Himax(HIMX)2025-02-13 17:33Financial Performance - Q4 2024 revenues reached 0.14, significantly above the guidance range of 0.11, attributed to better-than-expected revenues and improved costs [9] - Full year 2024 revenues totaled 79.8 million or 50.6 million or 25 million, an 18.6% sequential decline due to customer destocking and price competition [9] - Small- and medium-sized display driver segment revenues totaled 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 35.4 million for Q4 [22] - Inventory levels have declined to a healthy level of 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]