Financial Performance - Q4 2022 revenues were $262.3M, a 22.8% QoQ increase, exceeding guidance of 4.0% to 8.0% growth[1] - Q4 2022 IFRS after-tax profit was $42.2M, or 24.1 cents per diluted ADS, compared to $8.3M last quarter[1] - Full year 2022 revenues were $1.2B with an IFRS gross margin of 40.5% and IFRS profit of $1.36 per diluted ADS[1] - Q1 2023 revenues expected to decrease 12.0% to 17.0% QoQ with IFRS gross margin of 28.0% to 30.0%[1] - 2022 IFRS operating income was $257.6M, or 21.4% of sales, down from $545.0M in 2021[15] - Q1 2023 revenue is expected to decrease by 12.0% to 17.0% sequentially, with gross margin projected to be around 28.0% to 30.0%[37] - Revenues from third parties, net for the twelve months ended December 31, 2022, were $1,201,124 thousand, a decrease from $1,546,972 thousand in 2021[55] - Operating income for the twelve months ended December 31, 2022, was $257,587 thousand, compared to $545,021 thousand in 2021[56] - Profit attributable to Himax Technologies, Inc. stockholders for the twelve months ended December 31, 2022, was $236,982 thousand, down from $436,896 thousand in 2021[56] - Basic earnings per ADS attributable to Himax Technologies, Inc. stockholders for the twelve months ended December 31, 2022, were $1.356, compared to $2.502 in 2021[56] - Total costs and expenses for the twelve months ended December 31, 2022, were $943,752 thousand, a decrease from $1,002,076 thousand in 2021[56] - Profit for the period in Q4 2022 was $41,998 thousand, a significant decrease from $141,472 thousand in Q4 2021[69] - Profit attributable to Himax Technologies, Inc. stockholders in Q4 2022 was $42,156 thousand, down from $142,393 thousand in Q4 2021[75] - Revenues for the twelve months ended December 31, 2022, were $1,201,339 thousand, compared to $1,547,097 thousand in 2021[79] - Gross profit excluding share-based compensation and cash award was $488,092 thousand for the twelve months ended December 31, 2022, down from $749,771 thousand in 2021[79] - Operating income excluding share-based compensation, acquisition-related charges, and cash award was $306,799 thousand for the twelve months ended December 31, 2022, compared to $578,288 thousand in 2021[79] Automotive Business - Automotive sales in 2022 grew over 50%, with auto TDDI sales surging more than 300%[1] - Automotive driver business represented over 30% of total sales in Q4 2022, with TDDI sales up 170% YoY[6] - Automotive TDDI sales are poised to grow by single digit in Q1, supported by a strong new design-in pipeline[23] - Himax's LTDI (Large Touch and Display Driver Integration) solution is scheduled to start mass production in Q2 2023, targeting large automotive displays[26] - Q1 automotive Tcon sales are expected to increase more than 150% year-over-year, representing over 2% of total sales[28] Display Driver Business - Q4 2022 small and medium-sized display driver revenue was $177.4M, a 25.5% QoQ increase[5] - Q1 large display driver IC revenue is projected to grow high single digit sequentially, with monitor IC sales expected to increase by a decent double digit[22] - Smartphone AMOLED driver production is expected to commence in H2 2023, with significant capacity already secured[27] Non-Driver Business - Q4 2022 non-driver business revenue was $41.4M, a 33.8% QoQ increase, with Tcon business up double digits[7] - Non-driver IC business revenue is expected to decrease mid-teens sequentially in Q1 2023[37] Inventory Management - Inventory position improved since Q3 2022 peak and expected to decrease to historical average by Q3 2023[2] - Inventory levels have improved since Q3 2022 and are anticipated to decrease to near historical averages by Q3 2023[19] - Inventories write downs increased to $9,104 thousand in Q4 2022 from $4,103 thousand in Q4 2021[69] Non-IFRS Metrics - Non-IFRS gross margin for Q4 2022 was 30.5%, compared to 51.8% in Q4 2021 and 36.3% in Q3 2022[47] - Non-IFRS operating margin for Q4 2022 was 13.1%, compared to 41.1% in Q4 2021 and 14.5% in Q3 2022[47] - Non-IFRS net margin attributable to stockholders for Q4 2022 was 18.2%, compared to 32.8% in Q4 2021 and 13.9% in Q3 2022[48] - Full-year 2022 non-IFRS gross margin was 40.6%, down from 48.5% in 2021[50] - Full-year 2022 non-IFRS operating