Core Viewpoint - Himax Technologies and AUO Corporation have announced a new proprietary Front-lit LCoS microdisplay designed for AR glasses and wearable devices, set to be showcased at CES 2026, highlighting advancements in display technology [1][5]. Group 1: Product Features - The new LCoS microdisplay features a resolution of 720 × 720, delivering sharp images in a compact form factor [2]. - It operates at an ultralow power consumption of 200 mW, achieving brightness levels of up to 350,000 nits and 1 lumen output, suitable for various lighting conditions [2]. - The optical efficiency of the display is up to 1,000 nits/lm, ensuring high brightness and power efficiency [2]. Group 2: Design and Usability - The LCoS module is designed to be compact and lightweight, measuring 0.09 c.c. in volume and weighing only 0.21 grams without the collimator lens [3]. - With the collimator, the module remains compact at 0.34 c.c. and 0.79 grams, showcasing advanced optical miniaturization [3]. - The ultra-light design enhances comfort and usability for prolonged daily use, making it suitable for stylish device form factors [4]. Group 3: Color Performance - The microdisplay achieves 140% sRGB color gamut coverage, providing a rich and accurate color spectrum for an immersive AR experience [4]. Group 4: Industry Impact and Collaboration - The partnership between Himax and AUO aims to meet the growing demand for next-generation display technologies in AR wearables [5]. - The collaboration combines expertise in optics and waveguide technologies, enhancing the quality and integration of LCoS technology [5]. - The new LCoS module is currently being evaluated by several top-tier technology companies and AR glasses makers worldwide [5].

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]

Company Overview - Himax is a global display and imaging IC design house[4] - The company was ranked as a Global Top 10 Fabless IC Design Company in 2021[18] - In 2022, Himax achieved $1.2 billion in sales, shipping an average of 60 million ICs per month[5,18] - Himax has a 40% global market share in driver ICs for automotive displays[5] - As of March 31, 2025, Himax held 2,603 granted patents and 389 pending approval worldwide[34] Financial Performance and Guidance - In Q1 2025, Himax reported revenues of $215.1 million, a 3.7% increase year-over-year[30] - The gross margin for Q1 2025 was 30.5%[30] - Profit for Q1 2025 reached $20.0 million, with earnings per ADS at $0.114[30] - For 2024, revenues totaled $906.8 million, with a gross margin of 30.5% and profit of $79.8 million[30] - The company anticipates Q2 2025 revenues to decrease 5.0% to increase 3.0% sequentially, with a gross margin around 31.0%[30] Shareholder Returns - Since its IPO, Himax has returned $1,005 million to shareholders through dividends and share buybacks[24] - As of 2024, Himax had repurchased a total of 46.7 million ADSs at an average purchase price of $3.16[29] - Insider ownership accounts for 24.4% of the company's shares as of May 7, 2025[19]