Core Insights - Himax Technologies, Inc. is participating in embedded world 2025, showcasing its WiseEye™ AI technology and innovative optical applications in collaboration with Liqxtal Technology Inc. [1] Group 1: WiseEye AI Technology - The WiseEye AI technology is an integrated endpoint AI solution that includes ultralow power processors, always-on CMOS image sensors, and CNN-based AI algorithms, making it suitable for various AIoT applications [2] - The latest WiseEye2 AI processor is PSA certified, emphasizing a security-by-design approach for reliable AIoT applications [2] - The WiseEye PalmVein Module utilizes bimodal authentication technology for flexible access control, achieving a False Acceptance Rate (FAR) of one in a million and a False Rejection Rate (FRR) below 1% [3] Group 2: Thermal Imaging Solutions - Himax, in partnership with Calumino, will present advanced thermal imaging sensing solutions that integrate the WiseEye AI processor and low-power CMOS image sensors, enabling applications such as people flow detection and health monitoring [4] Group 3: Liqxtal Optical Technology - Liqxtal is unveiling several patented products, including Liqxtal® Graph, Liqxtal® Dim, and Liqxtal® Pro-Eye, which enhance smart displays and wearables [5] - The Liqxtal® Pro-Eye display offers a 125-inch virtual screen experience and helps alleviate digital eye fatigue, making it suitable for various industrial applications [6] - Liqxtal® Graph features Bluetooth connectivity and allows dynamic content display on smart eyewear, while Liqxtal® Dim provides adaptive light dimming functionality for smart sunglasses [7][8]

Financial Performance - Q4 2024 revenues reached $237.2 million, a sequential increase of 6.7% and a year-over-year increase of 4.2%, exceeding guidance [8] - Gross margin for Q4 was 30.5%, up from 30% in the previous quarter and 30.3% a year ago, driven by a favorable product mix and cost improvements [8] - Q4 profit per diluted ADS was $0.14, significantly above the guidance range of $0.09 to $0.11, attributed to better-than-expected revenues and improved costs [9] - Full year 2024 revenues totaled $906.8 million, a decline of 4.1% compared to 2023, with net profit increasing to $79.8 million or $0.46 per diluted ADS, up from $50.6 million or $0.29 in 2023 [17][21] Business Line Performance - Revenue from large display drivers was $25 million, an 18.6% sequential decline due to customer destocking and price competition [9] - Small- and medium-sized display driver segment revenues totaled $166.8 million, a 7.4% sequential increase, driven by strong sales in automotive and tablet markets [10] - Non-driver sales reached $45.4 million, a 24.9% increase from the previous quarter, primarily due to a one-time Tcon product shipment [13] - Automotive driver sales saw a mid-teens increase, with TDDI sales surpassing DDIC sales for the first time, reflecting strong demand for TDDI technology [11] Market Performance - Automotive IC sales increased nearly 20% year-over-year in 2024, significantly outpacing overall automotive market growth [18] - Revenue for large panel display drivers decreased by 28.3% year-over-year, while small and medium-sized drivers saw a slight decrease of 0.6% [19] - Non-driver sales increased by 10.6% year-over-year, representing 17.1% of total sales [19] Company Strategy and Industry Competition - The company is focusing on automotive TDDI and Tcon technologies, anticipating continued growth in these areas [32] - Himax is advancing in the automotive OLED sector, with numerous projects underway in partnership with leading panel makers [32] - The company is also expanding its technology development beyond display ICs, particularly in the WiseEye AI segment [33] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the automotive business despite ongoing macroeconomic challenges, with strict budget and expense controls implemented [16][18] - The company expects Q1 2025 revenues to decrease by 8.5% to 12.5% sequentially due to seasonal demand, but year-over-year performance is expected to range from flat to a 4.6% increase [27] - Management noted that while some peers are experiencing order pullbacks due to tariff factors, this trend has not been observed in the automotive sector [104] Other Important Information - The company had $224.6 million in cash and equivalents as of December 31, 2024, with a strong positive operating cash flow of $35.4 million for Q4 [22] - Inventory levels have declined to a healthy level of $158.7 million, down from $217.3 million a year ago [23] Q&A Session Summary Question: Update on CPO adoption and competition landscape - Management indicated that 2025 will focus on engineering validation with limited revenue contribution expected, while mass production is likely to commence in 2026 [86][91] - The potential annualized revenue for CPO could reach hundreds of millions of dollars, depending on customer demand and market penetration [91][92] Question: Automotive driver IC business outlook - The sequential decline in automotive driver IC sales is attributed to seasonal factors, with inventory levels remaining healthy [102][104] - Gross margin is expected to remain flat, influenced by product mix changes between DDIC and TDDI [105] Question: Automotive revenue mix and design wins - Management noted no significant difference in automotive revenue mix between Chinese and non-Chinese customers, with a strong market presence across major regions [108] - The design win process involves a strict definition, with timelines varying based on technology maturity and customer type [112][115]

