Core Viewpoint - Himax Technologies reported Q4 2025 financial results that met guidance expectations, with a sequential revenue increase and a stable gross margin, while providing a cautious outlook for Q1 2026 due to macroeconomic uncertainties and anticipated declines in revenue and gross margin [1][3][4][11]. Financial Performance - Q4 2025 net revenues were $203.1 million, a sequential increase of 2.0%, exceeding the company's guidance of flat quarter-over-quarter [3][4]. - Gross margin for Q4 2025 was 30.4%, consistent with the guidance of flat to slightly up from 30.2% in the previous quarter [3][4]. - Q4 profit per diluted ADS was 3.6 cents, at the high end of the guidance range of 2.0 to 4.0 cents [3][4]. - Full year 2025 revenues totaled $832.2 million, an 8.2% decline compared to 2024, with gross margin slightly up at 30.6% [11][12]. Segment Performance - Revenue from large display drivers in Q4 2025 was $21.7 million, a 14.2% increase from the previous quarter, outperforming guidance [4][5]. - Small and medium-sized display driver segment revenues totaled $139.1 million, reflecting a slight decline of 1.3% sequentially [6]. - Non-driver sales reached $42.3 million, a 7.9% increase from the previous quarter, driven by increased ASIC Tcon shipments [7]. Q1 2026 Guidance - Company expects Q1 2026 revenues to decline by 2.0% to 6.0% quarter-over-quarter, with gross margin anticipated to be flat to slightly down [1][47]. - Profit per diluted ADS for Q1 2026 is projected to be in the range of 2.0 cents to 4.0 cents [1][47]. Industry Outlook - The automotive sector outlook remains limited due to uncertain government policies and consumer sentiment, but sales are expected to rebound in Q2 2026 [2][18]. - Himax is optimistic about its long-term automotive display IC business, supported by a strong design-win pipeline and new technology offerings [19]. - The company continues to expand into ultralow power AI technologies and other emerging areas, which are expected to drive future growth [20][21]. Strategic Initiatives - Himax is focusing on expanding its WiseEye AI technology, which is gaining traction in smart glasses and other applications [24][46]. - The company is also advancing its Co-Packaged Optics (CPO) initiatives, aiming for mass production readiness in 2026 [25][26]. - Himax's automotive display IC business is positioned to benefit from the shift towards OLED technologies and advanced display solutions [33][34].

Financial Performance - In Q2 2025, Himax reported revenues of $214.8 million, a slight decrease of 0.2% QoQ, which was within the guidance range [4][5] - Gross margin for Q2 2025 reached 31.2%, exceeding the guidance of around 31% and improving from 30.5% in the previous quarter [4][5] - After-tax profit for Q2 2025 was $16.5 million, or 9.5 cents per diluted ADS, aligning with the guidance range of 8.5 to 11.5 cents [4][5] Q3 2025 Guidance - For Q3 2025, Himax anticipates revenues to decline by 12% to 17% QoQ, with gross margin expected to be around 30% [4][44] - The company expects a loss per diluted ADS in the range of 2.0 cents to 4.0 cents for Q3 2025 [4][44] Tariff Policy Impact - The U.S. government announced plans to impose tariffs of approximately 100% on semiconductor chips imported from companies that do not manufacture in the U.S., but tariffs have not significantly impacted Himax's business as only about 2% of its products are shipped directly to the U.S. [2][15] - Recent clarifications of U.S. tariff measures have helped reduce uncertainty in the global trade environment [2][15] Automotive Sector Outlook - Himax holds the No.1 global market share in automotive display ICs and remains optimistic about long-term growth in this sector, particularly in automotive TDDI and Tcon technologies [3][18] - The automotive driver sales for the first half of 2025 recorded a 3.2% year-over-year increase, indicating resilient demand despite global softness in automotive sales [7][18] Non-Driver Products - Non-driver sales reached $45.4 million in Q2 2025, a 14.7% increase from the previous quarter, primarily due to increased shipments of Tcon for automotive and monitor products [8] - Himax continues to lead in automotive Tcon technology, with a strong pipeline of over 200 design wins poised for mass production [8][35] WiseEye AI and New Business Areas - Himax's WiseEye AI technology is entering a phase of rapid growth, becoming a key growth driver for the company [21][22] - The company is expanding into new business areas such as smart glasses and Co-Packaged Optics (CPO), which are expected to drive long-term growth [21][23] Balance Sheet and Cash Flow - As of June 30, 2025, Himax had $332.8 million in cash and cash equivalents, an increase from $281.0 million in the previous quarter [11] - The company anticipates a decline in cash and equivalents in Q3 2025 due to dividend payments and employee bonuses [11][12]