Research Reports

Q1 2026 revenue $199.0M, slight sequential decline of 2.0%, at high end of guidance range (decline 2.0%–6.0%) (IR).
Q1 gross margin 30.4%, at high end of guidance (flat to slightly down from prior quarter 30.4%) (IR).
Q1 profit per diluted ADS $0.046, exceeding guidance range of $0.02–$0.04 (IR).
Large display driver revenue $24.2M, +11.7% QoQ, driven by better-than-expected restocking of high-end TV ICs (IR).
Small/medium display driver revenue $135.8M, –2.4% QoQ; automotive driver sales declined double digits sequentially (IR).
Non-driver sales $39.0M, –7.7% QoQ; Tcon for projector declined, automotive Tcon moderation; non-driver 19.6% of total revenue (IR).
Q1 operating profit $10.2M (operating margin 5.1%); after-tax profit $8.0M (IR).
Q1 CapEx $2.9M, mainly for R&D equipment (IR).
Cash & equivalents $287.6M as of March 31, 2026; inventories $151.7M, slightly lower than prior quarter (IR).
Annual cash dividend $0.252/ADS, payable July 10, 2026, payout ratio 100% of prior year profit (IR).
Official guidance: Q2 2026 revenue up 10.0%–13.0% sequentially; gross margin ~32%; profit attributable to shareholders $0.086–$0.103 per diluted ADS (IR).
CPO Gen 1 (1.6T/3.2T) ready; small shipments expected H2 2026; Gen 2 (6.4T) nearing customer validation for AI data centers (CEO).

Management Quotes

“We are pleased to report that our Q1 profit exceeded the guidance range… while both revenue and gross margin were at the high end of the projected range.” (IR)
“With cost pressure expected to persist, we are actively working with customers on pricing adjustments to share rising costs, with some price increases already taking effect in Q2.” (CEO)
“We expect CPO to become a major revenue and profit contributor in the years ahead.” (CEO)
“We are increasingly optimistic about the new space [AI and AR glasses], even compared to just a few quarters ago.” (CEO)
“Our leading brand has adopted our WiseEye for its smart glasses, with mass production expected later this year and additional prominent brands are expected to follow.” (CEO)

Metric	Value	Speaker/Context
Q1 Revenue	$199.0M	IR
Q1 Gross Margin	30.4%	IR
Q1 Profit per Diluted ADS	$0.046	IR
Large Panel Driver Rev Q1	$24.2M (+11.7% QoQ)	IR
Small/Medium Driver Rev Q1	$135.8M (–2.4% QoQ)	IR
Non-Driver Rev Q1	$39.0M (–7.7% QoQ)	IR
Q1 Operating Profit	$10.2M (5.1% margin)	IR
Q1 After-Tax Profit	$8.0M	IR
Q1 CapEx	$2.9M	IR
Cash & Equivalents (Mar 31, 2026)	$287.6M	IR
Inventories (Mar 31, 2026)	$151.7M	IR
Accounts Receivable (Mar 31, 2026)	$190.9M (DSO 86 days)	IR
Annual Dividend	$0.252/ADS	IR
Q2 Revenue Guidance	+10.0%–13.0% QoQ	IR
Q2 Gross Margin Guidance	~32%	IR
Q2 Profit Guidance per Diluted ADS	$0.086–$0.103	IR

Topic: CPO competition, supply shortage, automotive outlook, and capacity expansion
Key points:
- CPO competition and component shortage are not major concerns; customer demand (from major customers) is “much, much bigger than what we can supply for now.”
- 2027 is likely to see meaningful CPO revenue contribution; early engineering shipments already have positive financial impact, and once mass production starts, growth is expected to be “explosive” and sustain for years.
- For automotive: no full-year numerical guidance provided, but management is “well-positioned to see sales growth for the year” and expects automotive sales to grow quarter-by-quarter; customers’ inventory levels remain “fully,” but confidence for second-half growth comes from major projects that are 24 months in design-in.
- Existing capacity (fully utilized for this application) can generate “hundreds of millions of annual sales” with decent profit; partner FOCI plans to expand capacity (as stated in their prospectus), and HIMX’s capacity “outweighs” FOCI’s.
Mgmt stance: Bullish on CPO (demand exceeds supply, explosive growth expected); neutral on automotive (outperforming a flattish market, but no specific numerical projection).