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 2023 ended June 30, 2023.
“Now, looking ahead with renewed momentum in the
automotive market, we believe the stage is set for a sales rebound
as we approach the end of the year, supported by more favorable
product mix, improved cost structure and normalized inventory level
which should also lead to improved gross margin. In terms of gross
margin, for the Q3, we expect substantial improvement from the Q2
trough,” said Mr. Jordan Wu, President and Chief Executive Officer
of Himax.
“Favorable product mix shift is also a key
factor contributing to our expected Q3 GM expansion. This is
predominately driven by increased automotive sales, thanks to a
robust recovery in the Chinese automotive market leading to order
resumption from customers. Notably, our automotive sales for
traditional DDIC, TDDI and Tcon are all set to enjoy decent
double-digit sequential growth in Q3 and, collectively, are
expected to represent almost 45% of our total sales. All these
automotive products have a better than corporate average margin
profile.” concluded Mr. Jordan Wu.
Second Quarter 2023 Financial
Results
Himax net revenues registered $235.0 million, a
decrease of 3.8% sequentially, yet at the upper end of guidance
range. This was attributable to improved order momentum
particularly in the automotive DDIC, large display driver IC and
non-driver business. Gross margin came in at 21.7%, a decrease from
28.1% of last quarter, but above guidance range of 20.0% to 21.0%,
due to a favorable product mix. As the Company previously reported,
Q2 gross margin was impacted significantly by a one-time expense
related to the strategic termination of certain high-cost foundry
capacity agreements in addition to price erosion related to
destocking. Q2 profit per diluted ADS was 0.5 cents, at the upper
end of the guidance range of -2.9 cents to 0.6 cents.
Revenue from large display drivers was $45.4
million, a decrease of 14.3% sequentially, yet above prior
guidance. Monitor IC sales surpassed its prior guidance, up single
digit sequentially, driven by clients’ proactive pull-forward in
preparation for the Q2 sales festivals and recovery of gaming
display. Notebook sales notably outperformed guidance, thanks to
strong shipment to key customers. TV IC sales declined as expected
as customers suspended pull-ins, having already replenished their
inventory over the prior two consecutive quarters. Large panel
driver IC sales accounted for 19.3% of total revenues for this
quarter, compared to 21.7% last quarter and 22.0% a year ago.
Small and medium-sized display driver revenue
was $150.3 million, a slight decline of 2.9%
sequentially. Smartphone and tablet driver sales increased
mid-teens and single digit respectively in the second quarter
as Himax saw a recovery in business momentum, particularly in
TDDI products. Q2 automotive driver sales decreased single digit
sequentially, but outperformed guidance of a low teens decline as
clients resumed order replenishment for both traditional DDIC and
TDDI. Automotive driver business was still Himax’s largest revenue
contributor with around 30% of total sales in the second quarter.
Himax is particularly confident in its automotive TDDI growth
potential, backed by hundreds of design-wins already secured,
significantly ahead of its peers, and among these design-wins only
a small portion has commenced mass production. With the design-win
projects under its belt, the Company believes it can continue to
grow its market share in automotive TDDI, in addition to its
already dominant position in traditional DDICs where Himax has a
40% global market share. Small and medium-sized driver IC segment
accounted for 63.9% of total sales for the quarter, compared to
63.3% in the previous quarter and 64.5% a year ago.
Second quarter revenues from its non-driver
business exceeded guidance with revenue of $39.3 million, up 7.9%
from a quarter ago. The better-than-expected sales performance was
a result of higher shipment for Tcon and CMOS image sensor. Despite
the slight sequential decline in Tcon sales in the second quarter,
it surpassed guidance of a low-teens decline, bolstered by
better-than-expected shipment of monitor and automotive Tcons. Tcon
business represented over 9% of total sales in the second quarter.
Lastly for WLO, notably during the quarter Himax commenced volume
production to one leading North American customer for their new
generation VR devices to enable gesture control. Non-driver
products accounted for 16.8% of total revenues, as compared to
15.0% in the previous quarter and 13.5% a year ago.
Operating expenses for the second quarter were
$53.2 million, an increase of 4.3% from the previous quarter and
1.2% from a year ago. The sequential increase was mainly a result
of increased R&D expenses. Yet, amidst prevailing macroeconomic
headwinds, Himax remains focused on strict cost controls. Himax’s
second quarter operating expenses include the amortized expenses
for annual bonus grants made in prior years of $6.4 million, as
compared to $6.5 million in the previous quarter and $7.4 million
from a year ago. As a reminder, Himax grants annual bonuses to
employees at the end of September each year, including RSU and cash
award. A portion of those bonuses is immediately vested and
recognized in the third quarter with the remainder equally vested
in three tranches on the first, second and third anniversaries of
the grant date and recognized on a straight-line basis over the
vesting period of each tranche. Second quarter after-tax profit was
$0.9 million, or 0.5 cents per diluted ADS, compared to $14.9
million, or 8.5 cents per diluted ADS last quarter.
Balance Sheet and Cash Flow
Himax had $219.5 million of cash, cash
equivalents and other financial assets as of June 30, 2023,
compared to $461.6 million at the same time last year and $223.8
million a quarter ago. Second quarter operating cash inflow was
approximately $1.7 million, as compared to an inflow of $66.4
million in Q1, primarily due to $51.0 million income tax paid
during Q2, an illustration of Company’s continuous efforts to
deplete inventory for the past few quarters. Himax had $43.5
million of long-term unsecured loans as of the end of second
quarter, of which $6.0 million was the current portion. During the
third quarter, Himax has made a payment of $83.7 million for annual
dividend to shareholders. Further, the Company expects to pay out a
total of around $30 million for employee bonus awards, comprised of
around $9.3 million for the immediately vested portion of this
year’s award and $21.0 million for vested awards granted over the
last 3 years. Despite the substantial employee bonus payout, Himax
still expects to generate positive operating cash flow in Q3,
again, due to the ongoing destocking progress across major product
lines.
