Himax Technologies (NASDAQ: HIMX) reported Q4 EPS of $0.09, $0.02 better than the analyst estimate of $0.07. Revenue for the quarter came in at $203.4 million versus the consensus estimate of $202.6 million. (SI NOTE: the company issued preliminary Q4 results on Jan 26).

• Net revenue for the fourth quarter of 2016 decreased 6.7% sequentially to $203.4 million, in line with the Company’s guidance.
• Compared to the previous quarter, large-sized panel driver sales decreased 6.0%, small and medium-sized panel driver sales increased by 0.4% and non-driver sales decreased 22.9%.
• In the fourth quarter of 2016, small and medium-sized panel driver revenue increased 21.8%, large-sized panel driver revenue increased 9.0%, and non-driver sales increased 6.0%, when compared to the fourth quarter of 2015.
• Gross margin for the fourth quarter of 2016 was 19.1%, down 650 bps sequentially and 380 bps year-over-year due to an additional inventory write-down.
• Q4 2016 GAAP net income was $4.4 million, or 2.6 cents per diluted ADS, versus GAAP net income of $13.6 million, or 7.9 cents per diluted ADS, in the third quarter of 2016. Excluding the additional inventory write-down, GAAP net income would have been $14.8 million, or 8.6 cents per diluted ADS.
• Q4 2016 Non-GAAP net income was $4.8 million, or 2.8 cents per diluted ADS, versus Non-GAAP net income of $21.3 million, or 12.4 cents per diluted ADS, in the third quarter of 2016. Excluding the additional inventory write-down, Non-GAAP net income would have been $15.1 million, or 8.8 cents per diluted ADS.
• FY 2016 revenues increased 16.1% year-over-year and gross margin came in at 24.2%. FY 2016 GAAP net income was 29.5 cents per diluted ADS.
• Company remains positive on its 2017 and long term business outlook.
• Company have proceeded with the expansion plan for next generation LCOS and WLO product lines in 2017.

First Quarter 2017 Guidance

The Company is providing the following financial guidance for the first quarter of 2017:

Net Revenue: To be down 18.0% to 25.0% sequentially
Gross Margin: To be around 23.0% to 24.0%
GAAP EPS: 0.5 to 2.0 cents per diluted ADS, as compared to 2.6 cents reported in the fourth quarter of 2016

For earnings history and earnings-related data on Himax Technologies (HIMX) click here.