- Himax Technologies, Inc (NASDAQ: HIMX) reported a second-quarter FY22 revenue decline of 14.4% year-on-year to $312.6 million. Net revenues declined 24.3% Q/Q.
- Revenue from large display drivers declined by 38% Q/Q to $68.6 million. Monitor and notebook IC sales decreased sequentially.
- TV and notebook IC revenues were down double-digit sequentially due to customers' inventory control on the backdrop of slowing end market sell-through.
- Small and medium-sized display drivers' revenue was $201.6 million, down 22% Q/Q.
- Automotive IC sales in Q2 decreased low teens sequentially as the market due to China city lockdowns.
- Smartphone and tablet revenues declined double-digit sequentially as channel inventories across panel houses, OEMs, and end brands remained stubbornly high against the backdrop of continued sluggish demand.
- The revenue from its non-driver businesses was $42.4 million, slightly down from a quarter ago.
- Tcon's business was flat sequentially, supported by increasing Tcon shipment for automotive, AMOLED for tablet, and high-end displays.
- The non-IFRS gross margin contracted by 340 bps Q/Q to 43.6% due to price adjustments in support of its non-automotive customers and higher foundry prices.
- The non-IFRS operating margin declined by 700 bps Q/Q to 29.3%. Non-IFRS earnings per ADS were $0.439.
- Himax held $461.6 million in cash and equivalents and generated $9.1 million in operating cash flow.
- Dividend: Himax declared an annual cash dividend of $1.25 per ADS.
- Outlook: Himax sees Q3 revenue to decline 35% - 39% Q/Q. It expects non-IFRS earnings per ADS of $0.116 - $0.156.
- Price Action: HIMX shares traded lower by 4.66% at $6.75 in the premarket on the last check Thursday.
Read at Benzinga