(582) |
|
(175) |
|
(140) |
Acquisitions of financial assets at amortized cost |
|
(737) |
|
(756) |
|
(997) |
Proceeds
from disposals of financial assets at amortized cost |
|
1,556 |
|
- |
|
901 |
Acquisitions of financial assets at fair value through profit or
loss |
|
(7,644) |
|
(4,934) |
|
(6,858) |
Proceeds
from disposals of financial assets at fair value through profit or
loss |
|
7,626 |
|
15,088 |
|
6,939 |
Proceeds
from capital reduction of investment |
|
55 |
|
- |
|
- |
|
Himax Technologies, Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts in
Thousands of
U.S.
Dollars) |
|
|
Three Months Ended December
31, |
|
Three Months Ended
September |
|
|
2018 |
|
2017 |
|
30, 2018 |
Acquisitions of equity
method investments |
|
$ |
(2,093) |
|
$ |
(6,945) |
|
$ |
- |
Decrease
(increase) in refundable deposits |
|
78 |
|
(82) |
|
4 |
Releases
of restricted deposit |
|
3 |
|
195 |
|
1 |
Cash paid
for loan made to related parties |
|
- |
|
(1,750) |
|
- |
Cash
received from loan made to related party |
|
- |
|
2,650 |
|
- |
Net cash used in investing activities |
|
(6,956) |
|
(12,159) |
|
(8,308) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Payments
of cash dividends |
|
- |
|
- |
|
(17,210) |
Proceeds
from issuance of new shares by subsidiaries |
|
- |
|
105 |
|
- |
Pledge of
restricted deposit |
|
- |
|
- |
|
(17,000) |
Proceeds
from short-term borrowings |
|
47,000 |
|
27,000 |
|
57,000 |
Repayments of short-term borrowings |
|
(27,000) |
|
(27,000) |
|
(40,000) |
Net cash provided by (used in) financing
activities |
|
20,000 |
|
105 |
|
(17,210) |
Effect
of foreign currency exchange rate
changes on cash and cash equivalents |
|
112 |
|
299 |
|
(219) |
Net
increase (decrease) in cash and cash
equivalents |
|
15,491 |
|
(3,459) |
|
(23,534) |
Cash and cash
equivalents at beginning of period |
|
90,946 |
|
141,482 |
|
114,480 |
Cash and cash
equivalents at end of period |
|
$ |
106,437 |
|
$ |
138,023 |
|
$ |
90,946 |
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts in
Thousands of
U.S.
Dollars) |
|
|
Twelve Months Ended
December 31, |
|
|
2018 |
|
2017 |
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
Profit for the
period |
|
$ |
6,026 |
|
$ |
25,538 |
Adjustments for: |
|
|
|
|
Depreciation and amortization |
|
20,327 |
|
16,680 |
Expected
credit loss recognized on accounts receivable |
|
290 |
|
155 |
Share-based compensation expenses |
|
408 |
|
997 |
Gain on
disposals of property, plant and equipment |
|
- |
|
(26) |
Gain on
re-measurement of the pre-existing relationships in a business
combination |
|
(1,662) |
|
- |
Changes
in fair value of financial assets at fair value through profit or
loss |
|
(2,036) |
|
(23,226) |
Interest
income |
|
(2,429) |
|
(2,225) |
Finance
costs |
|
1,232 |
|
878 |
Income
tax expense |
|
994 |
|
4,554 |
Share of
losses of associates |
|
1,095 |
|
1,200 |
Inventories write downs |
|
17,724 |
|
12,298 |
Foreign
currency exchange losses of financial assets |
|
294 |
|
- |
|
|
42,263 |
|
36,823 |
Changes in: |
|
|
|
|
Accounts
receivable |
|
(794) |
|
(1,665) |
Inventories |
|
(45,085) |
|
2,250 |
Other
current assets |
|
(1,511) |
|
969 |
Accounts
payable |
|
10,567 |
|
(2,336) |
Accounts
payable to related party |
|
- |
|
(576) |
Other
payable to related party |
|
1,597 |
|
2,200 |
Net
defined benefit liabilities |
|
(128) |
|
(9) |
Other
current liabilities |
|
753 |
|
5,424 |
Other
non-current liabilities |
|
(458) |
|
(604) |
Cash generated from operating activities |
