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 second quarter ended June 30, 2020.
“Our reported second quarter results exceeded
guidance for revenues, gross margin and EPS, consistent with our
preliminary results reported on July 6, 2020. During the quarter,
higher demand of large display drivers for monitors and
greater-than-expected shipment volume for both smartphone and
tablet contributed to the better-than-guided sales.” said Mr.
Jordan Wu, President and Chief Executive Officer of Himax.
“While Covid-19 does not look to be going away
anytime soon, most countries have greatly eased lockdowns while
still taking measures to contain the spread of the virus. Although
the pandemic has brought major disruptions to the markets we
operate in, many of our panel customers have been fast to react to
the changing environment by quickly shifting their production to
where the demands are. What that reflected in our business is the
very strong sales for notebook and monitor markets in the first
half with the momentum now switching to TV and smartphone, while
tablet is set to stay robust throughout the whole year. While
businesses have been largely reopened, a big part of the society
still stays mostly at home with much of the activity being operated
online. The “stay-at-home” economy has proven to benefit several
consumer electronics markets to which we supply our products. Our
demand visibility has therefore been much improved from the first
half.” concluded Mr. Jordan Wu.
Second Quarter 2020 Financial
Results
The Company recorded net revenues of $187.0
million, an increase of 1.3% sequentially and an increase of 10.4%
compared to the same period last year. The 1.3% sequential increase
of revenue exceeded its guidance of a slight decrease within 5%
quarter-over-quarter. Higher demand of large display drivers for
monitors and greater-than-expected shipment volume for both
smartphone and tablet contributed to the better-than-guided sales.
Gross margin was 21.0%, exceeding the prior guidance of between
20.2% to 20.6% due to a more favorable product mix among large
display products. IFRS profit per diluted ADS was 0.8 cents,
exceeding its guidance of a loss of 1.5 cents to 0.5 cents. Strong
sales, improved gross margin and lower-than-expected operating
expenses contributed to the better-than-expected earnings results.
Non-IFRS profit per diluted ADS was 1.0 cents, exceeding its
guidance of a loss of 1.3 cents to 0.3 cents.
Revenue from large display drivers was $59.5
million, down 3.1% sequentially and up 0.2% year-over-year. The
sequential decline was driven by lower shipments into TVs due to
weakness in the global TV market which was severely impacted by the
Covid-19 outbreak. TV segment revenues decreased 21.7%
year-over-year. Offsetting the weakness in the TV segment was a
surge in demand for telework and online education tools that
spurred the sales in its monitor and notebook segments to an
increase of around 60% year-over-year in Q2. Large panel driver ICs
accounted for 31.8% of total revenues for the quarter, compared to
33.2% in the first quarter of 2020 and 35.0% a year ago.
Revenue for small and medium-sized display
drivers was $98.8 million, up 12.9% sequentially and 20.9%
year-over-year. The sequential growth was driven primarily by
tablet and smartphone sales but offset by a decrease in the
automobile segment. The strong year-over-year growth was
attributable to remarkable tablet sales, especially its TDDI
products for tablet. The segment accounted for 52.8% of total sales
for the quarter, compared to 47.4% in the first quarter of 2020 and
48.3% a year ago.
Sales into smartphones were up 10.9%
sequentially but down 26.8% year-over-year. Himax’s smartphone TDDI
was up 69.0% sequentially and up 0.3% from the same period last
year. Strength in the smartphone TDDI segment reflected customers’
aggressive new product launch plans with our TDDI solutions. The
Company reported earlier that the launch of several customers’ new
smartphones with its TDDI solution inside was delayed because of
the pandemic. Many of those projects started mass production in Q2,
leading to the strong sequential growth. Sales of traditional DDICs
for smartphone declined by 43.6% sequentially and were down 58.3%
from same period last year. Himax’s traditional DDIC, which
represents just 26.3% of the smartphone segment in Q2, declined
significantly, a trend that was expected as it has repeatedly
reported that the traditional DDIC was quickly being replaced by
TDDI and AMOLED for smartphone application. Himax expects to see a
short-term spike of traditional DDIC demand for smartphone during
the third quarter, arising from orders from certain brand
customers. However, again, barring short-term fluctuations, the
Company expects to see continuous declines in the traditional DDIC
for smartphone.
The ongoing Covid-19 pandemic has eroded
worldwide smartphone market demand with a more than 10.0% expected
decline during 2020, according to several research institutes.
Despite these challenging conditions, Himax expects to see strong
smartphone TDDI sales in the second half of 2020 due to a more
diversified customer base, strong product roadmap and enriched
product portfolio.
As anticipated, boosted by the strong momentum
in both traditional discrete driver IC and TDDI product lines,
tablet was the best performing product category of all in Q2, up
55.1% sequentially and 174.8% year-over-year. It represented around
23.0% of the Company’s total sales in Q2. Himax expects this
product segment to continue to grow in the second half as the
overall market for tablet looks to remain robust thanks to
work-from-home and online education demands. In addition, there is
new demand for tablet TDDI, of which the sales were up 83.2%
sequentially in Q2, as in-cell touch display is quickly becoming a
new mainstream for the Android tablet.
Boosted by demands for remote work and
education, the revenue of traditional discrete driver ICs for
tablet delivered a more than 40% sequential growth and more than
70% year-over-year in the second quarter. Specifically, the Company
shipped more of the higher ASP ICs with high resolution and CoF
packaging for large-sized slim bezel tablets to certain leading
brand names.
As expected, Himax’s driver IC revenue for the
automotive application was down 15.2% sequentially as a result of
global production and car sales coming to a sudden halt in most of
the world. However, on a year-over-year basis, automotive driver IC
revenue was up 0.1% despite the effects of the pandemic.
Second quarter revenue from the Company’s
non-driver businesses was $28.7 million, down 19.5% sequentially
but up 1.7% year-over-year. The sequential decrease was mainly due
to significant shipment reduction of the WLO product to an anchor
customer and lower engineering fee income for other non-driver
products. Offsetting the weakness in WLO, CMOS image sensors had a
higher revenue contribution from notebook and IP camera
applications for remote work and online education purposes.
Non-driver products accounted for 15.4% of total revenues, as
compared to 19.4% in the first quarter of 2020 and 16.7% a year
ago.
Gross margin for the second quarter was 21.0%,
down 170 basis points sequentially but up 150 basis points from the
same period last year. The sequential decrease was caused by lower
WLO shipment and weak automotive sales, two of our higher gross
margin products. A decline in engineering fees received was also a
factor behind the sequential decline. On a year-over-year basis, it
was up 1.5% mainly due to a more favorable product mix with more
shipments of WLO and Tcon products.
