Himax Technologies, Inc. (ADR)(NASDAQ:HIMX) Q3 2017 Revenue Jumps 29.9% Sequentially

Himax Technologies, Inc. (ADR)(NASDAQ:HIMX) reported that Q3 2017 revenue came at $197.1 million, a drop of 9.6% YoY and an increase of 29.9% sequentially. Revenue from large panel display drivers came at $54.9 million, down 23.7% YoY and up 5.4% sequentially. Large panel driver ICs made for 27.9% of the firm’s total revenues for Q3 2017 versus 33% a year ago and 34.4% in Q2 2017.

The details

As opposed to the previous projection of 10% sequential growth, Himax large panel driver business surged merely mid-single-digit as one of its Chinese clients deferred some shipment to the fourth quarter. The segment’s rebound from the first half was led mainly by stronger sales in TV segment. The year-over-year drop was an outcome of phase-out of certain clients’ old models.

Himax is delighted with its existing design-in and engineering collaboration plans with large panel clients across Taiwan, Korea and China. Such activities will result in further rebound in imminent sales momentum. Revenue for medium and small-sized drivers was $87.2 million, down 12.2% YoY, but up 24.5% sequentially.

The product division comprised for 44.2% of total sales for Q3 2017, as compared to 45.5% a year ago and 46.1% in Q2 2017. Sales into smartphones bounced back strongly, up over 30% sequentially, but still dropping 36% YoY. The robust sales of smartphone driver IC were led by clients’ replenishment of inventories following a lackluster first half.

The YoY drop in the third quarter was primarily the outcome of a shrinking addressable segment for pure TFT-LCD driver ICs in the smartphones division, a notable part of which is being replaced by AMOLED and TDDI technologies as the firm highlighted in initial earnings calls. The promising update is that its TDDI solutions have commenced some shipment in Q3 2017 and are projected to commence ramping in Q4. Sales into automotive segment surged 205 YoY and single digit sequentially.

Symbol        Alert        High        Gain

 

  VBIO          $0.67       $4.10      500%

  IMLFF        $0.11       $0.57      400%

  CMXC        $0.25       $0.45      80%

  REPCF       $0.54       $0.79      48%

 

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