The Company’s inventories as of June 30, 2023
were $297.3 million, markedly lower than $335.2 million last
quarter. Accounts receivable at the end of June 2023 was $239.0
million, down from $252.2 million last quarter and down from $371.0
million a year ago. DSO was 90 days at the quarter end, as compared
to 93 days last quarter and a year ago. Second quarter capital
expenditures were $2.9 million, versus $2.8 million last quarter
and $2.5 million a year ago. The second quarter capex was mainly
for IC design business.
Outstanding Share
As of June 30, 2023, Himax had 174.4 million ADS
outstanding, unchanged from last quarter. On a fully diluted basis,
total number of ADS outstanding for the second quarter was 174.7
million.
Q3 2023 Outlook
The prevailing sentiment in the consumer
electronics market for semiconductor remains sluggish. Customers
continue to exercise caution towards panel procurements, limiting
Company’s visibility into the second half for consumer products.
However, Himax sees improving business momentum in the automotive
sector, its largest sales contributor, where a healthy rebound from
the first half weakness appears to be underway. As a reminder, the
global automotive market experienced a severe downturn throughout
the first half of the year as major Chinese automakers cut back
production and implemented strict cost control measures due to
intensified EV price competition, adversely impacting its first
half sales. Now, looking ahead with renewed momentum in the
automotive market, Himax believes the stage is set for a sales
rebound as it approaches the end of the year, supported by more
favorable product mix, improved cost structure and normalized
inventory level which should also lead to improved gross
margin.
In terms of gross margin, for the third quarter,
Himax expects substantial improvement from the Q2 trough which was
primarily related to the one-time early termination expense to
foundry partners as it reported last quarter. This early
termination decision was part of a crucial operating strategy for
the Company. By sacrificing margin last quarter, Himax now has
added flexibility where new wafer starts are no longer bound by
minimum fulfillment requirements and high wafer costs set during
the severe foundry capacity shortage period. Furthermore, Himax can
now leverage diverse foundry sources for optimal operational
efficiency and much improved cost structure, thereby maintaining
Company’s product competitiveness.
Favorable product mix shift is also a key factor
contributing to its expected Q3 gross margin expansion. This is
predominately driven by increased automotive sales, thanks to a
robust recovery in the Chinese automotive market leading to order
resumption from customers. Notably, Himax’s automotive sales for
traditional DDIC, TDDI and Tcon are all set to enjoy decent
double-digit sequential growth in the third quarter and,
collectively, are expected to represent almost 45% of total sales.
As a reminder, all these automotive products have a better than
corporate average margin profile.
On inventory destocking. Himax’s inventory
depletion is progressing nicely with Q3 inventory level on track
for a meaningful reduction. At this point, Himax is comfortable in
its overall inventory level, thanks to Company’s continuous effort
to destock for several quarters. In addition, the remaining stocks
are comprised of IC products which have a solid customer design-in
base and long expected lifetimes. Himax now expects that its
inventory will normalize near historical average levels by the end
of the year.
While the macroeconomic environment still
presents some headwinds for the Company, given the expected
strength in automotive sales, improved operating flexibility and
cost structure, in addition to Company’s commitment to expand its
presence in high value-added areas, such as Tcon, OLED and AI,
Himax expects second half sales and gross margin to improve from
the first half and believes it is well positioned for long-term
sustainable revenue growth.
Display Driver IC
Businesses
LDDIC
Q3 large display driver IC revenue is projected
to be down single digit sequentially. Himax expects TV IC business
to be down high-teens quarter over quarter due to leading end
brand’s stringent production control measures amidst soft market.
Notebook IC sales are expected to increase by a decent double digit
sequentially, predominantly from rush orders from one leading
brand. Meanwhile, monitor IC sales are set to increase single digit
sequentially, continuing the customers’ restocking momentum the
Company saw last quarter.
SMDDIC
Despite continuing uncertainty in consumer
electronics, with improved visibility and demand in the automotive
market, Q3 SMDDIC revenue is expected to be flat or slightly up
sequentially. Himax’s automotive driver IC business is poised to
increase by a decent double digit sequentially on a strong uptick
in both TDDI and traditional DDIC. However, smartphone and tablet
sales are both projected to decline double digit. The sequential
growth of automotive DDIC business is fueled by resumption of
customer orders across the board following several quarters of
inventory correction. Automotive TDDI business also resumed its
growth trajectory in the third quarter, driven by increasing
production of customers’ new vehicles, after an unexpected second
quarter disruption. The automotive recovery has been further
bolstered by supportive governmental policies, especially in China
and the U.S, to incentivize new vehicle purchases. Given the rapid
adoption of TDDI in new generation vehicles, where Himax has
already secured well over 300 design-wins and the number of new
design-in projects is still increasing as it speaks, the Company
remains confident that it will continue to enjoy strong growth as
its leading market share position remains unchallenged. It’s worth
noting that automotive TDDI sales will account for over 30% of
total automotive sales in the third quarter and are poised to
continue to increase.
On LTDI, a technology where Himax has been a
pioneer in the market. Given the growing global demand for large,
panoramic, interactive, and intuitive in-car display experiences,
Himax anticipates accelerating adoption of LTDI in the coming
years. LTDI is gaining popularity particularly among high-end car
models with fancy and/or larger than 30-inch automotive displays.
