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$HIMX expects 1Q17 net revenue to be down 18-25% sequentially and gross margin to be around 23-24%. GAAP EPS is expected to be 0.5-2 cents per ADS as compared to 2.6 cents in 4Q16. The company said 1Q is traditionally the bottom of the year in terms of sales because it has fewer working days due to the Chinese New Year.
$HIMX reported a drop in 4Q16 earnings due to higher costs and expenses. Net income fell to $4.44MM or $0.026 per American Depository Share (ADS) from $6.13MM or $0.036 per ADS last year. Revenue grew 14.3% to $203.44MM. Non-GAAP EPS decreased 26.2% to $0.028.
$HIMX expects 4Q16 net revenue to be down 4-9% sequentially, representing an 11.5-17.6% YoverY growth. The company predicts 4Q16 EPS of 8.5-11 cents per ADS and non-GAAP EPS of 8.7-11.2 per ADS. Gross margin is projected to be slightly down sequentially as compared to 22.9% in 4Q15.
Fabless semiconductor company $HIMX swung to a 3Q16 profit from a loss last year, driven by strong driver and non-driver business segments. Net income was $13.6MM or $0.079 per American Depository Share compared to a loss of $2.3MM or $0.014 per ADS last year. Revenue jumped 31.7% to $218.1MM. Non-GAAP EPS grew to $0.124 from $0.010.
$HIMX provides guidance for 4Q15 in which it expects the revenues to be between flat to 5% up compared with 3Q15 & gross margin to be flat to slightly up from 3Q15 depending on final product mix. GAAP EPS is expected to be in the range of $0.01 to $0.03 per diluted ADS based on 172.3MM outstanding ADSs.
$HIMX said, excluding the RSU charge, operating expenses were up 4.6% to $34MM in 3Q15, mainly related to increased salary expenses, headcount & annual salary rises. At the end of Sept. 30, 2015, DSO was 89 days as compared to 97 days for same period a year ago primarily related to more efficient cash collection from credit sales.
$HIMX 3Q15 GAAP EPS reflects an adjustment of an additional $3.7MM, or $0.022 per diluted ADS, of income tax related to NTD devaluation against the USD. Excluding share-based compensation and acquisition-related charges, non-GAAP net income was $1.7MM, or $0.01 per diluted ADS, compared to $19.1MM in 3Q14.
$HIMX's 3Q15 large panel display drivers revenue was down 17.5% YoverY accounting 31% of total revenues, while driver IC business for TVs outperformed the market, growing more than 25% vs. market growth of around 11%. This growth was driven by market share gains of Chinese panel manufacturers & increasing 4K TV panel builds in China.
During 3Q15, $HIMX small & medium-sized drivers revenue fell 25.6% versus last year, while revenues for non-driver businesses were down 35.6% from last year. Non-driver products accounted for 18.6% of total revenues & Driver ICs accounted for 50.9% of total revenue for 3Q15.
$HIMX 2Q15 Q&A: Tom Sepenzis from Northland Securities asked about LCOS & WLL, do you have any guaranteed volume commitments next year? Jordan said, we are inevitably the sole supplier. However we do have very transparent & close communication collaboration & eventually they’ve plan. But, even if I’m shared with plan, I cannot share with you guys.
$HIMX 2Q15 Q&A: Jaeson from Lake Street asked about small panel segment on change in competitive landscape? Jordan said I think there aren’t major new comers. However, the dynamics of industry does affect performance short term. I don’t think we are losing our competitive strength. We are pretty confident we should be able to rebound soon.
$HIMX 2Q15 Q&A: Daniel from BofA asked when do we hit inflection point for 4K TV?Jordan said, we are talking to few customers who are trying to move mainstream TV panel from 32 inch to 40 inch or even above. I think there’s overall atmosphere of uncertainty at the moment. On other hand, people are always cautious about recovery of microenvironment.
$HIMX 2Q15 Q&A: Daniel from BofA asked about large panel orders as demand is very weak?Jordan said it’s fair to say that demand still remains quite weak. I think we are seeing little bit of industry inventory building up across large panel applications &panel makers are under pressure. We remain long term positive for large driver ICs going forward
$HIMX 2Q15 Q&A: Daniel Heyler from BofA asked about growth in non-drivers business as you said it will be in mid-single digits? Jordan said I think WLO & LCOS are still in pilot production. While we cannot disclose exactly when mass production would start, we will continue to ramp the volume & hopefully before too long, we’ll start mass production.
$HIMX 2Q15 Call: Company declared its annual cash dividend of $0.30 per ADS, totaling $51.4MM, which was paid out in July. Dividend is determined by prior year’s profitability. Company’s decision to pay out 77.5% of last year’s net profit demonstrates, Company’s continued support for its shareholder base & confidence in its long term profitability.
$HIMX 2Q15 Call: Accounts receivable at the end of June 2015 were $182.3MM, as compared to $199MM for 2Q14, and $192.7MM last quarter. Net cash outflow from operating activities for the second quarter of 2015 was $13.8MM, as compared to cash inflow of $22.9MM for the second quarter of 2014, and cash outflow of $3.7MM for the first quarter of 2015.