Financial Performance - Q4 2024 revenues reached $237.2 million, a sequential increase of 6.7% and up 4.2% year over year, exceeding guidance [5][12] - Gross margin for Q4 was 30.5%, up from 30% in the previous quarter and 30.3% a year ago, driven by a favorable product mix and cost improvements [6][11] - Q4 profit per diluted ADS was $0.14, significantly above the guidance range of $0.093 to $0.11 [6] - Full year 2024 revenues totaled $906.8 million, a decline of 4.1% compared to 2023, with operating expenses down 5.6% [12][15] - Net profit for 2024 was $79.8 million or $0.46 per diluted ADS, up from $50.6 million or $0.29 per diluted ADS in 2023 [16] Business Line Performance - Revenue from large display drivers in Q4 was $25 million, an 18.6% sequential decline, attributed to customer destocking and price competition [6][7] - Small and medium-sized discrete driver segment revenue was $166.8 million, a 7.4% sequential increase, driven by strong automotive and tablet market sales [7][8] - Non-driver sales in Q4 reached $45.4 million, a 24.9% increase from the previous quarter, primarily due to a one-time product shipment [9] Market Performance - Automotive driver sales increased by nearly 20% year over year in 2024, significantly outpacing overall automotive market growth [12][22] - Automotive TDDI and key car sales surged by more than 70%, reflecting strong adoption across the board [12][13] - Revenue from large panel display drivers decreased by 28.3% year over year, accounting for 13.9% of total sales [13][14] Company Strategy and Industry Competition - The company is focusing on advancing automotive OLED technology and expanding its technology development beyond display ICs [22][23] - Himax is well-positioned in the automotive display market, with a strong emphasis on TDDI technology and partnerships with leading panel makers [36][37] - The company is also exploring opportunities in the AI and IoT sectors, with significant advancements in smart home applications and AI sensing solutions [24][42] Management Commentary on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic challenges but emphasized strict budget and expense control measures [11] - The company expects Q1 2025 revenues to decrease by 8.5% to 12.5% sequentially due to seasonal demand [19] - Management remains optimistic about the automotive business and anticipates continued growth in TDDI and OLED technologies [22][37] Other Important Information - The company reported a strong positive operating cash flow of $35.4 million for Q4 2024 [16] - Inventory levels have declined to healthy levels, with year-end inventory at $158.7 million [17] - Capital expenditures for 2024 were $13.1 million, down from $23.4 million in 2023, primarily due to reduced spending on in-house projects [18] Q&A Session Summary Question: Updates on CPO adoption and competition landscape - Management indicated that 2025 will focus on engineering validation with limited revenue contribution, expecting mass production to commence in 2026 [55][56] - Annualized potential revenue for CPO could reach hundreds of millions of dollars, with significant demand anticipated [58][62] Question: Core driver IC business outlook - The sequential decline in Q1 is attributed to seasonal factors, with no significant changes in inventory levels reported [64][66] - Gross margin is expected to remain stable due to a favorable product mix, despite lower sales contributions from automotive [66][67]

