Market Newsdesk

VANCOUVER, British Columbia, Nov. 12, 2020 (GLOBE NEWSWIRE) — Loop Insights Inc. (MTRX:TSXV) (RACMF:OTCQB) (the “Company” or “Loop”), a provider of contactless solutions and artificial intelligence (“AI”) to drive real-time insights, enhanced customer engagement and automated venue tracing to the brick and mortar space is pleased to announce the January 2021 launch of UKLIPZ, the first ever platform that enables consumers to create verified reviews using mobile video that can also be used, purchased or analyzed by brands and retailers to drive further engagement and sales. UKLIPZ was acquired by Loop on September 16th, 2019.

Loop Insights CEO, Rob Anson, stated, “The long-awaited integration of UKLIPZ into our product stack is a very important milestone for Loop due to the significant strength it adds to our offering and the disruption it creates in the massive but problematic consumer review industry. We have already begun discussions with key brands and retailers and believe UKLIPZ will become both a very significant new stream of revenue and valuable asset in 2021.”

THE PROBLEM – AMAZON AND WALMART FLOODED WITH FAKE REVIEWS DURING PANDEMIC

On October 19th, Bloomberg News reported that approximately 42% of 720 million Amazon reviews assessed by monitoring service Fakespot were unreliable, while approximately 36% of Walmart.com reviews assessed by Fakespot during the same period were fake.

THE SOLUTION – LOOP ACCESS TO TRANSACTIONS AUTHENTICATES CONSUMER REVIEWS

Customer reviews have become the cornerstone of every retail and e-commerce platform because 63% of customers are more likely to purchase from a site with user reviews. In 2019, YELP, the business review site, generated over $USD 1.01 Billion in revenue.

Loop has the ability to access 100% of all transactions both in-store and online, where our technology is deployed through either our IoT device Fobi (i.e., TELUS IoT marketplace customers) or our POS integration partners such as Vend, Shopify, and others.

As a result of this transparency, Loop can validate the authenticity of consumer reviews posted on the UKLIPZ platform. This unique ability provides a strong differentiator regarding any other deemed competitive platforms in the marketplace today.

UKLIPZ is set to disrupt the social, video marketing, and review industry, which is expected to reach $52B USD by 2023, according to Statista.

THE ADVANTAGES FOR BRANDS AND CONSUMERS

For brands, UKLIPZ will simplify the process of sourcing, creating, curating, and licensing authentic customer reviews. Furthermore, UKLIPZ offers brands real-time measurable attribution for hyper-local, regional, and national campaign performance metrics. Moreover, it can provide brands with digital focus groups and product testing campaigns, as well as target and seek out reviews from specific audiences based on demographics and interests.

Current review sites and solutions simply cannot provide this level of detail and engagement.

For consumers, UKLIPZ provides them with an ability to create a verified and direct connection with their favourite brands, which opens the door to generating income from creating further video reviews, participating in product testing, and other opportunities.

For consumers, curated content created by them is arguably the most powerful influencer of brand and product sales today. The UKLIPZ platform enables consumers to create authenticated video reviews, create a verified and direct connections with their favourite brands, and potentially turn them into income-generating brand influencers and ambassadors.

MONETIZATION AND FURTHER STRENGTHENING THE LOOP INSIGHTS OFFERING

The launch of the UKLIPZ platform is another important strategic move by providing our partners and customers with another immediate complimentary plug-in to expand and significantly strengthen the current Loop solution offering.

Revenues from UKLIPZ will be generated through multiple streams as follows:

• Monthly SaaS fees from Brands and Retailers;
• Transaction fees when a consumer purchases through the platform
• Brands purchasing use of consumer video reviews;
• Sponsored ads

User-generated content drives a 74% increase in click-through rates, while 45% of marketers surveyed by Forrester agree that user-generated content improves social media advertising and influencer campaigns. UKLIPZ provides brands with an easy way to incentivize and empower customers, employees, and influencers to engage and promote the products they love. This is especially true given that word-of-mouth advertising remains the richest path to authenticity, new customers, and ROI.

As a result of the Covid -19 pandemic, the global retail market faces its largest challenge in decades. According to Forrester.com, the latest forecast on global retail sales deficit will mass more than $2.1 Trillion in 2020. The strong shining light is the emergence and rise in mobile commerce. With an expected increase of 25.6%, Mobile is the growth engine of digital commerce. As a result of Covid-19, consumers have been forced to educate themselves and to embrace mobile and e-commerce, and rely on online retailers for their purchase. As a result of the rapid digital transformation, consumer authentic and trusted reviews have never been more important to consumers, brands, and retailers. The company is confident that it will greatly benefit from strong revenue growth from the built-in mobile commerce within UKLIPZ.

AMAZON PARTNER DESIGNATION OPENS UP DOORS TO GLOBAL FORTUNE 500 RETAILERS AND BRANDS 

Rob Anson added, “Every brand on the planet is looking for two things, direct access to their consumer and to understand their behaviour across all channels including e-commerce, mobile commerce, and in-store commerce. UKLIPZ will deliver the sought-after data intelligence through our Artificial Intelligence platform and facilitate direct brand to consumer access and connection.” 

