Company Q2 2021 Revenues and Gross Margin were Both at the Upper Range of the Guidance. EPS Exceeded the Guidance; Revenues, Gross Margin and EPS, Again, All Reached All-Time Highs
Provides Q3 2021 Guidance: Revenues to Increase by 13% to 17% sequentially, Gross Margin is expected to be in the range of 50.5% to 52.0%, Non-IFRS Profit per Diluted ADS to be around 75.0 Cents to 81.0 Cents, and IFRS Profit per Diluted ADS to be around 63.0 Cents to 69.0 Cents
- Revenues, gross margin and EPS all reached all-time highs in Q2 2021
- Q2 revenues was $365.3M, an increase of 18.2% QoQ. Exceeded the guidance of an increase of around 15-20%. Continuous strong demands across all major business segments in Q2
- Q2 gross margin reached 47.5%, significantly up from the 40.2% in Q1 2021. Positioned at upper range of the guidance of 45.5% – 47.5%
- Product sales: large driver ICs, 23.4% of revenues, up 22.2% QoQ; small and medium-sized driver ICs, 63.1% of revenues, up 13.0% QoQ; non-driver products, 13.5% of revenues, up more than 40% QoQ
- Capacity shortage remained across all business segments in Q2. Company continued to strategically allocate assessible capacity favoring high margin product areas and key customers
- Q2 non-IFRS after-tax profit was $109.1M, or 62.4 cents per diluted ADS. Exceeded the guidance of 54.2 cents to 60.2 cents per diluted ADS
- Q2 non-IFRS operating income was $134.3 million, or 36.8% of sales, versus 27.5% of sales in the last quarter. Again, both operating income and operating margin reached historical highs
- Decent sequential increases in monitor and NB IC businesses in Q2 thanks to persisting demand for WFH/LFH. TV revenue was up an impressive double-digit QoQ mainly due to strong shipments of high-end TV products, including those to a world-leading end customer, as reported in last earnings call
- SMDDIC saw continued strong momentum in Q2, where automotive segment grew more than 22% QoQ, the highest growth among SMDDIC businesses. Q2 tablet sales continued to break sales records and accounted for more than 23% of total sales, slightly above smartphone IC business in weighting
- Q2 Tablet TDDI sales were up more than 30% QoQ which illustrated Company’s market leadership in non-iOS tablet and TDDI’s increasing penetration in the tablet market. Q2 Smartphone TDDI posted low single digit sequential growth due to the Company’s capacity allocation decision
- Himax is the pioneer in the world of automotive TDDI development, having started the first generation TDDI mass production as early as the Q2 2019. Further upgraded its design and now Himax’s Gen 2 TDDI for automotive has officially entered into mass production in Q3 with dominating design-win coverage across literally all display makers, numerous Tier-1 players and leading car manufactures across all automotive markets
- Q2 Tcon business registered a remarkable over 60% QoQ. Company anticipates Q3 Tcon sales to up mid-teens QoQ from some of the high value products areas such as 4K/8K TV, gaming monitor, and low power notebook
- For Himax’s WiseEye solution business, the Company is pleased to report new awards during Q2 from utility meter, battery camera and panoramic video conferencing applications. Some of these applications are expected to enter into mass production beginning Q4 2021
- In view of the foundry shortage and growing demand, the Company has entered into strategic agreements with foundry partners to cover both short-term and long-term needs. Likewise, Company is entering into strategic agreements with customers, including indirect end customers, who wish to secure IC supplies. All such contractual arrangements will help boost Himax’s future growth prospect and improve earnings visibility. Looking further ahead, Himax expects to also secure more capacity for 2022 as compared to 2021
TAINAN, Taiwan, Aug. 05, 2021 (GLOBE NEWSWIRE) — Himax Technologies, Inc. (Nasdaq: HIMX) (“Himax” or “Company”), a leading supplier and fabless manufacturer of display drivers and other semiconductor products, announced its financial results for the second quarter ended June 30, 2021.
“The semiconductor industry continues to go through a severe foundry shortage, especially in the mature process nodes where we are mainly anchored. With foundries running at more than full capacity while demand shows no indication of abating, the long-lasting unaddressed supply-demand imbalance remains. In view of the foundry shortage and anticipated growing demand for the foreseeable future, we have entered into strategic agreements with foundry partners to cover both our short-term and long-term needs. We are in the process of entering into further such agreements as we speak, with some of them involving new foundry partners, leaving nothing untried to expand our capacity pool. Likewise, across various product lines, we are entering into strategic agreements with customers who wish to secure their IC supplies. Some of them are indirect customers who don’t necessarily source ICs directly from us but still wish to enter into supply deals with us to ensure that their direct vendors, mostly panel makers in our case, will get their desired supply quantities from us. All such contractual arrangements will help boost our future growth prospects and improve earnings visibility,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax.
“Notwithstanding all these efforts, demand continues to outpace supply and we believe the imbalance could last well into 2022. However, we are on track for more accessible capacity to grow our business quarter by quarter this year. Looking further ahead, we expect to also secure more capacity for 2022 as compared to this year. We will provide more details as they come available,” concluded Mr. Jordan Wu.
Second Quarter 2021 Financial Results
Himax recorded net revenues of $365.3 million, an increase of 18.2% sequentially and an increase of 95.3% compared to the same period last year. The sequential increase was at the upper range of the guidance of an increase of around 15-20% quarter-over-quarter. Gross margin was 47.5%, at the upper range of the guidance of 45.5% to 47.5% and a significant 7.3 percentage points improvement from the 40.2% of the first quarter 2021. Non-IFRS profit per diluted ADS was 62.4 cents, exceeding its guidance of 54.2 cents to 60.2 cents. IFRS profit per diluted ADS was 62.3 cents, exceeding its guidance of 54.0 cents to 60.0 cents.
Revenue from large display drivers was $85.4 million, up 22.2% sequentially and up 43.7% year-over-year with sales growing through all three major product areas, namely TV, monitor and notebook. Both monitor and notebook IC revenues delivered decent sequential increases thanks to continuous home working and distance education demands. TV revenue was up an impressive double-digit quarter-over-quarter mainly due to strong shipments of high-end TV products, including those to a world-leading end customer, as the Company indicated in the last earnings call. Large panel driver ICs accounted for 23.4% of total revenues for this quarter, compared to 22.6% in the first quarter of 2021 and 31.8% a year ago.
Small and medium-sized display drivers saw continued strong momentum with revenue of $230.6 million, up 13.0% sequentially and up 133.4% year-over-year. Automotive segment delivered a more than 22% sequential increase in Q2, the highest growth among the three segments in the small and medium-sized driver IC business. TDDI for tablet was up more than 30% sequentially, a continuation from the high base last quarter, while smartphone TDDI posted low single digit sequential growth. Small and medium-sized segment accounted for 63.1% of total sales for the quarter, compared to 66.1% in the previous quarter and 52.8% a year ago.
The second quarter smartphone sales came in better-than-expected, with revenue reaching $83.9 million, up more than 200% compared to the same period last year. The smartphone segment represented around 23% of total sales in Q2. Company’s smartphone TDDI sales were still capped by severe capacity constraint and as the Company explained before, it continued to strategically allocate more capacity to tablet TDDI at the expense of smartphone shipment as the Company was the major supplier in the tablet TDDI market. Sales of traditional smartphone DDICs grew nicely as expected with seasonal demand. As mentioned several times before, traditional…
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