Company’s integrated solution of LTDI and local dimming Tcon has
been adopted by many customers as their standard platform for
high-end displays from which a variety of large automotive displays
will be developed. This further solidifies its position among
customers in the high-end automotive display market. Himax expects
an influx of collaborations leading to a growing number of projects
slated for mass production starting 2024.
Himax is at the front runner position in
automotive display IC market, offering a comprehensive product
portfolio covering the entire spectrum of specifications and
technologies to address varying design needs, including traditional
DDIC, TDDI, local dimming Tcon, LTDI, and AMOLED. Having the
broadest, one-stop-shop offering also drives customer loyalty as
evidenced by years of extensive collaboration with panel makers
across the globe as well as deep engagement with Tier 1s and OEMs
who deeply trust and rely on Himax expertise for their product
roadmap. Himax is confident that its automotive business will
continue to be the primary sales growth engine moving forward.
On smartphone and tablet product lines, Himax
continues to see lackluster demand in the market. Currently a small
group of peers are still in the midst of offloading inventory,
offering aggressive pricing while enduring losses to deplete their
excess inventory. As Himax nears the end of its destocking process,
its strategy is to not engage in pricing competition, even at the
expense of forfeiting revenues by turning away unprofitable
projects. Having said that, Himax has placed wafter starts for
select products starting Q2.
On AMOLED. Himax offers both DDIC and Tcon for
OLED display and has commenced production for tablet and automotive
applications jointly with global leading panel makers. For
automotive OLED display, design-in activities are going smoothly
with both conventional car makers and NEV vendors across different
continents. Concurrently, Himax continues to gear up for AMOLED
driver IC development by strategically partnering with major Korean
and Chinese panel makers on various applications, covering
smartphone, tablet, notebook, and TV. For smartphone AMOLED display
driver, amidst a muted smartphone market, Himax still targets to
commence production toward the end of 2023.
Non-Driver Product
Categories
TCON
The Company anticipates Q3 Tcon sales to
decrease single digit sequentially, hampered by reduced shipment
for monitors and OLED displays for tablet. For OLED tablet
business, Himax’s customers are still in the midst of inventory
offloading due to muted end market demand. Despite the soft demand
environment, the Company is actively working on the next generation
IC for OLED tablet, aiming to broaden its offering and better
position it for when demand returns. On automotive Tcon business.
The Company continues to solidify its leadership position,
particularly in local dimming Tcon which can improve display
contrast while also lowering power consumption. Himax is encouraged
by the growing validation and widespread deployment in both premium
and mainstream car models across the globe. Himax’s automotive Tcon
business is poised to experience explosive growth with notable
sales contribution starting 2024. The Company expects it to be one
of its major growth engines in coming years.
WiseEye Smart Image Sensing
Himax’s WiseEye Smart Image Sensing total
solution incorporates the Company’s proprietary ultralow power AI
processor, always-on CMOS image sensor, and CNN-based AI algorithm.
Himax continues to support the mass production of Dell’s notebook
along with other endpoint AI applications, including video
conference device, shared bike parking, door lock, and smart
agriculture, among others. The Company is also focused on
strengthening its Intelli-Sensing Module business in an effort to
further broaden its customer base and application. The module
offerings, incorporating WiseEye technology, provide clients with a
series of highly integrated, plug-and-play module boards which are
user-programmable but also loaded with Company’s pre-trained AI
models for simple system integration. This can effectively shorten
customers’ time-to-market and reduce development cost, making it
particularly well-suited for markets featuring high variety and
small quantity. Throughout recent quarters, Himax has received
excellent feedback from customers while seeing large increases in
projects for various applications. Building on this momentum, Himax
plans to roll out a series of modules that will expand its product
offerings to cover more diverse markets and seize upon the vast
opportunities presented in endpoint AI.
Over the past few quarters, Himax has witnessed
steady growth in the adoption of WiseEye products particularly in
home surveillance applications, specifically door lock, doorbell
and battery camera. Notably, Himax is pleased to report a
successful collaboration with a leading door lock vendor in China,
the largest market globally. The project is slated for mass
production starting in second half this year with anticipated
growth extending to 2024. WiseEye solution is also being
implemented for automotive applications, where it can intelligently
detect the presence, movement or posture of the driver or
passenger, delivering a broad array of AI use cases inside a
vehicle. Such demand is expanding rapidly with global leading car
brands for new car models, primarily in application for car owner
recognition and keyless access, with other new use cases also under
development.
On WE2 AI processor where Himax has engaged
global notebook names for their next generation product
development. The Company has made significant progress in enriching
AI features and use cases through collaborations with major CPU and
AP SOC players for next generation smart notebook, surveillance and
a host of other endpoint AI applications. The WE2 processor offers
further advancements in inference speed and ultralow power,
maintaining superior power efficiency compared to Himax’s already
industry-leading first-generation AI processor, WE1. Furthermore,
in context aware AI, WE2 enables more detailed computer vision
object analysis, such as real-time facial landmark, hand landmark,
and human pose and skeleton, among others, at extremely low power
consumption. This enables sophisticated human expression detection
for smart notebook and broader AIoT applications.
Having established a leading position in
ultralow power AI processing and image sensing for endpoint AI
applications, Himax is firmly committed to the WiseEye product
line’s ongoing development and growth. By leveraging broad
ecosystem partners and customers, Himax aims to maximize market
reach and explore potential applications. The Company believes that
its WiseEye AI business will serve as a multi-year structural
growth driver for Himax.
