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, 2020.
“As we entered year 2021, the shortage has
become even more severe and has extended to backend facilities that
include assembly and testing. As a leading industry player with
superior resources and engineering capability to diversify and
enlarge the vendor pool, along with long term business
relationships with both foundry and backend suppliers, we engaged
early and have succeeded in securing more capacity for 2021 as
compared to the level of Q4 2020 when we reached the recent peak
quarterly shipment. In addition, we are also optimizing capacity
allocation among our diversified foundry suppliers by making
the right products at the right fabs with an aim to fully
utilize the capacity accessible to us. Among the product areas
for which we have secured a meaningful capacity increase is
automobile where the global shortage for semiconductor supply is
overwhelming. We expect the total capacity available to us to
increase quarter by quarter in 2021 and will continue our
efforts in securing further capacity,” said Mr. Jordan Wu,
President and Chief Executive Officer of Himax.
“The overall semiconductor industry supply will
not have any significant increase any time soon while strong demand
is likely to persist longer than expected. In such an environment,
Himax is a preferred supplier to work with for our sizable scale,
diversified vendor pool and extensive product offerings. Our
strength in a number of high margin businesses will help the
ongoing margin improvement efforts. For example, our leading
positions in tablet and automotive displays ensure the high margin
contribution continues. Moreover, gross margin improvement can also
come from new non-driver products, notably our high-end Tcon,
WiseEye ultralow power AI, and 3D sensing,” concluded Mr. Jordan
Wu.
Fourth Quarter 2020 Financial
Results
Himax recorded net revenues of $275.8 million,
an increase of 14.9% sequentially and an increase of 57.6% compared
to the same period last year. The 14.9% sequential increase of
revenues exceeded the Company’s guidance of an increase of around
10% quarter-over-quarter, thanks to strong momentum across all
major business segments. TV, monitor, automotive driver ICs and
CMOS image sensor contributed more to the better-than-guided sales
than other segments. Gross margin of 31.2% exceeded the prior
guidance of around 29% and significantly improved from the 22.3% of
the third quarter 2020. IFRS profit per diluted ADS was 19.5 cents,
exceeding the Company’s guidance of around 15.0 cents to 16.0
cents. Strong sales and improved gross margin contributed to the
better-than-expected earnings results. Non-IFRS profit per diluted
ADS was 19.7 cents, exceeding its guidance of around 15.1
cents to 16.1 cents.
Revenue from large display drivers was $64.2
million, up 15.2% sequentially and up 11.0% year-over-year. The
sequential growth was driven by continuous strong demand for IT
products, including notebook and monitor, derived from the ongoing
remote working and distance education. TV revenue was up slightly
quarter-over-quarter and outperformed its previous guidance of
a mid-single-digit sequential decline due to better home
entertainment demand from the stay-at-home economy. Large panel
driver ICs accounted for 23.3% of total revenues for the quarter,
compared to 23.2% in the third quarter of 2020 and 33.1% a year
ago.
Small and medium-sized display drivers continued
to grow in the fourth quarter as guided, with revenue of $177.9
million, up 17.3% sequentially and up 119.4% year-over-year.
Smartphone and tablet display TDDIs grew robustly in the fourth
quarter but was offset by decline of DDICs. From a year-over-year
perspective, both smartphone and tablet demonstrated extraordinary
sales growth, yet growth was constrained by the severe foundry
capacity shortage. Small and medium-sized segment accounted for
64.5% of total sales for the quarter, compared to 63.2% in the
third quarter of 2020 and 46.4% a year ago.
Smartphone sales continued growing in the fourth
quarter, with revenue reaching $66.6 million, up 5.1% sequentially
and 173.1% year-over-year. It represented more than 24% of its
total sales in Q4. Himax’s smartphone TDDI sales were up around 10%
sequentially and up more than 300% compared to the same period last
year. The sequential growth was due to favorable mix of both
product and clientele. In consideration of capacity limitation,
Himax’s strategy is to prioritize its support to those customers
with whom the Company is the major supplier or has long-term
business relationships. Sales of traditional smartphone DDICs fell
by around 10% sequentially and were up around 20% from same period
last year. As repeatedly indicated, traditional smartphone DDICs
are quickly being replaced by TDDI and AMOLED.
Himax’s tablet revenue, one of the Company’s top
sales contributors throughout 2020, reached $67.4 million for the
fourth quarter, another record high. The Q4 sales grew 25.3%
sequentially and 291.5% year-over-year. The tablet revenue
accounted for more than 24% of its total sales in the fourth
quarter, slightly higher than that of smartphone. Despite
smartphone having a much bigger market size than tablet, sales of
smartphone and tablet were equally weighted for the fourth quarter,
indicating the Company’s favorable capacity allocation toward the
tablet segment, a reflection of Himax’s leading position in that
market.
For tablet TDDI, the sequential revenue
increased significantly by over 80%. This marked the third
consecutive strong quarterly increase since the initial mass
production in the first quarter of 2020. It reflects the robust
customer demand from the Android tablet market where the Company is
the main or sole source supplier to all leading end customers.
Improved product mix with increasing shipments in high-end products
with active stylus also ascribed to the satisfactory sales growth
and helped its overall margin improvement. Revenue of traditional
discrete driver ICs for tablet decreased 12.3% sequentially but
increased 68.8% year-over-year in the fourth quarter.
Himax’s fourth quarter driver IC revenue for
automotive amounted to $37.5 million, up 32.4% sequentially and up
11.9% year-over-year as car makers resumed production in response
to a recovery of global automotive demand from Q3 2020. However,
the Company was unable to scale up fast enough to meet this surging
demand for all customers due to capacity shortage. Automotive
driver IC accounted for more than 13% of total revenues. During
2021, Himax expects to further its automotive display driver IC
market share from the current level of more than 30%.
Fourth quarter revenue from the Company’s
non-driver businesses was $33.7 million, up 3.3% sequentially but
down 6.4% year-over-year. The sequential increase was mainly a
result of increased shipments of Tcon ICs for high frame rate and
high-resolution displays as well as CMOS image sensor products with
strong demands coming from notebook and web camera applications.
However, the increase in sales was offset by a decrease in WLO
shipments to an anchor customer. The year-over-year reduction in
sales was due to a decrease in WLO shipments. Non-driver products
accounted for 12.2% of total revenues, as compared to 13.6% in the
third quarter of 2020 and 20.5% a year ago.
Gross margin for the fourth quarter was 31.2%,
up 890 basis points sequentially and up 1,060 basis points from the
same period last year. The much-improved gross margin can be
ascribed to two main reasons: favorable product mix and industry
capacity shortage. The growth of higher margin products, notably
tablet TDDI, Tcon and automotive drivers, outpaced that of other
product categories during the quarter, thereby enhancing the
Company’s gross margin. The leap of gross margin for the fourth
quarter also reflected strong overall demands and better product
pricing on rising material costs across foundry, assembly and
testing, all undergoing severe capacity shortage. Not meeting all
demands, the Company was able to allocate the limited capacity to
the products with better margins.