This press release is available on the Loop Insights Verified Forum on AGORACOM for shareholder discussion, questions and engagement with management https://agoracom.com/ir/LoopInsights

Watch more here:



https://vimeo.com/359399719

About Uklipz

Loop’s vision for Uklipz is to build a global brand as the premier, trusted source of authentic, user-generated reviews using technology that allows anyone with a smartphone to create, post, and monetize video reviews. Uklipz revolutionizes digital brand and marketing assets by offering a direct and highly personalized feedback loop. With Uklipz, customers are literally at your fingertips. Brands gain an ability to engage directly with consumers in the heat of the moment, both in-store and online.

About Loop Insights
Loop Insights Inc. is a Vancouver-based Internet of Things (“IoT”) technology company that delivers transformative artificial intelligence (“AI”) automated marketing, contact tracing, and contactless solutions to the brick and mortar space. Its unique IoT device, Fobi, enables data connectivity across online and on-premise platforms to provide real-time, detailed insights and automated, personalized engagement. Its ability to integrate seamlessly into existing infrastructure, and customize campaigns according to each vertical, creates a highly scalable solution for its prospective global clients that span industries. Loop Insights operates in the telecom, casino gaming, sports and entertainment, hospitality, and retail industries, in Canada, the US, the UK, Latin America, Australia, Japan, and Indonesia. Loop’s products and services are backed by Amazon’s Partner Network.

For more information, please contact:
Loop Insights Inc.		LOOP Website: www.loopinsights.ai
Rob Anson, CEO		Facebook: @LoopInsights
T: +1 877-754-5336 Ext. 4		Twitter: @LoopInsights
E: [email protected]		LinkedIn: @LoopInsights

Forward-Looking Statements/Information:
 

This news release contains certain statements which constitute forward-looking statements or information. Such forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Loop’s control, including the impact of general economic conditions, industry conditions, and competition from other industry participants, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Loop believes that the expectations in its forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this news release are made as of the date of this news release and, except as required by applicable law, Loop does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. Trading in the securities of Loop should be considered highly speculative. There can be no assurance that Loop will be able to achieve all or any of its proposed objectives. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SAN JOSE, Calif., Nov. 12, 2020 (GLOBE NEWSWIRE) — Secure, reliable transfer of data from IoT devices to a cloud environment is an escalating problem as businesses continue to scale complex IoT solutions. To provide a simple, economical and effective solution, Aeris, an IoT technology leader, today introduced Aeris Cloud Connect, which provides a direct, private connection between the Aeris Fusion IoT Network and each customer’s AWS cloud instance.

Cloud Connect uses an underlying MPLS (multi-protocol label switching) connection to enable data from IoT devices to be transferred directly to the cloud, without the need for a VPN and without sending data over the public internet. 

“Our customers worldwide have been seeking a means of better securing their data transfer from connected devices to the cloud,” said Amit Khetawat, Aeris vice president of products. “We know VPNs are costly and still vulnerable to internet traffic jams, and the public internet cannot provide the level of security businesses need. Our answer is Cloud Connect. It is secure, reliable and can be set up in hours,” he noted.

Key Cloud Connect benefits include:

• Superior reliability and security. Cloud Connect offers better uptime compared to VPNs. It also eliminates exposure to the public internet (a point of vulnerability) without introducing another potential point of failure (VPN) into the solution, improving end-to-end reliability and reducing troubleshooting time. 
• Faster time to market. Aeris Cloud Connect can be easily configured through a few drop-down menus in AWS in hours, accelerating time to market. By comparison, VPNs take 4-7 days to acquire and manually configure.
• Lower latency and high performance.  Cloud Connect’s private infrastructure provides a faster and far more stable connection than the public internet, which is always subject to congestion.
• Cost savings. Cloud Connect provides all of these benefits for less than the cost of comparable services, including VPN.

“Deploying and managing IoT solutions can be complex, requiring businesses to integrate and operationalize components from hardware, wireless connectivity, cloud environment, and potentially many other software stacks,” said Khetawat. “Aeris Cloud Connect is an important step toward bridging the often siloed network and cloud environments, providing material improvements in end-to-end IoT solution performance, scalability and cost efficiency.”

Cloud Connect is available now. To learn more visit: www.aeris.com

About Aeris

Aeris is a global technology partner with a proven history of helping companies unlock the value of IoT. For more than a decade, we have powered critical projects for some of the most demanding customers of IoT services. Aeris strives to fundamentally improve businesses by dramatically reducing costs, accelerating time-to-market, and enabling new revenue streams. Built from the ground up for IoT and road tested at scale, Aeris’ offering is based on the broadest technology stack in the industry, spanning connectivity up to vertical solutions. As veterans of the industry, we know that implementing an IoT solution can be complex, and we pride ourselves on making it simpler.

Contact:

Jennifer Spoerri                                                                 
Gallagher PR
+1 415-577-0171
[email protected]

ZIONSVILLE, Ind., Nov. 12, 2020 (GLOBE NEWSWIRE) — 120Water, a digital water platform in use at more than 180,000 sample sites across the nation, has joined forces with PUR Community, a new municipality initiative created by PUR, a Helen of Troy brand specializing in at-home water filtration, to simplify point of use drinking water programs for utilities, municipalities, and facilities, including lead remediation programs. Click to tweet.