Financial Performance - Q4 2024 revenues reached $237.2 million, a 6.7% increase QoQ, significantly exceeding guidance of a slight decrease to flat [3] - Q4 2024 gross margin was 30.5%, up from 30.0% in Q3 2024, driven by a favorable product mix and cost improvements [3] - Q4 2024 after-tax profit was $24.6 million, or 14.0 cents per diluted ADS, well above the guidance range of 9.3 to 11.0 cents [3] - Full year 2024 revenues totaled $906.8 million, with a gross margin of 30.5%, and profit attributable to shareholders was $0.46 per fully diluted ADS [13] - Profit for the period for the three months ended December 31, 2024, was $25,031 thousand, up from $23,285 thousand in 2023, reflecting an increase of approximately 7.5% [66] - Profit for the period increased to $79,770 million in 2024 from $49,421 million in 2023, representing a growth of 61.3% [69] Revenue Guidance and Projections - Q1 2025 revenue guidance indicates a decline of 8.5% to 12.5% QoQ, reflecting low season demand due to Lunar New Year holidays [3] - Himax expects Q1 2025 Tcon sales to decrease mid-teens sequentially, primarily due to the non-recurrence of a one-time shipment to a leading projector customer [39] - Himax's Q1 2025 guidance indicates a net revenue decrease of 8.5% to 12.5% QoQ, but a flat to 4.6% increase YoY, with a gross margin around 30.5% [51] - Profit for Q1 2025 is projected to be between 9.0 cents to 11.0 cents per diluted ADS, representing a year-over-year increase of 26% to 54% [51] Market and Product Developments - Automotive driver IC sales increased nearly 20% YoY in 2024, significantly outpacing global automotive growth, with Himax holding over 50% market share in automotive TDDI [13] - Himax is advancing development in automotive OLED technology, which is expected to be a key growth driver in the coming years [22] - Himax's automotive driver IC sales increased nearly 20% year-over-year in 2024, significantly outpacing global automotive growth [31] - The company anticipates a single-digit sequential sales increase for large display driver ICs in Q1 2025, driven by demand from Chinese government subsidies for household appliances [29] - Himax's CPO technology is expected to see accelerated adoption in high-performance AI applications, with increased trial production volume forecasts from customers [25] - Himax's WiseEye AI segment anticipates strong growth in 2025, with notable progress in smart home applications and collaborations with leading brands [23] - The latest Front-lit LCoS Microdisplay technology offers an industry-leading brightness of 400k nits, positioning Himax as a key player in the AR glasses market [26] - Himax is well-positioned to capture new growth opportunities in the automotive OLED market, leveraging strategic partnerships with leading panel makers [35] Operating Expenses and Financial Health - Operating expenses for 2024 were $208.0 million, a decline of 5.6% from 2023, primarily due to lower employee bonus compensation [16] - Total current assets decreased to $1,168,043 thousand as of December 31, 2024, from $1,200,585 thousand in 2023, a decline of approximately 2.7% [63] - Cash and cash equivalents increased to $218,148 thousand from $191,749 thousand, representing a growth of about 13.7% year-over-year [63] - Total liabilities decreased to $743,194 thousand as of December 31, 2024, from $779,702 thousand in 2023, a reduction of about 4.7% [64] - Retained earnings increased to $664,600 thousand from $640,447 thousand, marking a growth of approximately 3.4% year-over-year [64] - Total equity attributable to owners of Himax Technologies increased to $890,061 thousand from $856,768 thousand, an increase of approximately 3.9% [64] Cash Flow and Investments - Net cash provided by operating activities for the three months ended December 31, 2024, was $35,417 thousand, compared to $68,742 thousand in 2023, indicating a decrease of about 48.5% [67] - The company reported a cash flow from investing activities of $(4,626) thousand for the three months ended December 31, 2024, compared to $(22,987) thousand in 2023, showing an improvement [67] - Cash generated from operating activities decreased to $119,397 million from $203,420 million, a decline of 41.3% [69] - Net cash used in investing activities was $(516) million, significantly improved from $(88,882) million in the previous year [70] - Payments of cash dividends decreased to $50,670 million from $83,720 million, a reduction of 39.5% [70] - Proceeds from short-term secured borrowings increased to $1,780,300 million from $1,383,300 million, an increase of 28.7% [70] Inventory and Depreciation - The company’s inventories decreased to $158,746 thousand from $217,308 thousand, a decline of approximately 27% year-over-year [63] - Total depreciation and amortization expenses rose to $22,354 million from $20,322 million, an increase of 10.0% [69] - Inventories write downs decreased to $13,551 million from $21,540 million, a reduction of 37.0% [69]

