Company Meets
Q2 2018
Revenue, Gross Margin
Guidance, Exceeds EPS
Guidance
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, 2018.
“The Company’s second quarter 2018 revenues and
gross margin met our guidance while IFRS earnings per diluted ADS
exceeded guidance. The anticipated sequential growth in revenue was
mainly driven by accelerating TDDI shipment in the smartphone
sector and further growth in the automotive sector in the small and
medium-sized display driver business. Furthermore, our WLO business
in the non-driver IC business rebounded as anticipated. Shipment
volume increased and WLO capacity utilization improved
subsequently,” said Mr. Jordan Wu, President and Chief Executive
Officer of Himax.
“Looking into the third quarter, we expect our
large display driver IC business will grow sequentially benefiting
from Chinese panel customers’ capacity expansion and the ramping of
new fabs. Our small and medium-sized business is likely to decline
as our growth in the automotive segment will be offset by the
significant decline of smartphone sales. The soft
smartphone sales was caused by our limited TDDI shipment due
to the constraint of industry pervasive capacity shortage issue and
the traditional discrete driver IC is being replaced quickly by
TDDI and AMOLED. To capture the TDDI opportunity, we have been
working very hard to source and qualify additional foundry
capacity. We expect the addition of new foundry capacity for TDDI
will start mass production toward early fourth quarter and will
substantially grow our TDDI revenue starting from Q4 2018.”
“For the non-driver areas, we expect the WLO
shipment for the second half of 2018 will increase significantly
versus the first half. As to our 3D sensing business, we are in
partnership with several leading smartphone names to enable their
3D sensing by providing optics, projector or total solution,
depending on customer’s needs and their in-house capabilities. The
projects we are involved in cover all three types of 3D sensing
technologies, namely structured light, active stereo camera (ASC),
and to a lesser extent, time-of-flight (ToF). 3D sensing for
Android smartphone market is still at a nascent stage with very
limited adoption in 2018. We expect the market adoption will
pick up starting 2019. With our comprehensive technology coverage,
proven manufacturing expertise, new solutions roadmap and alliances
with leading AP platform providers, we believe we are best
positioned to be the partner of choice for Android smartphone
makers in their 3D sensing projects,” said Mr. Jordan Wu.
Second Quarter 2018 Financial
Results
The second quarter revenues of $181.4 million
represented an increase of 11.4% sequentially and an increase of
19.5% year-over-year. Gross margin was 23.0%, up 0.5%
sequentially. IFRS earnings per diluted ADS were 1.2 cents,
better than the guidance range of 0.0 to 1.0 cent per diluted
ADS.
Revenue from large display drivers was $60.6
million, up 2.2% sequentially, and up 16.3% year-over-year, driven
by increasing 4K TV penetration and Chinese panel customers’
ramping of new LCD fabs. Large panel driver ICs accounted for 33.4%
of the company’s total revenues for the second quarter, compared to
36.4% in the first quarter of 2018 and 34.4% a year ago.
Revenue for small and medium-sized display
drivers came in at $89.3 million, up 24.5% sequentially and up
27.5% year-over-year. The driver ICs for small and medium-sized
applications accounted for 49.2% of total sales for the second
quarter, as compared to 44.0% in the first quarter of 2018 and
46.1% a year ago. Sales into smartphones were up 54.3% sequentially
and up 42.5% year-over-year. The growth was driven by accelerating
TDDI shipments and the anticipated smartphone makers’ inventory
replenishment for new product launches.
Driver IC revenue for automotive applications
recorded another historical quarter, up 15% sequentially and more
than 35% year-over-year. The quarterly revenue reached $28.7
million, accounting for more than 19% of our driver IC revenue.
Himax is happy with the strong momentum in this space.
Revenues from non-driver businesses were $31.5
million, down 1.1% sequentially but up 6.4% versus last year.
Non-driver products accounted for 17.4% of total revenues, as
compared to 19.6% in the first quarter of 2018 and 19.5% a year
ago. The sequential decline was mainly due to reduced NRE income.
The year-over-year increase was driven mainly by WLO shipment. The
Company expects WLO shipment to continue to rebound strongly in the
second half.
IFRS gross margin for the second quarter was
23.0%, up 50 basis points from 22.5% in the first quarter of 2018
but down 80 basis points from the same period last year. The
sequential increase was due mainly to improved product mix.
IFRS operating expenses were $41.3 million in
the second quarter of 2018, up 3.6% from the preceding quarter and
up 11.3% from a year ago. The year-over-year increase was primarily
the result of rising R&D expenses in the areas of 3D sensing,
WLO, TDDI, and high-end TV, as well as annual merit increase.
IFRS operating margin for the second quarter of
2018 was 0.3%, up from -0.6% in the same period last year and up
from -2.0% in the prior quarter. The sequential and the
year-over-year increase was both a result of revenue increase but
offset by increased operating expenses.
Second quarter non-IFRS operating income was
$0.8 million, or 0.5% of sales, up from -0.3% for the same period
last year and up from -1.8% a quarter ago.
IFRS profit for the second quarter was $2.0
million, or 1.2 cents per diluted ADS, compared to IFRS loss of
$2.8 million, or 1.6 cents per diluted ADS, in the previous quarter
and IFRS loss of $0.7 million, or 0.4 cents per diluted ADS, a year
ago. The sequential increase was a result of higher sales and
better gross margin.
Second quarter non-IFRS profit was $2.3 million,
or 1.3 cents per diluted ADS, compared to a loss of $2.6 million,
or 1.5 cents per diluted ADS last quarter and a loss of $0.3
million, or 0.2 cents per diluted ADS the same period last
year.
Balance Sheet and Cash Flow
Himax had $126.7 million of cash, cash
equivalents and other financial assets as of the end of June 2018,
compared to $185.9 million at the same time last year and $151.9
million a quarter ago. The cash position dropped $25.2 million due
primarily to (1) capex of $17.7 million, (2) cash outflow of $2.8
million from operations, and (3) Emza investment of $3.5 million.
On top of the above cash position, restricted cash was $147.0
million at the end of the quarter, as compared to $147.0 million in
the preceding quarter and $107.2 million a year ago. The restricted
cash is mainly used to guarantee the Company’s short-term
borrowings for the same amount.
Himax’s inventories as of June 30, 2018 were
$142.1 million, down from $148.0 million a quarter ago and down
from $147.7 million at the same time last year. Account receivables
at the end of June 2018 were $176.3 million as compared to $164.5
million a year ago and $166.6 million last quarter. DSO was 93 days
at the end of June 2018, as compared to 97 days a year ago and 92
days at end of the last quarter.
Net cash outflow from operating activities for
the second quarter was $2.8 million as compared to an outflow of
$1.2 million for the same period last year and an inflow of $2.3
million last quarter.
Capital expenditures were $17.7 million in the
second quarter of 2018 versus $11.7 million a year ago and $18.6
million last quarter. The second quarter capex consisted mainly of
ongoing payments for the new building’s construction, WLO capacity
expansion and installation of active alignment equipment to support
the Company’s 3D sensing business. Other capex, primarily for
design tools and R&D related equipment for the Company’s
traditional IC design business, is around $2.5 million during the
quarter.
Share Buyback Update
As of June 30, 2018, Himax had 172.1 million ADS
outstanding, unchanged from last quarter. On a fully diluted basis,
the total ADS outstanding are 172.5 million.
Fiscal Year 2017 Dividend
Declaration
During the second quarter, the Company declared
an annual cash dividend of 10 cents per ADS, totaling $17.2
million, which has been paid out on July 31. The Company’s dividend
is determined primarily by the prior year’s profitability. Himax’s
decision to pay out 61.7% of last year’s net profit demonstrated
its continued support for the shareholder base and strong
confidence in the near term outlook for the Company’s newly
increased capex and the overall long-term growth prospects.
2018
Investor Outreach and Conferences
Ms. Jackie Chang, CFO, Ms. Ophelia Lin, internal
IR Deputy Director, Mr. Ken Liu, internal IR, and Mr. Greg
Falesnik, Himax’s US-based IR, will maintain corporate access for
shareholders and attend future investor conferences. If you are
interested in speaking with the management, please contact Himax’s
US or Taiwan-based investor relations contact at the numbers
below.
Q3 2018
Outlook
Comparing to the second quarter revenues, Himax expects single
digit growth for large driver ICs; mid single digit decline for
small and medium-sized driver IC and around 15% growth for its
non-driver IC business.
Display
Driver IC
MarketLDDICLarge
display driver IC business recorded low-single-digit growth in the
second quarter due mainly to the Company’s Chinese panel customers’
ongoing capacity expansion, a more favorable product mix driven by
the market’s 4K TV demands and shipment to a new panel customer who
recently started ramping up their first fab. Looking into the third
quarter, while the Chinese domestic market is relatively slow for
reasons such as weak currency, the western markets, especially in
the US, remain robust. Himax sees a single digit growth for the
third quarter as the Company continues to benefit from Chinese
panel customers’ capacity expansion and ramping of new fabs.
However, foundry capacity shortage remains an issue. While Himax is
making good progress in adding new capacity into its pool, the
ultimate ramping schedule will depend on how fast its panel
customers can go through their customer qualification, something
all the Company’s major customers are working very hard on.
Looking into the future, with the 2020 Tokyo
Olympics approaching and more Gen 10.5 fabs coming online to enable
very large screen 8K TVs, many TV manufacturers are rushing to
introduce consumer-grade super high end products with 8K
resolution. Capitalizing on the Company’s 4K TV success, Himax is
strongly positioned for this emerging market opportunity.
SMDDICThe trend for
full-screen, 18:9 display is already fully in place for smartphone
with phone makers now aggressively adopting such screens for their
2018 and 2019 models even for mid-end and entry-level products.