IFRS operating expenses were $43.8 million in
the fourth quarter, down 0.8% from the preceding quarter but up
17.0% from a year ago. The sequential decrease was caused by
negative difference in RSU expenses, offset by increased cash
bonus, as the Company reported in the last earnings call, to
further reward employees for the better-than-expected financial
results, and higher R&D expenses. The year-over-year increase
was a result of increased salary and cash bonus along with higher
R&D expenses. Despite a year-over-year increase in operating
expenses, the operating expense ratio was reduced from 21.4% in Q4
2019 to 15.9% in Q4 2020, reflecting the Company’s careful
management over operating expenses. Non-IFRS operating expenses for
the fourth quarter were $43.5 million, up 11.8% from the previous
quarter and up 18.1% from the same quarter in 2019.
Reflecting higher sales and better gross margin,
IFRS operating profit was $42.2 million for the fourth quarter with
operating margin of 15.3%, up from 3.9% in the prior quarter and up
from -0.8% in the same period last year. Fourth quarter non-IFRS
operating profit was $42.5 million, or 15.4% of sales, higher from
$14.7 million, or 6.1% of sales last quarter and up from -0.4% for
the same period last year.
IFRS profit for the fourth quarter was $34.0
million, or 19.5 cents per diluted ADS, compared to $8.5 million,
or 4.9 cents per diluted ADS, in the previous quarter and $1.0
million, or 0.6 cents per diluted ADS, a year ago.
Fourth quarter non-IFRS profit was $34.2
million, or 19.7 cents per diluted ADS, compared to non-IFRS profit
of $12.6 million, or 7.3 cents per diluted ADS last quarter and
non-IFRS profit of $1.5 million, or 0.9 cents per diluted ADS for
the same period last year.
Full Year 2020 Financial
Results
Revenues totaled $887.3 million in 2020, a 32.1%
growth over 2019. In the first half of the year, Covid-19 and US
sanctions on China brought turbulence to the market. However, Himax
business rebounded strongly throughout the second half with fresh
demands brought by the new stay-at-home economy. Among the
Company’s three major product categories, small and medium-sized
display drivers posted the highest growth of 67.7% year-over-year
in 2020 with sales totaling $515.7 million. As leading Android
tablet brands all adopted Himax’s TDDI solutions and global
smartphone sales rebounded, the Company saw extraordinary business
momentum for both product areas in 2020.
Revenue from large panel display drivers totaled
$240.8 million in 2020, a mild increase of 1.5% year-over-year.
During the pandemic, the surge in IT demand boosted the Company’s
sales of monitor display drivers up by high teens and notebook
display drivers up around 60% respectively. TV sales, however,
declined by high-single digit year-over-year due to weakness in the
global TV market which was negatively impacted by the Covid-19
outbreak. Non-driver products sales totaled $130.8 million, an
increase of 2.9% year-over-year. The year-over-year increase was
mainly from Tcon amidst the growing need for high frame rate and
high-resolution displays, and CIS due to the continuous strong
demand in notebook and web camera for work-from-home and online
education. This increase was offset by WLO, as the legacy product
of an anchor customer gradually decreased.
Gross margin in 2020 was 24.9%, up from 20.5% in
2019. The year-over-year improvement was mainly due to strong sales
in the second half and a more favorable product mix. As the Company
previously mentioned, robust demand pushed foundry capacity
constraints to a more severe level which in turn enabled better
pricing.
IFRS operating expenses were $162.9 million, up
$6.6 million, or 4.2%, compared to last year. The increase came
from higher expenses in share-based compensation, cash bonus,
R&D expenses as well as salary, but offset by lower travelling
fees. Notably, the stronger NT Dollar against the U.S. Dollar in
2020 contributed to around $3.9 million of operating expenses
increase because, while the Company’s accounting was U.S. Dollar
denominated, Himax paid the bulk of our employee salaries as well
as much of the Taiwan locally incurred expenses in NT Dollar.
However, the operating expense ratio of 2020 was reduced to 18.4%
from 23.2% in 2019, indicating the Company’s consistent management
of operating expenses.
IFRS operating income was $57.9 million, in
contrast to a loss of $18.3 million from 2019, due to higher sales
and higher gross margin. For the same reason non-IFRS operating
income was $64.6 million, an increase of $80.9 million from a loss
of $16.3 million in 2019.
IFRS profit for the year was $47.1 million, or
27.2 cents, versus a loss of $13.6 million or 7.9 cents per diluted
ADS. Non-IFRS profit for 2020 was $52.3 million, or 30.2 cents per
diluted ADS, up $64.4 million year-over-year from a loss of $12.1
million last year. The upswing in income was a result of better
sales and higher gross margin along with well-managed operating
expenses.
Balance Sheet and Cash Flow
Himax had $201.4 million of cash, cash
equivalents and other financial assets as of December 31, 2020,
compared to $112.1 million at the same time last year and $142.9
million a quarter ago. The higher cash balance was mainly a result
of an operating cash inflow of $67.7 million during the quarter.
Restricted cash was $104 million at the end of Q4, the same as the
preceding quarter, compared to $164 million a year ago. The
restricted cash was used to guarantee the short-term secured
borrowings for the same amount. The Company had $58.5 million of
long-term unsecured loans as of the end of Q4, of which $6 million
was current portion.
The Company’s year-end inventories as of
December 31, 2020 were $108.7 million, down from $125.7 million
last quarter and $143.8 million a year ago. Accounts receivable at
the end of December 2020 was $243.6 million, up from $221.1 million
last quarter and up from $164.9 million a year ago. DSO was 100
days at the year end, as compared to 90 days a year ago and 99 days
at the end of the last quarter. As Himax highlighted in the last
earnings calls, given the foundry and backend capacity shortage,
the Company’s inventory level will stay at a relative low level in
the quarters to come. Net cash inflow from operating activities for
the fourth quarter was $67.7 million as compared to an inflow of
$33.5 million last quarter and an inflow of $23.4 million for the
same period last year. Cash inflow from operations in 2020 was
$102.6 million as compared to $7.7 million in 2019.
Fourth quarter capital expenditures amounted to
$0.8 million, versus $1.2 million last quarter and $2.7 million a
year ago. The fourth quarter capex was for R&D related
equipment. Total capital expenditures for the year was $5.8
million, mainly for design tools and R&D related equipment. In
comparison, the capex for 2019 was $45.9 million, of which the vast
majority was for the purchase of land, the construction of a new
building and WLO capacity expansion.
Outstanding Shares and Share
Buyback
As of December 31, 2020, Himax had 173.8 million
ADS outstanding, little changed from last quarter. On a fully
diluted basis, the total number of ADS outstanding is 174.1
million.
Q1 2021 Outlook
As Himax highlighted before on previous earnings
calls, capacity shortage appears to be a long-term phenomenon. As
it entered the year 2021, the shortage has become even more severe
and has extended to backend facilities that include assembly and
testing. As a leading industry player with superior resources and
engineering capability to diversify and enlarge the vendor pool,
along with long term business relationships with both foundry and
backend suppliers, Himax engaged early and has succeeded in
securing more capacity for 2021 as compared to the level of Q4 2020
when the Company reached the recent peak quarterly shipment. In
addition, Himax is also optimizing capacity allocation among its
diversified foundry suppliers by making the right products at the
right fabs with an aim to fully utilize the capacity accessible to
us. Among the product areas for which the Company has secured a
meaningful capacity increase is automobile where the global
shortage for semiconductor supply is overwhelming. Himax expects
the total capacity available to it to increase quarter by quarter
in 2021 and will continue its efforts in securing further
capacity.
