Himax(HIMX)2025-02-13 11:05Financial Performance - Q4 2024 revenues reached $237.2 million, a 6.7% increase QoQ, significantly exceeding guidance of a slight decrease to flat [3] - Q4 2024 gross margin was 30.5%, up from 30.0% in Q3 2024, driven by a favorable product mix and cost improvements [3] - Q4 2024 after-tax profit was $24.6 million, or 14.0 cents per diluted ADS, well above the guidance range of 9.3 to 11.0 cents [3] - Full year 2024 revenues totaled $906.8 million, with a gross margin of 30.5%, and profit attributable to shareholders was $0.46 per fully diluted ADS [13] - Profit for the period for the three months ended December 31, 2024, was $25,031 thousand, up from $23,285 thousand in 2023, reflecting an increase of approximately 7.5% [66] - Profit for the period increased to $79,770 million in 2024 from $49,421 million in 2023, representing a growth of 61.3% [69] Revenue Guidance and Projections - Q1 2025 revenue guidance indicates a decline of 8.5% to 12.5% QoQ, reflecting low season demand due to Lunar New Year holidays [3] - Himax expects Q1 2025 Tcon sales to decrease mid-teens sequentially, primarily due to the non-recurrence of a one-time shipment to a leading projector customer [39] - Himax's Q1 2025 guidance indicates a net revenue decrease of 8.5% to 12.5% QoQ, but a flat to 4.6% increase YoY, with a gross margin around 30.5% [51] - Profit for Q1 2025 is projected to be between 9.0 cents to 11.0 cents per diluted ADS, representing a year-over-year increase of 26% to 54% [51] Market and Product Developments - Automotive driver IC sales increased nearly 20% YoY in 2024, significantly outpacing global automotive growth, with Himax holding over 50% market share in automotive TDDI [13] - Himax is advancing development in automotive OLED technology, which is expected to be a key growth driver in the coming years [22] - Himax's automotive driver IC sales increased nearly 20% year-over-year in 2024, significantly outpacing global automotive growth [31] - The company anticipates a single-digit sequential sales increase for large display driver ICs in Q1 2025, driven by demand from Chinese government subsidies for household appliances [29] - Himax's CPO technology is expected to see accelerated adoption in high-performance AI applications, with increased trial production volume forecasts from customers [25] - Himax's WiseEye AI segment anticipates strong growth in 2025, with notable progress in smart home applications and collaborations with leading brands [23] - The latest Front-lit LCoS Microdisplay technology offers an industry-leading brightness of 400k nits, positioning Himax as a key player in the AR glasses market [26] - Himax is well-positioned to capture new growth opportunities in the automotive OLED market, leveraging strategic partnerships with leading panel makers [35] Operating Expenses and Financial Health - Operating expenses for 2024 were $208.0 million, a decline of 5.6% from 2023, primarily due to lower employee bonus compensation [16] - Total current assets decreased to $1,168,043 thousand as of December 31, 2024, from $1,200,585 thousand in 2023, a decline of approximately 2.7% [63] - Cash and cash equivalents increased to $218,148 thousand from $191,749 thousand, representing a growth of about 13.7% year-over-year [63] - Total liabilities decreased to $743,194 thousand as of December 31, 2024, from $779,702 thousand in 2023, a reduction of about 4.7% [64] - Retained earnings increased to $664,600 thousand from $640,447 thousand, marking a growth of approximately 3.4% year-over-year [64] - Total equity attributable to owners of Himax Technologies increased to $890,061 thousand from $856,768 thousand, an increase of approximately 3.9% [64] Cash Flow and Investments - Net cash provided by operating activities for the three months ended December 31, 2024, was $35,417 thousand, compared to $68,742 thousand in 2023, indicating a decrease of about 48.5% [67] - The company reported a cash flow from investing activities of $(4,626) thousand for the three months ended December 31, 2024, compared to $(22,987) thousand in 2023, showing an improvement [67] - Cash generated from operating activities decreased to $119,397 million from $203,420 million, a decline of 41.3% [69] - Net cash used in investing activities was $(516) million, significantly improved from $(88,882) million in the previous year [70] - Payments of cash dividends decreased to $50,670 million from $83,720 million, a reduction of 39.5% [70] - Proceeds from short-term secured borrowings increased to $1,780,300 million from $1,383,300 million, an increase of 28.7% [70] Inventory and Depreciation - The company’s inventories decreased to $158,746 thousand from $217,308 thousand, a decline of approximately 27% year-over-year [63] - Total depreciation and amortization expenses rose to $22,354 million from $20,322 million, an increase of 10.0% [69] - Inventories write downs decreased to $13,551 million from $21,540 million, a reduction of 37.0% [69]