Optical Related Product Lines /
Metaverse
On Himax’s optical related product lines. Himax
is one of the few companies in the world that can offer a diverse
range of optical products including WLO, 3D Sensing, and LCoS for
the development of immersive technologies and the realization of
the metaverse. Himax is well-positioned to capitalize on the growth
of this nascent industry as its technologies are vital for
facilitating immersive content, evidenced by the growing list of
AR/VR goggle device engineering projects with leading customers
across the board.
On WLO update. Himax recently commenced volume
production of WLO technology to a leading North American customer
starting in the second quarter for their new generation VR devices
to enable 3D gesture control. The Company expects a decent shipment
for this customer in the second half in preparation for the
upcoming seasonal shopping sales.
On LCoS, Himax’s state-of-the-art Color
Sequential Front-lit LCoS microdisplay technology was one of the
most high-profile demos at the Display Week 2023 in May and
successfully captured the attention of numerous tech giants.
Through years of strenuous development, Himax’s Color Sequential
Front-lit LCoS has achieved exceptional and industry-leading
illumination in full RGB color, along with a groundbreaking tiny
form factor, ultra lightweight and a wide degree field-of-view.
These features make Himax’s LCoS microdisplay particularly well
suited for next generation AR goggles, outperforming other
competing technologies, mainly MicroLED. A growing number of
engineering engagements are proceeding nicely with leading tech
names. Himax is confident its Color Sequential Front-lit LCoS can
be one of the most promising technologies that meets the rigorous
requirements to enable AR goggles.
The introduction of the latest mixed reality
device of a leading tech giant exhibited a significant advancement
for the whole metaverse ecosystem. It illustrates how the metaverse
and immersive technologies continue to evolve, are increasingly
accessible, and may gradually become a more integral part of
everyday live in the future. The Company believes given its
expertise in optical related technologies including hundreds of
patents in AR/VR and 3D, customers can leverage Himax’s product
suite to develop immersive experiences for a variety of futuristic
and mainstream products in their metaverse applications. Himax
continues to strengthen its optical-related technology suite while
forging partnerships with global technology leaders to
strategically secure a distinct position in the space and create an
additional diverse long-term revenue stream.
For non-driver IC business, the Company expects
revenue to decline double digit sequentially in the third
quarter.
Third Quarter 2023
Guidance |
Net
Revenue: |
To be flat to
decline 7.0% sequentially |
Gross Margin: |
To be 30.5% to 32.0%, depending on final product mix |
Profit: |
To be 1.5 cents to 6.0 cents per diluted ADS |
|
|
Similar to Himax’s usual practice, the Company
will grant employees’ annual bonus, including RSUs and cash awards,
on or around September 30 this year. The third quarter guidance for
profit per diluted ADS has taken into account the expected 2023
annual bonus, which, subject to Board approval, is now assumed to
be around $10.5 million, out of which $9.3 million, or 4.2 cents
per diluted ADS, will be vested and expensed immediately on the
grant date. As a reminder, the total annual bonus amount and the
immediately vested portion are Company current best estimates only
and the actual amounts could vary materially depending on, among
other things, its Q4 profit and the final Board decision for the
total bonus amount and its vesting scheme. As is the case for
previous years, Himax expects the annual bonus grant in 2023 to
lead to higher third quarter operating expenses compared to the
other quarters of the year. In comparison, the annual bonus for
2022 and 2021 were $39.6 million and $74.7 million respectively,
out of which $18.5 million and $24.8 million was vested
immediately.
HIMAX TECHNOLOGIES SECOND QUARTER 2023
EARNINGS CONFERENCE CALL |
DATE: |
Thursday, August 10, 2023 |
TIME: |
U.S. |
8:00 a.m.
EDT |
|
Taiwan |
8:00 p.m. |
WEBCAST: |
https://edge.media-server.com/mmc/p/7r8hbkz7 |
PHONE REGISTRATION: |
https://register.vevent.com/register/BIbb13302225784a6d93f5eb3fc6b147c6 |
|
|
|
If you choose to attend by phone, you need to
register first to obtain dial-in numbers for the call. Once
registered you will be emailed the dial-ins along with an option to
receive a call back at the start of the earnings call. Each
registrant will receive a unique personal PIN. A replay of the call
will be available beginning two hours after the call. The
conference webcast link is
https://edge.media-server.com/mmc/p/7r8hbkz7. 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
10, 2024.
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, automotive, 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, AMOLED ICs, LED
driver ICs, power management ICs and LCoS micro-displays for
augmented reality (AR) devices and heads-up displays (HUD) for
automotive. The Company also offers CMOS image sensors, wafer level
optics for AR devices, 3D sensing and ultralow power
WiseEye™ smart image sensing, which are used in a wide variety
of applications such as mobile phone, tablet, laptop, TV, PC
camera, automobile, security, medical device, home appliance, AIoT,
etc. Founded in 2001 and headquartered in Tainan, Taiwan, Himax
currently employs around 2,200 people from three Taiwan-based
offices in Tainan, Hsinchu and Taipei and country offices in China,
Korea, Japan, Germany, and the US. Himax has 2,872 patents granted
and 380 patents pending approval worldwide as of June 30, 2023.
Himax has retained its position as the leading display imaging
processing semiconductor solution provider to consumer electronics
brands worldwide.
