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Himax +4.3% in spite of soft outlook; non-driver sales jump

  • Himax (HIMX) expects Q2 revenue to be flat with a Q1 level of $194.6M; that's below a consensus of $223.2M. EPS guidance of $0.132-$0.152 is above a $0.13 consensus, but only due to a $0.05 gain stemming from the sale of a stake in a U.S. display company.
  • Q2 sales of small/mid-sized-panel driver ICs are expected to be pressured by an inventory correction at a Korean smartphone OEM (most likely Samsung) - investors seem to have already priced this issue in. But small/mid-sized demand from Chinese smartphone vendors and the tablet/automotive markets is expected to be healthier.
  • Healthy TV market sales are expected to offset weak notebook/monitor sales in the large-panel driver IC market. CMOS image sensor sales are expected to double in 2014, and touch controller sales to triple Q/Q in Q2. Himax says it's still working with multiple LCOS microdisplay customers, including "top-notch clients."
  • Q1 gross margin was 24.7%, -40 bps Q/Q and +10 bps Y/Y. Q2 GM is expected to be flat to slightly down Q/Q. Driver price competition in the Chinese smartphone market and strong sales of CMOS sensors have been pressuring margins a bit.
  • Small/mid-sized panel driver sales (56.9% of revenue) rose 21.5% Y/Y, down from 32.3% in Q4. Large-sized panel driver sales (25% of revenue) fell 19.2%, an improvement from Q4's 39.7% drop. All other sales (18.1% of revenue) rose 44.5%, a pickup from Q4's 28.1%.
  • Q1 results, PR
Comments (3)
  • 808Amigo
    , contributor
    Comments (295) | Send Message
     
    Pre-market reaction to Q1 ER pushed price down to market open of $7.00. In the first 8 minutes of trading 884.2K shares traded between $7.00 and $7.30. Was someone pushing the premarket down so forcefully in order to make large buys/short-covers down near $7? 292.6K shares traded in the first minute between $7.00 and $7.05.
    Reading the ER I find no negative news that was not already known. I also found confirmation of growth expectations. A number of products are moving into production (tape-outs) - still could experience snags but may be in the best hands in the industry for this stage and onward. Finally, it seems management has set things up for a significant beat over expectations for next quarter which could very well coincide with even greater forward growth guidance.
    8 May, 06:41 PM Reply Like
  • 808Amigo
    , contributor
    Comments (295) | Send Message
     
    Should say 844.4K shares in first 8 minutes.
    8 May, 07:08 PM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2152) | Send Message
     
    It's down to $7 again today.

     

    -Mike
    9 May, 10:23 AM Reply Like
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