Himax Technologies, Inc. (NASDAQ:HIMX) beat sales outlook amid surging demand for home entertainment

A major supplier and fabless manufacturer of display drivers and other semiconductor products, Himax Technologies, Inc. (Nasdaq: HIMX) has published its financial results for the third period ended 30 September 2020.

The Organization posted $239.9 million in net sales, a consecutive growth of 28.3 percent, and a rise of 46.1 percent relative to the same timeframe last year. The 28.3 percent successive revenue increase beat its outlook for a quarter-over-quarter increase of around 20 percent.

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The TV, tablet, smartphone, and automotive display drivers, as well as CMOS image sensors, all played part in better-than-guided sales. The gross margin was 22.3%, slightly down from 21.0% in the 2nd period, outstripping the previous flat guidance.

Meanwhile, Revenue from large display drivers was posted $55.7 million, which was a consecutive drop by 6.3% and up year-over-year by 11.3 percent. Due to the inventory correction of customers following a demand surge in the first half, the collective decline was driven by slightly lower deliveries of display ICs.

For the first three quarters combined, its sales in the monitor segment have surged by 22.1 percent in contrast to last year. The demand for monitoring systems remains strong and the company predicts a strong recovery in the fourth quarter.

The third quarter weakness of the offsetting display was a rise in TV and notebook revenues. Revenue from the TV segment surged 17.6 percent sequentially, replicating strong spendings by the customers and rising demand for home entertainment.

It was no wonder that thanks to the always rising demand for telework and e-learning with panel customers still seem to be stuck on low inventories, notebook sales recorded the utmost growth among large display products, rising 31.5 percent quarter-over-quarter.

Large panel driver ICs accounted for 23.2 percent of the Himax Technologies, Inc. (Nasdaq: HIMX)  total quarterly revenues, in contrast to 31.8 percent and 30.5 percent year over year in the second quarter.

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