Himax Technologies, Inc. Q1 FY2026 earnings call

• Highlighted Q1 profit exceeded highest range announced, revenue and gross margin at high end of guidance. - Large display product revenue increased due to restocking of high-end TV ideas. - Small and medium-sized display driver segment had slight decline in low season. - Automotive driver sales declined double-digit sequentially due to inventory control and subsidy tapering. - Smartphone revenue increased with new OLED solutions. - Tablet IP cells increased due to renewed demand. - Non-driver sales declined but underlying automotive T-Con demand remains low. - Discussed second quarter guidance with expected revenue increase and margin change. - Jordan discussed business status including air demand impact, new technologies in automotive and smart glasses, progress in CTO, and updates on various product segments.

First quarter revenues totaled $199.0 million, a slight sequential decline of 2.0%. Revenue from large display products was $24.2 million, up 11.7% from previous quarter, accounting for 12.2% of total revenues. Small and medium-sized display driver segment totaled $135.8 million, a 2.4% sequential decline, accounting for 68.2% of total sales. Non-driver sales were $39.0 million, a 7.7% decrease from previous quarter, accounting for 19.6% of total revenue.

• Expect Q2 revenue to increase 10.0% to 13.0% sequentially. - Growth margin expected around 32%. - Q2 profit attributable to shareholder estimated to be in range of 8.6 cents to 10.3 cents per fully diluted share. - Anticipated upward momentum through remainder of 2026 with new automotive projects in second half. - CTO expected to become major revenue and profit contributor.

• Forward-looking statements involve risks and opportunities that could cause actual results to differ. - Macro-economic challenges, geopolitical tensions, and market visibility limitations pose risks.

Q: Regarding automotive business four-year outlook and quarterly revenue pattern, and CPO competition and component supply.

A: Addressed automotive business outlook with confidence in growth, mentioned CPO competition not major concern, existing capacity sufficient, and CPO expected to drive growth. Also discussed CPO Gen 1 and Gen 2 with focus on mass production and customer demands.