Himax Technologies (NasdaqGS:HIMX) Q3 2025 Earnings Call November 06, 2025 08:00 AM ET Speaker1Hello, ladies and gentlemen. Welcome to Himax Technologies third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Ms. Karen Tiao, Head of Investor Relations, Public Rela ...

Company Overview - Himax is a global fabless IC design company, ranking among the top 10 globally in 2021[5], with 2022 sales of $1.2 billion[5, 18] - The company ships an average of 60 million ICs per month[5] - Himax holds a 40% global market share in driver ICs for automotive displays[5] Product and Technology Highlights - Himax is a leader in display driver ICs (DDIC) for TFT LCD and OLED displays[18, 35, 43, 45], with a focus on high-end 8K/4K TVs and gaming monitors[50, 100] - The company is expanding its automotive solutions, including DDIC, TDDI, LTDI, Tcon, and OLED touch controllers[18, 57, 97, 100, 123] - Himax's WiseEye ultralow power AI sensing technology is gaining traction in AIoT applications[12, 18, 61, 63, 101, 106, 123] - The company offers Wafer Level Optics (WLO) for 3D sensing and optical communication[12, 18, 66, 68, 107, 110, 123] - Himax is a long-term innovator in Liquid Crystal on Silicon (LCoS) microdisplays for AR/VR applications[12, 18, 71, 78, 111, 114, 123] Financial Performance and Shareholder Returns - Himax has returned $1074 million to shareholders through dividends and share buybacks since its IPO[24] - The company initiated five share buyback programs totaling $178 million since 2007[29] - As of Q3 2025, Himax repurchased a total of 47.3 million ADSs at an average purchase price of $3.20 per ADS[29] - For 2024, revenues were $906.8 million, a decrease of 4.1% year-over-year, while profit was $79.8 million, an increase of 57.6% year-over-year[31]

Core Insights - Himax Technologies, Inc. reported Q3 2025 net revenues of $199.2 million, a sequential decline of 7.3%, outperforming the guidance range of a 12.0% to 17.0% decline, primarily due to better-than-expected sales from automotive IC and Tcon product lines [3][4] - The gross margin for Q3 was 30.2%, in line with guidance, and the profit per diluted ADS was 0.6 cents, significantly exceeding the guidance range of a loss of 2.0 to 4.0 cents [3][4] - For Q4 2025, the company expects revenues to be flat quarter-over-quarter, with gross margin flat to slightly up, and profit per diluted ADS projected between 2.0 cents to 4.0 cents [4][40] Financial Performance - Q3 2025 revenues from large display drivers were $19.0 million, a decline of 23.6% from the previous quarter, while revenues from small and medium-sized display drivers totaled $141.0 million, reflecting a slight decline of 2.4% [4][6] - Automotive driver sales, including both traditional DDIC and TDDI, increased single digit quarter-over-quarter, indicating resilient demand despite global automotive sales softness [6][24] - Operating expenses for Q3 were $60.7 million, an increase of 24.2% from the previous quarter, primarily due to annual bonus compensation [8][9] Automotive Business Outlook - Himax remains optimistic about its automotive business outlook for the next few years, supported by leading technology offerings and comprehensive customer coverage [2][14] - The automotive display IC business, which accounts for over 50% of total revenues, is expected to see further growth in TDDI and Tcon technologies, with successful designs already in hundreds of projects worldwide [6][15] - Traditional DDIC shipments remain stable due to long product life cycles, contributing to long-term revenue stability [15][24] Emerging Technologies and Growth Areas - The company is focusing on expanding into emerging areas beyond display ICs, including ultralow power AI, CPO, and smart glasses, which are characterized by high growth potential and technological barriers [2][14][16] - The WiseEye business is entering a phase of rapid growth, becoming a key growth engine for the company, with applications in various domains including smart home devices and AI glasses [17][38] - Himax's proprietary WLO technology in Co-Packaged Optics (CPO) is expected to become a major revenue contributor, with significant breakthroughs in silicon photonics technology [19][24] Product Innovations - Himax continues to lead in automotive Tcon innovation, launching an integrated Tcon with the industry's first full-area selectable local de-warping function [31][32] - The company is advancing its technology roadmap for next-generation displays, focusing on faster data transmission, lower latency, and improved power efficiency [22][25] - Himax's Dual-Edge Front-lit LCoS microdisplay has achieved breakthroughs in form factor and performance, suitable for next-generation AR glasses [39]

Core Insights - Himax Technologies, Inc. is showcasing its WiseEye™ ultralow power AI technology with palm vein authentication capabilities at Sectech Sweden 2025, emphasizing its focus on security solutions [1][2] Product Features - WiseEye™ palm vein authentication provides a contactless and hygienic user experience, enabling rapid identity verification in under 100 milliseconds, with a False Acceptance Rate (FAR) below 1% [2] - The technology employs on-device AI for real-time palm vein recognition, ensuring maximum privacy by eliminating biometric data storage and complying with GDPR [2] - The WiseEye PalmVein Module is certified to PSA Level 2, indicating compliance with rigorous industry security standards [2] Expanded Offerings - Himax will unveil a bimodal authentication solution that combines palm vein and facial recognition, designed for smart door locks to enhance security and user convenience [3] Company Overview - Himax Technologies is a leading global fabless semiconductor solution provider, specializing in display imaging processing technologies and holding a significant market share in automotive display technology [5] - The company has a diverse product portfolio, including display driver ICs, timing controllers, and AI sensing technology, with a focus on consumer electronics and AIoT applications [5] - As of September 30, 2025, Himax holds 2,586 patents granted and 371 patents pending approval worldwide [5]