With this partnership, 120Water can offer PUR pitcher and filter kits as part of its comprehensive digital water platform used across the country to manage and modernize complex water programs and to help stay compliant with EPA regulations, including the upcoming revised Lead & Copper Rule (LCR).

120Water helps water professionals maintain compliance with an end-to-end solution that automates the sending and tracking of tap water test kits; unifies all related data, including customer information, service lines, and water quality results; manages the fulfillment of filter/pitcher kits to affected consumers; and provides out-of-the-box communications, reports, and dashboards, including a Public Transparency Dashboard of known lead service lines.

120Water is a natural fit with the recently launched PUR Community initiative, which is designed as a resource to educate municipalities experiencing water quality issues and help with immediate and cost-effective point-of-use filtration solutions to help reduce lead. PUR Community extends on the PUR brand’s experience supporting communities that have been impacted by elevated levels of lead in the water. In the past seven years, PUR has distributed more than half a million point-of-use water filtration systems and replacement filters to help residents in affected cities through municipal partnerships.

“We created PUR Community because we know that collaboration is a critical part of the solution to improve access to safer drinking water across the country. We’re thrilled to work with an industry leader like 120Water as this will further our ability to provide pitcher and filters to communities as a short-term solution as they tackle long-term change, most notably lead remediation,” said Mike Mitchell, Director of Advanced Technologies of the Health and Home division, at Helen of Troy.

“Water providers are under a lot of pressure to deliver a safe and affordable supply of drinking water, and EPA revisions to the Safe Drinking Water Act will tax them even further,” said Megan Glover, CEO of 120Water. “120Water is excited to be working with PUR as we continue to build relationships with the best water quality companies to deliver trusted, end-to-end solutions for drinking water compliance, and to foster reliable remediation programs.”

120Water’s turnkey platform was built specifically for the water industry to manage a broad scope of drinking water programs, such as lead service line replacement, and can be applied to multiple contaminants, including lead and arsenic.

About 120Water

Water professionals across the country rely on 120Water to streamline and modernize their most complex drinking and waste water initiatives. The 120Water platform consists of sample & filter kits, cloud-based software, and services used to manage and execute water programs at scale while saving operational resources. 120Water solutions are used in 180,000 locations across the United States for clients including the city of Newark (NJ), Pittsburgh Water and Sewer Authority, Chicago Public Schools, and Indiana Finance Authority. More information is available at 120Water.com and on Twitter @120_Water.

About PUR Community

PUR Community was developed by Helen of Troy as a resource for local cleaner water efforts, which provides pitcher and faucet filtration products as short-term solutions for communities tackling long-term change. PUR Community is a partnership that combines PUR’s industry leading technology and expertise with the municipality’s unique insights, gained from serving their communities every day, to create a customized program.

PUR is a pioneer in water filtration technology and is committed to continued innovation and rigorous testing to provide safer water solutions for communities. Made up of chemical and mechanical engineers with over 40 years of combined experience and expertise in advanced filtration technologies, water quality testing, and manufacturing best practices, PUR is consistently engaged with the larger water community through organizational relationships with the WQA, AWWA, NSF and EPA. In the past seven years, PUR has distributed more than half a million filters to help residents in affected cities across the country through municipality partnerships and donations.

About PUR:

Owned by Helen of Troy Limited (NASDAQ: HELE), PUR® is a leading brand in the at-home water filtration category for faucet water filters, water pitchers and dispensers, and replacement filters. PUR is committed to superior filtration performance and innovation. PUR filtration technology uses activated carbon and ion exchange to reduce more contaminants than any other brand. Certified by NSF International and the Water Quality Association for their contamination reduction, PUR filtration systems were the first to claim reduction of trace levels of pharmaceuticals identified in U.S. tap water. PUR faucet filters are certified to reduce over 70 contaminants including lead, mercury and certain pesticides, while PUR pitcher and dispenser filtration systems are certified to reduce many contaminants including mercury and certain industrial pollutants. For more information about PUR water filtration visit PUR.com.

For information contact:

Linda Muskin, 847-432-7300
[email protected]

Mara Conklin, 847-816-9411
[email protected]

Taylor Jeffrey, 401 749 8810
[email protected]

SAN FRANCISCO and BERLIN and TEL AVIV, Israel, Nov. 12, 2020 (GLOBE NEWSWIRE) — AllCloud, a leading global cloud services provider and Amazon Web Services (AWS) Premier Consulting Partner, has been named the APN Social Impact Partner of the Year in the DACH region (Austria, Germany and Switzerland) and the APN Migration Partner of the Year in Israel. The APN Partner Awards recognize members of the AWS Partner Network (APN) who are leaders in the channel and play a key role in helping customers to drive innovation and build solutions on AWS.

AllCloud was recently named one of America’s fastest growing private companies, with three-year revenue growth of 330%. Though the company has its global headquarters in the U.S., it was founded in Israel and supports numerous clients in the country. Within the last few years, AllCloud expanded its operations in Europe. The company has offices across Germany, with a delivery center in Bucharest, and dozens of clients throughout the DACH region.

An Audited AWS Managed Service Provider (MSP) Program Partner that has achieved six AWS Competency designations, AllCloud accelerates cloud innovation and helps organizations unlock the value of AWS services. Supported by a robust ecosystem of technology partners, proven methodologies and well-documented best practices, AllCloud elevates its clients by helping them achieve operational excellence in the cloud, at every milestone of their journey.