IFRS operating expenses were $37.6 million in
the second quarter, up 0.9% from the preceding quarter but down
3.3% from a year ago. The year-over-year decrease was a result of
decreased salary and travelling expenses. Non-IFRS operating
expenses for the second quarter were $37.2 million, up 1.4% from
the previous quarter but down 3.2% from the same quarter in
2019.
IFRS operating margin for the second quarter was
0.9%, down from 2.5% in the prior quarter but up from -3.5% in the
same period last year. The sequential decrease was mainly due to
lower gross margin. The year-over-year improvement was primarily a
result of higher sales, better gross margin and lower operating
expenses. Second quarter non-IFRS operating profit was $2.1
million, or 1.1% of sales, lower from non-IFRS operating profit of
$5.3 million, or 2.9% of sales last quarter, but up from -3.2% for
the same period last year.
IFRS profit for the second quarter was $1.4
million, or 0.8 cents per diluted ADS, compared to profit of $3.3
million, or 1.9 cents per diluted ADS, in the previous quarter and
loss of $5.2 million, or 3.0 cents per diluted ADS, a year ago.
Second quarter non-IFRS profit was $1.7 million,
or 1.0 cents per diluted ADS, compared to non-IFRS profit of $3.8
million, or 2.2 cents per diluted ADS last quarter and non-IFRS
loss of $4.8 million, or 2.8 cents per diluted ADS for the same
period last year.
Balance Sheet and Cash Flow
Himax had $107.1 million of cash, cash
equivalents and other financial assets as of the end of June 2020,
compared to $122.4 million at the same time last year and $126.6
million a quarter ago. The lower cash balance as of the end of the
second quarter was mainly a result of a repayment of unsecured
borrowings of $9.4 million and an operating cash outflow of $9.2
million during the quarter. On top of the cash position, restricted
cash was $164.0 million at the end of the quarter, the same as the
preceding quarter and a year ago. The restricted cash is mainly
used to guarantee the secured short-term borrowing for the same
amount. The Company had $58.4 million of unsecured short-term loan
as of the end of Q2, compared to $67.9 million a quarter ago and
$77.0 million at the same time last year.
Accounts receivable at the end of June 2020 were
$206.1 million, up from $186.7 million last quarter and $176.2
million a year ago. DSO was 101 days at the end of quarter, as
compared to 96 days a year ago and 92 days at the end of the last
quarter.
Himax’s inventories as of June 30, 2020 were
$161.5 million, up from $148.4 million last quarter but down from
$188.5 million a year ago. In response to an industry-wide foundry
capacity shortage and in preparation for a strong Q3 forecast, the
Company had to increase inventory levels during Q2. The Company
believes it inventory position is healthy given the solid forecast
and purchase orders received from customers. While Himax monitors
its inventory carefully by working closely with its customers, the
Company will continue to build up its inventory position
aggressively in the foreseeable future given the prevailing severe
foundry capacity shortage in the market place. The Company expects
the inventory level to be significantly lower over the course of
Q3, again, because of very tight foundry capacity and strong
customer demands.
Net cash outflow from operating activities for
the second quarter was $9.2 million as compared to an outflow of
$17.7 million for the same period last year and an inflow of $10.6
million last quarter. Net cash outflow was mainly caused by more
aggressive inventory buildup.
Second quarter capital expenditures amounted to
$0.7 million, versus $5.7 million a year ago and $3.1 million last
quarter. As reported in the last earnings call, the capex for both
the new building construction and the 3D sensing capacity expansion
were already concluded in the fourth quarter 2019. The second
quarter capex was for R&D related equipment for our IC design
business.
Himax typically makes annual cash dividend
payment at the middle of the year based on the prior year’s
profitability. The Company’s Board of Directors has decided that it
will not pay cash dividend in 2020. The decision was made with full
consideration of Himax’s 2019 financial results as well as 2020
operations and capital requirement.
Share Buyback Update
As of June 30, 2020, Himax had 172.3 million ADS
outstanding, little change from last quarter. On a fully diluted
basis, the total number of ADS outstanding was 173.2 million.
Q3 2020 Outlook
While Covid-19 does not look to be going away
anytime soon, most countries have greatly eased lockdowns while
still taking measures to contain the spread of the virus. Although
the pandemic has brought major disruptions to the markets Himax
operates in, many of the Company’s panel customers have been fast
to react to the changing environment by quickly shifting their
production to where the demands are. What that reflected in Himax’s
business is the very strong sales for notebook and monitor markets
in the first half with the momentum now switching to TV and
smartphone, while tablet is set to stay robust throughout the whole
year. While businesses have been largely reopened, a big part of
the society still stays mostly at home with much of the activity
being operated online. The “stay-at-home” economy has proven to
benefit several consumer electronics markets to which we supply our
products. Himax’s demand visibility has therefore been much
improved from the first half. However, the industry is going
through a severe foundry capacity shortage right now which is
limiting the growth in almost all of the Company’s businesses,
especially the smartphone and tablet TDDI as well as CMOS image
sensor products.
Separately, Himax is working towards
capitalizing on the Company’s unique non-driver technologies where
it has invested heavily in the last few years, notably 3D sensing
for smartphone and smart door lock as well as ultralow power smart
image sensing for products such as notebook, TV, doorbell and air
conditioner.
As indicated in the Company’s guidance, it now
expects a strong top line growth for Q3. Himax's next goal is to
improve its gross margin. This will be an important target for Q4
and next year.
Display
Driver IC
BusinessLDDICFor the third
quarter, Himax expects the large display driver IC revenue to
decrease by high-single-digit sequentially mainly due to weak
demand for monitor ICs where its customers are going through an
inventory adjustment after two quarters of strong shipments.
However, TV and notebook ICs are picking up momentum in Q3.
The TV market, Himax’s biggest large display
sector, is experiencing a solid rebound lately with panel prices
rising and set makers rushing in for inventory replenishment after
quite a few sluggish quarters. For the third quarter, the Company
expects to deliver low-teens growth for TV display driver both
sequentially and year-over-year.
For the monitor segment, following a demand
surge in the previous two quarters, Himax expects customers’
inventory to correct, resulting in a sequential decrease in Q3. In
the notebook segment, the Company sees continuous demand fueled
particularly by enterprise and e-learning as it approaches the back
to school season. Himax’s businesses in the high-end monitor and
new generation low power notebook products, where Himax is the
market leader in DDICs and Tcon, will benefit significantly from
these trends.
SMDDICBegin with the Company’s
smartphone business segment. The Company’s TDDI product roadmap as
well as new design-wins with end customers position Himax well to
gain market share throughout 2020.
