Himax(HIMX)2023-02-08 16:00Financial 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]