Himax Technologies, Inc. recently published preliminary third-quarter financial results revealed that its revenue increased by 46.1 percent year-over-year. The company also grew its earnings per share (EPS) by 217.1 percent from the same period last year.
The Taiwanese device driver manufacturer expects its sales momentum to continue into the fourth quarter.
Himax’s Q3 Results
In the three months ending September 30, Himax generated $239.9 million, up from $164.3 million in Q3 2019. The firm’s sales last period topped the $224.4 million estimate it offered with its Q2 financial results.
The fabless chipmaker’s preliminary earnings report also pegged its Q3 EPS at 4.9¢, compared to -4.2¢ last year. In August, it incorrectly predicted its September quarter EPS would be between 2¢ and 2.8¢.
Its revenue and EPS also climbed by 20.3 and 510 percent sequentially.
Himax, a manufacturer of TV, computer, and smartphone display drivers, expected the coronavirus pandemic to hurt its Q3 sales. The company noted the global health crisis had significantly disrupted its core end-markets. At the same time, the firm anticipated it would see a bump in demand during the period, likely related to the forthcoming holiday season.
Ultimately, the company’s near-term outlook proved to be overly negative.
Earlier this year, pandemic related production lockdowns and travel restrictions made long-term electronics industry visibility very murky. But as businesses and schools have made working remotely is a hallmark of the “new normal,” demand for tablets and laptops has spiked in Q2. Moreover, DigiTimes Research predicted Q3 slab computer shipments would jump by 60.5 percent annually.
Himax’s results for the last period indicate it benefited from one of the post-coronavirus landscape’s biggest market trends.
More Growth Ahead
Himax declined to provide guidance for Q4 2020 and said it would publish a near-term forecast in November. Nevertheless, the firm’s recent statements and product launches indicate its business will continue to grow in the current period.
The chipmaker’s Q3 outlook noted it expected demand for its display drivers to remain high through year’s end. But CEO Jordan Wu said the “strong business momentum” his company saw across all segments in Q3 had not diminished. That comment suggests device manufacturers are interested in the chipmaker’s image and smart sensors, wafer-level lens, and microdisplay products.
In particular, the firm’s clients may be stocking up on its WiseEye WE-I Plus HX6537-A processors. The component supports Google’s TensorFlow Lite ecosystem, which means it can be used in new edge artificial intelligence-powered products. With the holiday season imminent, the company might have received a raft of HX6537-A orders recently.
Although the firm tempered expectations for its performance post-coronavirus, it has thrived because of shifting market priorities. Himax should do very well in Q4 and beyond due to that shift and its diverse product mix.