The pandemic has negatively weighed on both
smartphone production and consumer demand. While 2020 remains
a challenging year for the smartphone market, China is already
gradually recovering and other countries are moving in the same
direction. Based on the current pipeline, Himax expects to more
than double its smartphone TDDI shipments during Q3 compared to the
previous quarter.
The smartphone market continues to embrace new
technologies, moving toward higher frame rate displays to enable
better screen viewing and gaming experience. Himax’s high frame
rate products have been adopted by several top-tier customers and
have begun mass production in Q2.
As Himax discussed previously, a major
development the Company is seeing in the marketplace is the
increasing utilization of the OLED display for smartphone. This is
due to expanded AMOLED capacity as well as increased demand for
under-display fingerprint technology that is only available in the
AMOLED display currently. Himax is encouraged by the progress it
has made and is collaborating closely with leading panel makers
across China for AMOLED product development.
Additionally, Himax has made good progress in
wearable AMOLED display driver ICs with leading Chinese panel
makers. The Company believes AMOLED driver ICs will soon become one
of the major growth engines for its small panel driver IC
business.
Turning to the tablet business, Himax expects
its tablet ICs to be a major growth area throughout 2020 with a
strong forecast for both discrete driver ICs and TDDI in the third
quarter. Tablet demand is picking up significantly in the wake of
the Covid-19 outbreak that is fueling remote work and learning. As
mentioned in previous earnings calls, Himax pioneered the TDDI
solution for tablet and is the dominant of supplier for literally
all leading Android brand names. Tablet TDDI, just two quarters
into mass production, already accounted for around 37.0% of its
tablet IC sales and, if looked at as a separate product category,
represented almost 9.0% of the Company’s total revenues in Q2.
Himax expects an increase of more than 20% sequentially for its
tablet TDDI next quarter with the momentum to continue into Q4.
Tablet in-cell TDDI offers the benefits of lower cost and a
simplified supply chain and represents an easier manufacturing
process for panel makers. For consumers, it offers a lighter
weight, slimmer and more stylish design as well as improved touch
accuracy with added option for active stylus.
Similar to smartphone, demand for traditional
DDIC for tablet is also being eroded by in-cell TDDI but at a more
moderate pace. For the tablet segment, Himax expects to deliver
another sequential growth of low-teens with shipments to almost
quadruple that of the same time last year. Again, this is thanks to
the sudden surge of tablet demand arising from the pandemic and the
new TDDI revenue that did not exist last year.
It is worth highlighting that, while the tablet
market is smaller than smartphone, the ASP and number of units for
TDDI in each tablet are both higher than those for smartphone.
Turning to the automotive sector, the global
automobile sector has been badly hit by Covid-19 and the market
outlook remains uncertain during the second half of 2020. Himax
commands more than 30% of the global automotive DDIC market and
inevitably this business is impacted by the slow overall demand.
However, while the sequential revenue was down 15.2% in Q2, revenue
for the first half was still up 3.3% year-over-year. Himax’s
technology and leadership in the automotive display market has
helped the Company continues to gain ground with customers. Himax
expects to deliver a mid-single-digit sequential increase in the
third quarter, and the Company will remain the leader in this
market as the major developing trends have not changed amid
short-term challenges.
Backed by Himax’s leading market position in new
technologies for automotive display, the Company has a strong and
positive long-term outlook for the automotive segment. Himax is the
primary partner for most of the world’s automotive panel makers to
enable new technologies. Specifically, Himax has been selected by
many leading tier-1 and OEMs for their upcoming first launches of
vehicles using displays with TDDI technology. While the Company
only expects a small volume of shipments in 2020, Himax anticipates
meaningful full production shipments of automotive TDDI as it moves
into 2021.
For the third quarter, revenue for the small and
medium-sized driver IC business is expected to increase by over 40%
sequentially.
Non-Driver Product
CategoriesWLOThe second quarter WLO
revenue declined sequentially due to lower shipment to an anchor
customer. The factory to which Himax usually ships this product was
ordered to shut down temporarily by the local government as part of
their disease containment measures. However, the Company’s
shipments to the anchor customer recorded a nice growth compared to
the same quarter last year. Himax continues to engage several
strategic customers and/or partners to develop new projects for
DOE, diffuser, and optical lens solutions for future generation
products covering a wide range of different applications.
3D SensingIn smart phone
application, most customer inquiries and design projects are moving
toward ToF 3D sensing for world-facing camera that features longer
range and wider-angle coverage for AR, 3D modeling and gaming
features. With ToF, Himax provides optical components and/or
projectors which are critical in the performance of the whole ToF
solution. In this business, the Company has partnerships with ToF
sensor providers, laser vendors and smartphone makers and are
engaged for various stages of product development for next
generation smartphones.
For non-smartphone 3D-sensing engagements, Himax
focus on smart door lock and payment system applications where it
provides structured light-based 3D sensing total solutions. To
broaden Himax’s market reach, the Company also offers its
market-leading 3D decoder ASIC as an individual component for
integration into others’ systems. Through such partnerships, Himax
is able to reach out to markets that it is not yet familiar with,
such as industrial robotics and access control systems. 3D sensing
remains one of the main growth drivers for Himax.
Ultralow power smart sensingIn
order for Himax’s WiseEye technology to reach its maximum
potential, the Company has adopted a flexible business model
whereby, in addition to total solution where it provides processor,
image sensor and AI algorithm, the Company also offers those
individually as key parts in order to address the market’s
different needs and widen its market coverage. For customers who
own their own algorithm and wish to develop their own applications,
Himax can provide its ultralow power AI processor and image sensor
without algorithm. The customer can piggyback on Himax’s technology
and focus their effort on bringing AI to edge devices by
transforming a wide range of sensor data, including video, sound,
movement, gesture, among others, into actionable information, all
with extremely low power consumption. For those customers/partners
whose main business is to provide AI processors, Himax can offer
its ultralow power image sensors without its AI processor and
algorithm.
For the total solution offering, Himax launched
a computer vision human detection notebook solution which has been
well recognized and is being incorporated into the next generation
premium notebook models of key OEMs and ODMs. Himax’s total
solutions are also being integrated into a wide range of other
applications such as TV, doorbell, door lock, air conditioner, etc.
by engaging leading players in those industries. For the other type
of business model where Himax only offers key parts, the Company’s
strategy is to actively participate in the ecosystems led by the
world’s leading AI and cloud service providers. A recent
illustration of this strategy is an announcement for the
collaboration with Google whereby, running on Google’s TensorFlow
Lite for Microcontrollers kernel, Himax provided its AI processor
with CNN (convolutional neural network) based SDK (software
development kit) for developers to generate deep learning
inferences with video and voice commands data to boost overall
system performance while consuming extremely low power. Being an
official partner of Google’s TensorFlow, Himax gets to enjoy the
enormous network of its ecosystem participants. Just over a month
after the announcement, Himax is already receiving inquiries from
large corporations and individual AI developers alike with
application ideas covering a broad range of industries. The Company
is very encouraged by the enthusiastic discussions about possible
WiseEye applications that are taking place in various user groups
for emerging AI market ideas. Last but not least, Himax is working
closely with other leading AI and cloud service providers worldwide
to incorporate WiseEye edge AI solution into their ecosystems, in
an attempt to reach the broadest market coverage possible. Himax is
extremely excited about these developments.
