Upcoming AWS Coverage on Life Storage Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 21, 2016 / Active Wall St. announces its post-earnings coverage on Himax Technologies, Inc. (NASDAQ: HIMX) ("Himax"). The company reported its financial results for the third quarter fiscal 2016 on November 10, 2016. The semiconductor company's top- and bottom-line numbers outperformed market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Himax Technologies' competitors within the Semiconductor - Specialized space, Life Storage, Inc. (NYSE: LSI), reported on November 02, 2016, its operating results for the quarter ended September 30, 2016. AWS will be initiating a research report on Life Storage in the coming days.

Today, AWS is promoting its earnings coverage on HIMX; touching on LSI. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=HIMX

http://www.activewallst.com/registration-3/?symbol=LSI

Earnings Reviewed

For the three months ended on September 30, 2016, Himax's non-GAAP net income was $21.3 million, or $0.12 per diluted ADS, compared to $20.2 million in Q2 2016 and $1.7 million the same period last year. Non-GAAP EPS exceeded the Company's $0.10 to $0.12 per share guided range and also surpassed Wall Street's expectations of $0.10 per share.

The company's net revenue for Q3 2016 increased 8.5% sequentially to $218.1 million, in-line with the Company's reiterated guidance and a 31.7% increase on a y-o-y basis, also exceeding Wall Street's forecasts of $216.1 million.

Segment Results

For Q3 2016, Himax's revenue from large panel display drivers surged 42.6% to $72.0 million compared to Q3 2015. Large panel driver ICs accounted for 33.0% of the Company's total revenues for the reported quarter compared to 30.5% a year ago. The Company's large panel products grew more than 40% on y-o-y basis driven by strong demand from Chinese and Taiwanese panel customers during the reported quarter. In China, the Company's driver IC business for large panel grew more than 70% on a y-o-y basis during Q3 2016. In comparison, worldwide large-size TFT-LCD panel shipments declined around 6% in the same period.

During Q3 2016, Himax's revenue for small and medium-sized drivers came in at $99.3 million, increasing 17.8% from the same period last year. Driver ICs for small and medium-sized applications accounted for 45.5% of total sales for Q3 2016 compared to 50.9% a year ago. The strong rebound of the Company's smartphone driver IC business this year came from its long-standing leading market share in China where the Company's end brand customers are performing strongly. Revenues from non-driver businesses for Q3 2016 were $46.8 million, up 52.1% from the same period last year. Non-driver products accounted for 21.5% of total revenues, as compared to 18.6% a year ago.

Operating Metrics

During Q3 2016, Himax's GAAP gross margin was 25.6%, up 380 basis points from the same period last year. The Company attributed the increase in margin to a more favorable product mix in small and medium-sized driver ICs, increased LCOS and WLO shipments for AR applications and certain engineering fees from AR/VR new project engagements. The company's GAAP operating margin for Q3 2016 was 7.0%, up from -1.5% for the same period last year. Himax's GAAP operating income decreased 30.2% sequentially, but increased 721.5% on a y-o-y basis.

Cash Flow & Balance Sheet

Himax had $153.4 million of cash, cash equivalents, and marketable securities as of the end of September 2016, compared to $126.0 million at the same time last year and $179.3 million a quarter ago. The Company made a cash RSU payment of $9.2 million and paid dividend of $22.3 million during Q3 2016. On top of the above cash position, restricted cash was $138.0 million at the end of the quarter, same as the preceding quarter. Inventories as of September 30, 2016 were $169.4 million, down from $177.7 million a year ago. The lower inventory was a result of increased shipments in the quarter. Accounts receivable at the end of September 2016 were $208.4 million compared to $168.0 million a year ago. Net cash inflow from operating activities for Q3 2016 was $2.9 million compared to an inflow of $14.1 million for the same period last year and an inflow of $13.1 million last quarter.

Stock Performance

On Friday, November 18, 2016, Himax Technologies' shares were marginally down 0.90%, finishing the day at $7.75 with volume of 962.20 thousand shares exchanging hands by the close of the trading session. For the last twelve months, the stock has gained 6.80%. Shares of the company have a PE ratio of 23.63 and have a dividend yield of 1.68%.

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SOURCE: Active Wall Street