Core Insights - Himax Technologies, Inc. reported Q4 2024 revenues of $237.2 million, exceeding guidance and reflecting a 6.7% increase QoQ and 4.2% YoY [4][6] - The company anticipates Q1 2025 revenues to decline by 8.5% to 12.5% QoQ, but expects a flat to 4.6% increase YoY [1][51] - Gross margin for Q4 2024 reached 30.5%, surpassing guidance and up from 30.0% in Q3 2024 [4][6] Financial Performance - Q4 2024 after-tax profit was $24.6 million, or 14.0 cents per diluted ADS, significantly above the guidance range of 9.3 to 11.0 cents [4][11] - Full year 2024 revenues totaled $906.8 million, with a gross margin of 30.5%, up from 27.9% in 2023 [13][15] - Operating expenses for 2024 decreased by 5.6% to $208.0 million, primarily due to lower employee bonus compensation [16][10] Product Segments - Automotive driver IC sales increased nearly 20% YoY in 2024, significantly outpacing global automotive growth, with Himax holding over 50% market share in automotive TDDI [13][22] - Revenue from large display drivers fell 18.6% sequentially due to customer destocking and price competition [7] - Small and medium-sized display driver segment saw a 7.4% sequential increase, driven by strong automotive and tablet market sales [8] Technology and Innovation - Himax showcased advancements in automotive display technology, WiseEye AI, and optical technologies for AR/VR at CES 2025, highlighting a growing trend in AR glasses [3][26] - The company is advancing its proprietary wafer-level optics (WLO) technology for co-packaged optics (CPO), which is expected to enhance data transmission capabilities [24][46] - WiseEye AI technology is gaining traction in various applications, including smart door locks and AIoT solutions, with significant market success anticipated [41][42] Market Outlook - Himax expects continued growth in its automotive TDDI and Tcon technologies, positioning itself well for future market demands [22][36] - The company is actively expanding its technology development beyond display ICs, with a strong growth trajectory anticipated in the WiseEye business [23][41] - Himax is well-positioned to capitalize on the trend of premium notebooks adopting OLED displays and touch features, driven by the rise of AI PCs [31][36]

Group 1 - The article is authored by a writer with a focus on Long/Short investment ideas in North America, indicating a specialized approach to investment analysis [1] - The writer has a strong academic background in finance and economics, which may enhance the credibility of the insights provided [1] Group 2 - There is no disclosure of any stock or derivative positions in the companies mentioned, suggesting an unbiased perspective in the analysis [2] - The article emphasizes that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [3]

Group 1 - The article discusses the investment opportunity in Himax Technologies (NASDAQ: HIMX), which was identified as mispriced when it was trading at $13.9 per share in April 2021, with a P/E ratio above 40x [1] - The investment group Beyond the Wall Investing offers features such as a fundamentals-based portfolio, weekly analysis from institutional investors, and alerts for short-term trade ideas based on technical signals [1] - The analyst has a beneficial long position in HIMX shares, indicating confidence in the company's future performance [1]