CMOS Image Sensor
Due to the accelerated adoption of
work-from-home and online education, demand for Himax’s CMOS image
sensor for notebook and IP camera will remain strong during the
third quarter.
The Company’s industry-first 2-in-1 CMOS image
sensor has penetrated into the laptop ecosystem for the most
stylish super slim bezel design with 3 types of popular application
features, namely RGB sensor for video conference, RGB/IR sensor for
Windows Hello facial recognition, and/or ultralow power AI computer
vision for human presence detection. Himax expects to see small
volume in certain premium notebook models in late 2020 with more
volume expected in the coming years.
For the traditional human vision segments, Himax
also sees strong demand in multimedia applications such as car
recorders, surveillance, drones, home appliances, and consumer
electronics, among others.
LCOSHimax continues to focus on
AR goggle devices and head-up-displays (HUD) for automotive. Many
of its industry-leading customers have demonstrated their
state-of-the-art products, including holographic HUD, AR glasses
and LiDAR system, with Himax LCOS technology inside. Himax’s
technology leadership and proven manufacturing expertise have made
the Company a preferred partner for customers in these emerging
markets and their ongoing engineering projects in AR goggles and
HUD for automotive applications.
For non-driver IC business, the Company expects
revenue to increase by low teens sequentially in the third
quarter.
Third Quarter 2020 Guidance |
The Company is providing the following financial guidance for the
third quarter of 2020: |
Net
Revenue: |
|
To increase by
around 20% sequentially |
Gross Margin: |
|
To be flat to slightly down from the second quarter, depending
on final product mix |
IFRS Profit: |
|
To be around 2.0 cents to 2.8 cents per diluted ADS |
Non-IFRS Profit (1): |
|
To be around 3.5 cents to 4.3 cents per diluted ADS |
(1) Non-IFRS Profit excludes share-based
compensation and acquisition-related charges |
At this point, Himax expects to deliver strong
growth for the third quarter. The Company sees very good momentum
in its smartphone TDDI business against the backdrop of a depressed
global smartphone market. Himax’s tablet ICs, both discrete driver
and TDDI, made remarkable contributions to its first half results
and are on track to carry the nice momentum into the second half.
The Company also foresees decent growth for the notebook, TV and
Tcon products for the next quarter. However, third quarter growth
will be constrained due to an industry-wide foundry shortage.
Similar to Himax’s usual practice before 2019,
the Company will grant RSUs, rather than stock options, on
September 30 this year for employees’ share-based compensation. As
a reminder, Himax did not grant RSUs last year. Rather, 2,226,690
units of stock option were granted to the team at an exercise price
of $2.27 last September. The Company’s third quarter IFRS earnings
per diluted ADS guidance has taken into account the expected 2020
RSU grant, which, subject to the Board approval, is now assumed to
be around $3.0 million, or 1.3 cents per diluted ADS, almost all of
which will be vested and expensed immediately on September 30, the
grant date. The grant of RSUs would lead to higher third quarter
IFRS operating expenses compared to the other quarters of the
year.
HIMAX
TECHNOLOGIES SECOND QUARTER 2020 EARNINGS
CONFERENCE CALL |
DATE: |
|
Thursday,
August 6th, 2020 |
TIME: |
|
U.S. |
7:45 a.m.
EDT |
|
|
Taiwan |
7:45 p.m. |
DIAL IN: |
|
U.S. +1 (866) 444-9147 |
|
|
INTERNATIONAL +1 (678)
509-7569 |
CONFERENCE ID: |
|
4668914 |
WEBCAST: |
|
https://edge.media-server.com/mmc/p/ok4wrdzj |
Due to the heavy volume of earning’s conference
calls on August 6th and at the recommendation of its conference
call provider, Himax adjusted the Q2 2020 Earnings Call time to
7:45 a.m. from the normal 8:00 a.m. to ensure the quality of the
conference call for its participants. A replay of the call will be
available beginning two hours after the call through 11:15 a.m. US
EDT on August 14th, 2020 (11:15 p.m. Taiwan time, August 14th,
2020) 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 4668914. 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 August 6th, 2021.
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 2,000 people from three Taiwan-based
offices in Tainan, Hsinchu and Taipei and country offices in China,
Korea, Japan, Israel, and the US. Himax has 2,926 patents granted
and 553 patents pending approval worldwide as of June 30th, 2020.
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, 2019 filed with the SEC, as may be amended.