Forward Looking Statements
Factors that could cause actual events or
results to differ materially from those described in this
conference call include, but are not limited to, the effect of the
Covid-19 pandemic on the Company’s business; 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; shortage in supply of key components; changes in
environmental laws and regulations; changes in export license
regulated by Export Administration Regulations (EAR); 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, 2022 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: hx_ir@himax.com.twwww.himax.com.tw
Karen Tiao, Investor RelationsHimax
Technologies, Inc.Tel: +886-2-2370-3999Fax: +886-2-2314-0877Email:
hx_ir@himax.com.twwww.himax.com.tw
Mark Schwalenberg, DirectorInvestor
Relations - US RepresentativeMZ 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 Months Ended June
30, |
|
3 Months Ended March
31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
Revenues from third parties, net |
$ |
234,988 |
|
|
$ |
312,564 |
|
|
$ |
244,191 |
|
Revenues from related parties, net |
|
43 |
|
|
|
42 |
|
|
|
13 |
|
|
|
235,031 |
|
|
|
312,606 |
|
|
|
244,204 |
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of revenues |
|
183,961 |
|
|
|
176,245 |
|
|
|
175,609 |
|
Research and development |
|
41,433 |
|
|
|
40,355 |
|
|
|
39,427 |
|
General and administrative |
|
6,115 |
|
|
|
6,678 |
|
|
|
6,041 |
|
Sales and marketing |
|
5,664 |
|
|
|
5,566 |
|
|
|
5,544 |
|
Total costs and expenses |
|
237,173 |
|
|
|
228,844 |
|
|
|
226,621 |
|
|
|
|
|
|
|
Operating income (loss) |
|
(2,142 |
) |
|
|
83,762 |
|
|
|
17,583 |
|
|
|
|
|
|
|
Non operating income (loss): |
|
|
|
|
|
Interest income |
|
2,648 |
|
|
|
1,055 |
|
|
|
2,327 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
336 |
|
|
|
407 |
|
|
|
41 |
|
Foreign currency exchange gains (losses), net |
|
528 |
|
|
|
1,672 |
|
|
|
(535 |
) |
Finance costs |
|
(1,717 |
) |
|
|
(328 |
) |
|
|
(1,741 |
) |
Share of losses of associates |
|
(175 |
) |
|
|
(202 |
) |
|
|
(189 |
) |
Other income |
|
4 |
|
|
|
79 |
|
|
|
107 |
|
|
|
1,624 |
|
|
|
2,683 |
|
|
|
10 |
|
Profit (loss) before income taxes |
|
(518 |
) |
|
|
86,445 |
|
|
|
17,593 |
|
Income tax expense (benefit) |
|
(1,247 |
) |
|
|
16,271 |
|
|
|
2,938 |
|
Profit for the period |
|
729 |
|
|
|
70,174 |
|
|
|
14,655 |
|
Loss attributable to
noncontrolling interests |
|
159 |
|
|
|
461 |
|
|
|
272 |
|
Profit attributable to
Himax Technologies, Inc. stockholders |
$ |
888 |
|
|
$ |
70,635 |
|
|
$ |
14,927 |
|
|
|
|
|
|
|
Basic earnings per ADS
attributable to Himax Technologies, Inc. stockholders |
$ |
0.005 |
|
|
$ |
0.404 |
|
|
$ |
0.086 |
|
Diluted earnings per
ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
0.005 |
|
|
$ |
0.404 |
|
|
$ |
0.085 |
|
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
174,417 |
|
|
|
174,694 |
|
|
|
174,417 |
|
Diluted Weighted Average Outstanding ADS |
|
174,672 |
|
|
|
174,823 |
|
|
|
174,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
Revenues from third parties, net |
|
|
$ |
479,179 |
|
|
$ |
725,293 |
|
Revenues from related parties, net |
|
|
|
56 |
|
|
|
125 |
|
|
|
|
|
479,235 |
|
|
|
725,418 |
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of revenues |
|
|
|
359,570 |
|
|
|
395,166 |
|
Research and development |
|
|
|
80,860 |
|
|
|
79,650 |
|
General and administrative |
|
|
|
12,156 |
|
|
|
13,298 |
|
Sales and marketing |
|
|
|
11,208 |
|
|
|
11,188 |
|
Total costs and expenses |
|
|
|
463,794 |
|
|
|
499,302 |
|
|
|
|
|
|
|
Operating income |
|
|
|
15,441 |
|
|
|
226,116 |
|
|
|
|
|
|
|
Non operating income (loss): |
|
|
|
|
|
Interest income |
|
|
|
4,975 |
|
|
|
1,436 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
|
377 |
|
|
|
428 |
|
Foreign currency exchange gains (losses), net |
|
|
|
(7 |
) |
|
|
4,768 |
|
Finance costs |
|
|
|
(3,458 |
) |
|
|
(608 |
) |
Share of losses of associates |
|
|
|
(364 |
) |
|
|
(409 |
) |
Other income |
|
|
|
111 |
|
|
|
95 |
|
|
|
|
|
1,634 |
|
|
|
5,710 |
|
Profit before income taxes |
|
|
|
17,075 |
|
|
|
231,826 |
|
Income tax expense |
|
|
|
1,691 |
|
|
|
46,365 |
|
Profit for the period |
|
|
|
15,384 |
|
|
|
185,461 |
|
Loss attributable to
noncontrolling interests |
|
|
|
431 |
|
|
|
1,046 |
|
Profit attributable to
Himax Technologies, Inc. stockholders |
|
|
$ |
15,815 |
|
|
$ |
186,507 |
|
|
|
|
|
|
|
Basic earnings per ADS
attributable to Himax Technologies, Inc. stockholders |
|
|
$ |
0.091 |
|
|
$ |
1.068 |
|
Diluted earnings per
ADS attributable to Himax Technologies, Inc.