AllCloud earned the APN Social Impact Partner of the Year award in DACH for its work with EyeControl, provider of an AI-powered wearable personal communication device for people whose medical condition prevents them from communicating effectively. AllCloud helped EyeControl improve the accuracy of its solution using AWS services. A demonstration can be viewed in the Digital Builders Showroom in the AWS Munich office.

AllCloud was chosen as the APN Migration Partner of the Year in Israel for becoming the first AWS Partner in the country to earn the AWS Migration Competency, which recognizes partners that have helped clients migrate applications and legacy infrastructure to AWS.

“We are incredibly honored to receive these awards,” said Eran Gil, CEO of AllCloud. “They speak to the hard work of our teams in Europe, Israel and around the globe, and their commitment to helping clients use AWS services to serve their customers and communities. We thank AWS for honoring us and look forward to continued success as an AWS Partner as we continue our expansive growth.”

About AllCloud

AllCloud is a global professional services company providing organizations with the tools for cloud enablement and transformation. Through a unique combination of expertise and agility, AllCloud accelerates cloud innovation and helps organizations fully unlock the value received from cloud technology.

As an Amazon Web Services (AWS) Premier Consulting Partner and a Salesforce Platinum Partner, AllCloud helps clients connect their front office and back office by building a new operating model that allows them to harness the benefits of both AWS and Salesforce. AllCloud is supported by a robust ecosystem of technology partners, proven methodologies, and well-documented best practices. Thereby, elevating customers by achieving operational excellence on the cloud, within a secure environment, at every milestone of the journey to becoming cloud-first.

With a portfolio of thousands of successful cloud deployments, AllCloud serves clients across the globe. AllCloud has offices in Israel, Europe, and North America.

Media contact:
Kevin Wolf
TGPR
(650) 483-1552
[email protected]

Press Release – Boston, London, Nice, Paris, Singapore, Tokyo, November 12, 2020

Scientific Beta criticises use of Enterprise Value in European Benchmark Regulation

European Benchmark Regulation’s switch from a robust market standard to alternative indicators is unhelpful in the pursuit of climate change mitigation

If global warming is to be curtailed to 1.5°C, then there is an urgent need for net greenhouse gas emissions to be sharply reduced, an achievement which can only be met by dramatic reductions in the carbon intensities of human activities.

Normalisation of emissions by revenues is an established standard in the market and a feature of the weighted average carbon intensity metric recommended for reporting by the Task Force on Climate-related Financial Disclosures¹. However, the proposed delegated act setting out the requirements for EU Climate Benchmarks has recently mandated the use of enterprise value including cash for normalisation. This variation on carbon intensity has not been properly justified or thought through. The group that assisted the regulator represented that the shift from market value of products and services to market valuation of the producer would be detrimental to the coal industry and that enterprise-value-based carbon intensity would be applicable across equity and fixed income indices. However, beyond coal, all companies with a lower than average enterprise value to sales ratio suffer from this unjustified shift.

Stakeholder feedback led the regulator to account for some of the data issues and biases plaguing enterprise value. However, a fundamental issue that remains insufficiently addressed is that enterprise value embarks equity market volatility. This weakens the link between changes in measured carbon intensity and underlying emissions, and produces carbon intensity volatility that facilitates greenwashing. In both respects, the market standard appears preferable.

In a new white paper entitled “Carbon Intensity Bumps on the Way to Net Zero,” Scientific Beta’s Frederic Ducoulombier, ESG Director, and Victor Liu, Quantitative Analyst, conclude that the European Benchmark Regulation’s switch from a robust market standard to alternative indicators is unhelpful in the pursuit of climate change mitigation. From a climate impact point of view, one should avoid guiding portfolio construction by enterprise value-based carbon intensity. Investors wishing to allocate to EU Climate Benchmarks without encouraging greenwashing should ensure methodologies make use of this metric to the minimum extent required for compliance.

The Scientific Beta white paper on the subject can be accessed through the link below:

Carbon Intensity Bumps on the Way to Net Zero

Issues with the EU regulation and emissions data are further discussed in two other white papers:

A Critical Appraisal of Recent EU Regulatory Developments Pertaining to Climate Indices and Sustainability Disclosures for Passive Investment

Understanding the Importance of Scope 3 Emissions and the Implications of Data Limitations

¹ Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures, Financial Stability Board, 2017, p. 44.

---

Scientific Beta is an original initiative which aims to favour the adoption of the latest advances in smart beta design and implementation by the whole investment industry. Its academic origin provides the foundation for its strategy: offer, in the best economic conditions possible, the smart beta solutions that are most proven scientifically with full transparency of both the methods and the associated risks.
Scientific Beta, 1 George Street, #15-02, Singapore 049145. For further information, please contact: [email protected], Web: www.scientificbeta.com.

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BEIJING, Nov. 12, 2020 (GLOBE NEWSWIRE) — Genetron Holdings Limited (“Genetron Health” or the “Company”, NASDAQ: GTH), a leading precision oncology platform company in China that specializes in offering molecular profiling tests, early cancer screening products and companion diagnostics development, today announced that management will present at the CNBC East Tech West Conference to be held in Guangzhou, China, Nov. 17-18, 2020.