Himax’s comprehensive TDDI product portfolio positions it well to
support this trend. Himax is pleased that both its FHD+ and HD+
TDDI ICs enjoyed significant growth during Q2, with revenue and
shipment volume both more than tripled during the quarter, despite
being able to fulfill just a fraction of orders amid the severe
foundry capacity shortage. Capped by the very limited capacity, its
Q3 TDDI shipment will likely see some 10% decline from that of the
second quarter. TDDI’s foundry capacity shortage is even more
challenging than that of the large display driver IC. To capture
the TDDI opportunity, the Company has been working very hard to
source and qualify additional foundry capacity. The Company is on
track to complete the porting of its existing products into another
foundry vendor and start mass production toward early fourth
quarter. Himax expects the addition of the new foundry capacity
will substantially grow its TDDI revenue starting from Q4 with
further growth expected throughout 2019. In parallel, to further
widen its reach, the Company is working on new designs based on
additional foundry partners’ processes which, however, will only be
ready next year. The Company expects TDDI penetration will reach
40% in 2019 which represents an enormous growth opportunity for
Himax. TDDI has more than double the ASP of the traditional driver
IC with better margins. It will change Himax’s product mix for
smartphone display driver IC and make a very significant
contribution to its growth going forward. Looking into the third
quarter, sales for smartphones are likely to decline around 40%
sequentially as the TDDI shipment is constrained by capacity
shortage and the traditional discrete driver IC is being quickly
replaced by TDDI and AMOLED.
In automotive segment, the Company continued to
have new projects going into mass production which were design-wins
of the prior years. During the second quarter, sales into
automotive sector already accounted for more than 19% of its total
driver IC sales and close to 16% of its total revenues. On top of
the world’s first TDDI projects for automotives during the first
quarter, Himax’s team further successfully added AMOLED design-wins
during the second quarter. The Company has achieved a distant
number one market share position thanks to its superior product
quality, service and stable delivery. Q3 revenue in this segment is
set to grow around 20% sequentially.
For third quarter small and medium-sized driver
IC business, the company expects revenue to decline mid single
digit sequentially.
Non-Driver Product
CategoriesThe non-driver IC business segment has been the
Company’s most exciting growth area and a differentiator for Himax
in the past few years.
3D Sensing SolutionsSince the
Company announced 3D sensing as one of Himax’s long term growth
initiatives in 2017, 3D sensing, led by Apple’s iPhone X, is
gradually becoming a new industry trend as major Android smartphone
makers beginning to integrate it into flagship models,
although most of such projects are still in development stage.
Leading Android smartphone makers are exploring various 3D sensing
technologies, namely structured light, active stereo camera (ASC)
and, to a lesser extent, time-of-flight (ToF), trying to strike a
good balance of cost, specifications and application. More software
players are entering the ecosystem to develop 3D sensing
applications beyond the existing applications, namely facial
recognition, online payment and camera performance enhancement.
Being a leading player in the 3D sensing space, Himax is in
partnership with several leading smartphone names to enable their
3D sensing by providing optics, projector or total solution,
depending on the customer’s needs and their in-house capabilities.
The projects Himax is involved in cover all the three types of 3D
sensing technologies mentioned above. These efforts will facilitate
a broader adoption of 3D sensing on Android smartphone starting
2019. The Company’s goal is to ensure that the smartphones backed
by Himax 3D sensing technology will deliver the industry’s highest
standard in all of 3D depth accuracy, indoor/outdoor sensitivity,
power consumption, size, data security and eye safety.
SLiM™, Himax’s structured light 3D sensing
hardware total solution which the Company jointly announced with
Qualcomm in last August, targets premium smartphone market. The
Qualcomm/Himax solution brings together Qualcomm’s industry leading
3D algorithm with Himax’s cutting-edge design and manufacturing
capabilities in optics, NIR sensors, and ASIC, as well as the
Company’s unique know-how in 3D sensing system integration. It is
by far the highest quality 3D sensing total solution available for
the Android market right now. At present, Himax is working with
customers who are targeting to bring new 3D sensing applications to
smartphone, on top of facial unlock and online payment. The Company
is now targeting the end of the year or early 2019 for shipment to
the customers for their product launch in first half 2019, although
the actual shipment date will ultimately be dictated by end
customers. Another noteworthy update is that its SLiM™ total
solution can work on Qualcomm’s high end mobile platforms now, as
opposed to being limited to only the premium Snapdragon platform
when Himax first launched the technology, thereby lowering the
total cost barrier of 3D sensing.
The Company’s ASC 3D sensing solution, targeting
mass market smartphone models, achieved a significant milestone
during the second quarter. While structured light 3D sensing offers
outstanding depth precision for its complex projector design, ASC
3D sensing can also enable facial recognition with a simpler
projector. While it is somehow constrained by its limited depth
precision, it is a lower cost alternative for face authentication
and enjoys better software readiness since it is building on the
existing dual camera ecosystem. Himax is working with top tier
smartphone makers and leading platform partners concurrently on
multiple projects. Early shipment is targeted to begin toward the
end of the year with major ramp in 2019, although the actual
shipment date will ultimately be dictated by end customers. The
Company expects more design-wins in the coming months. It appears
that ASC 3D sensing, with its cost advantage and the existing dual
camera ecosystem, has a better chance of accelerating 3D sensing
adoption for facial recognition on Android smartphone market during
2019.
WLOAs anticipated, the shipment
volume to the Company’s WLO customer for the second quarter was a
lot higher versus that of the first quarter and its WLO capacity
utilization improved subsequently. Himax expects the shipment for
the second half to increase significantly versus that of the
first half. The overall 2018 shipment will increase considerably
year-over-year. Meanwhile, the Company is encouraged by the
progress of its new R&D projects with the said customer for
their next generation products centering around its exceptional
design know-how and mass production expertise in WLO technology.
Himax is very excited about the significant growth opportunities of
these projects.
While 3D sensing is the top priority of the
Company’s WLO business at present, Himax also has engineering
collaboration with select world-class technology leaders to develop
wave-guide for AR glasses and micro displays using its advanced WLO
technology. Himax expects to kick off new R&D projects during
the third quarter.
CAPEXThe Company announced the
increase of the Phase I capital expenditure budget, which is on top
of its regular capex for the IC design business, from $80 million
to $105 million in early 2018. The majority of the Phase I
investment is going to land and building, new equipment for the WLO
anchor customer, and an initial capacity of 2 million units per
month for 3D sensing. Of the $105 million budget, $33 million has
been paid out in 2017, followed by $17.5 million made in the first
quarter 2018 and another $15.2 million in the second quarter. The
payment for the remaining $39.3 million is to be made throughout
the rest of 2018. With the anticipation of broader 3D sensing
adoption in 2019, Himax expects to further expand production
capacity towards the end of the second half. Kick-off timing and
amount of the Phase II investment is still being evaluated,
depending on the customers’ projected volume and timetable.
As the Company mentioned in the previous
earnings calls, the capex budget will be funded through its
internal resources and banking facilities. Himax has more than
sufficient banking facilities with favorable cost for such capex
budget and will start to draw down some of them in Q3 2018.
CMOS Image SensorHimax has been
working with an industry leading fingerprint solution provider to
develop an under-display optical fingerprint product in the last
two years, targeting smartphones using OLED displays. Himax
provides a customized low-power image sensor in the solution. The
Company is pleased to announce that the solution has entered into
mass production with a major Android smartphone OEM for their new
flagship model with shipment expected in the coming months. The
CMOS image sensor used in the solution will have a notably higher
ASP than the Company’s traditional display driver IC products.
On other CMOS image sensor business update,
Himax continues to make great progress with its two machine vision
sensor product lines, namely, near infrared (“NIR”) sensor and
Always-on-Sensor (“AoSTM”). NIR sensor is a critical part for both
of our structured light and ASC 3D sensing solutions. The Company
expects significant growth in its CMOS image sensor business as 3D
sensing shipment gets started. On the AoSTM product line, the
acquisition of Emza enables Himax to be uniquely positioned to
provide ultra-low power imaging sensing solutions, leveraging
Himax’s industry leading super low power CIS design and Emza’s
unique AI-based computer vision algorithm. Himax is pleased with
the status of engagement with leading players in areas such as
connected home, smart building and security, all of which new
frontiers for Himax.
For traditional human vision segments, the
Company sees strong demands in laptop and increasing shipment for
multimedia applications such as car recorders, surveillance,
drones, home appliances, and consumer electronics, among
others.
LCOSHimax’s main focus areas
are AR goggle devices and head-up-displays (HUD) for automotives.
While AR will take a few years to fully realize its market
potential, the Company has seen many companies, be the top name
multinationals or new start-ups, invest heavily to develop the
ecosystem -- applications, software, operating system, system
electronics, and optics. Himax is slated to kick off another AR
goggle project with tailor-made micro display for a tier-1 tech
name during the third quarter. In addition, the Company continues
to make great progress in developing high-end holographic head-up
display for automotives. Timing for such revenue contribution would
be 2019 the earliest.
For non-driver IC business, the Company expects
revenue to increase around 15% sequentially in the third quarter
driven by WLO shipment.
Third Quarter 2018 GuidanceThe
Company is providing the following financial guidance for the third
quarter of 2018:
Net Revenue: |
To be around flat
sequentially |
|
Gross Margin: |
To be
around 22.5%, depending on final product mix |
IFRS EPS: |
To be around -1.0 cent
per diluted ADS |
|
Non-IFRS EPS(1): |
To be around 1.5 cents
per diluted ADS |
|
(1) Non-IFRS EPS excludes share-based compensation and
acquisition-related charges |
|
As the Company has done in the past, its third
quarter IFRS earnings per diluted ADS guidance has taken into
account its expected 2018 grant of restricted share units, or RSUs,
to the team at the end of September. The 2018 RSUs, subject to its
Board approval, is now assumed to be around $4.5 million, almost
all of which, or 2.1 cents per diluted ADS, will be vested and
expensed immediately on September 30th, the grant date. In
comparison, the 2017 RSUs totaled $6.5 million, out of which $6.1
million was vested immediately. The grant of RSUs would lead to
higher third quarter IFRS operating expenses compared to the other
quarters of the year.
The Company’s bottom line has been substantially
affected by the drastic increase of R&D expenses since some two
years ago when Himax decided to enter into a number of new areas,
something the Company brought up to the market’s attention
repeatedly before. However, the Company believes its operation will
start to be out of the trough starting from the third quarter,
initially driven by the anticipated ramping of the new foundry for
the TDDI product line and, thereafter, shipment of 3D sensing
products in next year. 3D sensing, in particular, will represent a
paradigm shift in the Company’s business when it starts to achieve
a broader market adoption.
HIMAX TECHNOLOGIES SECOND QUARTER 2018
EARNINGS CONFERENCE CALL
DATE: |
Thursday, August 9, 2018 |
TIME: |
U.S.