|
7,204 |
|
42,476 |
Interest
received |
|
2,361 |
|
2,165 |
Interest
paid |
|
(877) |
|
(565) |
Income
tax paid |
|
(4,679) |
|
(14,683) |
Net cash provided by
operating activities |
|
4,009 |
|
29,393 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Acquisitions of property, plant and equipment |
|
(49,672) |
|
(39,292) |
Proceeds
from disposals of property, plant and equipment |
|
1 |
|
115 |
Acquisitions of intangible assets |
|
(925) |
|
(526) |
Acquisitions of financial assets at amortized cost |
|
(4,766) |
|
(5,572) |
Proceeds
from disposals of financial assets at amortized cost |
|
3,514 |
|
744 |
Acquisitions of financial assets at fair value through profit or
loss |
|
(26,277) |
|
(41,523) |
Proceeds
from disposals of financial assets at fair value through profit or
loss |
|
48,764 |
|
56,375 |
Acquisition of business |
|
(700) |
|
- |
Acquisition of a subsidiary, net of cash acquired |
|
(3,301) |
|
- |
Proceeds
from capital reduction of investment |
|
55 |
|
132 |
|
Himax Technologies, Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts in
Thousands of
U.S.
Dollars) |
|
|
|
|
|
Twelve Months Ended December
31, |
|
|
2018 |
|
2017 |
Acquisition of equity
method investments |
|
$ |
(2,093) |
|
$ |
(9,175) |
Decrease
(increase) in refundable deposits |
|
87 |
|
(120) |
Releases
(pledges) of restricted deposit |
|
14 |
|
(146) |
Cash paid
for loan made to related parties |
|
(780) |
|
(3,250) |
Cash
received from loan made to related party |
|
- |
|
7,150 |
Income
tax paid for disposal of financial assets at fair value through
profit or loss |
|
(2,187) |
|
- |
Net cash used in investing activities |
|
(38,266) |
|
(35,088) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Payments
of cash dividends |
|
(17,210) |
|
(41,281) |
Proceeds
from issuance of new shares by subsidiary |
|
11 |
|
105 |
Proceeds
from disposals of subsidiary shares to noncontrolling interests by
Himax Imaging, Inc. |
|
- |
|
4 |
Acquisitions of noncontrolling interests |
|
- |
|
(42) |
Pledge of
restricted deposit |
|
(17,000) |
|
(9,000) |
Proceeds
from short-term borrowings |
|
131,000 |
|
151,161 |
Repayments of short-term borrowings |
|
(94,000) |
|
(142,161) |
Net cash provided by
(used in) financing
activities |
|
2,801 |
|
(41,214) |
Effect
of foreign currency exchange rate
changes on cash and cash equivalents |
|
(130) |
|
480 |
Net
decrease in cash and cash
equivalents |
|
(31,586) |
|
(46,429) |
Cash and cash
equivalents at beginning of period |
|
138,023 |
|
184,452 |
Cash and cash equivalents at end of period |
|
$ |
106,437 |
|
$ |
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 December 31, |
|
Three Months Ended
September |
|
2018 |
|
2017 |
|
30,
2018 |
Revenues |
$ |
191,006 |
|
$ |
181,081 |
|
$ |
188,383 |
Gross profit |
46,382 |
|
44,582 |
|
44,142 |
Add: Share-based
compensation – cost of revenues |
- |
|
24 |
|
66 |
Gross profit excluding
share-based compensation |
46,382 |
|
44,606 |
|
44,208 |
Gross margin excluding
share-based compensation |
24.3% |
|
24.6% |
|
23.5% |
Operating income |
5,339 |
|
4,279 |
|
790 |
Add: Share-based
compensation |
19 |
|
93 |
|
3,983 |
Operating income
excluding share-based compensation |
5,358 |
|
4,372 |
|
4,773 |
Add:
Acquisition-related charges –intangible assets amortization |
310 |
|
247 |
|
631 |
Operating income
excluding share-based compensation and acquisition-related
charges |
5,668 |
|
4,619 |
|
5,404 |
Operating margin
excluding share-based compensation and acquisition-related
