Himax Technologies, Inc (NASDAQ:HIMX) reported first-quarter FY22 revenue growth of 33.6% year-on-year to $412.8 million. Net revenues declined 8.6% sequentially.
Revenue from large display drivers grew 60% Y/Y to $110.6 million.
Monitor and notebook IC sales decreased sequentially on the backdrop of slowing end market sell-through.
TV revenue was flat sequentially, anchored by high-end and large-sized TV IC shipments to key accounts.
Small and medium-sized display drivers' revenue was $258.5 million, up over 25% Y/Y.
The automotive segment delivered sales growth of over 170% Y/Y.
Driver IC revenue for smartphones declined sequentially due to sluggish demand, China lockdown, and geopolitical tensions. Tablet revenue was up low teens Y/Y.
The revenue from its non-driver businesses was $43.7 million, up 25% Y/Y, driven by higher shipment of its ultralow power AI image sensing total solution to the notebook market.
Tcon's business increased by 50% Y/Y, reflecting a better mix towards higher-end product areas such as 4K/8K TV, gaming monitors, low power notebooks, and automotive Tcon.
The non-IFRS gross margin expanded by 680 bps to 47%, and the non-IFRS operating margin expanded by 880 bps to 36.3%. Non-IFRS earnings per ADS were $0.697.
Himax held $447.1 million in cash and equivalents and generated $72 million in operating cash flow.
CEO Jordan Wu said, "Historically, our first-quarter sales are seasonally the low point of year due to the Lunar New Year holidays. This year, starting from end of February, additional factors also weighed in, mainly new lockdowns in China to contain the spread of the Omicron variant and geographical conflict erupting in Ukraine, both causing major disruptions to our supply chain."
Dividend: Himax declared an annual cash dividend of $1.25 per ADS.
Outlook: Himax sees Q2 revenue to decrease 16% - 20% Q/Q. It expects non-IFRS earnings per ADS of $0.45 - $0.50.
Price Action: HIMX shares traded higher by 1.88% at $8.11 on the last check Thursday.