8:00 a.m. EDT |
|
Taiwan 8:00 p.m. |
DIAL IN: |
U.S. +1 (866) 444-9147 |
|
INTERNATIONAL +1 (678) 509-7569 |
CONFERENCE ID: |
7399640 |
WEBCAST: |
https://edge.media-server.com/m6/p/hzg3keuv |
|
|
A replay of the call will be available beginning two hours after
the call through 11:30 a.m. US EDT on August 16, 2018 (11:30 p.m.
Taiwan time, August 16, 2018) on www.himax.com.tw and by telephone
at +1 (855) 859-2056 (US Domestic) or +1 (404) 537-3406
(International). The conference ID number is 7399640. This call is
being webcast by Nasdaq and can be accessed by clicking on this
link or Himax’s website, where the webcast can be accessed through
August 8, 2019.
About Himax Technologies, Inc.
Himax Technologies, Inc. (NASDAQ:HIMX) is a
fabless semiconductor solution provider dedicated to display
imaging processing technologies. Himax is a worldwide market leader
in display driver ICs and timing controllers used in TVs, laptops,
monitors, mobile phones, tablets, digital cameras, car navigation,
virtual reality (VR) devices and many other consumer electronics
devices. Additionally, Himax designs and provides controllers for
touch sensor displays, in-cell Touch and Display Driver Integration
(TDDI) single-chip solutions, LED driver ICs, power management ICs,
scaler products for monitors and projectors, tailor-made video
processing IC solutions, silicon IPs and LCOS micro-displays for
augmented reality (AR) devices and heads-up displays (HUD) for
automotive. The Company also offers digital camera solutions,
including CMOS image sensors and wafer level optics for AR devices,
3D sensing and machine vision, which are used in a wide variety of
applications such as mobile phone, tablet, laptop, TV, PC camera,
automobile, security, medical devices and Internet of Things.
Founded in 2001 and headquartered in Tainan, Taiwan, Himax
currently employs around 2,200 people from three Taiwan-based
offices in Tainan, Hsinchu and Taipei and country offices in China,
Korea, Japan, Israel and the US. Himax has 2,997 patents granted
and 442 patents pending approval worldwide as of June 30, 2018.
Himax has retained its position as the leading display imaging
processing semiconductor solution provider to consumer electronics
brands worldwide.
http://www.himax.com.tw
Forward Looking Statements
Factors that could cause actual events or
results to differ materially include, but not limited to, general
business and economic conditions and the state of the semiconductor
industry; market acceptance and competitiveness of the driver and
non-driver products developed by the Company; demand for end-use
applications products; reliance on a small group of principal
customers; the uncertainty of continued success in technological
innovations; our ability to develop and protect our intellectual
property; pricing pressures including declines in average selling
prices; changes in customer order patterns; changes in estimated
full-year effective tax rate; shortages in supply of key
components; changes in environmental laws and regulations; exchange
rate fluctuations; regulatory approvals for further investments in
our subsidiaries; our ability to collect accounts receivable and
manage inventory and other risks described from time to time in the
Company's SEC filings, including those risks identified in the
section entitled "Risk Factors" in its Form 20-F for the year ended
December 31, 2017 filed with the SEC, as may be amended.
Company Contacts:
Jackie Chang, CFOHimax
Technologies, Inc.Tel: +886-2-2370-3999 Ext.22300 OrUS Tel:
+1-949-585-9838 Ext.252Fax: +886-2-2314-0877Email:
jackie_chang@himax.com.twwww.himax.com.tw
Ophelia Lin, Investor
RelationsHimax Technologies, Inc.Tel: +886-2-2370-3999
Ext.22202Fax: +886-2-2314-0877 Email:
ophelia_lin@himax.com.tw www.himax.com.tw
Ken Liu, Investor RelationsHimax Technologies,
Inc.Tel: +886-2-2370-3999 Ext.22513Fax: +886-2-2314-0877 Email:
ken_liu@himax.com.twwww.himax.com.tw
Investor Relations - US RepresentativeGreg
Falesnik, Managing DirectorMZ North AmericaTel:
+1-212-301-7130Email: greg.falesnik@mzgroup.us www.mzgroup.us
-Financial Tables-
Himax Technologies, Inc. |
Unaudited Condensed Consolidated Statements
of Profit or
Loss |
(These interim financials do not fully comply
with IFRS because they omit all
interim disclosure required by
IFRS) |
(Amounts in Thousands of U.S. Dollars,
Except Share and Per Share
Data) |
|
|
Three Months
Ended June 30, |
|
Three Months Ended
March
31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
|
|
Revenues |
$ |
181,365 |
|
|
$ |
151,730 |
|
|
$ |
162,851 |
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of
revenues |
|
139,571 |
|
|
|
115,556 |
|
|
|
126,254 |
|
Research
and development |
|
30,444 |
|
|
|
27,923 |
|
|
|
30,040 |
|
General
and administrative |
|
5,632 |
|
|
|
4,521 |
|
|
|
4,906 |
|
Sales and
marketing |
|
5,218 |
|
|
|
4,647 |
|
|
|
4,895 |
|
Total costs and expenses |
|
180,865 |
|
|
|
152,647 |
|
|
|
166,095 |
|
|
|
|
|
|
|
Operating income (loss) |
|
500 |
|
|
|
(917 |
) |
|
|
(3,244 |
) |
|
|
|
|
|
|
Non operating income
(loss): |
|
|
|
|
|
Interest
income |
|
672 |
|
|
|
619 |
|
|
|
549 |
|
Changes
in fair value of financial assets at fair value through profit or
loss |
|
(25 |
) |
|
|
37 |
|
|
|
1 |
|
Share of
losses of associates |
|
(1,099 |
) |
|
|
(697 |
) |
|
|
(844 |
) |
Foreign
currency exchange gains (losses), net |
|
242 |
|
|
|
(23 |
) |
|
|
(258 |
) |
Finance
costs |
|
(265 |
) |
|
|
(190 |
) |
|
|
(252 |
) |
Other
income (loss), net |
|
1,677 |
|
|
|
(41 |
) |
|
|
4 |
|
|
|
1,202 |
|
|
|
(295 |
) |
|
|
(800 |
) |
Profit (loss) before income
taxes |
|
1,702 |
|
|
|
(1,212 |
) |
|
|
(4,044 |
) |
Income
tax expense (benefit) |
|
306 |
|
|
|
(179 |
) |
|
|
(728 |
) |
Profit (loss) for the period |
|
1,396 |
|
|
|
(1,033 |
) |
|
|
(3,316 |
) |
Loss attributable to noncontrolling
interests |
|
650 |
|
|
|
353 |
|
|
|
487 |
|
Profit (loss)
attributable to Himax Technologies, Inc. stockholders |
$ |
2,046 |
|
|
$ |
(680 |
) |
|
$ |
(2,829 |
) |
|
|
|
|
|
|
Basic earnings
(loss) per ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
0.012 |
|
|
$ |
(0.004 |
) |
|
$ |
(0.016 |
) |
Diluted
earnings (loss) per ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
0.012 |
|
|
$ |
(0.004 |
) |
|
$ |
(0.016 |
) |
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
172,499 |
|
|
|
172,399 |
|
|
|
172,499 |
|
Diluted Weighted Average Outstanding ADS |
|
172,539 |
|
|
|
172,462 |
|
|
|
172,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
|
Unaudited Condensed Consolidated Statements of
Profit or Loss |
|
(Amounts in Thousands of U.S. Dollars, Except
Share and Per Share Data) |
|
|
|
|
|
Six Months
Ended June 30, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
Revenues |
|
|
$ |
344,216 |
|
|
$ |
306,940 |
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of
revenues |
|
|
|
265,825 |
|
|
|
234,865 |
|
Research
and development |
|
|
|
60,484 |
|
|
|
53,256 |
|
General
and administrative |
|
|
|
10,538 |
|
|
|
9,122 |
|
Sales and
marketing |
|
|
|
10,113 |
|
|
|
9,016 |
|
Total costs and expenses |
|
|
|
346,960 |
|
|
|
306,259 |
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
(2,744 |
) |
|
|
681 |
|
|
|
|
|
|
|
Non operating income
(loss): |
|
|
|
|
|
Interest
income |
|
|
|
1,221 |
|
|
|
1,162 |
|
Changes
in fair value of financial assets at fair value through profit or
loss |
|
|
|
(24 |
) |
|
|
107 |
|
Share of
losses of associates |
|
|
|
(1,943 |
) |
|
|
(831 |
) |
Foreign
currency exchange losses, net |
|
|
|
(16 |
) |
|
|
(1,149 |
) |
Finance
costs |
|
|
|
(517 |
) |
|
|
(404 |
) |
Other
income, net |
|
|
|
1,681 |
|
|
|
7 |
|
|
|
|
|
402 |
|
|
|
(1,108 |
) |
Loss before income
taxes |
|
|
|
(2,342 |
) |
|
|
(427 |
) |
Income
tax benefit |
|
|
|
(422 |
) |
|
|
(57 |
) |
Loss for the period |
|
|
|
(1,920 |
) |
|
|
(370 |
) |
Loss attributable to noncontrolling
interests |
|
|
|
1,137 |
|
|
|
906 |
|
Profit (loss)
attributable to Himax Technologies, Inc. stockholders |
|
|
$ |
(783 |
) |
|
$ |
536 |
|
|
|
|
|
|
|
Basic earnings
(loss) per ADS attributable to Himax Technologies, Inc.
stockholders |
|
|
$ |
(0.005 |
) |
|
$ |
0.003 |
|
Diluted
earnings (loss) per ADS attributable to Himax Technologies, Inc.
stockholders |
|
|
$ |
(0.005 |
) |
|
$ |
0.003 |
|
|
|
|
|
|
|
Basic Weighted Average Outstanding ADS |
|
|
|
172,499 |
|
|
|
172,399 |
|
Diluted Weighted Average Outstanding ADS |
|
|
|
172,538 |
|
|
|
172,444 |
|
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Supplemental Financial Information
|
(Amounts in Thousands of U.S.
