Financial Performance - Fourth quarter revenue was $203.1 million, a sequential increase of 2.0% quarter-over-quarter, with gross margin at 30.4%, consistent with guidance [4][5] - Full year 2025 revenue totaled $832.2 million, a decline of 8.2% compared to 2024, with operating income at $44.1 million or 5.3% of sales [11][13] - Q4 profit per diluted ADS was $0.036, at the high end of the guidance range of $0.02-$0.04 [5] Business Segment Performance - Revenue from large display driver IC was $21.7 million, a sequential increase, accounting for 10.7% of total revenue [5][6] - Small and medium-sized display driver revenue totaled $139.1 million, reflecting a slight decline of 1.3% sequentially, while automotive driver sales increased approximately 10% quarter-over-quarter [6][7] - Non-driver sales reached $42.3 million, a 7.9% increase from the previous quarter, with T-CON business accounting for over 10% of total sales [8] Market Performance - Automotive driver sales showed resilience despite softness in global automotive markets, with full-year growth outpacing the broader market [6][11] - The small and medium-sized display driver IC segment accounted for 68.5% of total sales for the quarter, down from 70.8% in the previous quarter [7] Company Strategy and Industry Competition - The company is focusing on expanding into ultra-low power AI for endpoint devices and smart glasses, leveraging advancements in AI technology [21][25] - Himax aims to capture increasing semiconductor content as automotive display technologies evolve from LCD to OLED, with a strong design win pipeline [35][36] Management Commentary on Operating Environment and Future Outlook - Management noted ongoing macroeconomic uncertainty and price increases in memory affecting market sentiment, but expects sales to rebound in the second quarter [19][20] - The automotive display IC business is projected to remain strong, supported by new technology offerings and a robust design win pipeline [20][21] Other Important Information - Operating expenses for Q4 were $54.9 million, a decrease of 9.6% from the previous quarter, attributed to reduced annual bonuses and currency depreciation [9] - The company had $286.2 million in cash and cash equivalents as of December 31, 2025, an increase from the previous year [14] Q&A Session Summary Question: First quarter gross margin outlook - Management indicated that gross margin is expected to be flat to slightly down due to product mix changes and ongoing material cost pressures [47][48] Question: CPO revenue guidance for 2026 and 2027 - Management stated that revenue contribution from CPO will be limited in 2026 due to validation processes, with potential meaningful contributions starting in 2027 [52][54] Question: OLED sales expectations - Management noted that OLED sales are expected to grow significantly in 2027, with automotive and IT OLED products enjoying better margins compared to smartphone OLEDs [60][63]