On Wednesday Nov. 18, Sizhen Wang, Co-Founder and Chief Executive Officer of Genetron Health will participate in the following:

• Panel discussion entitled, “Innovative Ways in Tackling Life Threatening Disease,” at 9:30 am Beijing Time

For more information, please visit:
https://ir.genetronhealth.com/investors.
https://www.cnbcevents.com/easttechwest/

About Genetron Holdings Limited

Genetron Holdings Limited (“Genetron Health” or the “Company”) is a leading precision oncology platform company in China that specializes in cancer molecular profiling and harnesses advanced technologies in molecular biology and data science to transform cancer treatment. The Company has developed a comprehensive oncology portfolio that covers the entire spectrum of cancer management, addressing needs and challenges from early screening, diagnosis and treatment recommendations, as well as continuous disease monitoring and care. Genetron also partners with global biopharmaceutical companies and offers customized services and products. For more information, please visit ir.genetronhealth.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

Investor Relations Contacts

US:

Hoki Luk
Head of Investor Relations
Email: [email protected]
Phone: +1 (408) 204-5343

Stephanie Carrington
Westwicke, an ICR Company
Email: [email protected]
Phone: +1 (646) 277-1282

Asia:

Bill Zima
ICR, Inc.
Email: [email protected]
[email protected]

Media Relations Contact

Edmond Lococo
ICR
[email protected]
Mobile: +86 138-1079-1408
[email protected]

Yuan Tao
[email protected]

The Luxury Lifestyle Magazine’s 10^th Annual Innovator Awards Recognize Groundbreaking Talents in a First-Ever Virtual Award Presentation

NEW YORK, Nov. 12, 2020 (GLOBE NEWSWIRE) — WSJ. Magazine premiered its annual Innovator Awards in virtual format last night. Eight honorees, all of whom grace separate covers of the magazine’s highly anticipated November issue, were paid tribute for trailblazing accomplishments in their respective fields. For the first time in Innovators history, the once-private, star-studded awards presentation could be viewed and enjoyed by all.

Selected by WSJ. Magazine editors, the honorees/presenters were: BTS (Music), presented by James Corden, Darren Walker (Philanthropy), presented by Ava DuVernay, Jennifer Lopez (Pop Culture), presented by Maluma, MASS Design Group (Architecture), presented by Hank Willis Thomas, Michaela Coel (Television) presented by Phoebe Waller-Bridge, Patti Smith (Literature), presented by Ethan Hawke, Titus Kaphar (Art), presented by Swizz Beatz and Tyler Perry (Entertainment), presented by Taraji P. Henson.

“Last night WSJ. screened a series of short documentary films that highlight some of the most captivating talents and ideas resonating through the culture right now,” said Kristina O’Neill, editor in chief of WSJ. Magazine. “I’m grateful to the 2020 Innovators for their determination to leave the world a better place than they found it, to their equally impressive award presenters and to everyone at WSJ. who had a hand in putting together this year’s virtual awards—not to mention all the viewers who tuned in to share the excitement.”

“This year’s Innovators, which was not only shared virtually for the first time ever but also marks our 10th Anniversary, has proven the strength and dynamism of the franchise,” said Luke Bahrenburg Publisher of WSJ. Magazine. “Every year we honor individuals who are drivers of change and progress across our culture, and this year in particular, we are thrilled to be able to share this celebration with a global audience. We are particularly proud and grateful to do so with the support of our fantastic partners—Harry Winston, Rémy Martin and Lexus—all of whom share our commitment to innovation.”

WSJ.’s November issue will be available in the U.S. on November 21st.

View the full Innovator 2020 Awards presentation HERE 
Please find additional information at https://wsjinnovators.com/

Presenting sponsors of this year’s program were Harry Winston, Rémy Martin, and Lexus in addition with sponsor Augustinus Bader.

About WSJ. Magazine

WSJ. is The Wall Street Journal’s award-winning luxury lifestyle magazine. With authority, sophistication and a unique artistic sensibility, WSJ.’s digital platforms and print issues cover a wide range of cultural topics, from fashion and food to architecture and design. Visit www.wsjmagazine.com.

About
The
Wall Street Journal

The Wall Street Journal is a global news organization that provides leading news, information, commentary and analysis. The Wall Street Journal engages readers across print, digital, mobile, social, podcasts and video. Building on its heritage as the preeminent source of global business and financial news, the Journal includes coverage of U.S. & world news, politics, arts, culture, lifestyle, sports, and health. It holds 38 Pulitzer Prizes for outstanding journalism. The Wall Street Journal is published by Dow Jones, a division of News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV).