Dollars) |
|
|
|
|
The amount of
share-based compensation included in applicable
statements of profit or loss categories is
summarized as follows: |
Three
MonthsEnded June
30, |
|
Three MonthsEnded
March 31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
Share-based
compensation |
|
|
|
|
|
Cost of
revenues |
$ |
12 |
|
|
$ |
25 |
|
|
$ |
12 |
|
Research
and development |
|
58 |
|
|
|
139 |
|
|
|
57 |
|
General
and administrative |
|
9 |
|
|
|
37 |
|
|
|
9 |
|
Sales and
marketing |
|
14 |
|
|
|
30 |
|
|
|
13 |
|
Income
tax benefit |
|
(13 |
) |
|
|
(38 |
) |
|
|
(12 |
) |
Total |
$ |
80 |
|
|
$ |
193 |
|
|
$ |
79 |
|
|
|
|
|
|
|
The amount
of acquisition-related charges
included in applicable statements of
profit or loss categories is summarized as
follows: |
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
charges |
|
|
|
|
|
Research
and development |
$ |
246 |
|
|
$ |
246 |
|
|
$ |
246 |
|
Income
tax benefit |
|
(71 |
) |
|
|
|
(98 |
) |
|
|
(71 |
) |
Total |
$ |
175 |
|
|
$ |
148 |
|
|
$ |
175 |
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Supplemental Financial Information
|
(Amounts in Thousands of U.S.
Dollars) |
|
|
The
amount of share-based compensation included in applicable
statements of profit or loss categories is
summarized as follows: |
|
|
Six Months Ended June
30, |
|
|
|
|
2018 |
|
|
|
2017 |
|
Share-based
compensation |
|
|
|
|
|
Cost of
revenues |
|
|
$ |
24 |
|
|
$ |
50 |
|
Research
and development |
|
|
|
115 |
|
|
|
278 |
|
General
and administrative |
|
|
|
18 |
|
|
|
75 |
|
Sales and
marketing |
|
|
|
27 |
|
|
|
58 |
|
Income
tax benefit |
|
|
|
(25 |
) |
|
|
(74 |
) |
Total |
|
|
$ |
159 |
|
|
$ |
387 |
|
|
|
|
|
|
|
The
amount of acquisition-related charges
included in applicable statements of
profit or loss categories is summarized as
follows: |
|
|
|
|
|
|
|
|
|
|
Acquisition-related
charges |
|
|
|
|
|
Research
and development |
|
|
$ |
492 |
|
|
$ |
492 |
|
Income
tax benefit |
|
|
|
|
(142 |
) |
|
|
(197 |
) |
Total |
|
|
$ |
350 |
|
|
$ |
295 |
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
IFRS Unaudited
Condensed Consolidated
Statements
of Financial
Position |
(Amounts in Thousands of U.S.
Dollars) |
|
|
|
June
30,
2018 |
|
March
31,
2018 |
|
June
30,
2017 |
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
114,480 |
|
|
$ |
139,806 |
|
|
$ |
177,206 |
|
Financial
assets at amortized cost |
|
|
12,154 |
|
|
|
11,753 |
|
|
|
5,306 |
|
Financial
assets at fair value through profit or loss |
|
|
66 |
|
|
|
361 |
|
|
|
3,357 |
|
Accounts
receivable, net |
|
|
176,286 |
|
|
|
166,603 |
|
|
|
164,516 |
|
Inventories |
|
|
142,077 |
|
|
|
147,962 |
|
|
|
147,680 |
|
Income
taxes receivable |
|
|
45 |
|
|
|
45 |
|
|
|
41 |
|
Restricted deposit |
|
|
147,000 |
|
|
|
147,000 |
|
|
|
107,201 |
|
Other
receivable from related parties |
|
|
2,803 |
|
|
|
3,515 |
|
|
|
4,150 |
|
Other
current assets |
|
|
18,743 |
|
|
|
19,609 |
|
|
|
12,288 |
|
Total current assets |
|
|
613,654 |
|
|
|
636,654 |
|
|
|
621,745 |
|
Financial
assets at fair value through profit or loss |
|
|
1,574 |
|
|
|
1,600 |
|
|
|
10,562 |
|
Financial
assets at fair value through other
comprehensive income |
|
|
802 |
|
|
|
1,522 |
|
|
|
1,680 |
|
Equity method
investments |
|
|
9,964 |
|
|
|
9,905 |
|
|
|
4,055 |
|
Property, plant and
equipment, net |
|
|
106,041 |
|
|
|
95,953 |
|
|
|
53,852 |
|
Deferred
tax assets |
|
|
7,834 |
|
|
|
8,199 |
|
|
|
7,882 |
|
Goodwill |
|
|
28,138 |
|
|
|
28,138 |
|
|
|
28,138 |
|
Other
intangible assets, net |
|
|
13,525 |
|
|
|
3,027 |
|
|
|
3,340 |
|
Restricted
deposit |
|
|
460 |
|
|
|
481 |
|
|
|
460 |
|
Other
non-current assets |
|
|
3,660 |
|
|
|
8,579 |
|
|
|
4,684 |
|
|
|
|
171,998 |
|
|
|
157,404 |
|
|
|
114,653 |
|
Total assets |
|
$ |
785,652 |
|
|
$ |
794,058 |
|
|
$ |
736,398 |
|
Liabilities and
Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Short-term borrowings |
|
$ |
147,000 |
|
|
$ |
147,000 |
|
|
$ |
107,000 |
|
Financial
liability at amortized cost |
|
|
5,003 |
|
|
|
4,920 |
|
|
|
- |
|
Accounts
payable |
|
|
128,862 |
|
|
|
134,970 |
|
|
|
113,670 |
|
Income
taxes payable |
|
|
1,872 |
|
|
|
4,920 |
|
|
|
8,304 |
|
Other
payable to related party |
|
|
2,200 |
|
|
|
1,900 |
|
|
|
- |
|
Other
current liabilities |
|
|
58,113 |
|
|
|
44,701 |
|
|
|
72,335 |
|
Total current liabilities |
|
|
343,050 |
|
|
|
338,411 |
|
|
|
301,309 |
|
Financial
liability at amortized
cost |
|
|
- |
|
|
|
- |
|
|
|
4,678 |
|
Net defined
benefit liabilities |
|
|
1,125 |
|
|
|
1,178 |
|
|
|
1,113 |
|
Deferred tax
liabilities |
|
|
2,795 |
|
|
|
106 |
|
|
|
1,368 |
|
Other
non-current liabilities |
|
|
2,888 |
|
|
|
3,672 |
|
|
|
1,436 |
|
|
|
|
6,808 |
|
|
|
4,956 |
|
|
|
8,595 |
|
Total liabilities |
|
|
349,858 |
|
|
|
343,367 |
|
|
|
309,904 |
|
Equity |
|
|
|
|
|
|
Ordinary
shares |
|
|
107,010 |
|
|
|
107,010 |
|
|
|
107,010 |
|
Additional paid-in capital |
|
|
106,644 |
|
|
|
104,533 |
|
|
|
103,913 |
|
Treasury
shares |
|
|
(8,878 |
) |
|
|
(8,878 |
) |
|
|
(9,020 |
) |
Accumulated other comprehensive income |
|
|
(1,497 |
) |
|
|
(322 |
) |
|
|
(1,025 |
) |
Retained
earnings |
|
|
235,410 |
|
|
|
250,574 |
|
|
|
226,065 |
|
Equity attributable to owners of Himax
Technologies, Inc. |
|
|
438,689 |
|
|
|
452,917 |
|
|
|
426,943 |
|
Noncontrolling
interests |
|
|
(2,895 |
) |
|
|
(2,226 |
) |
|
|
(449 |
) |
Total equity |
|
|
435,794 |
|
|
|
450,691 |
|
|
|
426,494 |
|
Total liabilities and equity |
|
$ |
785,652 |
|
|
$ |
794,058 |
|
|
$ |
736,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts
in Thousands of
U.S.
Dollars) |
|
|
Three Months Ended June
30, |
|
ThreeMonthsEndedMarch
31, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Profit (loss) for the
period |
|
$ |
1,396 |
|
|
$ |
(1,033 |
) |
|
$ |
(3,316 |
) |
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
5,180 |
|
|
|
3,471 |
|
|
|
5,098 |
|
Bad debt
expense |
|
|
190 |
|
|
|
- |
|
|
|
- |
|
Share-based compensation expenses |
|
|
93 |
|
|
|
232 |
|
|
|
91 |
|
Gain on
re-measurement of the pre-existing relationships in a business
combination |
|
|
(1,662 |
) |
|
|
- |
|
|
|
- |
|
Changes
in fair value of financial assets at fair value through profit or
loss |
|
|
25 |
|
|
|
(37 |
) |
|
|
(1 |
) |
Interest
income |
|
|
(672 |
) |
|
|
(619 |
) |
|
|
(549 |
) |
Finance
costs |
|
|
265 |
|
|
|
190 |
|
|
|
252 |
|
Income
tax expense (benefit) |
|
|
306 |
|
|
|
(179 |
) |
|
|
(728 |
) |
Share of
losses of associates |
|
|
1,099 |
|
|
|
697 |
|
|
|
844 |
|
Inventories write downs |
|
|
3,567 |
|
|
|
2,487 |
|
|
|
2,954 |
|
Foreign
currency exchange losses (gains) of financial assets |
|
|
340 |
|
|
|
- |
|
|
|
(222 |
) |
|
|
|
10,127 |
|
|
|
5,209 |
|
|
|
4,423 |
|
Changes in: |
|
|
|
|
|
|
Accounts
receivable |
|
|
(9,872 |
) |
|
|
4,621 |
|
|
|
22,171 |
|
Inventories |
|
|
2,318 |
|
|
|
(1,907 |
) |
|
|
(15,716 |
) |
Other
receivable from related parties |
|
|
(8 |
) |
|
|
- |
|
|
|
(15 |
) |
Other
current assets |
|
|
1,205 |
|
|
|
1,611 |
|
|
|
(1,672 |
) |
Accounts
payable |
|
|
(6,108 |
) |
|
|
(2,271 |
) |
|
|
(4,963 |
) |
Accounts
payable to related party |
|
|
- |
|
|
|
(1,098 |
) |
|
|
- |
|
Other
payable to related party |
|
|
300 |
|
|
|
- |
|
|
|
(300 |
) |
Net
defined benefit liabilities |
|
|
(53 |
) |
|
|
(2 |
) |
|
|
26 |
|
Other
current liabilities |
|
|
1,318 |
|
|
|
100 |
|
|
|
(1,629 |
) |
Other
non-current liabilities |
|
|
167 |
|
|
|
(509 |
) |
|
|
(7 |
) |
Cash generated from operating activities |
|
|
(606 |
) |
|
|
5,754 |
|
|
|
2,318 |
|
Interest
received |
|
|
1,014 |
|
|
|
1,110 |
|
|
|
166 |
|
Interest
paid |
|
|
(182 |
) |
|
|
(113 |
) |
|
|
(170 |
) |
Income
tax paid |
|
|
(3,032 |
) |
|
|
(7,986 |
) |
|
|
(37 |
) |
Net cash provided by (used in) operating
activities |
|
|
(2,806 |
) |
|
|
(1,235 |
) |
|
|
2,277 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
|
(17,745 |
) |
|
|
(11,701 |
) |
|
|
(18,550 |
) |
Acquisitions of intangible assets |
|
|
(109 |
) |
|
|
(218 |
) |
|
|
(94 |
) |
Acquisitions of financial assets at amortized cost |
|
|
(1,135 |
) |
|
|
(303 |
) |
|
|
(1,897 |
) |
Proceeds
from disposals of financial assets at amortized cost |
|
|
303 |
|
|
|
298 |
|
|
|
754 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
|
(7,445 |
) |
|
|
(15,676 |
) |
|
|
(4,330 |
) |
Proceeds
from disposals of financial assets at fair value through profit or
loss |
|
|
7,693 |
|
|
|
16,199 |
|
|
|
26,506 |
|
Acquisition of business |
|
|
- |
|
|
|
- |
|
|
|
(700 |
) |
Acquisition of a subsidiary, net of cash used |
|
|
(3,301 |
) |
|
|
- |
|
|
|
- |
|
Acquisition of equity method investments |
|
|
- |
|
|
|
(2,230 |
) |
|
|
- |
|
Decrease
(increase) in refundable deposits |
|
|
6 |
|
|
|
284 |
|
|
|
(1 |
) |
Releases
(pledges) of restricted deposit |
|
|
21 |
|
|
|
(115 |
) |
|
|
(11 |
) |
|
|
Himax Technologies, Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts
in Thousands of
U.S.