Company Contacts:
Eric Li, Chief IR/PR
OfficerHimax Technologies, Inc.Tel: +886-6-505-0880
Ext.60145 Fax: +886-2-2314-0877Email:
hr_ir@himax.com.twwww.himax.com.tw
Karen Tiao, Investor RelationsHimax
Technologies, Inc.Tel: +886-2-2370-3999 Ext. 22326 Fax:
+886-2-2314-0877Email: hx_ir@himax.com.twwww.himax.com.tw
Investor Relations - US RepresentativeMark
Schwalenberg, Senior Vice PresidentMZ North AmericaTel:
+1-312-261-6430Email: HIMX@mzgroup.uswww.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
MonthsEnded June
30, |
|
Three
MonthsEndedMarch
31, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
|
|
|
|
Revenues |
$ |
186,984 |
|
|
$ |
169,318 |
|
|
$ |
184,594 |
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of revenues |
|
147,726 |
|
|
|
136,370 |
|
|
|
142,672 |
|
Research and development |
|
28,403 |
|
|
|
28,302 |
|
|
|
27,689 |
|
General and administrative |
|
5,662 |
|
|
|
6,155 |
|
|
|
5,804 |
|
Sales and marketing |
|
3,548 |
|
|
|
4,436 |
|
|
|
3,782 |
|
Total costs and expenses |
|
185,339 |
|
|
|
175,263 |
|
|
|
179,947 |
|
|
|
|
|
|
|
Operating income (loss) |
|
1,645 |
|
|
|
(5,945 |
) |
|
|
4,647 |
|
|
|
|
|
|
|
Non operating income
(loss): |
|
|
|
|
|
Interest income |
|
263 |
|
|
|
514 |
|
|
|
396 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
(83 |
) |
|
|
24 |
|
|
|
(65 |
) |
Foreign currency exchange gains (losses), net |
|
1 |
|
|
|
33 |
|
|
|
(55 |
) |
Finance costs |
|
(551 |
) |
|
|
(545 |
) |
|
|
(593 |
) |
Share of profits (losses) of associates |
|
12 |
|
|
|
(2 |
) |
|
|
(91 |
) |
Other income |
|
22 |
|
|
|
24 |
|
|
|
35 |
|
|
|
(336 |
) |
|
|
48 |
|
|
|
(373 |
) |
Profit (loss) before income
taxes |
|
1,309 |
|
|
|
(5,897 |
) |
|
|
4,274 |
|
Income tax expense |
|
365 |
|
|
|
- |
|
|
|
1,464 |
|
Profit (loss) for the period |
|
944 |
|
|
|
(5,897 |
) |
|
|
2,810 |
|
Loss
attributable to noncontrolling interests |
|
439 |
|
|
|
746 |
|
|
|
484 |
|
Profit (loss)
attributable to Himax Technologies, Inc. stockholders |
$ |
1,383 |
|
|
$ |
(5,151 |
) |
|
$ |
3,294 |
|
|
|
|
|
|
|
Basic earnings (loss) per ADS attributable to Himax
Technologies, Inc. stockholders |
$ |
0.008 |
|
|
$ |
(0.030 |
) |
|
$ |
0.019 |
|
Diluted earnings
(loss) per ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
0.008 |
|
|
$ |
(0.030 |
) |
|
$ |
0.019 |
|
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
172,618 |
|
|
|
172,540 |
|
|
|
172,579 |
|
Diluted Weighted Average Outstanding ADS |
|
173,158 |
|
|
|
172,561 |
|
|
|
173,340 |
|
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Profit or
Loss |
(Amounts in Thousands of U.S. Dollars, Except Share and Per
Share Data) |
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
Revenues |
$ |
371,578 |
|
|
$ |
332,652 |
|
|
|
|
|
Costs and expenses: |
|
|
|
Cost of revenues |
|
290,398 |
|
|
|
262,839 |
|
Research and development |
|
56,092 |
|
|
|
58,659 |
|
General and administrative |
|
11,466 |
|
|
|
11,677 |
|
Sales and marketing |
|
7,330 |
|
|
|
8,799 |
|
Total costs and expenses |
|
365,286 |
|
|
|
341,974 |
|
|
|
|
|
Operating income (loss) |
|
6,292 |
|
|
|
(9,322 |
) |
|
|
|
|
Non operating income
(loss): |
|
|
|
Interest income |
|
659 |
|
|
|
1,076 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
(148 |
) |
|
|
7 |
|
Foreign currency exchange gains (losses), net |
|
(54 |
) |
|
|
310 |
|
Finance costs |
|
(1,144 |
) |
|
|
(1,021 |
) |
Share of profits (losses) of associates |
|
(79 |
) |
|
|
39 |
|
Other income |
|
57 |
|
|
|
47 |
|
|
|
(709 |
) |
|
|
458 |
|
Profit (loss) before income
taxes |
|
5,583 |
|
|
|
(8,864 |
) |
Income tax expense |
|
1,829 |
|
|
|
- |
|
Profit (loss) for the period |
|
3,754 |
|
|
|
(8,864 |
) |
Loss
attributable to noncontrolling interests |
|
923 |
|
|
|
1,394 |
|
Profit (loss)
attributable to Himax Technologies, Inc. stockholders |
$ |
4,677 |
|
|
$ |
(7,470 |
) |
|
|
|
|
Basic earnings (loss) per ADS attributable to Himax
Technologies, Inc. stockholders |
$ |
0.027 |
|
|
$ |
(0.043 |
) |
Diluted earnings
(loss) per ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
0.027 |
|
|
$ |
(0.043 |
) |
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
172,599 |
|
|
|
172,540 |
|
Diluted Weighted Average Outstanding ADS |
|
173,224 |
|
|
|
172,559 |
|
|
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 MonthsEnded June 30, |
|
Three MonthsEndedMarch
31, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
Share-based compensation |
|
|
|
|
|
Cost of revenues |
$ |
5 |
|
|
$ |
- |
|
|
$ |
10 |
|
Research and development |
|
122 |
|
|
|
13 |
|
|
|
269 |
|
General and administrative |
|
15 |
|
|
|
2 |
|
|
|
25 |
|
Sales and marketing |
|
26 |
|
|
|
5 |
|
|
|
40 |
|
Income tax benefit |
|
(31 |
) |
|
|
(5 |
) |
|
|
(64 |
) |
Total |
$ |
137 |
|
|
$ |
15 |
|
|
$ |
280 |
|
|
|
|
|
|
|
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 |
$ |
277 |
|
|
$ |
471 |
|
|
$ |
276 |
|
Income tax benefit |
|
(65 |
) |
|
|
(123 |
) |
|
|
(64 |
) |
Total |
$ |
212 |
|
|
$ |
348 |
|
|
$ |
212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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: |
|
Six MonthsEnded June
30, |
|
|
|
2020 |
|
|
|
2019 |
|
Share-based compensation |
|
|
|
|
|
|
|
|
Cost of revenues |
|
$ |
15 |
|
|
$ |
- |
|
Research and development |
|
|
391 |
|
|
|
26 |
|
General and administrative |
|
|
40 |
|
|
|
4 |
|
Sales and marketing |
|
|
66 |
|
|
|
9 |
|
Income tax benefit |
|
|
(95 |
) |
|
|
(9 |
) |
Total |
|
$ |
417 |
|
|
$ |
30 |
|
|
|
|
|
|
|
|
|
|
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 |
|
$ |
553 |
|
|
$ |
941 |
|
Income tax benefit |
|
|
(129 |
) |
|
|
(245 |
) |
Total |
|
$ |
424 |
|
|
$ |
696 |
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
IFRS Unaudited Condensed
Consolidated
Statements
of Financial
Position |
(Amounts in Thousands of U.S. Dollars) |
|
|
|
June 30,
2020 |
|
March 31, 2020 |
|
June
30,
2019 |
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
96,130 |
|
|
$ |
115,677 |
|
|
$ |
92,857 |
|
Financial assets at amortized cost |