Media contact:
KB Brand Partners / Kristin Kavanagh Shane
[email protected]
917 371 8996

Company
Q3
20
20
Revenue
,
Gross Margin
and EPS
all
Exceed
Guidance
; Revenue
,
Gross Margin
and EPS
all
meet
Its Pre-Announced Key
Financial
Results

Provides
Q4
2020
Guidance: Revenue to i
ncrease
by
around 10
% sequentially, Gross Margin is expected to be around 29%, IFRS profitper diluted ADS to be around 15.0 centsto 16.0 cents, and Non-IFRS profit per diluted ADS to be around 15.1 centsto 16.1 cents

• Q
  3
  revenue
  increased
  28.3
  %
  sequentially to
  $
  239.9
  M
  ,
  exceed
  ing
  the
  guidance of
  an increase of around 20%
  sequentially
• Product sales: large driver ICs, 23.2
  % of revenue,
  down
  6.3
  %
  QoQ
  ; small and medium-sized driver ICs,
  63.2
  % of revenue,
  up
  53.5
  %
  QoQ
  ; non-driver products, 13.6
  % of revenue,
  up
  13.3
  %
  QoQ
• Q3
  IFRS gross
  margin
  was
  22.3
  %,
  up 130
  bps sequentially, exceed
  ing
  the
  guidance of
  flat to slightly down from the 21.0% of the second quarter
• Q3
  IFRS
  profit
  was $
  8.5
  M
  , or
  4.9
  cents per diluted ADS
  ,
  exceed
  ing
  the
  guidance of
  around 2.0 cents to 2.8 cents
  per diluted ADS
  .
  It is
  higher
  than
  profit
  of $
  1.4
  M
  , or
  0.8
  cents per diluted ADS in
  Q2
  2020
• Q3
  non
  -IFRS
  profit
  was $
  12.6
  M
  , or
  7.3
  cents per diluted ADS,
  exceed
  ing
  the
  guidance
  of
  around 3.5 cents to 4.3 cents
  per diluted ADS
  .
  It is
  higher
  than
  profit
  of $
  1.7
  M
  , or
  1.0
  cent per diluted ADS in
  Q2
  2020
• Display drivers for TV, tablet, smartphone and automotive as well as CMOS image sensors all contributed to the better-than-guided sales
  in Q3
• Q3
  Gross margin
  sequential increase was contributed by a favorable product mix of more shipments of better margin products such as tablet and automotive ICs, higher engineering fee income and resales of certain products whose values have been written-off previously in accordance with the Company’s inventory management protocol
• The extension of strong demand derived from persisting homeworking and distance education
  results
  in growing monitor and
  notebook
  demands
  till end of 2020
• The smartphone market has regained some momentum in Q3, and the momentum seems to have carried into Q4. On the backdrop of a rebounding smartphone market,
  the Company’s
  smartphone TDDI revenue is projected to have nice high-teens
   sequential growth in 
  Q4
  although foundry capacity remains a growth constraint. Traditional
  DD
  ICs for smartphone, after a temporary spike in Q3, is set to decline double-digit in Q4
• Tablet has been one of
  the
  Company’s
  top sales contributors throughout 2020
• Company
  is a pioneer in the tablet TDDI technology and led the market for mass production
  in Q1
  2020
  . At present,
  the
  C
  ompany is
  the dominant supplier for literally all leading Android names.
  The
  Company e
  xpect
  s
  a sequential increase of
  around 80% for tablet TDDI inQ4 as the penetration of in-cell touch into tablet continues to accelerate
• Q3
  Driver IC revenue for automotive was up 13.2
  %
  QoQ
  and up 3.9
  %
  YoY
  , despite a sluggish global automotive market. The sequential growth was owed, to a large extent, to the aggressive pursuit of market share gains by China panel maker customers to which the Companyisa major supplier. As the panels inside a car continue to grow in both number and size, the demand for automotive driver ICs is well positioned for healthy growth in the coming years
• For Q4, the Company expects further revenue growth
   from the already high level of Q3 in most of its business sectors. Capacity shortage remains a major factor that negatively impacts the Company’s capabilities to make more shipments to customers. In consideration of capacity constraints which may not be resolved shortly, the
  Company often has to strategically prioritize the production of products for those customer models where the Company is the key supplier and/or enjoy better profitability
• Himax
  ’s
  WiseEye total solution offering focus
  es
  on
  notebook
  , TV, doorbell, door lock and air conditioner
  applications and is
  in partnership with leading players in their respective industries
  .
  A
  number of these solutions are slated to enter mass production in 2021.
  For the other type of business model where Himax only offers key parts, the
  Company actively participate
  s
  in the AI and cloud ecosystems
  . The Company
  is making another
  major breakthrough with another world-leading cloud service provider other than Google

TAINAN, Taiwan, Nov. 12, 2020 (GLOBE NEWSWIRE) — Himax Technologies, Inc. (Nasdaq: HIMX) (“Himax” or “Company”), a leading supplier and fabless manufacturer of display drivers and other semiconductor products, announced its financial results for the third quarter ended September 30, 2020.

“Gross margin expansion has always been at the top of our agenda and we will surely work hard toward continuous profitability improvement. The upbeat Q4 gross margin guidance is mainly a reflection of the tight foundry capacity which results in better pricing and more favorable product mix,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax.

“The foundry industry appears to be going through a structural change in the supply-demand dynamics for the mature process nodes – both 8” and 12”. We believe the current tightness is likely to persist throughout the next few years. We are experiencing major foundry supply shortage in quite a few of our business areas, including TDDI and DDIC for smartphone, tablet and automotive applications as well as CMOS Image Sensor. For next year’s wafer demands, we have secured with our foundry partners a capacity which is already larger than our total shipment for this year. On top of that, we are developing additional capacities for various product areas with an aim to further our available foundry pool for the next few years. Some of these new capacities will start making contributions next year. We will report the progress in due course. Another important factor for continuous gross margin improvement will come from a number of our non-driver products which are either already in volume production and look on track to grow in size, such as timing controller and ultralow power CIS, or will be new additions to our revenue stream, such as the WiseEye total solution and the WE-I ASIC chip. Again, gross margin expansion will continue to be one of our major business goals for next year and beyond,” concluded Mr. Jordan Wu.