Dollars) |
|
|
Three Months Ended June
30, |
|
Three Months Ended March
31, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
Cash paid
for loan made to related parties |
|
$ |
(530 |
) |
|
$ |
- |
|
|
$ |
(250 |
) |
Cash
received from loan made to related party |
|
|
- |
|
|
|
1,500 |
|
|
|
- |
|
Income
tax paid for disposal of financial assets at fair value through
profit or loss |
|
|
- |
|
|
|
- |
|
|
|
(2,187 |
) |
Net cash used in investing activities |
|
|
(22,242 |
) |
|
|
(11,962 |
) |
|
|
(760 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Proceeds
from issuance of new shares by subsidiary |
|
|
- |
|
|
|
- |
|
|
|
11 |
|
Acquisitions of noncontrolling interests |
|
|
- |
|
|
|
(1 |
) |
|
|
- |
|
Proceeds
from short-term borrowings |
|
|
27,000 |
|
|
|
27,000 |
|
|
|
- |
|
Repayments of short-term borrowings |
|
|
(27,000 |
) |
|
|
(27,000 |
) |
|
|
- |
|
Net cash provided by (used in) financing
activities |
|
|
- |
|
|
|
(1 |
) |
|
|
11 |
|
Effect
of foreign currency exchange rate
changes on cash and cash equivalents |
|
|
(278 |
) |
|
|
59 |
|
|
|
255 |
|
Net
increase
(decrease) in
cash and cash equivalents |
|
|
(25,326 |
) |
|
|
(13,139 |
) |
|
|
1,783 |
|
Cash and cash
equivalents at beginning of period |
|
|
139,806 |
|
|
|
190,345 |
|
|
|
138,023 |
|
Cash and cash
equivalents at end of period |
|
$ |
114,480 |
|
|
$ |
177,206 |
|
|
$ |
139,806 |
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts
in Thousands of
U.S.
Dollars) |
|
|
|
|
Six Months Ended June
30, |
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Loss for the
period |
|
|
|
$ |
(1,920 |
) |
|
$ |
(370 |
) |
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
10,278 |
|
|
|
6,910 |
|
Bad debt
expense |
|
|
|
|
190 |
|
|
|
- |
|
Share-based compensation expenses |
|
|
|
|
184 |
|
|
|
461 |
|
Gain on
disposals of property, plant and equipment |
|
|
|
|
- |
|
|
|
(28 |
) |
Gain on
re-measurement of the pre-existing relationships in a business
combination |
|
|
|
|
(1,662 |
) |
|
|
- |
|
Changes
in fair value of financial assets at fair value through profit or
loss |
|
|
|
|
24 |
|
|
|
(107 |
) |
Interest
income |
|
|
|
|
(1,221 |
) |
|
|
(1,162 |
) |
Finance
costs |
|
|
|
|
517 |
|
|
|
404 |
|
Income
tax benefit |
|
|
|
|
(422 |
) |
|
|
(57 |
) |
Share of
losses of associates |
|
|
|
|
1,943 |
|
|
|
831 |
|
Inventories write downs |
|
|
|
|
6,521 |
|
|
|
5,534 |
|
Foreign
currency exchange losses of financial assets |
|
|
|
|
118 |
|
|
|
- |
|
|
|
|
|
|
14,550 |
|
|
|
12,416 |
|
Changes in: |
|
|
|
|
|
|
Accounts
receivable |
|
|
|
|
12,299 |
|
|
|
28,094 |
|
Inventories |
|
|
|
|
(13,398 |
) |
|
|
(3,466 |
) |
Other
receivable from related parties |
|
|
|
|
(23 |
) |
|
|
- |
|
Other
current assets |
|
|
|
|
(467 |
) |
|
|
733 |
|
Accounts
payable |
|
|
|
|
(11,071 |
) |
|
|
(28,599 |
) |
Accounts
payable to related party |
|
|
|
|
- |
|
|
|
(576 |
) |
Net
defined benefit liabilities |
|
|
|
|
(27 |
) |
|
|
39 |
|
Other
current liabilities |
|
|
|
|
(311 |
) |
|
|
2,727 |
|
Other
non-current liabilities |
|
|
|
|
160 |
|
|
|
(14 |
) |
Cash generated from operating activities |
|
|
|
|
1,712 |
|
|
|
11,354 |
|
Interest
received |
|
|
|
|
1,180 |
|
|
|
1,160 |
|
Interest
paid |
|
|
|
|
(352 |
) |
|
|
(250 |
) |
Income
tax paid |
|
|
|
|
(3,069 |
) |
|
|
(8,039 |
) |
Net cash provided by
(used in) operating activities |
|
|
|
|
(529 |
) |
|
|
4,225 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
|
|
|
(36,295 |
) |
|
|
(13,699 |
) |
Proceeds
from disposals of property, plant and equipment |
|
|
|
|
- |
|
|
|
28 |
|
Acquisitions of intangible assets |
|
|
|
|
(203 |
) |
|
|
(229 |
) |
Acquisitions of financial assets at amortized cost |
|
|
|
|
(3,032 |
) |
|
|
(757 |
) |
Proceeds
from disposals of financial assets at amortized cost |
|
|
|
|
1,057 |
|
|
|
744 |
|
Acquisitions of financial assets at fair value through profit or
loss |
|
|
|
|
(11,775 |
) |
|
|
(20,323 |
) |
Proceeds
from disposals of financial assets at fair value through profit or
loss |
|
|
|
|
34,199 |
|
|
|
22,273 |
|
Acquisition of business |
|
|
|
|
(700 |
) |
|
|
- |
|
Acquisition of a subsidiary, net of cash used |
|
|
|
|
(3,301 |
) |
|
|
- |
|
Acquisition of equity method investments |
|
|
|
|
- |
|
|
|
(2,230 |
) |
Decrease
(increase) in refundable deposits |
|
|
|
|
5 |
|
|
|
(26 |
) |
Releases
(pledges) of restricted deposit |
|
|
|
|
10 |
|
|
|
(337 |
) |
|
|
Himax Technologies, Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts
in Thousands of
U.S.
Dollars) |
|
|
|
|
Six Months Ended June
30, |
|
|
|
|
|
2018 |
|
|
|
2017 |
|
Cash paid
for loan made to related parties |
|
|
|
$ |
(780 |
) |
|
$ |
- |
|
Cash
received from loan made to related party |
|
|
|
|
- |
|
|
|
3,000 |
|
Income
tax paid for disposal of financial assets at fair value through
profit or loss |
|
|
|
|
(2,187 |
) |
|
|
- |
|
Net cash used in investing activities |
|
|
|
|
(23,002 |
) |
|
|
(11,556 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Proceeds
from issuance of new shares by subsidiary |
|
|
|
|
11 |
|
|
|
- |
|
Proceeds
from disposals of subsidiary shares to noncontrolling interests by
Himax Imaging, Inc. |
|
|
|
|
- |
|
|
|
4 |
|
Acquisitions of noncontrolling interests |
|
|
|
|
- |
|
|
|
(1 |
) |
Release
of restricted deposit |
|
|
|
|
- |
|
|
|
31,000 |
|
Proceeds
from short-term borrowings |
|
|
|
|
27,000 |
|
|
|
54,161 |
|
Repayments of short-term borrowings |
|
|
|
|
(27,000 |
) |
|
|
(85,161 |
) |
Net cash provided by
financing activities |
|
|
|
|
11 |
|
|
|
3 |
|
Effect
of foreign currency exchange rate
changes on cash and cash equivalents |
|
|
|
|
(23 |
) |
|
|
82 |
|
Net
decrease in cash and cash
equivalents |
|
|
|
|
(23,543 |
) |
|
|
(7,246 |
) |
Cash and cash
equivalents at beginning of period |
|
|
|
|
138,023 |
|
|
|
184,452 |
|
Cash and cash
equivalents at end of period |
|
|
|
$ |
114,480 |
|
|
$ |
177,206 |
|
|
|
|
|
|
|
|
Himax Technologies, Inc. |
Non-IFRS
Unaudited Supplemental Data – Reconciliation
Schedule |
(Amounts in Thousands of U.S.