stockholders |
|
|
$ |
0.091 |
|
|
$ |
1.067 |
|
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
|
|
174,417 |
|
|
|
174,694 |
|
Diluted Weighted Average Outstanding ADS |
|
|
|
174,653 |
|
|
|
174,825 |
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
IFRS Unaudited Condensed Consolidated Statements of
Financial Position |
(Amounts in Thousands of U.S. Dollars) |
|
|
|
June 30, 2023 |
|
June 30, 2022 |
|
March 31, 2023 |
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
211,425 |
|
|
$ |
452,902 |
|
|
$ |
196,286 |
|
Financial assets at amortized cost |
|
|
8,079 |
|
|
|
8,539 |
|
|
|
8,510 |
|
Financial assets at fair value through profit or loss |
|
|
- |
|
|
|
192 |
|
|
|
19,026 |
|
Accounts receivable, net (including related parties) |
|
|
239,039 |
|
|
|
371,033 |
|
|
|
252,155 |
|
Inventories |
|
|
297,268 |
|
|
|
337,312 |
|
|
|
335,235 |
|
Income taxes receivable |
|
|
28 |
|
|
|
39 |
|
|
|
35 |
|
Restricted deposit |
|
|
369,300 |
|
|
|
151,400 |
|
|
|
369,300 |
|
Other receivable from related parties |
|
|
1,171 |
|
|
|
1,381 |
|
|
|
1,174 |
|
Other current assets |
|
|
109,334 |
|
|
|
91,744 |
|
|
|
106,428 |
|
Total current assets |
|
|
1,235,644 |
|
|
|
1,414,542 |
|
|
|
1,288,149 |
|
Financial assets at
fair value through profit or loss |
|
|
19,094 |
|
|
|
14,037 |
|
|
|
18,264 |
|
Financial assets at
fair value through other comprehensive
income |
|
|
313 |
|
|
|
373 |
|
|
|
285 |
|
Equity method
investments |
|
|
6,127 |
|
|
|
3,994 |
|
|
|
6,385 |
|
Property, plant and
equipment, net |
|
|
121,674 |
|
|
|
128,839 |
|
|
|
124,476 |
|
Deferred tax
assets |
|
|
11,651 |
|
|
|
6,622 |
|
|
|
11,925 |
|
Goodwill |
|
|
28,138 |
|
|
|
28,138 |
|
|
|
28,138 |
|
Other intangible
assets, net |
|
|
876 |
|
|
|
5,948 |
|
|
|
989 |
|
Restricted
deposit |
|
|
32 |
|
|
|
34 |
|
|
|
33 |
|
Refundable
deposits |
|
|
205,237 |
|
|
|
174,779 |
|
|
|
224,661 |
|
Other non-current
assets |
|
|
9,371 |
|
|
|
13,524 |
|
|
|
10,981 |
|
|
|
|
402,513 |
|
|
|
376,288 |
|
|
|
426,137 |
|
Total assets |
|
$ |
1,638,157 |
|
|
$ |
1,790,830 |
|
|
$ |
1,714,286 |
|
Liabilities and
Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Short-term unsecured borrowings |
|
$ |
289 |
|
|
$ |
- |
|
|
$ |
- |
|
Current portion of long-term unsecured borrowings |
|
|
6,000 |
|
|
|
6,000 |
|
|
|
6,000 |
|
Short-term secured borrowings |
|
|
369,300 |
|
|
|
151,400 |
|
|
|
369,300 |
|
Accounts payable (including related parties) |
|
|
127,652 |
|
|
|
243,304 |
|
|
|
135,677 |
|
Income taxes payable |
|
|
18,894 |
|
|
|
71,112 |
|
|
|
72,880 |
|
Other payable to related parties |
|
|
2,266 |
|
|
|
2,167 |
|
|
|
2,854 |
|
Contract liabilities-current |
|
|
19,913 |
|
|
|
36,152 |
|
|
|
29,010 |
|
Other current liabilities |
|
|
176,379 |
|
|
|
286,606 |
|
|
|
81,941 |
|
Total current liabilities |
|
|
720,693 |
|
|
|
796,741 |
|
|
|
697,662 |
|
Long-term unsecured
borrowings |
|
|
37,500 |
|
|
|
43,500 |
|
|
|
39,000 |
|
Deferred tax
liabilities |
|
|
682 |
|
|
|
830 |
|
|
|
697 |
|
Contract
liabilities-non-current |
|
|
46 |
|
|
|
12,356 |
|
|
|
46 |
|
Other non-current
liabilities |
|
|
53,001 |
|
|
|
96,271 |
|
|
|
67,466 |
|
|
|
|
91,229 |
|
|
|
152,957 |
|
|
|
107,209 |
|
Total liabilities |
|
|
811,922 |
|
|
|
949,698 |
|
|
|
804,871 |
|
Equity |
|
|
|
|
|
|
Ordinary shares |
|
|
107,010 |
|
|
|
107,010 |
|
|
|
107,010 |
|
Additional paid-in capital |
|
|
113,761 |
|
|
|
111,370 |
|
|
|
113,060 |
|
Treasury shares |
|
|
(5,594 |
) |
|
|
(5,761 |
) |
|
|
(5,594 |
) |
Accumulated other comprehensive income |
|
|
(617 |
) |
|
|
(1,453 |
) |
|
|
(84 |
) |
Retained earnings |
|
|
610,841 |
|
|
|
628,830 |
|
|
|
694,052 |
|
Equity attributable to owners of Himax Technologies,
Inc. |
|
|
825,401 |
|
|
|
839,996 |
|
|
|
908,444 |
|
Noncontrolling
interests |
|
|
834 |
|
|
|
1,136 |
|
|
|
971 |
|
Total equity |
|
|
826,235 |
|
|
|
841,132 |
|
|
|
909,415 |
|
Total liabilities and equity |
|
$ |
1,638,157 |
|
|
$ |