As far as the Company can see, the overall
semiconductor industry supply will not have any significant
increase any time soon while strong demand is likely to persist
longer than expected. In such an environment, Himax is a preferred
supplier to work with for its sizable scale, diversified vendor
pool and extensive product offerings. Himax’s strength in a number
of high margin businesses will also help the ongoing margin
improvement efforts. For example, with strong demand for tablet
expected to remain, the Company’s being the preferred vendor
for major Android names will ensure the high margin contribution
continues. Likewise, Himax’s leading position in automotive display
represents a solid support for its margins as the Company
anticipates robust sales growth in this high margin business for
the upcoming years. Moreover, gross margin improvement can also
come from new non-driver products, notably the Company’s high-end
Tcon, WiseEye ultralow power AI, and 3D sensing.
Again, gross margin expansion will always be one
of the Company’s major business goals for this year and beyond.
Display Driver IC Business
LDDICFor the first quarter,
Himax expects large display driver IC revenue to increase
by low teens sequentially. For notebook IC segment, it
anticipates another impressive quarter of high growth in Q1, a
continuation from previous quarters, increasing substantially from
the previous quarter due to the extension of strong demand derived
from persisting remote working and e-learning. As for monitor IC
sales, on the other hand, the Company expects a sequential decline
in the first quarter due to the capacity shortage as it is
unable to meet all the demand.
As TV sell-through remains strong and TV panel
shortage increases, Himax’s TV segment looks set to end the first
quarter with a better than seasonal momentum of around 10%
sequential growth. Recently, the Company saw customers proceeding
with aggressive promotion in high-resolution models, that require
high-end drivers and Tcons, in anticipation of sustained strong
demand for home entertainment during the pandemic. However, the
Company’s display driver IC and Tcon shipments are still capped by
supply shortage in foundry and packaging, despite firm demand from
customers.
SMDDICIn the first quarter,
Himax sees continuous strong TDDI sales for both smartphone and
tablet, with demand still surpassing supply. Foundry capacity
remains a major issue that adversely impacts its shipping
capability. With smartphone and tablet sharing the same foundry
pool, Himax strategically allocates capacity in favor of tablet as
it is the dominant supplier in the Android tablet market. For Q1
tablet sales, the Company expects high-single-digit sequential
growth fueled by consumer demand for home working and remote
learning needs as well as higher TDDI penetration. The Company
expects Q1 smartphone sales to slightly increase by mid-single
digit, in which smartphone TDDI revenue is projected to have
consecutive mid-teens growth and smartphone DDIC would continue its
declining trend.
Tablet was one of Himax top sales contributors
in 2020 thanks largely to the fast rising TDDI penetration for
Android names and the strong demand driven by the stay-at-home
economy. To further broaden its product offering and solidify its
market position, Himax’s tablet TDDI has moved toward higher frame
rate, higher resolution and larger screen sized solutions. The
Company has also enhanced touch accuracy through its leading active
stylus design for better-quality handwriting and drawing.
As the Company stated before, Himax is highly
committed to AMOLED technology. The Company’s development started
from smartphone, and has extended to wearable, tablet and
automotive. It has some encouraging progresses with leading
Chinese panel makers and will report in due course. AMOLED driver
IC is believed soon to become one of the major growth drivers for
Himax’s small and medium panel driver IC business in 2021.
The global shortage of semiconductor components
has brought great challenges to the world's automotive industry. As
most of the world’s lockdown periods end, tightening foundry
capacity, combined with the sudden surge in orders due to pent-up
demand, have left the industry facing an even more severe shortage
compared to other sectors. Customers now rely on “just in time”
delivery of IC components to preserve production and some
reportedly already suspended production for days or even weeks. In
consideration of unceasing sales demand amidst tight capacity
shortage, Himax worked strategically with panel makers, tier-1 and
end customers, across different continents, and have secured an
enlarged volume of foundry capacity while managing swift production
adjustments to meet customers’ production schedules. By offering
supportive logistics, the Company hopes to further its relationship
with customers, who can in return help accelerate Himax new
technology into customers’ new models going forward. Limited by
largescale supply shortages, Himax’s automotive ICs segment is
expected to deliver a mid-teens sequential increase in the
first quarter.
With electric vehicles quickly emerging as the
“next big thing”, the car market is embracing new display
technologies and shifting towards larger, more sophisticated and
higher performing displays like never before. Already the market
leader in automotive display driver business, Himax foresees
further market share gains in the coming years in this fast-growing
market. The Company continues to sustain its competitive position
with a comprehensive product offering for advanced new features
such as TDDI for in-cell touch, local dimming, cascade-topology
connection, P2P high-speed interface bridging functions, and LTDI
for larger in-cell display. As a reminder, Himax launched the
world’s first TDDI design for automotive displays technology which
first started shipping in 2019 with meaningful volume anticipated
starting 2021. As EV grows in popularity and autonomous driving
develops, Himax’s technological prowess continues to separate it
from peers for the next generation display for automotive.
For the first quarter, revenue for the small and
medium-sized driver IC business is expected to increase by
around high-single digit with demand continuing to surpass
supply. Capacity shortage, again, remains a major factor as the
Company’s production has been unable to respond quickly enough to
the unexpectedly rapid growth.
Non-Driver Product
Categories
TCONThe aggressive promotion by
major TV brands the Company mentioned earlier will benefit high-end
Tcon business as its 8K TV timing controllers, as well as display
drivers, have been widely adopted by multiple leading end
customers. Himax’s Tcon technology not only provides higher
resolution, higher frame rate and better image quality, it can also
enable lower power in products where power consumption is critical.
Already over 5% of total sales, timing controller products enjoy
better margin and ASP than those of display drivers, and Himax
expects this segment to be an extensive long-term growth area. The
Company’s Tcon revenue in the first quarter, while limited by
capacity shortage in IC packaging, is expected to increase by high
teens sequentially.
WLOThe fourth quarter WLO
revenue decline was a result of lower shipments to an anchor
customer. However, in the first quarter of 2021, sales are expected
to increase substantially thanks to resumed shipments to fulfill
the anchor customer’s higher demand. The sequential shipment
increase and a higher capacity utilization in the Company’s WLO
factory will positively contribute to its Q1 gross margin.
Meanwhile, with Himax leading nanoimprinting
technologies and diffraction optics design capability, the Company
continues to engage and collaborate with key customers and partners
for their next generation products, with focuses on ToF 3D sensing,
AR/VR gadgets, biomedical devices and others. Notably, more ToF
camera design activities among Android smartphone makers for 3D
sensing and are making good progress by offering Himax leading ToF
optical components including diffractive DOEs, micro-lens arrays
and diffusers to meet diversified demand from a wide variety of
customers/partners including VCSEL suppliers, ToF sensor vendors,
ToF module makers and smartphone OEMs.
3D SensingRegarding 3D sensing
for non-smartphone segment, Himax provides customers who wish to
design their own structured light-based 3D sensing solution with
the Company’s proprietary 3D decoder IC. Himax’s 3D decoder can
accelerate local image processing for face recognition and offer
best-in-class security authentication. It was already certified by
the leading Chinese electronic payment standard with requirements
of accurate data decoding, timely operation and strict privacy. The
Company has started volume shipment in the last quarter with decent
order pipeline throughout this year and further new design-in
sockets on the way.