Dollars) |
|
Gross Margin, Operating Margin and Net Margin Excluding
Share-Based Compensation and
Acquisition-Related Charges: |
|
Three Months Ended June
30, |
|
ThreeMonths EndedMarch
31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
Revenues |
$ |
181,365 |
|
|
$ |
151,730 |
|
|
$ |
162,851 |
|
Gross profit |
|
41,794 |
|
|
|
36,174 |
|
|
|
36,597 |
|
Add: Share-based
compensation – cost of revenues |
|
12 |
|
|
|
25 |
|
|
|
12 |
|
Gross profit excluding
share-based compensation |
|
41,806 |
|
|
|
36,199 |
|
|
|
36,609 |
|
Gross margin excluding
share-based compensation |
|
23.1 |
% |
|
|
23.9 |
% |
|
|
22.5 |
% |
Operating income
(loss) |
|
500 |
|
|
|
(917 |
) |
|
|
(3,244 |
) |
Add: Share-based
compensation |
|
93 |
|
|
|
231 |
|
|
|
91 |
|
Operating income (loss)
excluding share-based compensation |
|
593 |
|
|
|
(686 |
) |
|
|
(3,153 |
) |
Add:
Acquisition-related charges –intangible assets amortization |
|
246 |
|
|
|
246 |
|
|
|
246 |
|
Operating income (loss)
excluding share-based compensation and acquisition-related
charges |
|
839 |
|
|
|
(440 |
) |
|
|
(2,907 |
) |
Operating margin
excluding share-based compensation and acquisition-related
charges |
|
0.5 |
% |
|
|
(0.3 |
%) |
|
|
(1.8 |
%) |
Profit (loss)
attributable to Himax Technologies, Inc. stockholders |
|
2,046 |
|
|
|
(680 |
) |
|
|
(2,829 |
) |
Add: Share-based
compensation, net of tax |
|
80 |
|
|
|
193 |
|
|
|
79 |
|
Add:
Acquisition-related charges, net of tax |
|
175 |
|
|
|
148 |
|
|
|
175 |
|
Profit (loss)
attributable to Himax Technologies, Inc. stockholders excluding
share-based compensation and acquisition-related charges |
|
2,301 |
|
|
|
(339 |
) |
|
|
(2,575 |
) |
Net margin attributable
to Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
1.3 |
% |
|
|
(0.2 |
%) |
|
|
(1.6 |
%) |
|
|
|
|
|
|
*Gross
margin excluding share-based compensation equals gross profit
excluding share-based compensation divided by revenues |
*Operating
margin excluding share-based compensation and acquisition-related
charges equals operating income (loss) excluding share-based
compensation and acquisition-related charges divided by
revenues |
*Net
margin attributable to Himax Technologies, Inc. stockholders
excluding share-based compensation and acquisition-related charges
equals profit (loss) attributable to Himax Technologies, Inc.
stockholders excluding share-based compensation and
acquisition-related charges divided by revenues |
|
Himax Technologies, Inc. |
Non-IFRS
Unaudited Supplemental Data – Reconciliation
Schedule |
(Amounts in Thousands of U.S.
Dollars) |
|
Gross Margin, Operating Margin and Net Margin Excluding
Share-Based Compensation and
Acquisition-Related Charges: |
|
|
Six Months Ended
June 30, |
|
|
|
|
2018 |
|
|
|
2017 |
|
Revenues |
|
|
$ |
344,216 |
|
|
$ |
306,940 |
|
Gross profit |
|
|
|
78,391 |
|
|
|
72,075 |
|
Add: Share-based
compensation – cost of revenues |
|
|
|
24 |
|
|
|
50 |
|
Gross profit excluding
share-based compensation |
|
|
|
78,415 |
|
|
|
72,125 |
|
Gross margin excluding
share-based compensation |
|
|
|
22.8 |
% |
|
|
23.5 |
% |
Operating income
(loss) |
|
|
|
(2,744 |
) |
|
|
681 |
|
Add: Share-based
compensation |
|
|
|
184 |
|
|
|
461 |
|
Operating income (loss)
excluding share-based compensation |
|
|
|
(2,560 |
) |
|
|
1,142 |
|
Add:
Acquisition-related charges –intangible assets amortization |
|
|
|
492 |
|
|
|
492 |
|
Operating income (loss)
excluding share-based compensation and acquisition-related
charges |
|
|
|
(2,068 |
) |
|
|
1,634 |
|
Operating margin
excluding share-based compensation and acquisition-related
charges |
|
|
|
(0.6 |
%) |
|
|
0.5 |
% |
Profit (loss)
attributable to Himax Technologies, Inc. stockholders |
|
|
|
(783 |
) |
|
|
536 |
|
Add: Share-based
compensation, net of tax |
|
|
|
159 |
|
|
|
387 |
|
Add:
Acquisition-related charges, net of tax |
|
|
|
350 |
|
|
|
295 |
|
Profit (loss)
attributable to Himax Technologies, Inc. stockholders excluding
share-based compensation and acquisition-related charges |
|
|
|
(274 |
) |
|
|
1,218 |
|
Net margin attributable
to Himax Technologies, Inc. stockholders excluding share-based
compensation and acquisition-related charges |
|
|
|
(0.1 |
%) |
|
|
0.4 |
% |
|
|
|
|
|
|
*Gross
margin excluding share-based compensation equals gross profit
excluding share-based compensation divided by revenues |
*Operating
margin excluding share-based compensation and acquisition-related
charges equals operating income (loss) excluding share-based
compensation and acquisition-related charges divided by
revenues |
*Net
margin attributable to Himax Technologies, Inc. stockholders
excluding share-based compensation and acquisition-related charges
equals profit (loss) attributable to Himax Technologies, Inc.
stockholders excluding share-based compensation and
acquisition-related charges divided by revenues |
Diluted Earnings
(Loss) Per ADS
Attributable to Himax Technologies, Inc. Stockholders Excluding
Share-based Compensation and Acquisition-Related Charges: (Amounts
in U.S. Dollars) |
|
|
Three Months Ended
June
30, |
|
Six Months Ended
June
30, |
|
|
2018 |
|
|
2018 |
|
Diluted IFRS earnings
(loss) per ADS attributable to Himax Technologies, Inc.
stockholders |
$ |
0.012 |
|
|
($0.005 |
) |
Add:
Share-based compensation per ADS |
$ |
0.000 |
|
|
$0.001 |
|
Add:
Acquisition-related charges per ADS |
$ |
0.001 |
|
|
$0.002 |
|
|
|
|
|
Diluted non-IFRS
earnings (loss) per ADS attributable to Himax Technologies, Inc.
stockholders excluding share-based compensation and
acquisition-related charges |
$ |
0.013 |
|
|
($0.002 |
) |
|
|
|
|
Numbers do not add up due to rounding
|
Himax Technologies, Inc. |
Reconciliation of unaudited condensed
consolidated statement
of financial
position as of
June 30,
2017 |
(Amounts in Thousands of U.S.
Dollars) |
|
|
|
|
|
|
|
U.S. GAAP |
|
Effect of Transition to IFRS |
|
IFRS |
|
|
Items |
|
Amount |
|
Recognition Difference |
|
PresentationDifference |
|
Amount |
|
Items |
|
Note |
Assets |
|
|
|
|
|
|
|
|
|
Assets |
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
Cash and
cash equivalents |
|
$ |
177,206 |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
177,206 |
|
Cash and cash equivalents |
|
|
Investments in marketable securities available-for-sale |
|
|
8,663 |
|
|
- |
|
|
|
(8,663 |
) |
|
|
- |
|
- |
|
A-1 |
- |
|
|
- |
|
|
- |
|
|
|
5,306 |
|
|
|
5,306 |
|
Financial
assets at amortized cost |
|
A-1 |
- |
|
|
- |
|
|
- |
|
|
|
3,357 |
|
|
|
3,357 |
|
Financial
assets at fair value through profit or loss |
|
A-1 |
Accounts
receivable, less allowance for doubtful accounts, sales returns and
discounts |
|
|
163,243 |
|
|
- |
|
|
|
1,273 |
|
|
|
164,516 |
|
Accounts
receivable, net |
|
B |
Inventories |
|
|
147,680 |
|
|
- |
|
|
|
- |
|
|
|
147,680 |
|
Inventories |
|
|
- |
|
|
- |
|
|
- |
|
|
|
41 |
|
|
|
41 |
|
Income
taxes receivable |
|
|
Restricted cash, cash equivalents and marketable securities |
|
|
107,201 |
|
|
- |
|
|
|
- |
|
|
|
107,201 |
|
Restricted deposit |
|
|
Other
receivables from related parties |
|
|
4,150 |
|
|
- |
|
|
|
- |
|
|
|
4,150 |
|
Other
receivable from related parties |
|
|
Prepaid
expenses and other current assets |
|
|
12,329 |
|
|
- |
|
|
|
(41 |
) |
|
|
12,288 |
|
Other
current assets |
|
|
Total current assets |
|
|
620,472 |
|
|
- |
|
|
|
1,273 |
|
|
|
621,745 |
|
Total current assets |
|
|
Investment in non-marketable equity
securities |
|
|
12,242 |
|
|
- |
|
|
|
(12,242 |
) |
|
|
- |
|
|
|
A-2 |
- |
|
|
- |
|
|
- |
|
|
|
10,562 |
|
|
|
10,562 |
|
Financial assets at fair value through profit or
loss |
|
A-2 |
- |
|
|
- |
|
|
- |
|
|
|
1,680 |
|
|
|
1,680 |
|
Financial assets at fair value through
other comprehensive income |
|
A-2 |
Equity method investments |
|
|
4,055 |
|
|
- |
|
|
|
- |
|
|
|
4,055 |
|
Equity method investments |
|
|
Property, plant and equipment, net |
|
|
57,813 |
|
|
- |
|
|
|
(3,961 |
) |
|
|
53,852 |
|
Property, plant and equipment, net |
|
C |
Deferred tax assets |
|
|
6,671 |
|
|
(56 |
) |
|
|
1,267 |
|
|
|
7,882 |
|
Deferred tax assets |
|
D,F |
Goodwill |
|
|
28,138 |
|
|
- |
|
|
|
- |
|
|
|
28,138 |
|
Goodwill |
|
|
Other intangible assets, net |
|
|
2,675 |
|
|
- |
|
|
|
665 |
|
|
|
3,340 |
|
Other intangible assets, net |
|
C |
Restricted marketable securities |
|
|
460 |
|
|
- |
|
|
|
- |
|
|
|
460 |
|
Restricted deposit |
|
|
Other assets |
|
|
1,478 |
|
|
(90 |
) |
|
|
3,296 |
|
|
|
4,684 |
|
Other non-current assets |
|
C,F |
|
|
|
113,532 |
|
|
(146 |
) |
|
|
1,267 |
|
|
|
114,653 |
|
|
|
|
Total assets |
|
$ |
734,004 |
|
$ |
(146 |
) |
|
$ |
2,540 |
|
|
$ |
736,398 |
|
Total assets |
|
|
(Continued)
|
Himax Technologies, Inc. |
Reconciliation of unaudited condensed
consolidated statement
of financial
position as of
June 30,
2017 |
(Amounts in Thousands of U.S.