|
|
10,929 |
|
|
|
10,888 |
|
|
|
12,463 |
|
Financial assets at fair value through profit or loss |
|
|
- |
|
|
|
- |
|
|
|
17,034 |
|
Accounts receivable, net |
|
|
206,075 |
|
|
|
186,735 |
|
|
|
176,224 |
|
Inventories |
|
|
161,474 |
|
|
|
148,431 |
|
|
|
188,535 |
|
Income taxes receivable |
|
|
75 |
|
|
|
86 |
|
|
|
55 |
|
Restricted deposit |
|
|
164,000 |
|
|
|
164,000 |
|
|
|
164,322 |
|
Other receivable from related party |
|
|
1,200 |
|
|
|
1,200 |
|
|
|
1,200 |
|
Other current assets |
|
|
24,246 |
|
|
|
24,465 |
|
|
|
22,118 |
|
Total current assets |
|
|
664,129 |
|
|
|
651,482 |
|
|
|
674,808 |
|
Financial assets at
fair value through profit or loss |
|
|
13,352 |
|
|
|
13,435 |
|
|
|
9,768 |
|
Financial assets at
fair value through other comprehensive
income |
|
|
737 |
|
|
|
689 |
|
|
|
710 |
|
Equity method
investments |
|
|
3,660 |
|
|
|
3,655 |
|
|
|
4,102 |
|
Property, plant and
equipment, net |
|
|
137,530 |
|
|
|
136,300 |
|
|
|
117,544 |
|
Deferred tax
assets |
|
|
14,537 |
|
|
|
14,334 |
|
|
|
13,428 |
|
Goodwill |
|
|
28,138 |
|
|
|
28,138 |
|
|
|
28,138 |
|
Other
intangible assets, net |
|
|
7,953 |
|
|
|
8,363 |
|
|
|
9,592 |
|
Restricted
deposit |
|
|
135 |
|
|
|
132 |
|
|
|
129 |
|
Other non-current
assets |
|
|
2,033 |
|
|
|
2,269 |
|
|
|
3,321 |
|
|
|
|
208,075 |
|
|
|
207,315 |
|
|
|
186,732 |
|
Total assets |
|
$ |
872,204 |
|
|
$ |
858,797 |
|
|
$ |
861,540 |
|
Liabilities
and Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Unsecured borrowings |
|
$ |
58,437 |
|
|
$ |
67,871 |
|
|
$ |
77,025 |
|
Secured borrowings |
|
|
164,000 |
|
|
|
164,000 |
|
|
|
164,000 |
|
Accounts payable |
|
|
161,474 |
|
|
|
145,599 |
|
|
|
134,224 |
|
Income taxes payable |
|
|
3,960 |
|
|
|
4,261 |
|
|
|
1,613 |
|
Other payable to related party |
|
|
2,740 |
|
|
|
2,440 |
|
|
|
2,360 |
|
Other current liabilities |
|
|
34,749 |
|
|
|
34,000 |
|
|
|
38,174 |
|
Total current liabilities |
|
|
425,360 |
|
|
|
418,171 |
|
|
|
417,396 |
|
Net defined benefit
liabilities |
|
|
50 |
|
|
|
49 |
|
|
|
149 |
|
Deferred tax
liabilities |
|
|
1,284 |
|
|
|
1,346 |
|
|
|
1,505 |
|
Other non-current
liabilities |
|
|
9,989 |
|
|
|
4,820 |
|
|
|
4,280 |
|
|
|
|
11,323 |
|
|
|
6,215 |
|
|
|
5,934 |
|
Total liabilities |
|
|
436,683 |
|
|
|
424,386 |
|
|
|
423,330 |
|
Equity |
|
|
|
|
|
|
Ordinary shares |
|
|
107,010 |
|
|
|
107,010 |
|
|
|
107,010 |
|
Additional paid-in capital |
|
|
105,686 |
|
|
|
105,455 |
|
|
|
104,788 |
|
Treasury shares |
|
|
(8,656 |
) |
|
|
(8,764 |
) |
|
|
(8,819 |
) |
Accumulated other comprehensive income |
|
|
(1,110 |
) |
|
|
(937 |
) |
|
|
(869 |
) |
Retained earnings |
|
|
230,564 |
|
|
|
229,181 |
|
|
|
236,687 |
|
Equity attributable to owners of Himax
Technologies, Inc. |
|
|
433,494 |
|
|
|
431,945 |
|
|
|
438,797 |
|
Noncontrolling
interests |
|
|
2,027 |
|
|
|
2,466 |
|
|
|
(587 |
) |
Total equity |
|
|
435,521 |
|
|
|
434,411 |
|
|
|
438,210 |
|
Total liabilities and equity |
|
$ |
872,204 |
|
|
$ |
858,797 |
|
|
$ |
861,540 |
|
|
Himax Technologies, Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts in
Thousands of
U.S.
Dollars) |
|
|
Three Months Ended June 30, |
|
Three MonthsEndedMarch 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Profit (loss) for the
period |
|
$ |
944 |
|
|
$ |
(5,897 |
) |
|
$ |
2,810 |
|
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
5,881 |
|
|
|
6,209 |
|
|
|
5,754 |
|
Share-based compensation expenses |
|
|
168 |
|
|
|
20 |
|
|
|
344 |
|
Gain on disposal of property, plant and equipment, net |
|
|
(242 |
) |
|
|
- |
|
|
|
- |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
83 |
|
|
|
(24 |
) |
|
|
65 |
|
Interest income |
|
|
(263 |
) |
|
|
(514 |
) |
|
|
(396 |
) |
Finance costs |
|
|
551 |
|
|
|
545 |
|
|
|
593 |
|
Income tax expense |
|
|
365 |
|
|
|
- |
|
|
|
1,464 |
|
Share of losses (profits) of associates |
|
|
(12 |
) |
|
|
2 |
|
|
|
91 |
|
Inventories write downs |
|
|
3,413 |
|
|
|
5,008 |
|
|
|
4,077 |
|
Unrealized foreign currency exchange losses (gains) |
|
|
(59 |
) |
|
|
(23 |
) |
|
|
9 |
|
|
|
|
10,829 |
|
|
|
5,326 |
|
|
|
14,811 |
|
Changes in: |
|
|
|
|
|
|
Accounts receivable |
|
|
(19,340 |
) |
|
|
(71 |
) |
|
|
(21,792 |
) |
Inventories |
|
|
(16,456 |
) |
|
|
(4,226 |
) |
|
|
(8,734 |
) |
Other current assets |
|
|
(602 |
) |
|
|
782 |
|
|
|
708 |
|
Accounts payable |
|
|
15,875 |
|
|
|
(13,057 |
) |
|
|
31,279 |
|
Other payable to related party |
|
|
300 |
|
|
|
(1,577 |
) |
|
|
220 |
|
Net defined benefit liabilities |
|
|
1 |
|
|
|
(1 |
) |
|
|
(1 |
) |
Other current liabilities |
|
|
1,365 |
|
|
|
(935 |
) |
|
|
(4,841 |
) |
Other non-current liabilities |
|
|
- |
|
|
|
- |
|
|
|
(74 |
) |
Cash generated from operating activities |
|
|
(8,028 |
) |
|
|
(13,759 |
) |
|
|
11,576 |
|
Interest received |
|
|
548 |
|
|
|
845 |
|
|
|
181 |
|
Interest paid |
|
|
(555 |
) |
|
|
(574 |
) |
|
|
(630 |
) |
Income tax paid |
|
|
(1,123 |
) |
|
|
(4,229 |
) |
|
|
(540 |
) |
Net cash provided by (used in) operating
activities |
|
|
(9,158 |
) |
|
|
(17,717 |
) |
|
|
10,587 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
|
(708 |
) |
|
|
(5,711 |
) |
|
|
(3,092 |
) |
Proceeds from disposal of property, plant and equipment |
|
|
247 |
|
|
|
8 |
|
|
|
- |
|
Acquisitions of intangible assets |
|
|
(6 |
) |
|
|
(67 |
) |
|
|
(72 |
) |
Acquisitions of financial assets at amortized cost |
|
|
(1,425 |
) |
|
|
(1,446 |
) |
|
|
(737 |
) |
Proceeds from disposal of financial assets at amortized cost |
|
|
1,446 |
|
|
|
335 |
|
|
|
765 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
|
(2,483 |
) |
|
|
(34,537 |
) |
|
|
(1,105 |
) |
Proceeds from disposal of financial assets at fair value through
profit or loss |
|
|
2,502 |
|
|
|
17,634 |
|
|
|
1,097 |
|
Acquisition of a subsidiary, net of cash acquired |
|
|
- |
|
|
|
(400 |
) |
|
|
- |
|
Proceeds from capital reduction of investment |
|
|
- |
|
|
|
30 |
|
|
|
- |
|
|
Himax Technologies, Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts in
Thousands of
U.S.