For the Company’s structured light 3D sensing
total solution, small volume shipments are expected for business
access control and biomedical inspection devices in the first
quarter. More design-ins and engagements are progressing and the
Company continues to receive numerous inquiries with new ideas of
applications.
Ultralow power smart sensingTo
maximize market visibility and satisfy demand of WiseEye technology
for emerging applications, two business models are adopted, namely
total solution and discrete component.
For total solution, Himax is currently aiming at
notebook, TV and air conditioner applications, and have received
positive feedbacks. The Company expects to start a solid production
ramp-up by the end of 2021. With joint efforts with Himax’s
subsidiary EMZA and other algorithm partners, further engagements
are on the way for more applications such as doorbell, door lock,
automotive and various IoT devices for industrial and commercial
uses. The Company is thrilled about the business progress
achieved.
For the other business model where the Company
provides key components, Himax’s WE-I Plus AI processor adopted
Google TensorFlow Lite for Microcontrollers framework and has
successfully demonstrated its unrivaled computing capability with
ultralow power. In December 2020, Himax partnered with SparkFun, an
online retail store, to distribute Himax WE-I Plus Edge AI
evaluation board and AoS sensor modules. Developers can now access
Himax’s technologies easily from SparkFun and transform their
AI-enabling concept which call for ultralow power and computer
vision AI into real products. Furthermore, the Company teamed up
with Edge Impulse who provides a leading end-to-end AI developer
platform offering intuitive user interface. On Edge Impulse’
platform, with a single button press and within seconds, developers
can now generate the latest neural network AI model and export it
directly onto the WE-I Plus evaluation board. The high technical
obstacles developers usually face can therefore be dramatically
lowered.
Together with its partners, Himax is carrying
out a wide range of promotional activities to broaden WiseEye’s
market reach and establish direct contacts with more AI developers.
As an illustration, recently Himax and Edge Impulse jointly hosted
a webinar discussing ways to help developers get started with
the world’s most powerful platform that aims enabling embedded
machine learning everywhere at extremely low power consumption. The
Company will continue to aggressively pursue such online marketing
campaigns going forward.
The Company believes the WiseEye offerings will
start contributing to Himax top and bottom lines later this year.
The Company aims to make it a major contributor to the long-term
business growth.
CMOS Image SensorHimax sees
continuous surging demands for its CMOS image sensors for web
camera and notebook as the new norm of virtual conferences shows no
signs of receding. However, the Company’s actual shipment has been
badly capped by the foundry capacity available to it.
Separately, Himax’s industry-first 2-in-1 CMOS
image sensor that supports RGB mode for video conferencing and
ultralow power AI mode for facial recognition has penetrated the
laptop market for the most stylish super slim bezel designs. The
Company has shipped small quantity in the fourth quarter and expect
to ship more during 2021.
Regarding ultralow power always-on CMOS image
sensor, which targets in-battery powered or always-on applications,
the Company is getting promising feedback and design adoptions from
customers in various markets, such as car recorders, surveillance,
smart electric meters, drones, home appliances, and consumer
electronics. In Q1, the CIS revenue is expected to be up mid-single
digit sequentially although the Company still cannot fulfill all
the demand due to foundry capacity constraint.
For non-driver IC business, revenues are
expected to increase by low teens sequentially in the first
quarter.
First Quarter 2021
Guidance |
The Company is providing the following financial
guidance for the first quarter of 2021: |
Net
Revenue: |
To increase by
5% to 10% sequentially |
Gross Margin: |
To be 37% to 38%, depending on final product mix |
IFRS Profit: |
To be 30.0 cents to 34.0 cents per diluted ADS |
Non-IFRS Profit (1): |
To be 30.1 cents to 34.1 cents per diluted ADS |
(1) Non-IFRS Profit excludes share-based
compensation and acquisition-related charges |
For Q1, the Company expects further revenue
growth from the already high level of Q4 2020 in most of its
business sectors. Gross margin shall see another uptick and could
reach another quarterly high. With the increase of both revenue and
margin, net income shall increase substantially in
Q1. Revenues, gross margin and EPS will all likely reach
quarterly highs during this quarter.
HIMAX TECHNOLOGIES FOURTH QUARTER AND FULL
YEAR 2020 EARNINGS CONFERENCE CALL |
DATE: |
Thursday,
February 4th, 2021 |
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: |
1057208 |
WEBCAST: |
https://edge.media-server.com/mmc/p/ohjq6sbd |
A replay of the call will be available beginning
two hours after the call through 11:30 a.m. US EST on February
12th, 2021 (12:30 a.m. Taiwan time, February 13th, 2021) 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 1057208. 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 4th, 2022.
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, ultralow power smart sensing, which
are used in a wide variety of applications such as mobile phones,
tablets, laptops, TVs, PC cameras, automobiles, 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 3,009 patents granted and 561 patents pending
approval worldwide as of December 31st, 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 Fax:
+886-2-2314-0877Email:
hr_ir@himax.com.twwww.himax.com.twKaren Tiao, Investor
RelationsHimax Technologies, Inc.Tel: +886-2-2370-3999