Dollars) |
|
|
|
|
|
|
|
U.S. GAAP |
|
Effect of Transition to IFRS |
|
IFRS |
|
|
Items |
|
Amount |
|
Recognition Difference |
|
PresentationDifference |
|
Amount |
|
Items |
|
Note |
Liabilities, Redeemable noncontrolling interest and
Equity |
|
|
|
|
|
|
|
|
|
Liabilities and
Equity |
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
Short-term debt |
|
$ |
107,000 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
107,000 |
|
|
Short-term borrowings |
|
|
Accounts
payable |
|
|
113,670 |
|
|
|
- |
|
|
|
- |
|
|
|
113,670 |
|
|
Accounts payable |
|
|
Income
taxes payable |
|
|
7,778 |
|
|
|
- |
|
|
|
526 |
|
|
|
8,304 |
|
|
Income
taxes payable |
|
E |
Other
accrued expenses and other current liabilities |
|
|
71,062 |
|
|
|
- |
|
|
|
1,273 |
|
|
|
72,335 |
|
|
Other
current liabilities |
|
B |
Total current liabilities |
|
|
299,510 |
|
|
|
- |
|
|
|
1,799 |
|
|
|
301,309 |
|
|
Total current liabilities |
|
|
- |
|
|
- |
|
|
|
4,678 |
|
|
|
- |
|
|
|
4,678 |
|
|
Financial liability at
amortized cost |
|
A-3 |
- |
|
|
- |
|
|
|
(15 |
) |
|
|
1,128 |
|
|
|
1,113 |
|
|
Net defined
benefit liabilities |
|
F |
- |
|
|
- |
|
|
|
- |
|
|
|
1,368 |
|
|
|
1,368 |
|
|
Deferred tax
liabilities |
|
D |
Other liabilities |
|
|
3,191 |
|
|
|
- |
|
|
|
(1,755 |
) |
|
|
1,436 |
|
|
Other
non-current liabilities |
|
D,E,F |
|
|
|
3,191 |
|
|
|
4,663 |
|
|
|
741 |
|
|
|
8,595 |
|
|
|
|
|
Total liabilities |
|
|
302,701 |
|
|
|
4,663 |
|
|
|
2,540 |
|
|
|
309,904 |
|
|
Total liabilities |
|
|
Redeemable noncontrolling interest |
|
|
3,656 |
|
|
|
(3,656 |
) |
|
|
- |
|
|
|
- |
|
|
- |
|
A-3 |
Equity |
|
|
|
|
|
|
|
|
|
Equity |
|
|
Himax Technologies, Inc.
stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Himax Technologies, Inc.
stockholders’ equity: |
|
|
Ordinary
shares |
|
|
107,010 |
|
|
|
- |
|
|
|
- |
|
|
|
107,010 |
|
|
Ordinary
shares |
|
|
Additional paid-in capital |
|
|
106,837 |
|
|
|
(2,924 |
) |
|
|
- |
|
|
|
103,913 |
|
|
Additional paid-in capital |
|
G |
Treasury
shares |
|
|
(9,020 |
) |
|
|
- |
|
|
|
- |
|
|
|
(9,020 |
) |
|
Treasury
shares |
|
|
Accumulated other comprehensive loss |
|
|
(2,041 |
) |
|
|
1,016 |
|
|
|
- |
|
|
|
(1,025 |
) |
|
Accumulated other comprehensive income |
|
F |
Unappropriated retained earnings |
|
|
225,312 |
|
|
|
753 |
|
|
|
- |
|
|
|
226,065 |
|
|
Retained
earnings |
|
|
Himax Technologies, Inc. stockholders’
equity |
|
|
428,098 |
|
|
|
(1,155 |
) |
|
|
- |
|
|
|
426,943 |
|
|
Equity attributable to owners of Himax
Technologies, Inc. |
|
H |
Noncontrolling interests |
|
|
(451 |
) |
|
|
2 |
|
|
|
- |
|
|
|
(449 |
) |
|
Noncontrolling interests |
|
F |
Total equity |
|
|
427,647 |
|
|
|
(1,153 |
) |
|
|
- |
|
|
|
426,494 |
|
|
Total equity |
|
|
Total liabilities,
redeemable noncontrolling interest and
equity |
|
$ |
734,004 |
|
|
$ |
(146 |
) |
|
$ |
2,540 |
|
|
$ |
736,398 |
|
|
Total liabilities and equity |
|
|
(Concluded)
|
Himax Technologies, Inc. |
Reconciliation of unaudited condensed
consolidated statement of profit or loss for the three months
ended June
30, 2017 |
(Amounts in Thousands of U.S.
Dollars) |
|
U.S. GAAP |
|
Effect of Transition to IFRS |
|
IFRS |
|
|
Items |
|
Amount |
|
Recognition Difference |
|
PresentationDifference |
|
Amount |
|
Items |
|
Note |
Revenues |
|
$ |
151,730 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
151,730 |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
Cost of revenues |
|
|
115,556 |
|
|
|
- |
|
|
|
- |
|
|
|
115,556 |
|
|
Cost of revenues |
|
|
Research and development |
|
|
27,921 |
|
|
|
2 |
|
|
|
- |
|
|
|
27,923 |
|
|
Research and development |
|
G |
General and administrative |
|
|
4,552 |
|
|
|
(31 |
) |
|
|
- |
|
|
|
4,521 |
|
|
General and administrative |
|
G |
Sales and marketing |
|
|
4,641 |
|
|
|
6 |
|
|
|
- |
|
|
|
4,647 |
|
|
Sales and marketing |
|
G |
Total costs and expenses |
|
|
152,670 |
|
|
|
(23 |
) |
|
|
- |
|
|
|
152,647 |
|
|
Total costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(940 |
) |
|
|
23 |
|
|
|
- |
|
|
|
(917 |
) |
|
Operating loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non operating income
(loss): |
|
|
|
|
|
|
|
|
|
Non operating income
(loss): |
|
|
Interest income |
|
|
619 |
|
|
|
- |
|
|
|
- |
|
|
|
619 |
|
|
Interest income |
|
|
Gain on
sale of securities, net |
|
|
37 |
|
|
|
- |
|
|
|
- |
|
|
|
37 |
|
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
Equity in
losses of equity method investees |
|
|
(697 |
) |
|
|
- |
|
|
|
- |
|
|
|
(697 |
) |
|
Share of losses of associates |
|
|
Foreign
currency exchange losses, net |
|
|
(27 |
) |
|
|
4 |
|
|
|
- |
|
|
|
(23 |
) |
|
Foreign currency exchange losses, net |
|
F |
Interest
expense |
|
|
(113 |
) |
|
|
(77 |
) |
|
|
- |
|
|
|
(190 |
) |
|
Finance costs |
|
A-3 |
Other
losses, net |
|
|
(41 |
) |
|
|
- |
|
|
|
- |
|
|
|
(41 |
) |
|
Other losses, net |
|
|
|
|
|
(222 |
) |
|
|
(73 |
) |
|
|
- |
|
|
|
(295 |
) |
|
|
|
|
Loss before income taxes |
|
|
(1,162 |
) |
|
|
(50 |
) |
|
|
- |
|
|
|
(1,212 |
) |
|
Loss before income
taxes |
|
|
Income
tax benefit |
|
|
(179 |
) |
|
|
- |
|
|
|
- |
|
|
|
(179 |
) |
|
Income tax benefit |
|
F |
Net loss |
|
|
(983 |
) |
|
|
(50 |
) |
|
|
- |
|
|
|
(1,033 |
) |
|
Loss for the
period |
|
|
Net loss attributable to noncontrolling
interests |
|
|
354 |
|
|
|
(1 |
) |
|
|
- |
|
|
|
353 |
|
|
Loss attributable to noncontrolling
interests |
|
F |
Net loss attributable to
Himax Technologies, Inc. stockholders |
|
$ |
(629 |
) |
|
$ |
(51 |
) |
|
$ |
- |
|
|
$ |
(680 |
) |
|
Loss attributable to Himax
Technologies, Inc.
stockholders |
|
|
Basic loss per ADS
attributable to Himax Technologies, Inc. stockholders |
|
$ |
(0.004 |
) |
|
|
|
|
|
$ |
(0.004 |
) |
|
Basic loss per ADS
attributable to Himax Technologies, Inc.
stockholders |
|
|
Diluted loss per ADS
attributable to Himax Technologies, Inc. stockholders |
|
$ |
(0.004 |
) |
|
|
|
|
|
$ |
(0.004 |
) |
|
Diluted loss per ADS
attributable to Himax Technologies, Inc. stockholders |
|
|
Basic Weighted Average Outstanding ADS |
|
|
172,399 |
|
|
|
|
|
|
|
172,399 |
|
|
Basic Weighted Average Outstanding ADS |
|
|
Diluted Weighted Average Outstanding ADS |
|
|
172,462 |
|
|
|
|
|
|
|
172,462 |
|
|
Diluted Weighted Average Outstanding ADS |
|
|
|
Himax Technologies, Inc. |
Reconciliation of unaudited condensed
consolidated statement of profit or loss for the
six months ended
June 30,
2017 |
(Amounts in Thousands of U.S.