Third
Quarter 2020 Financial Results

The Company recorded net revenue of $239.9 million, an increase of 28.3% sequentially and an increase of 46.1% compared to the same period last year. The 28.3% sequential increase of revenue exceeded its guidance of an increase of around 20% quarter-over-quarter. Display drivers for TV, tablet, smartphone and automotive as well as CMOS image sensors all contributed to the better-than-guided sales. Gross margin was 22.3%, exceeding the prior guidance of flat to slightly down from the 21.0% of the second quarter. IFRS profit per diluted ADS was 4.9 cents, exceeding its guidance of around 2.0 cents to 2.8 cents. Strong sales and improved gross margin contributed to the better-than-expected earnings results. The EPS increase was, however, offset by the RSU expense which was higher than what was indicated on the last earnings call as the Company raised the RSU amount to reward the team for the better-than-expected financial results. Non-IFRS profit per diluted ADS was 7.3 cents, exceeding its guidance of around 3.5 cents to 4.3 cents.

Revenue from large display drivers was $55.7 million, down 6.3% sequentially and up 11.3% year-over-year. The sequential decline was driven by significantly lower shipments of monitor ICs due to customers’ inventory correction following a demand hike in the first half. If combining the first three quarters of 2020, its sales into monitor segment still increased 22.1% from last year. The demand for monitors remains robust and the Company expects a strong rebound in the fourth quarter. Offsetting monitor’s third quarter weakness was a surge in TV and notebook sales. TV segment revenue increased 17.6% sequentially, reflecting strong consumer spending and home entertainment demand. Panel customers’ building of inventories in anticipation of higher TV panel prices also contributed to the sequential increase. It was no surprise that notebook sales recorded the highest growth among large display products, increasing 31.5% quarter-over-quarter, thanks to the continuing demand for telework and e-learning with panel customers seemingly still sitting on low inventories. Large panel driver ICs accounted for 23.2% of total revenues for the quarter, compared to 31.8% in the second quarter of 2020 and 30.5% a year ago.

Small and medium-sized display drivers recorded a very strong third quarter, with revenues of $151.6 million, up 53.5% sequentially and up 96.6% year-over-year. TDDIs for both tablet and smartphone posted extraordinary sales growth in Q3. For the automotive segment, the Company delivered a decent low-teens sequential growth amidst a declining automotive market worldwide. Small and medium-sized segment accounted for 63.2% of total sales for the quarter, compared to 52.8% in the second quarter of 2020 and 46.9% a year ago.

The Company’s smartphone sales, the best performing product category of all in Q3, reached a quarterly record-high of $63.3 million, up 153.6% sequentially and 101.2% year-over-year. It represented more than 26% of its total sales in Q3. Its smartphone TDDI sales were up 155.7% sequentially and up 193.7% from the same period last year. The significant sequential growth was a continuation from Q2 when the product category already grew 69.0% from the previous quarter. However, as mentioned in the last earnings call, the growth was capped by an industry-wide wafer foundry shortage. The Company’s smartphone and tablet TDDI ICs share the same pool of foundry capacity and the Company was, and still is, unable to meet all the demands for these products.

The Q3 strength in smartphone TDDI reflected customers’ aggressive new product launch plans with the Company’s TDDI solutions as well as its ability to price its products higher to reflect the tight wafer foundry situation. Amid the economic downturn and lackluster overall smartphone consumption, OEMs are pushing more for budget handsets using TFT-LCD screens, instead of the more expensive AMOLED displays. Sales of traditional smartphone DDICs also surged by 147.8% sequentially and were up 5.3% from same period last year with demands from key brand customers. Himax believes such strong sales of traditional smartphone DDICs were a short-term rebound as the product category is quickly being replaced by TDDI and AMOLED, as the Company has repeatedly indicated.

Revenue for tablet posted a third consecutive record-high, with Q3 sales growing 26.0% sequentially and 336.4% year-over-year. The quarterly revenue reached $53.7 million, accounting for more than 25% of its driver IC revenue. The Company expects its tablet segment sales to continue to grow as overall market demand for tablet remains robust for more home working and online education needs and TDDI’s penetration in tablet market continues to pick up. Himax’s tablet TDDI has a leading market position at a time when TDDI is quickly becoming mainstream for Android tablets. Third quarter tablet TDDI sales increased over 35% sequentially and were better than its guidance of a 20.0% increase. This marked the second consecutive quarter of increases in tablet TDDI shipments since the initial mass production in the first quarter of 2020, and the Company is firmly in the leading position among peers. However, as mentioned above, the sequential growth was crippled by tight foundry capacity as the Company couldn’t ship enough to meet all customer demands. Revenue of traditional discrete driver ICs for tablet also delivered 20.3% sequential growth and was up 164.5% year-over-year in the third quarter thanks to strong orders from both leading brand and white box names. 