Fax: +886-2-2314-0877Email: hx_ir@himax.com.twwww.himax.com.tw
Investor Relations - US RepresentativeMark
Schwalenberg, DirectorMZ North AmericaTel: +1-312-261-6430Email:
HIMX@mzgroup.us
-Financial Tables-
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Profit or
Loss |
(These interim financials do not fully comply with IFRS
because they omit all interim disclosure required by
IFRS) |
(Amounts in Thousands of U.S. Dollars, Except Share and Per
Share Data) |
|
|
Three Months Ended
December 31, |
|
Three Months Ended
September 30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
|
|
|
|
Revenues |
$ |
275,770 |
|
|
$ |
174,929 |
|
|
$ |
239,934 |
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of revenues |
|
189,774 |
|
|
|
138,838 |
|
|
|
186,329 |
|
Research and development |
|
33,100 |
|
|
|
27,044 |
|
|
|
33,073 |
|
General and administrative |
|
5,919 |
|
|
|
5,942 |
|
|
|
6,530 |
|
Sales and marketing |
|
4,787 |
|
|
|
4,449 |
|
|
|
4,558 |
|
Total costs and expenses |
|
233,580 |
|
|
|
176,273 |
|
|
|
230,490 |
|
|
|
|
|
|
|
Operating income (loss) |
|
42,190 |
|
|
|
(1,344 |
) |
|
|
9,444 |
|
|
|
|
|
|
|
Non operating income (loss): |
|
|
|
|
|
Interest income |
|
151 |
|
|
|
521 |
|
|
|
157 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
489 |
|
|
|
3,740 |
|
|
|
131 |
|
Foreign currency exchange losses, net |
|
(134 |
) |
|
|
(947 |
) |
|
|
(139 |
) |
Finance costs |
|
(247 |
) |
|
|
(670 |
) |
|
|
(314 |
) |
Share of losses of associates |
|
(368 |
) |
|
|
(381 |
) |
|
|
(191 |
) |
Other income |
|
24 |
|
|
|
62 |
|
|
|
96 |
|
|
|
(85 |
) |
|
|
2,325 |
|
|
|
(260 |
) |
Profit before income taxes |
|
42,105 |
|
|
|
981 |
|
|
|
9,184 |
|
Income tax expense |
|
8,759 |
|
|
|
416 |
|
|
|
1,124 |
|
Profit for the period |
|
33,346 |
|
|
|
565 |
|
|
|
8,060 |
|
Loss attributable to
noncontrolling interests |
|
660 |
|
|
|
471 |
|
|
|
391 |
|
Profit attributable to
Himax Technologies, Inc. stockholders |
$ |
34,006 |
|
|
$ |
1,036 |
|
|
$ |
8,451 |
|
|
|
|
|
|
|
Basic earnings per ADS
attributable to Himax Technologies, Inc. stockholders |
$ |
0.196 |
|
|
$ |
0.006 |
|
|
$ |
0.049 |
|
Diluted earnings per
ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
0.195 |
|
|
$ |
0.006 |
|
|
$ |
0.049 |
|
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
173,481 |
|
|
|
172,579 |
|
|
|
172,730 |
|
Diluted Weighted Average Outstanding ADS |
|
174,121 |
|
|
|
172,579 |
|
|
|
173,447 |
|
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, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
Revenues |
|
|
$ |
887,282 |
|
|
$ |
671,835 |
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of revenues |
|
|
|
666,501 |
|
|
|
533,916 |
|
Research and development |
|
|
|
122,265 |
|
|
|
114,859 |
|
General and administrative |
|
|
|
23,915 |
|
|
|
23,672 |
|
Sales and marketing |
|
|
|
16,675 |
|
|
|
17,695 |
|
Total costs and expenses |
|
|
|
829,356 |
|
|
|
690,142 |
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
57,926 |
|
|
|
(18,307 |
) |
|
|
|
|
|
|
Non operating income (loss): |
|
|
|
|
|
Interest income |
|
|
|
967 |
|
|
|
2,013 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
|
472 |
|
|
|
3,746 |
|
Foreign currency exchange losses, net |
|
|
|
(327 |
) |
|
|
(546 |
) |
Finance costs |
|
|
|
(1,705 |
) |
|
|
(2,325 |
) |
Share of losses of associates |
|
|
|
(638 |
) |
|
|
(477 |
) |
Other income |
|
|
|
177 |
|
|
|
128 |
|
|
|
|
|
(1,054 |
) |
|
|
2,539 |
|
Profit (loss) before income taxes |
|
|
|
56,872 |
|
|
|
(15,768 |
) |
Income tax expense |
|
|
|
11,712 |
|
|
|
416 |
|
Profit (loss) for the period |
|
|
|
45,160 |
|
|
|
(16,184 |
) |
Loss attributable to
noncontrolling interests |
|
|
|
1,974 |
|
|
|
2,570 |
|
Profit (loss)
attributable to Himax Technologies, Inc. stockholders |
|
|
$ |
47,134 |
|
|
$ |
(13,614 |
) |
|
|
|
|
|
|
Basic earnings (loss)
per ADS attributable to Himax Technologies, Inc.
stockholders |
|
|
$ |
0.273 |
|
|
$ |
(0.079 |
) |
Diluted earnings
(loss) per ADS attributable to Himax Technologies, Inc.
stockholders |
|
|
$ |
0.272 |
|
|
$ |
(0.079 |
) |
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
|
|
172,854 |
|
|
|
172,550 |
|
Diluted Weighted Average Outstanding ADS |
|
|
|
173,383 |
|
|
|
172,550 |
|
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 Months EndedSeptember
30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
Share-based compensation |
|
|
|
|
|
Cost of revenues |
$ |
- |
|
|
$ |
9 |
|
|
$ |
72 |
|
Research and development |
|
- |
|
|
|
253 |
|
|
|
4,076 |
|
General and administrative |
|
- |
|
|
|
24 |
|
|
|
328 |
|
Sales and marketing |
|
- |
|
|
|
40 |
|
|
|
537 |
|
Income tax benefit |
|
- |
|
|
|
(59 |
) |
|
|
(1,081 |
) |
Total |
$ |
- |
|
|
$ |
267 |
|
|
$ |
3,932 |
|
|
|
|
|
|
|
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 |
$ |
276 |
|
|
$ |
275 |
|
|
$ |
276 |
|
Income tax benefit |
|
(64 |
) |
|
|
(65 |
) |
|
|
(65 |
) |
Total |
$ |
212 |
|
|
$ |
210 |
|
|
$ |
211 |
|
|
|
|
|
|
|
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, |
|
|
|
|
|
2020 |
|
|
|
2019 |
|
Share-based compensation |
|
|
|
|
|
Cost of revenues |
|
|
$ |
87 |
|
|
$ |
9 |
|
Research and development |
|
|
|
4,467 |
|
|
|
339 |
|
General and administrative |
|
|
|
368 |
|
|
|
50 |
|
Sales and marketing |
|
|
|
603 |
|
|
|
59 |
|
Income tax benefit |
|
|
|
(1,176 |
) |
|
|
(89 |
) |
Total |
|
|
$ |
4,349 |
|
|
$ |
368 |
|
|
|
|
|
|
|
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 |
|
|
$ |
1,105 |
|
|
$ |
1,492 |
|
Income tax benefit |
|
|
|
(258 |
) |
|
|
(374 |
) |
Total |
|
|
$ |
847 |
|
|
$ |
1,118 |
|
|
|
|
|
|
|
Himax Technologies, Inc. |
IFRS Unaudited Condensed Consolidated Statements of
Financial Position |
(Amounts in Thousands of U.S. Dollars) |
|
|
|
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
184,938 |
|
|
$ |
131,823 |
|
|
$ |
101,055 |
|
