Actionable news
All posts from Actionable news
Actionable news in HIMX: Himax Technologies, Inc.,

Himax Technologies, Inc. Reports Third Quarter 2017 Financial Results and Provides Fourth Quarter 2017 Guidance

Company Meets Q3 2017 Revenue, GAAP EPS Guidance, and Exceeds Gross Margin, Non-GAAP EPS Guidance

Provides Q4 2017 Guidance Revenue to Decline 4% to 10% Sequentially, Gross Margin to Decline 1% Sequentially, GAAP EPS to be 13.0 to 15.0 Cents and Non-GAAP EPS to be 13.2 to 15.2 Cents

Excludes One-Off Reimbursements in Q3 2017, Q4 Revenue to be Down around 3.5% to Up 3.0% Sequentially

  • Q3 revenue of $197.1M, up 29.9% QoQ, came in at high end of the guidance range
  • Product sales: small and medium-sized driver ICs, 44.2% of revenue, up 24.5% QoQ; large panel driver ICs, 27.9% of revenue, up 5.4% QoQ; non-driver IC products, 27.9% of revenue, up 85.9% QoQ led by the new WLO product shipment to a leading customer
  • Q3 gross margin was 25.5%, exceeding the guidance by 70 bps due to a more favorable product mix
  • Q3 GAAP net income was $3.7M, or 2.1 cents per diluted ADS, in line with the guidance range of 1.3 to 2.5 cents; Non-GAAP net income was $9.0M, or 5.2 cents per diluted ADS, exceeding the guidance range of 3.0 to 4.2 cents
  • Started major ramp and shipment of the new WLO product, expects shipment to the same leading customer to accelerate significantly in Q4 2017 and beyond, working on multiple new projects with the same customer
  • Jointly announced with Qualcomm for collaboration in the development and commercialization of the state-of-the art and the only true 3D sensing total solution for the Android Smartphone ecosystem right now, expects solution and production capacity to be ready for mass production by Q1 2018
  • Continue close collaboration with multiple top tier Android smartphone makers, aggressively aiming to launch flagship models with 3D sensing total solution during the first half of 2018
  • To fulfill strong demands from the existing leading WLO customer and 3D sensing total solution Andriod smartphone OEMs, Himax will launch Phase II capex for additional WLO and active alignment capacity in 2018, Phase II scale will substantially exceed the Phase I capex of $80M

TAINAN, Taiwan, Nov. 09, 2017 (GLOBE NEWSWIRE) -- Himax Technologies, Inc. (HIMX) (“Himax” or “Company”), a leading supplier and fabless manufacturer of display drivers and other semiconductor products, announced its financial results for the third quarter ended September 30, 2017. The Company’s 2017 third quarter revenues and GAAP earnings per diluted ADS came in at high end of its guidance while gross margin and non-GAAP earnings per diluted ADS both exceeded the guidance.

“Despite the decline in the first half in our business, we delivered solid results in the third quarter, achieving both top and bottom line growth across all three major product categories. One of the highlights of our third quarter business is the joint announcement with Qualcomm to unveil our 3D sensing total solution. The announcement detailed the two companies’ collaboration in the development and commercialization of high resolution, low power active 3D depth sensing solutions for the Android smartphone ecosystem. The Qualcomm/Himax SLiM™ (Structured Light Imaging Module) solution is state-of-the-art and the only true 3D sensing total solution available for the Android market right now,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax. “The Company’s SLiM™ total solution brings together Qualcomm’s industry leading 3D algorithm with Himax’s advanced diffraction optical element (DOE) design and mass-production-proven wafer level optics for the projector and cutting-edge NIR sensors with superior quantum efficiency for the receiver. To complete the Company’s turn-key solution for the Android market, Himax has put together an A team by partnering with a few top players in their respective industry, covering laser, NIR camera lens, IR filter, semiconductor foundry and module assembly. This strong alliance will ensure that the Company’s SLiM™ 3D sensing total solution will be an accountable and competitive total solution for customers’ volume ramping. The SLiM™ total solution represents a very high barrier of entry for any potential competition and a much higher ASP and profit margin for us. We are targeting to have the SLiM™ 3D sensing total solution and production capacity ready for mass production and shipment by the end of the first quarter of 2018 with an initial capacity of 2 million units per month. The initial capacity is part of our Phase I investment of $80 million. We will ramp as needed to meet our customers’ launch timetable,” Mr. Wu further said.

Himax believes 3D sensing is among the most significant new features for the next generation smartphone. It is a game-changing opportunity for the Company and will be the Himax’s biggest growth engine for the next few years. “We are excited that Apple has pioneered the 3D sensing technology on iPhone X and is paving the way for smartphone to become a major AR platform. In the Android market, we are seeing leading players also aggressively looking to adopt 3D sensing. We are in close collaboration with multiple top tier Android smartphone OEMs, aggressively aiming to launch flagship smartphone models with 3D sensing total solution during the first half of 2018. By the time we started shipping our 3D total solutions, they will be major contributor to both our revenues and profit, consequently creating a more favorable product mix for us,” said Mr. Wu.

Other notable milestones during the third quarter include the ramp of WLO production capacity and revenue, and construction of a new building. Mr. Wu said, “We reported in the last earnings call that this year’s capex has included the urgent addition of new WLO capacity to meet the rush demand of a leading customer. This new WLO capacity has started mass production and we already began shipment to the customer during the third quarter. We expect shipment to the same customer to accelerate significantly into the fourth quarter and beyond. In parallel, we are working on several new development projects with the same customer for their future generation products. We are very excited about this partnership and the significant growth opportunities these projects represent.” Mr. Wu further said, “The construction of a new building is another major capex project of this year. It will be completed and ready for move-in at around the new-year period of 2018. Its timely completion is particularly critical as it will house the additional WLO capacity and new active alignment equipment for SLiM™ total solution to fulfill strong demands of Android Smartphone OEMs.”