Dollars) |
|
U.S. GAAP |
|
Effect of Transition to IFRS |
|
IFRS |
|
|
Items |
|
Amount |
|
Recognition Difference |
|
|
PresentationDifference |
|
|
Amount |
|
Items |
|
Note |
Revenues |
|
$ |
306,940 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
306,940 |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
Cost of revenues |
|
|
234,865 |
|
|
|
- |
|
|
|
- |
|
|
|
234,865 |
|
|
Cost of revenues |
|
|
Research and development |
|
|
53,252 |
|
|
|
4 |
|
|
|
- |
|
|
|
53,256 |
|
|
Research and development |
|
G |
General and administrative |
|
|
9,185 |
|
|
|
(63 |
) |
|
|
- |
|
|
|
9,122 |
|
|
General and administrative |
|
G |
Sales and marketing |
|
|
9,005 |
|
|
|
11 |
|
|
|
- |
|
|
|
9,016 |
|
|
Sales and marketing |
|
G |
Total costs and expenses |
|
|
306,307 |
|
|
|
(48 |
) |
|
|
- |
|
|
|
306,259 |
|
|
Total costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
633 |
|
|
|
48 |
|
|
|
- |
|
|
|
681 |
|
|
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non operating income
(loss): |
|
|
|
|
|
|
|
|
|
Non operating income
(loss): |
|
|
Interest income |
|
|
1,162 |
|
|
|
- |
|
|
|
- |
|
|
|
1,162 |
|
|
Interest income |
|
|
Gain on
sale of securities, net |
|
|
107 |
|
|
|
- |
|
|
|
- |
|
|
|
107 |
|
|
Changes in fair value of financial assets at fair value through
profit or loss |
|
|
Equity in
losses of equity method investees |
|
|
(831 |
) |
|
|
- |
|
|
|
- |
|
|
|
(831 |
) |
|
Share of losses of associates |
|
|
Foreign
currency exchange losses, net |
|
|
(1,060 |
) |
|
|
(89 |
) |
|
|
- |
|
|
|
(1,149 |
) |
|
Foreign currency exchange losses, net |
|
F |
Interest
expense |
|
|
(250 |
) |
|
|
(154 |
) |
|
|
- |
|
|
|
(404 |
) |
|
Finance costs |
|
A-3 |
Other
income, net |
|
|
7 |
|
|
|
- |
|
|
|
- |
|
|
|
7 |
|
|
Other income, net |
|
|
|
|
|
(865 |
) |
|
|
(243 |
) |
|
|
- |
|
|
|
(1,108 |
) |
|
|
|
|
Loss before income taxes |
|
|
(232 |
) |
|
|
(195 |
) |
|
|
- |
|
|
|
(427 |
) |
|
Loss before income
taxes |
|
|
Income
tax benefit |
|
|
(58 |
) |
|
|
1 |
|
|
|
- |
|
|
|
(57 |
) |
|
Income tax benefit |
|
F |
Net loss |
|
|
(174 |
) |
|
|
(196 |
) |
|
|
- |
|
|
|
(370 |
) |
|
Loss for the
period |
|
|
Net loss attributable to noncontrolling
interests |
|
|
908 |
|
|
|
(2 |
) |
|
|
- |
|
|
|
906 |
|
|
Loss attributable to noncontrolling
interests |
|
F |
Net income attributable to Himax Technologies, Inc.
stockholders |
|
$ |
734 |
|
|
$ |
(198 |
) |
|
$ |
- |
|
|
$ |
536 |
|
|
Profit attributable to Himax
Technologies, Inc.
stockholders |
|
|
Basic earnings per ADS attributable to Himax Technologies,
Inc. stockholders |
|
$ |
0.004 |
|
|
|
|
|
|
$ |
0.003 |
|
|
Basic earnings per ADS attributable to Himax
Technologies, Inc.
stockholders |
|
|
Diluted earnings per ADS attributable to Himax
Technologies, Inc. stockholders |
|
$ |
0.004 |
|
|
|
|
|
|
$ |
0.003 |
|
|
Diluted earnings per ADS attributable to Himax
Technologies, Inc. stockholders |
|
|
Basic Weighted Average Outstanding ADS |
|
|
172,399 |
|
|
|
|
|
|
|
172,399 |
|
|
Basic Weighted Average Outstanding ADS |
|
|
Diluted Weighted Average Outstanding ADS |
|
|
172,444 |
|
|
|
|
|
|
|
172,444 |
|
|
Diluted Weighted Average Outstanding ADS |
|
|
Notes to the reconciliation of the main differences:
A) Financial instruments
Under U.S. GAAP, investment securities consist
of investments in marketable securities and investments in
non-marketable equity securities. All of our investments in
marketable securities are classified as available-for-sale
securities and are reported at fair value. Investments in
non-marketable equity securities in which we do not have the
ability to exercise significant influence over the operating and
financial policies of the investee are stated at cost.
Under IFRS, IFRS 9 Financial Instruments
includes guidance on the classification and measurement of
financial instruments, a new expected credit loss model for
calculating impairment on financial assets, and the new general
hedge accounting requirements. It is effective for annual reporting
periods beginning on January 1, 2018. To better reflect the
presentation of the consolidated statements of financial position
as of June 30, 2018, we reclassified comparative period information
as follows:
A-1)
As of June 30, 2017, we had $8,663 thousand
reported as investments in marketable securities available-for-sale
under U.S. GAAP, that were reclassified to financial assets at
amortized cost and financial assets at fair value through profit or
loss-current, at amounts of $5,306 thousand and $3,357 thousand,
respectively, under IFRS.
A-2)
As of June 30, 2017, we had $12,242 thousand
reported as investment in non-marketable equity securities under
U.S. GAAP, that were reclassified to financial assets at fair value
through profit or loss-noncurrent and financial assets at fair
value through other comprehensive income at amounts of $10,562
thousand and $1,680 thousand, respectively, under IFRS.
A-3)
Under U.S. GAAP, we recognized redeemable
convertible preferred shares which were issued to a non-controlling
shareholder by Himax Display Inc., a consolidated subsidiary, as
temporary equity. The redeemable convertible preferred shares were
presented as redeemable noncontrolling interest and recognized at
fair value.
Under IFRS, we recognized the above-mentioned
redeemable convertible preferred shares as financial liability at
amortized cost using effective interest method.
As of June 30, 2017, we had $3,656 thousand
reported as redeemable noncontrolling interest under U.S. GAAP,
that were reclassified to financial liability at amortized
cost-noncurrent and recognized interest expense (finance costs)
using effective interest method which decreased the retained
earnings by $1,022 thousand. After the above adjustments, we had
$4,678 thousand reported as financial liability at amortized
cost-noncurrent under IFRS.
For the six months and three months ended June
30, 2017, interest expense (finance costs) was adjusted for an
increase of $154 thousand and $77 thousand, respectively.
B) Allowance of sales returns and discounts
Under U.S. GAAP, allowance of sales returns and
discounts were recognized as a reduction in revenue in the year the
related revenue is recognized based on historical experience. The
corresponding allowance of sales returns and discounts was
presented as a reduction in accounts receivable.
Under IFRS, the allowance of sales returns and
discounts is a present obligation with uncertain timing and an
amount that arises from past events and is therefore reclassified
as provisions.
As of June 30, 2017, the amounts reclassified
from allowance of sales returns and discounts to provisions was
$1,273 thousand.
C) Property, plant and equipment, net
Under U.S. GAAP, property, plant, and equipment
typically consist of software and long-lived tangible assets used
to create and distribute an entity's products.
Under IFRS, property, plant and equipment are
tangible items. Certain software that is not an integral part of
the related hardware and prepayment for equipment not shipped to
the factory are reclassified out from property, plant and equipment
as they do not meet the definition of property, plant and
equipment.
As of June 30, 2017, property, plant and
equipment, net of $3,961 thousand were reclassified to other
intangible assets, net and other non-current assets at amounts of
$665 thousand and $3,296 thousand, respectively.
D) Deferred tax assets and liabilities
Under U.S. GAAP, for a particular tax-paying
component of an entity and within a particular tax jurisdiction,
all current / non-current deferred tax liabilities and assets are
offset and presented as a single amount.
Under IFRS, deferred tax liabilities and assets
are offset only if the entity has a legally enforceable right to
offset current tax liabilities and assets.
As of June 30, 2017, the amounts reclassified
from deferred tax assets to deferred tax liabilities was $1,267
thousand.
E) Income taxes payable
Under U.S. GAAP, income taxes payable are
classified as current if cash payment is expected within 12 months;
if not, the amount is classified as noncurrent.
Under IFRS, income taxes payable are classified
as current unless an unconditional right to defer payment for a
period greater than twelve months exists.
As of June 30, 2017, the amounts reclassified
from other liabilities to income taxes payable was $526
thousand.
F) Employee benefits
Under U.S. GAAP, actuarial gains and losses
arising in the period are recognized immediately in OCI and
amortized from accumulated OCI into the profit or loss over the
employees’ remaining service period.
Under IFRS, remeasurements of the net defined
benefit liability (asset) are recognized in OCI and are not
reclassified to profit or loss in a subsequent period.
As of June 30, 2017, net defined benefit assets
included in other assets, net defined benefit liabilities, deferred
tax assets and remeasurements of the net defined benefit liability
or asset related to components of accumulated other comprehensive
income were adjusted for a decrease of $90 thousand, $15 thousand,
$56 thousand and an increase of $1,016 thousand, respectively.
G) Share-Based Compensation
Under U.S. GAAP, we recognized compensation
expense by straight-line method and recognized excess tax benefits
from share-based payments.
Under IFRS, we recognized compensation expense
by graded vesting and there is no requirement of recognizing excess
tax benefits under IFRS.
For the six months and three months ended June
30, 2017, operating expense for share-based compensation was
adjusted for a decrease of $48 thousand and $23 thousand,
respectively.
H) Reconciliation of equity attributable to Himax from
U.S. GAAP to IFRS summarized below:
|
|
|
June
30,2017 |
|
Note |
Equity attributable to
Himax under U.S. GAAP |
|
|
$ |
428,098 |
|
|
|
|
|
|
|
|
|
Financial liability at
amortized cost |
|
|
|
(1,022 |
) |
|
A-3 |
Employee benefits |
|
|
|
(133 |
) |
|
F |
|
|
|
|
(1,155 |
) |
|
|
Equity attributable to
Himax under IFRS |
|
|
$ |
426,943 |
|
|
|
|
|
|
|
|
|
|
|
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