Financial assets at amortized cost |
|
|
8,682 |
|
|
|
8,294 |
|
|
|
11,049 |
|
Financial assets at fair value through profit or loss |
|
|
7,799 |
|
|
|
2,734 |
|
|
|
- |
|
Accounts receivable, net |
|
|
243,626 |
|
|
|
221,100 |
|
|
|
164,943 |
|
Inventories |
|
|
108,707 |
|
|
|
125,725 |
|
|
|
143,774 |
|
Income taxes receivable |
|
|
91 |
|
|
|
81 |
|
|
|
88 |
|
Restricted deposit |
|
|
104,000 |
|
|
|
104,000 |
|
|
|
164,000 |
|
Other receivable from related party |
|
|
1,200 |
|
|
|
1,200 |
|
|
|
1,200 |
|
Other current assets |
|
|
35,368 |
|
|
|
26,294 |
|
|
|
18,559 |
|
Total current assets |
|
|
694,411 |
|
|
|
621,251 |
|
|
|
604,668 |
|
Financial assets at
fair value through profit or loss |
|
|
13,966 |
|
|
|
13,480 |
|
|
|
13,500 |
|
Financial assets at
fair value through other comprehensive
income |
|
|
742 |
|
|
|
730 |
|
|
|
709 |
|
Equity method
investments |
|
|
3,983 |
|
|
|
3,761 |
|
|
|
3,746 |
|
Property, plant and
equipment, net |
|
|
132,074 |
|
|
|
135,123 |
|
|
|
138,938 |
|
Deferred tax
assets |
|
|
15,739 |
|
|
|
14,714 |
|
|
|
14,433 |
|
Goodwill |
|
|
28,138 |
|
|
|
28,138 |
|
|
|
28,138 |
|
Other intangible
assets, net |
|
|
7,876 |
|
|
|
7,550 |
|
|
|
8,750 |
|
Restricted
deposit |
|
|
141 |
|
|
|
138 |
|
|
|
133 |
|
Other non-current
assets |
|
|
12,748 |
|
|
|
2,105 |
|
|
|
5,466 |
|
|
|
|
215,407 |
|
|
|
205,739 |
|
|
|
213,813 |
|
Total assets |
|
$ |
909,818 |
|
|
$ |
826,990 |
|
|
$ |
818,481 |
|
Liabilities and
Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Short-term unsecured borrowings |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
57,339 |
|
Current portion of long-term unsecured borrowings |
|
|
6,000 |
|
|
|
6,000 |
|
|
|
- |
|
Short-term secured borrowings |
|
|
104,000 |
|
|
|
104,000 |
|
|
|
164,000 |
|
Accounts payable |
|
|
171,903 |
|
|
|
153,153 |
|
|
|
114,320 |
|
Accounts payable to related parties |
|
|
1,568 |
|
|
|
- |
|
|
|
- |
|
Income taxes payable |
|
|
13,466 |
|
|
|
5,340 |
|
|
|
2,903 |
|
Other payable to related parties |
|
|
2,572 |
|
|
|
2,480 |
|
|
|
2,220 |
|
Contract liabilities |
|
|
6,622 |
|
|
|
2,774 |
|
|
|
1,902 |
|
Other current liabilities |
|
|
46,111 |
|
|
|
35,926 |
|
|
|
38,206 |
|
Total current liabilities |
|
|
352,242 |
|
|
|
309,673 |
|
|
|
380,890 |
|
Long-term unsecured
borrowings |
|
|
52,500 |
|
|
|
54,000 |
|
|
|
- |
|
Net defined benefit
liabilities |
|
|
47 |
|
|
|
51 |
|
|
|
50 |
|
Deferred tax
liabilities |
|
|
1,138 |
|
|
|
1,222 |
|
|
|
1,394 |
|
Other non-current
liabilities |
|
|
18,692 |
|
|
|
16,689 |
|
|
|
4,903 |
|
|
|
|
72,377 |
|
|
|
71,962 |
|
|
|
6,347 |
|
Total liabilities |
|
|
424,619 |
|
|
|
381,635 |
|
|
|
387,237 |
|
Equity |
|
|
|
|
|
|
Ordinary shares |
|
|
107,010 |
|
|
|
107,010 |
|
|
|
107,010 |
|
Additional paid-in capital |
|
|
107,293 |
|
|
|
106,276 |
|
|
|
105,150 |
|
Treasury shares |
|
|
(6,516 |
) |
|
|
(8,486 |
) |
|
|
(8,764 |
) |
Accumulated other comprehensive income |
|
|
(548 |
) |
|
|
(980 |
) |
|
|
(952 |
) |
Retained earnings |
|
|
272,937 |
|
|
|
238,931 |
|
|
|
230,543 |
|
Equity attributable to owners of Himax Technologies,
Inc. |
|
|
480,176 |
|
|
|
442,751 |
|
|
|
432,987 |
|
Noncontrolling
interests |
|
|
5,023 |
|
|
|
2,604 |
|
|
|
(1,743 |
) |
Total equity |
|
|
485,199 |
|
|
|
445,355 |
|
|
|
431,244 |
|
Total liabilities and equity |
|
$ |
909,818 |
|
|
$ |
826,990 |
|
|
$ |
818,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(Amounts in Thousands of U.S. Dollars) |
|
|
Three MonthsEnded December
31, |
|
Three MonthsEnded September
30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Profit for the period |
|
$ |
33,346 |
|
|
$ |
565 |
|
|
$ |
8,060 |
|
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
6,431 |
|
|
|
5,866 |
|
|
|
5,530 |
|
Expected credit loss recognized on accounts receivable |
|
|
- |
|
|
|
67 |
|
|
|
- |
|
Share-based compensation expenses |
|
|
- |
|
|
|
326 |
|
|
|
251 |
|
Gain on disposal of property, plant and equipment, net |
|
|
- |
|
|
|
(84 |
) |
|
|
(2 |
) |
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
(489 |
) |
|
|
(3,740 |
) |
|
|
(131 |
) |
Interest income |
|
|
(151 |
) |
|
|
(521 |
) |
|
|
(157 |
) |
Finance costs |
|
|
247 |
|
|
|
670 |
|
|
|
314 |
|
Income tax expense |
|
|
8,759 |
|
|
|
416 |
|
|
|
1,124 |
|
Share of losses of associates |
|
|
368 |
|
|
|
381 |
|
|
|
191 |
|
Inventories write downs |
|
|
2,224 |
|
|
|
7,515 |
|
|
|
2,205 |
|
Unrealized foreign currency exchange losses (gains) |
|
|
(221 |
) |
|
|
53 |
|
|
|
32 |
|
|
|
|
50,514 |
|
|
|
11,514 |
|
|
|
17,417 |
|
Changes in: |
|
|
|
|
|
|
Accounts receivable |
|
|
(22,140 |
) |
|
|
(7,704 |
) |
|
|
(15,025 |
) |
Inventories |
|
|
16,418 |
|
|
|
16,292 |
|
|
|
33,544 |
|
Other current assets |
|
|
(2,589 |
) |
|
|
2,631 |
|
|
|
(398 |
) |
Accounts payable |
|
|
16,934 |
|
|
|
(505 |
) |
|
|
(8,321 |
) |
Accounts payable to related parties |
|
|
1,568 |
|
|
|
- |
|
|
|
- |
|
Other payable to related parties |
|
|
92 |
|
|
|
(400 |
) |
|
|
(260 |
) |
Net defined benefit liabilities |
|
|
(16 |
) |
|
|
(44 |
) |
|
|
1 |
|
Contract liabilities |
|
|
3,848 |
|
|
|
319 |
|
|
|
1,436 |
|
Other current liabilities |
|
|
1,903 |
|
|
|
1,324 |
|
|
|
2,143 |
|
Other non-current liabilities |
|
|
1,300 |
|
|
|
50 |
|
|
|
4,139 |
|
Cash generated from operating activities |
|
|
67,832 |
|
|
|
23,477 |
|
|
|
34,676 |
|
Interest received |
|
|
217 |
|
|
|
745 |
|
|
|
120 |
|
Interest paid |
|
|
(313 |
) |
|
|
(697 |
) |
|
|
(313 |
) |
Income tax paid |
|
|
(28 |
) |
|
|
(84 |
) |
|
|
(1,010 |
) |
Net cash provided by operating activities |
|
|
67,708 |
|
|
|
23,441 |
|
|
|
33,473 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Acquisitions of property,
plant and equipment |
|
|
(824 |
) |
|
|
(2,729 |
) |
|
|
(1,162 |
) |
Proceeds from disposal of
property, plant and equipment |
|
|
- |
|
|
|
84 |
|
|
|
2 |
|