Dollars) |
|
|
Three Months Ended June 30, |
|
Three MonthsEndedMarch 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
Decrease (increase) in refundable deposits |
|
|
177 |
|
|
|
57 |
|
|
|
(3,014 |
) |
Releases (pledges) of restricted deposit |
|
|
(3 |
) |
|
|
3 |
|
|
|
1 |
|
Cash paid for loan made to related party |
|
|
- |
|
|
|
(1,200 |
) |
|
|
- |
|
Cash received from loan made to related party |
|
|
- |
|
|
|
2,780 |
|
|
|
- |
|
Net cash used in investing activities |
|
|
(253 |
) |
|
|
(22,514 |
) |
|
|
(6,157 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Proceeds from unsecured borrowings |
|
|
58,403 |
|
|
|
77,006 |
|
|
|
139,734 |
|
Repayments of unsecured borrowings |
|
|
(67,818 |
) |
|
|
(40,000 |
) |
|
|
(129,134 |
) |
Proceeds from secured borrowings |
|
|
87,000 |
|
|
|
27,000 |
|
|
|
37,000 |
|
Repayments of secured borrowings |
|
|
(87,000 |
) |
|
|
(27,000 |
) |
|
|
(37,000 |
) |
Payment of lease liabilities |
|
|
(669 |
) |
|
|
(460 |
) |
|
|
(462 |
) |
Proceeds from exercise of employee stock options |
|
|
173 |
|
|
|
- |
|
|
|
- |
|
Net cash provided by (used in) financing
activities |
|
|
(9,911 |
) |
|
|
36,546 |
|
|
|
10,138 |
|
Effect of
foreign currency exchange rate
changes on cash and cash equivalents |
|
|
(225 |
) |
|
|
(211 |
) |
|
|
54 |
|
Net
increase
(decrease) in
cash and cash equivalents |
|
|
(19,547 |
) |
|
|
(3,896 |
) |
|
|
14,622 |
|
Cash and cash
equivalents at beginning of period |
|
|
115,677 |
|
|
|
96,753 |
|
|
|
101,055 |
|
Cash and cash
equivalents at end of period |
|
$ |
96,130 |
|
|
$ |
92,857 |
|
|
$ |
115,677 |
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts in
Thousands of
U.S.
Dollars) |
|
Six Months Ended June
30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
Profit (loss) for the
period |
$ |
3,754 |
|
|
$ |
(8,864 |
) |
Adjustments for: |
|
|
|
Depreciation and amortization |
|
11,635 |
|
|
|
12,529 |
|
Share-based compensation expenses |
|
512 |
|
|
|
39 |
|
Gain on disposal of property, plant and equipment, net |
|
(242 |
) |
|
|
(6 |
) |
Changes in fair value of financial assets at fair value through
profit or loss |
|
148 |
|
|
|
(7 |
) |
Interest income |
|
(659 |
) |
|
|
(1,076 |
) |
Finance costs |
|
1,144 |
|
|
|
1,021 |
|
Income tax expense |
|
1,829 |
|
|
|
- |
|
Share of losses (profit) of associates |
|
79 |
|
|
|
(39 |
) |
Inventories write downs |
|
7,490 |
|
|
|
9,758 |
|
Unrealized foreign currency exchange gains |
|
(50 |
) |
|
|
(114 |
) |
|
|
25,640 |
|
|
|
13,241 |
|
Changes in: |
|
|
|
Accounts receivable |
|
(41,132 |
) |
|
|
12,791 |
|
Inventories |
|
(25,190 |
) |
|
|
(35,732 |
) |
Other current assets |
|
106 |
|
|
|
(5,245 |
) |
Accounts payable |
|
47,154 |
|
|
|
(16,276 |
) |
Other payable to related party |
|
520 |
|
|
|
(1,437 |
) |
Net defined benefit liabilities |
|
- |
|
|
|
50 |
|
Other current liabilities |
|
(3,476 |
) |
|
|
(2,957 |
) |
Other non-current liabilities |
|
(74 |
) |
|
|
- |
|
Cash generated from operating activities |
|
3,548 |
|
|
|
(35,565 |
) |
Interest received |
|
729 |
|
|
|
1,102 |
|
Interest paid |
|
(1,185 |
) |
|
|
(1,036 |
) |
Income tax paid |
|
(1,663 |
) |
|
|
(4,270 |
) |
Net cash provided by (used in) operating
activities |
|
1,429 |
|
|
|
(39,769 |
) |
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Acquisitions of property, plant and equipment |
|
(3,800 |
) |
|
|
(11,971 |
) |
Proceeds from disposal of property, plant and equipment |
|
247 |
|
|
|
14 |
|
Acquisitions of intangible assets |
|
(78 |
) |
|
|
(96 |
) |
Acquisitions of financial assets at amortized cost |
|
(2,162 |
) |
|
|
(2,327 |
) |
Proceeds from disposal of financial assets at amortized cost |
|
2,211 |
|
|
|
1,138 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
(3,588 |
) |
|
|
(42,632 |
) |
Proceeds from disposal of financial assets at fair value through
profit or loss |
|
3,599 |
|
|
|
25,720 |
|
Acquisition of business |
|
- |
|
|
|
(700 |
) |
Acquisition of a subsidiary, net of cash acquired |
|
- |
|
|
|
(400 |
) |
Proceeds from capital reduction of investment |
|
- |
|
|
|
30 |
|
Decrease (increase) in refundable deposits |
|
(2,837 |
) |
|
|
67 |
|
Releases (pledges) of restricted deposit |
|
(2 |
) |
|
|
5 |
|
Cash paid for loan made to related party |
|
- |
|
|
|
(1,200 |
) |
Cash received from loan made to related party |
|
- |
|
|
|
2,780 |
|
Net cash used in investing activities |
|
(6,410 |
) |
|
|
(29,572 |
) |
|
Himax Technologies, Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts in
Thousands of
U.S.