1,790,830 |
|
|
$ |
1,714,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(Amounts in Thousands of U.S. Dollars) |
|
|
Three MonthsEnded June 30, |
|
Three Months Ended March
31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Profit for the period |
|
$ |
729 |
|
|
$ |
70,174 |
|
|
$ |
14,655 |
|
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
5,025 |
|
|
|
5,411 |
|
|
|
5,088 |
|
Share-based compensation expenses |
|
|
723 |
|
|
|
729 |
|
|
|
805 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
(336 |
) |
|
|
(407 |
) |
|
|
(41 |
) |
Interest income |
|
|
(2,648 |
) |
|
|
(1,055 |
) |
|
|
(2,327 |
) |
Finance costs |
|
|
1,717 |
|
|
|
328 |
|
|
|
1,741 |
|
Income tax expense (benefit) |
|
|
(1,247 |
) |
|
|
16,271 |
|
|
|
2,938 |
|
Share of losses of associates |
|
|
175 |
|
|
|
202 |
|
|
|
189 |
|
Inventories write downs |
|
|
5,047 |
|
|
|
4,577 |
|
|
|
5,503 |
|
Unrealized foreign currency exchange losses (gains) |
|
|
(1,201 |
) |
|
|
(1,988 |
) |
|
|
1,186 |
|
|
|
|
7,984 |
|
|
|
94,242 |
|
|
|
29,737 |
|
Changes in: |
|
|
|
|
|
|
Accounts receivable (including related parties) |
|
|
13,116 |
|
|
|
71,217 |
|
|
|
8,993 |
|
Inventories |
|
|
32,920 |
|
|
|
(88,834 |
) |
|
|
30,195 |
|
Other receivable from related parties |
|
|
3 |
|
|
|
(168 |
) |
|
|
50 |
|
Other current assets |
|
|
(3,318 |
) |
|
|
4,157 |
|
|
|
980 |
|
Accounts payable (including related parties) |
|
|
10,207 |
|
|
|
(12,404 |
) |
|
|
16,192 |
|
Other payable to related parties |
|
|
(588 |
) |
|
|
126 |
|
|
|
286 |
|
Contract liabilities |
|
|
(13,097 |
) |
|
|
(2,702 |
) |
|
|
(20,111 |
) |
Other current liabilities |
|
|
1,665 |
|
|
|
1,619 |
|
|
|
(1,288 |
) |
Other non-current liabilities |
|
|
2,351 |
|
|
|
5,805 |
|
|
|
2,351 |
|
Cash generated from operating activities |
|
|
51,243 |
|
|
|
73,058 |
|
|
|
67,385 |
|
Interest received |
|
|
3,262 |
|
|
|
1,171 |
|
|
|
1,455 |
|
Interest paid |
|
|
(1,717 |
) |
|
|
(328 |
) |
|
|
(1,741 |
) |
Income tax paid |
|
|
(51,093 |
) |
|
|
(64,785 |
) |
|
|
(738 |
) |
Net cash provided by operating activities |
|
|
1,695 |
|
|
|
9,116 |
|
|
|
66,361 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
|
(2,874 |
) |
|
|
(2,497 |
) |
|
|
(2,833 |
) |
Acquisitions of intangible assets |
|
|
- |
|
|
|
(26 |
) |
|
|
(11 |
) |
Acquisitions of financial assets at amortized cost |
|
|
(1,092 |
) |
|
|
(1,134 |
) |
|
|
(571 |
) |
Proceeds from disposal of financial assets at amortized cost |
|
|
1,134 |
|
|
|
16,157 |
|
|
|
541 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
|
(33,821 |
) |
|
|
(27,543 |
) |
|
|
(22,222 |
) |
Proceeds from disposal of financial assets at fair value through
profit or loss |
|
|
52,482 |
|
|
|
70,316 |
|
|
|
195 |
|
Decrease (increase) in refundable deposits |
|
|
1,193 |
|
|
|
- |
|
|
|
(64,259 |
) |
Net cash provided by (used in) investing
activities |
|
|
17,022 |
|
|
|
55,273 |
|
|
|
(89,160 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Purchases of subsidiary shares from noncontrolling interests |
|
|
- |
|
|
|
(301 |
) |
|
|
- |
|
Proceeds from short-term unsecured borrowings |
|
|
10,294 |
|
|
|
- |
|
|
|
- |
|
Repayments of short-term unsecured borrowings |
|
|
(10,000 |
) |
|
|
- |
|
|
|
- |
|
Repayments of long-term unsecured borrowings |
|
|
(1,500 |
) |
|
|
(1,500 |
) |
|
|
(1,500 |
) |
Proceeds from short-term secured borrowings |
|
|
139,200 |
|
|
|
51,400 |
|
|
|
286,200 |
|
Repayments of short-term secured borrowings |
|
|
(139,200 |
) |
|
|
(51,400 |
) |
|
|
(286,200 |
) |
Payment of lease liabilities |
|
|
(1,202 |
) |
|
|
(1,206 |
) |
|
|
(1,179 |
) |
Guarantee deposits received |
|
|
5 |
|
|
|
14,181 |
|
|
|
- |
|
Net cash provided by (used in) financing
activities |
|
|
(2,403 |
) |
|
|
11,174 |
|
|
|
(2,679 |
) |
Effect of foreign
currency exchange rate changes on cash and cash
equivalents |
|
|
(1,175 |
) |
|
|
(674 |
) |
|
|
183 |
|
Net increase
(decrease) in cash and cash equivalents |
|
|
15,139 |
|