Acquisitions of intangible
assets |
|
|
(9 |
) |
|
|
(38 |
) |
|
|
- |
|
Acquisitions of financial
assets at amortized cost |
|
|
(801 |
) |
|
|
(737 |
) |
|
|
(866 |
) |
Proceeds from disposal of
financial assets at amortized cost |
|
|
737 |
|
|
|
1,137 |
|
|
|
3,787 |
|
Acquisitions of financial
assets at fair value through profit or loss |
|
|
(6,608 |
) |
|
|
(3,516 |
) |
|
|
(9,547 |
) |
Proceeds from disposal of
financial assets at fair value through profit or loss |
|
|
1,603 |
|
|
|
3,641 |
|
|
|
6,866 |
|
Acquisition of a subsidiary,
net of cash acquired |
|
|
1,302 |
|
|
|
- |
|
|
|
- |
|
Proceeds from capital
reduction of investment |
|
|
32 |
|
|
|
- |
|
|
|
- |
|
Acquisitions of equity method
investments |
|
|
(792 |
) |
|
|
- |
|
|
|
- |
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(Amounts in Thousands of U.S. Dollars) |
|
|
Three MonthsEnded December
31, |
|
Three MonthsEnded September
30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
Increase in refundable deposits |
|
|
(10,810 |
) |
|
|
(2,909 |
) |
|
|
(345 |
) |
Pledges of restricted deposit |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
(3 |
) |
Cash received in advance from disposal of land |
|
|
- |
|
|
|
- |
|
|
|
1,486 |
|
Net cash provided by
(used in) investing
activities |
|
|
(16,173 |
) |
|
|
(5,072 |
) |
|
|
218 |
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Payments of cash dividends |
|
|
- |
|
|
|
- |
|
|
|
(4 |
) |
Proceeds from issuance of new shares by subsidiaries |
|
|
- |
|
|
|
- |
|
|
|
884 |
|
Proceeds from short-term unsecured borrowings |
|
|
- |
|
|
|
67,218 |
|
|
|
10,000 |
|
Repayments of short-term unsecured borrowings |
|
|
- |
|
|
|
(100,621 |
) |
|
|
(68,403 |
) |
Proceeds from long-term unsecured borrowings |
|
|
- |
|
|
|
- |
|
|
|
60,000 |
|
Repayments of long-term unsecured borrowings |
|
|
(1,500 |
) |
|
|
- |
|
|
|
- |
|
Proceeds from short-term secured borrowings |
|
|
47,000 |
|
|
|
27,000 |
|
|
|
107,000 |
|
Repayments of short-term secured borrowings |
|
|
(47,000 |
) |
|
|
(27,000 |
) |
|
|
(167,000 |
) |
Release of restricted deposit |
|
|
- |
|
|
|
- |
|
|
|
60,000 |
|
Payment of lease liabilities |
|
|
(768 |
) |
|
|
(601 |
) |
|
|
(709 |
) |
Proceeds from exercise of employee stock options |
|
|
3,281 |
|
|
|
- |
|
|
|
253 |
|
Net cash provided by (used in) financing
activities |
|
|
1,013 |
|
|
|
(34,004 |
) |
|
|
2,021 |
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents |
|
|
567 |
|
|
|
111 |
|
|
|
(19 |
) |
Net increase
(decrease) in cash and cash equivalents |
|
|
53,115 |
|
|
|
(15,524 |
) |
|
|
35,693 |
|
Cash and cash
equivalents at beginning of period |
|
|
131,823 |
|
|
|
116,579 |
|
|
|
96,130 |
|
Cash and cash
equivalents at end of period |
|
$ |
184,938 |
|
|
$ |
101,055 |
|
|
$ |
131,823 |
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(Amounts in Thousands of U.S. Dollars) |
|
|
|
Twelve MonthsEnded December
31, |
|
|
|
|
|
2020 |
|
|
|
2019 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Profit (loss) for the
period |
|
|
|
$ |
45,160 |
|
|
$ |
(16,184 |
) |
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
23,596 |
|
|
|
24,399 |
|
Expected credit loss recognized on accounts receivable |
|
|
|
|
- |
|
|
|
67 |
|
Share-based compensation expenses |
|
|
|
|
763 |
|
|
|
457 |
|
Gain on disposal of property, plant and equipment, net |
|
|
|
|
(244 |
) |
|
|
(90 |
) |
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
|
|
(472 |
) |
|
|
(3,746 |
) |
Interest income |
|
|
|
|
(967 |
) |
|
|
(2,013 |
) |
Finance costs |
|
|
|
|
1,705 |
|
|
|
2,325 |
|
Income tax expense |
|
|
|
|
11,712 |
|
|
|
416 |
|
Share of losses of associates |
|
|
|
|
638 |
|
|
|
477 |
|
Inventories write downs |
|
|
|
|
11,919 |
|
|
|
25,447 |
|
Unrealized foreign currency exchange losses (gains) |
|
|
|
|
(239 |
) |
|
|
121 |
|
|
|
|
|
|
93,571 |
|
|
|
31,676 |
|
Changes in: |
|
|
|
|
|
|
Accounts receivable |
|
|
|
|
(78,297 |
) |
|
|
23,992 |
|
Inventories |
|
|
|
|
24,772 |
|
|
|
(6,660 |
) |
Other current assets |
|
|
|
|
(2,881 |
) |
|
|
35 |
|
Accounts payable |
|
|
|
|
55,767 |
|
|
|
(36,180 |
) |
Accounts payable to related parties |
|
|
|
|
1,568 |
|
|
|
- |
|
Other payable to related parties |
|
|
|
|
352 |
|
|
|
(1,577 |
) |
Net defined benefit liabilities |
|
|
|
|
(15 |
) |
|
|
6 |
|
Contract liabilities |
|
|
|
|
4,720 |
|
|
|
1,447 |
|
Other current liabilities |
|
|
|
|
1,134 |
|
|
|
(581 |
) |
Other non-current liabilities |
|
|
|
|
5,365 |
|
|
|
250 |
|
Cash generated from operating activities |
|
|
|
|
106,056 |
|
|
|
12,408 |
|
Interest received |
|
|
|
|
1,066 |
|
|
|
2,060 |
|
Interest paid |
|
|
|
|
(1,811 |
) |
|
|
(2,372 |
) |
Income tax paid |
|
|
|
|
(2,701 |
) |
|
|
(4,440 |
) |
Net cash provided by operating activities |
|
|
|
|
102,610 |
|
|
|
7,656 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
|
|
|
(5,786 |
) |
|
|
(45,922 |
) |
Proceeds from disposal of property, plant and equipment |
|
|
|
|
249 |
|
|
|
98 |
|
Acquisitions of intangible assets |
|
|
|
|
(87 |
) |
|
|
(152 |
) |
Acquisitions of financial assets at amortized cost |
|
|
|
|
(3,829 |
) |
|
|
(4,023 |
) |
Proceeds from disposal of financial assets at amortized cost |
|
|
|
|
6,735 |
|
|
|
4,171 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
|
|
|
(19,743 |
) |
|
|
(50,487 |
) |
Proceeds from disposal of financial assets at fair value through
profit or loss |
|
|
|
|
12,068 |
|
|
|
50,648 |
|
Acquisition of business |
|
|
|
|
- |
|
|
|
(700 |
) |
Acquisition of a subsidiary, net of cash acquired |
|
|
|
|
1,302 |
|
|
|
(400 |
) |
Proceeds from capital reduction of investment |
|
|
|
|
32 |
|
|
|
47 |
|
Acquisitions of equity method investments |
|
|
|
|
(792 |
) |
|
|
(129 |
) |
Increase in refundable deposits |
|
|
|
|
(13,992 |
) |
|
|
(2,821 |
) |
Releases (pledges) of restricted deposit |
|
|
|
|
(8 |
) |
|
|
323 |
|
