Himax Registers 23% Sequential Growth In Q4 Revenue; Expects Recovery In Q2

Himax Technologies, Inc HIMX reported a fourth-quarter FY22 revenue decline of 42% year-on-year to $262.3 million, beating the consensus of $240.1 million. Net revenues grew 22.8% Q/Q.
Revenue from large display drivers grew by 5.3% Q/Q to $43.5 million.
TV grew by single-digit Q/Q while the monitor and notebook sales were better than guided.
Small and medium-sized display drivers' revenue was $177.4 million, up 25.5% Q/Q.
The automotive business grew by a single-digit Q/Q. The automotive TDDI sales surged by more than 170% Y/Y, boosted by the robust adoption of the technology for customers' new-generation car models.
Small and medium-sized display driver revenue was $177.4 million, up by 25.5% Q/Q, due to higher shipment of TDDI in smartphones, tablets, and automotive.
Revenue from its non-driver businesses was $41.4 million, up 33.8% Q/Q.
Tcon business was up a double-digit sequentially, bolstered by higher shipment of large-sized display drivers, automotive drivers, and tablet drivers for AMOLED.
For automotive Tcon, Himax anticipates business momentum to accelerate in the coming quarters, backed by a strong order pipeline and rapidly expanding design wins across different continents.
The non-IFRS gross margin contracted 580 bps to 30.5% Q/Q due to price erosion from offloading excess inventory.
The non-IFRS operating margin declined by 1,40 bps Q/Q to 13.1%. Non-IFRS earnings per ADS of $0.27 beat the consensus of $0.22.
Himax held $221.6 million in cash and equivalents and generated $5.5 million in operating cash flow.
"On the revenue front, we expect the first quarter to be the trough of the year with sales rebounding in the second quarter and business momentum continuing to improve into the second half of 2023," Himax CEO Jordan Wu said.
Outlook: Himax sees Q1 revenue decrease from 12.0% to 17.0% Q/Q (consensus $229.2 million). It expects non-IFRS earnings per ADS of $0.065 - $0.010 (consensus $0.12).
Price Action: HIMX shares traded higher by 1.57% at $8.39 in the premarket on the last check Thursday.

Market News and Data brought to you by Benzinga APIs

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Zinger Key Points