margin was 25.5%, down from 37.4% in 2021[50] - Full-year 2022 non-IFRS net margin attributable to stockholders was 23.0%, down from 30.0% in 2021[52] - Q4 2022 diluted non-IFRS earnings per ADS were $0.273, compared to $1.580 for the full year 2022[53] - Gross margin excluding share-based compensation and cash award in Q4 2022 was 30.5%, down from 51.8% in Q4 2021[76] - Operating margin excluding share-based compensation, acquisition-related charges and cash award in Q4 2022 was 13.1%, compared to 41.1% in Q4 2021[76] - Gross margin excluding share-based compensation and cash award was 40.6% for the twelve months ended December 31, 2022, compared to 48.5% in 2021[79] - Operating margin excluding share-based compensation, acquisition-related charges, and cash award was 25.5% for the twelve months ended December 31, 2022, down from 37.4% in 2021[79] - Net margin attributable to Himax Technologies, Inc. stockholders excluding share-based compensation, acquisition-related charges, and cash award was 23.0% for the twelve months ended December 31, 2022, compared to 30.0% in 2021[78] - Profit attributable to Himax Technologies, Inc. stockholders excluding share-based compensation, acquisition-related charges, and cash award was $276,147 thousand for the twelve months ended December 31, 2022, down from $463,565 thousand in 2021[79] - Diluted non-IFRS earnings per ADS attributable to Himax Technologies, Inc. stockholders excluding share-based compensation, acquisition-related charges, and cash award was $1.580 for the twelve months ended December 31, 2022[81] Research and Development - Research and development expenses for the twelve months ended December 31, 2022, were $175,557 thousand, up from $151,386 thousand in 2021[56] - Himax's 3D sensing technology is being deployed for real-time digital twins and avatars, with market entry expected next year[36] - WiseEye WE2 AI processor offers 40% peak power saving and 30-fold inference speed compared to the first-generation WE1 processor[33] Cash Flow and Assets - Cash and cash equivalents as of December 31, 2022, were $221,581 thousand, down from $336,024 thousand in 2021[67] - Total assets as of December 31, 2022, were $1,701,758 thousand, compared to $1,603,194 thousand in 2021[67] - Total liabilities as of December 31, 2022, were $807,937 thousand, up from $731,212 thousand in 2021[68] - Cash generated from operating activities in Q4 2022 was $4,312 thousand, a sharp decline from $182,237 thousand in Q4 2021[70] - Net cash provided by operating activities in Q4 2022 was $5,466 thousand, compared to $182,248 thousand in Q4 2021[70] - Acquisitions of property, plant and equipment in Q4 2022 were $2,312 thousand, slightly higher than $2,020 thousand in Q4 2021[70] - Proceeds from disposal of subsidiary in Q4 2022 were $14,769 thousand, with no comparable figure in Q4 2021[70] Share-Based Compensation - Share-based compensation for the twelve months ended December 31, 2022, totaled $16,430 thousand, compared to $18,978 thousand in 2021[62] - Share-based compensation, net of tax, was $16,430 thousand for the twelve months ended December 31, 2022, down from $18,978 thousand in 2021[79] - Cash award, net of tax, was $22,053 thousand for the twelve months ended December 31, 2022, compared to $6,844 thousand in 2021[79] Depreciation and Amortization - Depreciation and amortization expenses in Q4 2022 were $5,196 thousand, slightly lower than $5,329 thousand in Q4 2021[69] Company Overview - Himax has 2,932 patents granted and 398 patents pending as of December 31, 2022[42] - The company employs approximately 2,200 people across its global offices[42] - Himax is a market leader in display driver ICs and timing controllers for various consumer electronics[42]