Cash paid for loan made to related party |
|
|
|
|
- |
|
|
|
(1,200 |
) |
Cash received from loan made to related party |
|
|
|
|
- |
|
|
|
2,780 |
|
Cash received in advance from disposal of land |
|
|
|
|
1,486 |
|
|
|
- |
|
Net cash used in investing activities |
|
|
|
|
(22,365 |
) |
|
|
(47,767 |
) |
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(Amounts in Thousands of U.S. Dollars) |
|
|
|
Twelve MonthsEnded December
31, |
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Payments of cash dividends |
|
|
|
|
(4 |
) |
|
|
- |
|
Proceeds from issuance of new shares by subsidiaries |
|
|
|
|
884 |
|
|
|
- |
|
Proceeds from short-term unsecured borrowings |
|
|
|
|
208,137 |
|
|
|
244,224 |
|
Repayments of short-term unsecured borrowings |
|
|
|
|
(265,355 |
) |
|
|
(207,006 |
) |
Proceeds from long-term unsecured borrowings |
|
|
|
|
60,000 |
|
|
|
- |
|
Repayments of long-term unsecured borrowings |
|
|
|
|
(1,500 |
) |
|
|
- |
|
Proceeds from short-term secured borrowings |
|
|
|
|
278,000 |
|
|
|
158,000 |
|
Repayments of short-term secured borrowings |
|
|
|
|
(338,000 |
) |
|
|
(158,000 |
) |
Release of restricted deposit |
|
|
|
|
60,000 |
|
|
|
- |
|
Payment of lease liabilities |
|
|
|
|
(2,608 |
) |
|
|
(1,957 |
) |
Proceeds from exercise of employee stock options |
|
|
|
|
3,707 |
|
|
|
- |
|
Net cash provided by financing activities |
|
|
|
|
3,261 |
|
|
|
35,261 |
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents |
|
|
|
|
377 |
|
|
|
(532 |
) |
Net increase
(decrease) in cash and cash equivalents |
|
|
|
|
83,883 |
|
|
|
(5,382 |
) |
Cash and cash
equivalents at beginning of period |
|
|
|
|
101,055 |
|
|
|
106,437 |
|
Cash and cash
equivalents at end of period |
|
|
|
$ |
184,938 |
|
|
$ |
101,055 |
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
ThreeMonths Ended
September 30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
Revenues |
$ |
275,770 |
|
|
$ |
174,929 |
|
|
$ |
239,934 |
|
Gross profit |
|
85,996 |
|
|
|
36,091 |
|
|
|
53,605 |
|
Add: Share-based compensation
– cost of revenues |
|
- |
|
|
|
9 |
|
|
|
72 |
|
Gross profit excluding
share-based compensation |
|
85,996 |
|
|
|
36,100 |
|
|
|
53,677 |
|
Gross margin excluding
share-based compensation |
|
31.2 |
% |
|
|
20.6 |
% |
|
|
22.4 |
% |
Operating income (loss) |
|
42,190 |
|
|
|
(1,344 |
) |
|
|
9,444 |
|
Add: Share-based
compensation |
|
- |
|
|
|
326 |
|
|
|
5,013 |
|
Operating income (loss)
excluding share-based compensation |
|
42,190 |
|
|
|
(1,018 |
) |
|
|
14,457 |
|
Add: Acquisition-related
charges –intangible assets amortization |
|
276 |
|
|
|
275 |
|
|
|
276 |
|
Operating income (loss)
excluding share-based compensation and acquisition-related
charges |
|
42,466 |
|
|
|
(743 |
) |
|
|
14,733 |
|
Operating margin excluding
share-based compensation and acquisition-related charges |
|
15.4 |
% |
|
|
(0.4 |
%) |
|
|
6.1 |
% |
Profit attributable to Himax
Technologies, Inc. stockholders |
|
34,006 |
|
|
|
1,036 |
|
|
|
8,451 |
|
Add: Share-based compensation,
net of tax |
|
- |
|
|
|
267 |
|
|
|
3,932 |
|
Add: Acquisition-related
charges, net of tax |
|
212 |
|
|
|
210 |
|
|
|
211 |
|
Profit attributable to Himax
Technologies, Inc. stockholders excluding share-based compensation
and acquisition-related charges |
|
34,218 |
|
|
|
1,513 |
|
|
|
12,594 |
|
Net margin attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
12.4 |
% |
|
|
0.9 |
% |
|
|
5.2 |
% |
|
|
|
|
|
|
*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 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, |
|
|
|
|
2020 |
|
|
|
2019 |
|
Revenues |
|
|
$ |
887,282 |
|
|
$ |
671,835 |
|
Gross profit |
|
|
|
220,781 |
|
|
|
137,919 |
|
Add: Share-based compensation
– cost of revenues |
|
|
|
87 |
|
|
|
9 |
|
Gross profit excluding
share-based compensation |
|
|
|
220,868 |
|
|
|
137,928 |
|
Gross margin excluding
share-based compensation |
|
|
|
24.9 |
% |
|
|
20.5 |
% |
Operating income (loss) |
|
|
|
57,926 |
|
|
|
(18,307 |
) |
Add: Share-based
compensation |
|
|
|
5,525 |
|
|
|
457 |
|
Operating income (loss)
excluding share-based compensation |
|
|
|
63,451 |
|
|
|
(17,850 |
) |
Add: Acquisition-related
charges –intangible assets amortization |
|
|
|
1,105 |
|
|
|
1,492 |
|
Operating income (loss)
excluding share-based compensation and acquisition-related
charges |
|
|
|
64,556 |
|
|
|
(16,358 |
) |
Operating margin excluding
share-based compensation and acquisition-related charges |
|
|
|
7.3 |
% |
|
|
(2.4 |
%) |
Profit (loss) attributable to
Himax Technologies, Inc. stockholders |
|
|
|
47,134 |
|
|
|
(13,614 |
) |
Add: Share-based compensation,
net of tax |
|
|
|
4,349 |
|
|
|
368 |
|
Add: Acquisition-related
charges, net of tax |
|
|
|
847 |
|
|
|
1,118 |
|
Profit (loss) attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
|
|
52,330 |
|
|
|
(12,128 |
) |
Net margin attributable to
Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
|
|
5.9 |
% |
|
|
(1.8 |
%) |
|
|
|
|
|
|
*Gross margin excluding share-based compensation equals gross
profit excluding share-based compensation divided by revenues |
*Operating margin excluding share-based compensation and
acquisition-related charges equals operating income (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 December
31, |
|
Twelve Months Ended
December 31, |
|
|
2020 |
|
|
2020 |
Diluted IFRS earnings per ADS
attributable to Himax Technologies, Inc. stockholders |
$ |
0.195 |
|
$ |
0.272 |
Add: Share-based compensation per ADS |
$ |
- |
|
$ |
0.025 |
Add: Acquisition-related charges per ADS |
$ |
0.001 |
|
$ |
0.005 |
|
|
|
|
Diluted non-IFRS earnings per ADS
attributable to Himax Technologies, Inc. stockholders excluding
share-based compensation and acquisition-related charges |
$ |
0.197 |
|
$ |
0.302 |
|
|
|
|
Numbers do not add up due to rounding
Himax Technologies (NASDAQ:HIMX)
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