Dollars) |
|
Six Months Ended June
30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Proceeds from unsecured borrowings |
|
198,137 |
|
|
|
117,006 |
|
Repayments of unsecured borrowings |
|
(196,952 |
) |
|
|
(60,000 |
) |
Proceeds from secured borrowings |
|
124,000 |
|
|
|
64,000 |
|
Repayments of secured borrowings |
|
(124,000 |
) |
|
|
(64,000 |
) |
Payment of lease liabilities |
|
(1,131 |
) |
|
|
(964 |
) |
Proceeds from exercise of employee stock options |
|
173 |
|
|
|
- |
|
Net cash provided by financing activities |
|
227 |
|
|
|
56,042 |
|
Effect of
foreign currency exchange rate
changes on cash and cash equivalents |
|
(171 |
) |
|
|
(281 |
) |
Net
decrease in cash and cash
equivalents |
|
(4,925 |
) |
|
|
(13,580 |
) |
Cash and cash
equivalents at beginning of period |
|
101,055 |
|
|
|
106,437 |
|
Cash and cash
equivalents at end of period |
$ |
96,130 |
|
|
$ |
92,857 |
|
|
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 June 30, |
|
Three Months Ended March
31, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
Revenues |
$ |
186,984 |
|
|
$ |
169,318 |
|
|
$ |
184,594 |
|
Gross profit |
|
39,258 |
|
|
|
32,948 |
|
|
|
41,922 |
|
Add: Share-based compensation
– cost of revenues |
|
5 |
|
|
|
- |
|
|
|
10 |
|
Gross profit excluding
share-based compensation |
|
39,263 |
|
|
|
32,948 |
|
|
|
41,932 |
|
Gross margin excluding
share-based compensation |
|
21.0 |
% |
|
|
19.5 |
% |
|
|
22.7 |
% |
Operating income (loss) |
|
1,645 |
|
|
|
(5,945 |
) |
|
|
4,647 |
|
Add: Share-based
compensation |
|
168 |
|
|
|
20 |
|
|
|
344 |
|
Operating income (loss)
excluding share-based compensation |
|
1,813 |
|
|
|
(5,925 |
) |
|
|
4,991 |
|
Add: Acquisition-related
charges –intangible assets amortization |
|
277 |
|
|
|
471 |
|
|
|
276 |
|
Operating income (loss)
excluding share-based compensation and acquisition-related
charges |
|
2,090 |
|
|
|
(5,454 |
) |
|
|
5,267 |
|
Operating margin excluding
share-based compensation and acquisition-related charges |
|
1.1 |
% |
|
|
(3.2 |
%) |
|
|
2.9 |
% |
Profit (loss) attributable to
Himax Technologies, Inc. stockholders |
|
1,383 |
|
|
|
(5,151 |
) |
|
|
3,294 |
|
Add: Share-based compensation,
net of tax |
|
137 |
|
|
|
15 |
|
|
|
280 |
|
Add: Acquisition-related
charges, net of tax |
|
212 |
|
|
|
348 |
|
|
|
212 |
|
Profit (loss) attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
1,732 |
|
|
|
(4,788 |
) |
|
|
3,786 |
|
Net margin attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
0.9 |
% |
|
|
(2.8 |
%) |
|
|
2.1 |
% |
|
|
|
|
|
|
*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 |
|
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: |
|
|
|
Six Months Ended June
30, |
|
|
2020 |
|
|
|
2019 |
|
Revenues |
$ |
371,578 |
|
|
$ |
332,652 |
|
Gross profit |
|
81,180 |
|
|
|
69,813 |
|
Add: Share-based compensation
– cost of revenues |
|
15 |
|
|
|
- |
|
Gross profit excluding
share-based compensation |
|
81,195 |
|
|
|
69,813 |
|
Gross margin excluding
share-based compensation |
|
21.9 |
% |
|
|
21.0 |
% |
Operating income (loss) |
|
6,292 |
|
|
|
(9,322 |
) |
Add: Share-based
compensation |
|
512 |
|
|
|
39 |
|
Operating income (loss)
excluding share-based compensation |
|
6,804 |
|
|
|
(9,283 |
) |
Add: Acquisition-related
charges –intangible assets amortization |
|
553 |
|
|
|
941 |
|
Operating income (loss)
excluding share-based compensation and acquisition-related
charges |
|
7,357 |
|
|
|
(8,342 |
) |
Operating margin excluding
share-based compensation and acquisition-related charges |
|
2.0 |
% |
|
|
(2.5 |
%) |
Profit (loss) attributable to
Himax Technologies, Inc. stockholders |
|
4,677 |
|
|
|
(7,470 |
) |
Add: Share-based compensation,
net of tax |
|
417 |
|
|
|
30 |
|
Add: Acquisition-related
charges, net of tax |
|
424 |
|
|
|
696 |
|
Profit (loss) attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
5,518 |
|
|
|
(6,744 |
) |
Net margin attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
1.5 |
% |
|
|
(2.0 |
%) |
|
|
|
|
*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
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 June
30, |
|
Six Months Ended June
30, |
|
2020 |
|
2020 |
Diluted IFRS earnings per ADS attributable to Himax Technologies,
Inc. stockholders |
$ |
0.008 |
|
$ |
0.027 |
Add: Share-based compensation per ADS |
$ |
0.001 |
|
$ |
0.002 |
Add: Acquisition-related charges per ADS |
$ |
0.001 |
|
$ |
0.002 |
|
|
|
|
Diluted non-IFRS earnings per ADS
attributable to Himax Technologies, Inc. stockholders excluding
share-based compensation and acquisition-related charges |
$ |
0.010 |
|
$ |
0.032 |
|
|
|
|
|
|
Numbers do not add up due to
rounding
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