Himax Technologies (HIMAX.US) has today announced its financial performance for Q2 2024 ending on June 30, 2024. In Q2 2024, net revenue was USD 0.2396 billion, an increase of 15.5% month-on-month; gross margin was 32.0%; net income attributable to the company's shareholders was USD 29.626 million, up significantly from USD 0.888 million in the same period last year; and diluted earnings per ADS for the second quarter were USD 0.169.
In terms of revenue, revenue from large display drivers was USD 39 million, up 24.7% month-on-month; revenue from small and medium display drivers reached USD 0.1588 billion, up 10.1% month-on-month; and revenue from non-driver businesses was USD 41.8 million, up 30.6% month-on-month.
In terms of cash flow, as of the end of June 2024, the company had USD 0.2538 billion in cash, cash equivalents, and other financial assets.
"Given the current macroeconomic uncertainty, end customers remain cautious, leading panel manufacturers to adopt a cautious stance, strictly controlling production to maintain low inventory levels. This has had a negative impact on integrated circuit demand, leading to our conservative Q3 forecast," said Jordan Wu, President and Chief Executive Officer of Himax Technologies.
"In the second quarter automotive market, auto manufacturers initially expected sales to grow due to promotional activities and government subsidies, especially in China. As a result, we saw a significant increase in sales in the second quarter, as well as in sales of integrated circuits and active discount activities by auto manufacturers. However, these intensive promotional activities did not produce the expected sales growth and may even have caused consumers to hesitate in purchasing new cars, leading to disappointing second quarter auto sales in China and surplus inventory throughout the supply chain. As a result, our panel customers have begun to reduce IC purchases in the third quarter to manage inventory levels. In contrast, the automotive markets in Europe and the United States have remained relatively stable since last year, without the dramatic fluctuations seen in China. As a leader in automotive display integrated circuits, we provide services to various brands worldwide, with sales evenly distributed across all major markets. However, as China is the world's largest automotive market, accounting for over 30% of global sales, fluctuations in China do have a significant impact on our business. Despite recent challenges, we remain optimistic about our automotive integrated circuit business and are committed to long-term innovation and development in automotive products. Driven by multifunctional innovation and technological advances, the automotive display market has a solid foundation and is showing positive growth momentum. Advanced and even more advanced displays are becoming the major selling points for auto manufacturers, driving the automotive display market towards a huge trend of expanding in quantity, size, and complexity," Mr. Jordan Wu concluded.
Looking ahead, the company expects Q3 2024 revenue to decline by 12.0% to 17.0% compared to the previous quarter, with General Motors' revenue expected to decline by around 30%. Diluted earnings per American Depositary Share will be between 1.5 cents and 4.5 cents.