Core Insights - Himax Technologies is identified as a key supplier for Taiwan Semiconductor Manufacturing Co (TSMC) in the development of silicon photonics, specifically the Compact Universal Photonic Engine (COUPE) [1][4] - Revenue projections for Himax indicate significant growth, with estimates of $1.16 billion in 2026, $1.42 billion in 2027, and $2.4 billion in 2028, alongside EPS forecasts of $1.00, $1.60, and $3.40 for the same years [2] - The first generation of COUPE is in mass production validation, while the second generation is expected to begin validation in the first half of 2026 [3][6] Company Developments - Himax is the exclusive supplier of micro-lens arrays for both the first and second generations of COUPE, with a potential second supplier emerging for the third generation [4][6] - Taiwan Semiconductor prioritizes COUPE among its developing technologies, providing multi-year visibility for the project [4] - Nvidia's collaboration with Taiwan Semiconductor on silicon photonics is expected to take several years, with Advanced Micro Devices likely to be the first client to adopt COUPE [5] Market Outlook - If mass production timelines are met, Nvidia's Rubin Ultra could be the first product utilizing COUPE, with Himax remaining the sole micro-lens array supplier for the initial generations [6] - Recent stock performance shows Himax (HIMX) up 5.91% to $10.13, while TSMC (TSM) is up 2.99% [6]

TAINAN, Taiwan, Jan. 13, 2025 (GLOBE NEWSWIRE) -- Himax Technologies, Inc. (Nasdaq: HIMX) (“Himax” or “Company”), a leading supplier and fabless manufacturer of display drivers and other semiconductor products, today announced that it will hold a conference call with investors and analysts on Thursday, February 13, 2025, at 8:00 a.m. US Eastern Standard Time and 9:00 p.m. Taiwan Time to discuss the Company's fourth quarter and full year 2024 financial results. HIMAX TECHNOLOGIES, INC. FOURTH QUARTER AND FUL ...

Collaboration Overview - AUO and Himax collaborate to showcase AUO's Display HMI—AmLED® integrated automotive display platform, featuring Himax's advanced automotive IC solutions at CES 2025 [1] - The collaboration aims to set new benchmarks for clarity, functionality, and sustainability in smart cockpit experiences for modern vehicles [1] Technological Innovations - AUO leverages its advanced Display HMI technologies to enhance user experience, improve visual clarity, and support green technology in smart cockpits [2] - Himax provides comprehensive automotive IC solutions, including traditional DDIC, TDDI, local dimming Tcon, and other advanced solutions, driving innovation in the automotive display sector [2] - AUO exhibits a 16-inch AmLED® display at CES 2025, incorporating Himax's local dimming Tcon HX6630-B, achieving up to 50% power savings and supporting ESG goals [3] - The 16-inch display also features Himax's third-generation TDDI HX83195, enabling ultra-high 3.2K x 2K resolution and instant, delay-free touch response [3] - A second demo highlights an AmLED® integrated display solution for dashboards, featuring dual 23-inch curved displays powered by Himax automotive DDIC HX82105-A, with high-speed data transmission and large-size pillar-to-pillar display capability [3] Enhanced Display Features - Himax's local dimming Tcon HX8880-F provides up to 4800 dimming zones, delivering exceptional contrast and enabling a privacy function with active anti-glare mode for the passenger-side screen [4] - The AmLED® display technologies enhance visual clarity, vehicle occupant interaction, and overall performance in the smart cockpit, combining superior display contrast, energy efficiency, instant touch response, and driver protection features [4] Industry Impact - The collaboration between AUO and Himax supports next-gen human-machine interfaces and sustainability goals, driving the future of automotive display technology while elevating functionality and aesthetics [4] - AUO's AmLED® automotive display solutions advance the integration of sustainability with exceptional energy efficiency, meeting the evolving needs of smart and autonomous vehicles [5] - Himax's expertise in automotive IC solutions ensures seamless integration and optimal performance of automotive displays, elevating the user experience and revolutionizing the functionality of modern vehicles [5] Company Background - Himax Technologies is a leading global fabless semiconductor solution provider specializing in display imaging processing technologies, with a dominant market share in automotive display technology [6][7] - The company offers a comprehensive portfolio of automotive IC solutions, including traditional driver ICs, advanced TDDI, local dimming Tcon, LTDI, and OLED display technologies [7] - Himax is also a pioneer in tinyML visual-AI and optical technology, with its WiseEyeTM Ultralow Power AI Sensing technology widely deployed in consumer electronics and AIoT applications [7] - As of December 31, 2024, Himax has 2,649 patents granted and 402 patents pending approval worldwide [7]