Financial Data and Key Metrics Changes - Third quarter net revenues were $213.6 million, a decrease of 31.7% sequentially but exceeded guidance of a decrease of around 35% to 39% [8] - Gross margin was 36.3%, down from 43.6% in the previous quarter, but within the guidance range of 35.5% to 37.5% [8][13] - Non-IFRS profit per diluted ADS was 17.0 cents, beating guidance of 11.6 cents to 15.6 cents, while IFRS profit per diluted ADS was 4.8 cents, exceeding guidance of 0.2 cents to 4.2 cents [8] Business Line Data and Key Metrics Changes - Revenue from large display drivers was $41.3 million, a decrease of 39.8% sequentially, accounting for 19.3% of total revenues [9] - Small and medium-sized display driver segment revenue was $141.4 million, a decline of 29.9% sequentially, contributing 66.2% of total sales [10][11] - Non-driver revenue was $30.9 million, down 26.9% from the previous quarter, with Tcon business representing more than 7% of total sales [12] Market Data and Key Metrics Changes - Automotive business represented over 35% of total sales, despite a double-digit decline sequentially due to inventory control measures [11] - AMOLED sales, including DDIC and Tcon, were up more than 45% sequentially, accounting for more than 8% of total sales [10] - E-paper business expected to increase double digits quarter-over-quarter, driven by large size display shipments [26] Company Strategy and Development Direction - The company is cautiously managing wafer starts to balance inventory levels and foundry contract fulfillment amid macroeconomic challenges [18] - Focus on high visibility segments such as automotive, AMOLED, Tcon, and WiseEye AI image sensing for future growth [19][20] - Plans to maintain a flat operating expense while reallocating resources to high visibility product lines [44] Management's Comments on Operating Environment and Future Outlook - The near-term economic outlook is bleak due to elevated inflation, rising interest rates, and geopolitical conflicts affecting visibility in consumer-centric products [18] - Despite challenges, the automotive segment shows better visibility and is expected to drive growth, with a projected 50% growth in the automotive business for 2022 [19][23] - The company anticipates gross margin pressure due to high inventory offloading but expects to emerge stronger post-destocking cycle [41] Other Important Information - The company had $227.9 million in cash and equivalents as of September 30, 2022, down from $461.6 million a quarter ago due to dividend payouts [15] - Inventory levels increased to $410.1 million, reflecting a drop in demand and customer inventory control measures [16] - The company announced the divestiture of its subsidiary Emza Visual Sense, which will not affect existing business with Dell [33] Q&A Session Summary Question: Comments on gross margin outlook - Management indicated that gross margins are under pressure due to high inventory levels and price reductions from foundries, making it difficult to predict the lowest point for gross margins next year [38][39] Question: Expectations on managing operating expenses in 2023 - Management plans to keep non-IFRS operating expenses flat while reallocating resources to high visibility product lines, despite inflationary pressures [43][44] Question: Future foundry adoption plans - The company intends to continue using Taiwanese foundries as the primary source while expanding collaborations with Chinese foundries amid geopolitical tensions [48][49] Question: Impact of new Chinese competitors - Management acknowledged intensified competition from Chinese firms but emphasized their strong position in automotive and other segments, focusing on technology upgrades and strategic partnerships [53][54]

Himax Technologies, Inc. (NASDAQ:HIMX) Q2 2022 Earnings Conference Call August 11, 2022 8:00 AM ET Company Participants Mark Schwalenberg - Investor Relations, MZ Jordan Wu - President and Chief Executive Officer Jessica Pan - Chief Financial Officer Eric Li - Chief IR and PR Officer Conference Call Participants Jerry Su - Credit Suisse Operator Hello, ladies and gentlemen, welcome to Himax Technologies, Inc. Second Quarter 2022 Earnings Conference Call. As a reminder, this conference call is being recorded ...

Himax Technologies, Inc. (NASDAQ:HIMX) Q1 2022 Earnings Conference Call May 12, 2022 8:00 AM ET Company Participants Mark Schwalenberg - Investor Relations Jordan Wu - President and Chief Executive Officer Jessica Pan - Chief Financial Officer Eric Li - Chief IR/PR Officer Conference Call Participants Donnie Teng - Nomura Jerry Su - Credit Suisse (Transcript provided to Seeking Alpha by the company.) Operator Hello, ladies and gentlemen. Welcome to the Himax Technologies, Inc. First Quarter 2022 Earnings Co ...