Editor's Note

How many semiconductor companies have no debt? That is a sign of good management and a strong business. This one even pays dividends.


HIMX - Himax Technologies - Company Profile

Himax is a fabless semiconductor company providing display and imaging technologies to consumer electronics worldwide. They operate in two segments including Driver IC (integrated circuits) and Non-Driver products. Their ICs are used in television controllers, laptops, monitors, mobile phones, tablets, digital cameras, car navigation and other consumer electronic devices.

The company reported earnings for Q4 of 3.6 cents that beat estimates on a 7.5% increase in revenue to $178 million. They raised guidance for the current quarter and the full year. They are debt free and had $148 million in cash compared to $126 million in the prior quarter.

The company said business was booming and demand from China was growing rapidly. The various new products shown by various manufacturers at CES in January were now going into production demand for the ICs was increasing. The demand for 4K TVs is increasing as the prices drop and Himax expects demand to double in Q1 over Q4 and triple over Q1 2015. Large panel ICs are expected to grow from 10% to the high teens in percentage in the current quarter.

Shares closed at a two-year high on Monday and then dipped with the market. They returned to close at that high again on Thursday just under $11. A move over $11 targets resistance at $14.50.

With a HIMX trade at $11.10

Buy HIMX shares, initial stop loss $9.85

No option recommendation because of pricing issues.


No New Bearish Plays