charges |
3.0% |
|
2.6% |
|
2.9% |
Profit attributable to
Himax Technologies, Inc. stockholders |
8,463 |
|
23,544 |
|
889 |
Add: Share-based
compensation, net of tax |
15 |
|
80 |
|
3,118 |
Add:
Acquisition-related charges, net of tax |
232 |
|
148 |
|
464 |
Profit attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
8,710 |
|
23,772 |
|
4,471 |
Net margin attributable
to Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
4.6% |
|
13.1% |
|
2.4% |
|
|
|
|
|
|
*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 Technologies, Inc. stockholders excluding
share-based compensation and acquisition-related charges equals
profit attributable to Himax Technologies, Inc. stockholders
excluding share-based compensation and acquisition-related charges
divided by revenues |
|
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: |
|
|
Twelve Months Ended December
31, |
|
|
2018 |
|
2017 |
Revenues |
|
$ |
723,605 |
|
$ |
685,167 |
Gross profit |
|
168,915 |
|
167,025 |
Add: Share-based
compensation – cost of revenues |
|
90 |
|
204 |
Gross profit excluding
share-based compensation |
|
169,005 |
|
167,229 |
Gross margin excluding
share-based compensation |
|
23.4% |
|
24.4% |
Operating income |
|
3,385 |
|
8,359 |
Add: Share-based
compensation |
|
4,186 |
|
7,144 |
Operating income
excluding share-based compensation |
|
7,571 |
|
15,503 |
Add:
Acquisition-related charges –intangible assets amortization |
|
1,433 |
|
985 |
Operating income
excluding share-based compensation and acquisition-related
charges |
|
9,004 |
|
16,488 |
Operating margin
excluding share-based compensation and acquisition-related
charges |
|
1.2% |
|
2.4% |
Profit attributable to
Himax Technologies, Inc. stockholders |
|
8,569 |
|
27,680 |
Add: Share-based
compensation, net of tax |
|
3,292 |
|
5,619 |
Add:
Acquisition-related charges, net of tax |
|
1,046 |
|
590 |
Profit attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
12,907 |
|
33,889 |
Net margin attributable
to Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
1.8% |
|
4.9% |
|
|
|
|
|
*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 Technologies, Inc. stockholders excluding
share-based compensation and acquisition-related charges equals
profit attributable to Himax Technologies, Inc. stockholders
excluding share-based compensation and acquisition-related charges
divided by revenues |
|
Diluted Earnings Per ADS
Attributable to Himax Technologies, Inc. Stockholders Excluding
Share-based Compensation and Acquisition-Related Charges: (Amounts
in U.S. Dollars) |
|
Three Months Ended
December 31, |
|
Twelve Months Ended
December
31, |
|
2018 |
|
2018 |
Diluted IFRS earnings per
ADS attributable to Himax Technologies, Inc. stockholders |
$0.049 |
|
$0.050 |
Add:
Share-based compensation per ADS |
$0.000 |
|
$0.019 |
Add:
Acquisition-related charges per ADS |
$0.001 |
|
$0.006 |
|
|
|
|
Diluted non-IFRS earnings
per ADS attributable to Himax Technologies, Inc. stockholders
excluding share-based compensation and acquisition-related
charges |
$0.050 |
|
$0.075 |
|
|
|
|
Numbers do not add up due
to rounding |
|
|
|
|
|
|
|
Note: Beginning January 1, 2018, Himax has adopted International
Financial Reporting Standards ("IFRS") to prepare its consolidated
financial statements. The fourth quarter 2017 and 2017 full year
reconciliation comparison table is included in the Company’s first
quarter 2018 earnings press release.
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