Core Viewpoint - Himax Technologies, Inc. will hold a conference call on November 6, 2025, to discuss its third quarter 2025 financial results, indicating the company's commitment to transparency and investor engagement [1]. Company Overview - Himax Technologies, Inc. is a leading global fabless semiconductor solution provider focused on display imaging processing technologies, with a significant market share in automotive display technology [5]. - The company offers a wide range of products including display driver ICs, timing controllers, and innovative automotive IC solutions such as TDDI and OLED technologies [5]. - Himax is also recognized for its advancements in tinyML visual-AI and optical technologies, particularly its WiseEye Ultralow Power AI Sensing technology [5]. - As of September 30, 2025, Himax holds 2,586 granted patents and has 371 patents pending approval worldwide, showcasing its strong focus on innovation and intellectual property [6]. Conference Call Details - The conference call is scheduled for November 6, 2025, at 8:00 a.m. EST and 9:00 p.m. Taiwan Time, with a live webcast available [2]. - Participants can join the call via various toll-free numbers depending on their location, including options for Hong Kong, Taiwan, Australia, Canada, China, Singapore, the UK, and the US [2][3]. - A replay of the webcast will be accessible starting two hours after the call and will remain available until November 6, 2026 [4].

Core Viewpoint - Himax Technologies (HIMX.US) saw a pre-market increase of over 2.3%, reaching $8.85, following the announcement of the mass production of its WiseEye ultra-low power AI sensing solution, which has been successfully integrated into Acer's Swift Edge 14 AI series laptops [1] Company Developments - Himax Technologies announced the mass production of its WiseEye ultra-low power AI sensing solution [1] - The WiseEye solution has been implemented in Acer's ultra-thin AI laptop, the Swift Edge 14 AI series [1] Product Features - The WiseEye solution adds several features to Acer's AI laptops, including user detection and interaction awareness functions [1] - Specific functionalities include user sensing, alerts for excessive proximity, reminders for prolonged usage, and notifications for poor posture [1]

Core Insights - Himax Technologies has successfully integrated its WiseEye ultralow power AI sensing solution into Acer's Swift Edge 14 AI notebook, marking a significant milestone in the notebook market [1][3] - The WiseEye solution enhances the notebook with features such as Human Presence Detection, health reminders, and a multi-screen assist function, all while operating at milliwatt-level power consumption [2][3] - The Acer Swift Edge 14 AI notebook is designed for mobile professionals, weighing 0.99 kilograms and offering up to 21 hours of battery life, powered by Intel's Core Ultra 7 258V processor [4] Company Overview - Himax Technologies is a leading global fabless semiconductor solution provider, specializing in display imaging processing technologies and holding a significant market share in automotive display technology [6] - The company has a diverse product portfolio, including display driver ICs, timing controllers, and innovative solutions for consumer electronics and AIoT applications [6] - As of June 30, 2025, Himax holds 2,609 granted patents and has 370 patents pending approval worldwide, showcasing its commitment to innovation and technological advancement [6] Market Position - The adoption of WiseEye by leading brands like Acer underscores Himax's role in accelerating AI integration into battery-powered devices, positioning WiseEye as a key technology in the smart endpoint device market [5] - The successful deployment of WiseEye in multiple notebook models highlights its technological maturity and commercial strength, indicating a growing demand for ultralow power intelligent sensing solutions [3][5]

Group 1 - Himax Technologies Inc. is recognized as one of the best robotics stocks to buy under $20 [1] - The company plans to showcase next-generation imaging and optics at the Taipei Aerospace & Defense Technology Exhibition, featuring advanced drone vision systems and AI-powered biometric modules [2] - Himax is a fabless semiconductor supplier that provides display drivers, imaging, and smart-sensing solutions globally, focusing on automation and immersive displays [3] Group 2 - The company is noted for its AI vision processors and optics that enable robotics-style sensing for next-generation systems [3] - While there is potential for investment in Himax, some analysts suggest that other AI stocks may offer greater upside potential with less downside risk [4]

Group 1 - The article discusses a long-term, contrarian approach to equities investing, with a focus on the Tech, Commodities, and Energy sectors as the world undergoes an energy transition [1] Group 2 - No specific company or stock positions are disclosed, indicating a neutral stance on investment recommendations [2][3]

Core Viewpoint - Himax Technologies and its subsidiary Liqxtal Technology are showcasing advanced imaging integration solutions for aerospace and defense applications at the Taipei Aerospace & Defense Technology Exhibition, highlighting their technological strengths in adaptive optics and AI sensing [1][2]. Group 1: Company Overview - Himax Technologies, Inc. is a leading fabless semiconductor manufacturer specializing in display drivers and imaging processing technologies, with a global market share leadership in automotive display technology [7]. - Liqxtal Technology Inc., a subsidiary of Himax, focuses on imaging and optical solutions, leveraging expertise in adaptive optics design and manufacturing [3][4]. Group 2: Innovations and Products - The exhibition features a panoramic virtual display that recreates a 260-inch screen experience, ideal for confined spaces [6]. - Advanced drone vision systems are designed to enhance detection and tracking performance under all weather conditions [6]. - AI-powered biometric solutions combine various sensing technologies to provide secure and accurate biometric identification for defense and aerospace applications [6]. - Customized optical endoscope solutions are developed for aerospace inspection and advanced medical applications [6]. Group 3: Strategic Importance - The debut at TADTE is seen as a significant milestone for both Himax and Liqxtal, marking their entry into the aerospace and defense sector with innovative technologies [2]. - The companies aim to redefine performance, safety, and intelligence in next-generation applications through their showcased technologies [2].