Himax Technologies, Inc (NASDAQ:HIMX) reported a fiscal fourth-quarter revenue growth of 4.2% year-on-year to $237.22 million, beating the analyst consensus estimate of $221.09 million. Net revenues of the Arm Holdings (NASDAQ:ARM) customer increased by 6.7% Q/Q, primarily driven by stronger order momentum across product lines.

Earnings per ADS was $0.14, beating the analyst consensus estimate of $0.10.

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The stock price climbed after the print.

The gross margin reached 30.5%, exceeding its guidance of flat to slightly up from 30.0% in the previous quarter and 30.3% in the same period last year.

Revenue from large display drivers was $25.0 million, a decrease of 18.6% Q/Q due to continued customer destocking after substantial second-quarter replenishment for shopping festivals and heightened price competition from Chinese peers.

Small and medium-sized display driver revenue was $166.8 million, an increase of 7.4% Q/Q, helped by stronger-than-expected sales in the automotive and tablet markets.

Revenue for non-driver business was $45.4 million, up 24.9% Q/Q, driven by a one-time ASIC Tcon product shipment to a leading projector customer and Tcon for monitor application.

Operating expenses for the quarter decreased 6.0% Y/Y to $49.2 million.

Operating income was $23.1 million compared to $16.7 million a year ago and the margin increased by 240 bps to 9.7%, primarily due to higher sales and gross margins. 

As of December 31, 2024, the company's inventories were $158.7 million, markedly lower than the $192.5 million they had in the previous quarter.

Himax held $224.6 million of cash, cash equivalents and other financial assets as of December 31, 2024. The company generated $35.4 million in operating cash flow, compared to a positive operating cash flow of $68.7 million a year ago.

CEO Jordan Wu recalled at CES in 2025, Himax showcased a wide range of innovative achievements, including automotive display technology, WiseEye AI and advanced optical technologies for AR/VR. The industry demonstrated growing enthusiasm for AR glasses. For AR glasses, Himax offers three critical technologies, namely LCoS microdisplay, WLO waveguide and ultralow power WiseEye AI.

Q1 Guidance: Himax expects net revenues to grow flat to 4.6% Y/Y vs. the estimate of $200.7 million and EPADS of $0.09–$0.11 versus the $0.080 estimate.

Price Action: HIMX stock is up 8.21% at $9.89 premarket at the last check Thursday.

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