|
|
74,889 |
|
|
|
(25,295 |
) |
Cash and cash
equivalents at beginning of period |
|
|
196,286 |
|
|
|
378,013 |
|
|
|
221,581 |
|
Cash and cash
equivalents at end of period |
|
$ |
211,425 |
|
|
$ |
452,902 |
|
|
$ |
196,286 |
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(Amounts in Thousands of U.S. Dollars) |
|
|
|
|
Six MonthsEnded June 30, |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Profit for the period |
|
|
|
$ |
15,384 |
|
|
$ |
185,461 |
|
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
10,113 |
|
|
|
10,787 |
|
Share-based compensation expenses |
|
|
|
|
1,528 |
|
|
|
1,340 |
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
|
|
(377 |
) |
|
|
(428 |
) |
Interest income |
|
|
|
|
(4,975 |
) |
|
|
(1,436 |
) |
Finance costs |
|
|
|
|
3,458 |
|
|
|
608 |
|
Income tax expense |
|
|
|
|
1,691 |
|
|
|
46,365 |
|
Share of losses of associates |
|
|
|
|
364 |
|
|
|
409 |
|
Inventories write downs |
|
|
|
|
10,550 |
|
|
|
5,825 |
|
Unrealized foreign currency exchange gains |
|
|
|
|
(15 |
) |
|
|
(4,620 |
) |
|
|
|
|
|
37,721 |
|
|
|
244,311 |
|
Changes in: |
|
|
|
|
|
|
Accounts receivable (including related parties) |
|
|
|
|
22,109 |
|
|
|
39,178 |
|
Inventories |
|
|
|
|
63,115 |
|
|
|
(144,537 |
) |
Other receivable from related parties |
|
|
|
|
53 |
|
|
|
(165 |
) |
Other current assets |
|
|
|
|
(2,338 |
) |
|
|
4,622 |
|
Accounts payable (including related parties) |
|
|
|
|
26,399 |
|
|
|
(5,121 |
) |
Other payable to related parties |
|
|
|
|
(302 |
) |
|
|
526 |
|
Contract liabilities |
|
|
|
|
(33,208 |
) |
|
|
624 |
|
Other current liabilities |
|
|
|
|
377 |
|
|
|
210 |
|
Other non-current liabilities |
|
|
|
|
4,702 |
|
|
|
5,808 |
|
Cash generated from operating activities |
|
|
|
|
118,628 |
|
|
|
145,456 |
|
Interest received |
|
|
|
|
4,717 |
|
|
|
1,286 |
|
Interest paid |
|
|
|
|
(3,458 |
) |
|
|
(608 |
) |
Income tax paid |
|
|
|
|
(51,831 |
) |
|
|
(65,018 |
) |
Net cash provided by operating activities |
|
|
|
|
68,056 |
|
|
|
81,116 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
|
|
|
(5,707 |
) |
|
|
(6,083 |
) |
Acquisitions of intangible assets |
|
|
|
|
(11 |
) |
|
|
(169 |
) |
Acquisitions of financial assets at amortized cost |
|
|
|
|
(1,663 |
) |
|
|
(7,259 |
) |
Proceeds from disposal of financial assets at amortized cost |
|
|
|
|
1,675 |
|
|
|
24,322 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
|
|
|
(56,043 |
) |
|
|
(73,114 |
) |
Proceeds from disposal of financial assets at fair value through
profit or loss |
|
|
|
|
52,677 |
|
|
|
72,013 |
|
Increase in refundable deposits |
|
|
|
|
(63,066 |
) |
|
|
- |
|
Releases of restricted deposit |
|
|
|
|
- |
|
|
|
2,700 |
|
Net cash provided by (used in) investing
activities |
|
|
|
|
(72,138 |
) |
|
|
12,410 |
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Purchases of subsidiary shares from noncontrolling interests |
|
|
|
|
- |
|
|
|
(301 |
) |
Proceeds from short-term unsecured borrowings |
|
|
|
|
10,294 |
|
|
|
- |
|
Repayments of short-term unsecured borrowings |
|
|
|
|
(10,000 |
) |
|
|
- |
|
Repayments of long-term unsecured borrowings |
|
|
|
|
(3,000 |
) |
|
|
(3,000 |
) |
Proceeds from short-term secured borrowings |
|
|
|
|
425,400 |
|
|
|
185,800 |
|
Repayments of short-term secured borrowings |
|
|
|
|
(425,400 |
) |
|
|
(185,800 |
) |
Payment of lease liabilities |
|
|
|
|
(2,381 |
) |
|
|
(2,435 |
) |
Guarantee deposits received |
|
|
|
|
5 |
|
|
|
29,795 |
|
Net cash provided by (used in) financing
activities |
|
|
|
|
(5,082 |
) |
|
|
24,059 |
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents |
|
|
|
|
(992 |
) |
|
|
(707 |
) |
Net increase
(decrease) in cash and cash equivalents |
|
|
|
|
(10,156 |
) |
|
|
116,878 |
|
Cash and cash
equivalents at beginning of period |
|
|
|
|
221,581 |
|
|
|
336,024 |
|
Cash and cash
equivalents at end of period |
|
|
|
$ |
211,425 |
|
|
$ |
452,902 |
|
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