Himax’s third quarter driver IC revenue for automotive was up 13.2% sequentially and up 3.9% year-over-year, despite a sluggish global automotive market. The sequential growth was owed, to a large extent, to the aggressive pursuit of market share gains by China panel maker customers to which Himax is a major supplier. These customers are comfortable with Himax leading technology and proven production record which supports them in their efforts to ramp up production swiftly. With global automotive demand showing signs of recovery, the Company expects to see robust and sustainable growth in Q4 and into 2021.

Third quarter revenue from the Company’s non-driver businesses was $32.6 million, up 13.3% sequentially but down 12.1% year-over-year. The sequential increase was mainly a result of higher engineering fee income and increased shipments of the Tcon for high frame rate and high-resolution displays as well as CMOS image sensor products with demand coming from notebook and IP camera applications. However, the increase in sales was offset by a decrease in WLO shipments to an anchor customer. Non-driver products accounted for 13.6% of total revenue, as compared to 15.4% in the second quarter of 2020 and 22.6% a year ago.

Gross margin for the third quarter was 22.3%, up 130 basis points sequentially and up 280 basis points from the same period last year. The sequential increase was contributed by a favorable product mix of more shipments of better margin products such as tablet and automotive ICs, higher engineering fee income and resales of certain products whose values have been written-off previously in accordance with the Company’s inventory management protocol. Weighing on gross margins were lower WLO shipments which decreased factory utilization, and increased shipments for smartphone ICs which registered a lower gross margin than the corporate average. Gross margin increased 2.8% from last year thanks to a more favorable product mix with more shipments of tablet and Tcon, higher engineering fee income and resales of written-off products. Likewise, the gain was offset by lower WLO and higher smartphone shipments.

The Company’s IFRS operating expenses were $44.2 million in the third quarter, up 17.4% from the preceding quarter and up 11.4% from a year ago. The sequential expenses increase was caused mainly by $4.8 million of RSU, the immediately vested portion of the total RSU grant, which was higher than the $3.0 million guided on the last earnings call, to beneficially compensate employees from a better-off profit. The $1.8 million additional RSU expense represents 0.9 cents lower in after-tax EPS. The increased salary also contributed to the higher operating expenses. The year-over-year increase was a result of increased RSU. As an annual practice, Himax rewards employees with an annual bonus at the end of September which always leads to a substantial increase in the third quarter IFRS operating expenses compared to the other quarters of the year. This year, the RSU grant totaled $5.0 million, out of which $4.8 million was vested immediately and expensed in the third quarter. Non-IFRS operating expenses for the third quarter were $38.9 million, up 4.8% from the previous quarter but down 0.9% from the same quarter in 2019.

IFRS operating margin for the third quarter was 3.9%, up from 0.9% in the prior quarter and up from -4.7% in the same period last year. The sequential increase was mainly due to higher sales and better gross margin but offset by higher operating expenses. The year-over-year improvement was primarily a result of higher sales and improved gross margin. Third quarter non-IFRS operating profit was $14.7 million, or 6.1% of sales, higher from non-IFRS operating profit of $2.1 million, or 1.1% of sales last quarter and up from -4.4% for the same period last year.

IFRS profit for the third quarter was $8.5 million, or 4.9 cents per diluted ADS, compared to profit of $1.4 million, or 0.8 cents per diluted ADS, in the previous quarter and loss of $7.2 million, or 4.2 cents per diluted ADS, a year ago.

Third quarter non-IFRS profit was $12.6 million, or 7.3 cents per diluted ADS, compared to non-IFRS profit of $1.7 million, or 1.0 cent per diluted ADS last quarter and non-IFRS loss of $6.9 million, or 4.0 cents per diluted ADS for the same period last year.

Balance Sheet and Cash Flow

Himax had $142.9 million of cash, cash equivalents and other financial assets as of the end of September 2020, compared to $128.0 million at the same time last year and $107.1 million a quarter ago. The higher cash balance was mainly a result of an operating cash inflow of $33.5 million during the quarter. Restricted cash was $104.0 million at the end of the quarter, compared to $164.0 million of the preceding quarter and a year ago. The restricted cash is used to guarantee the short-term secured borrowings for the same amount. The Company repaid a total of $60.0 million short-term secured borrowings during the quarter and, in the meantime, the restricted cash deposit was reduced by the same amount. Separately, during this quarter, Himax entered into a new ten-year unsecured loan agreement of $60 million and repaid all short-term unsecured borrowings totaling $58.4 million. As a result, the Company had $60.0 million of long-term unsecured loans as of the end of Q3, of which $6.0 million was current portion. There was no more short-term unsecured loan as of the end of the quarter, compared to $58.4 million a quarter ago and $90.6 million at the same time last year. Not only has the Company strengthened its balance sheet by replacing all short-term unsecured borrowings with ten-year loans, it also managed to secure favorable terms of the new long-term loan so that the additional interest payments are minimal.

Accounts receivable as of the end of September 2020 were $221.1 million, up from $206.1 million last quarter and $157.3 million a year ago. DSO was 99 days at the end of the quarter, as compared to 86 days a year ago and 101 days at the end of the last quarter.

Himax’s inventories as of September 30, 2020 were $125.7 million, down from $161.5 million last quarter and $167.6 million a year ago. The much lower inventory level in Q3 was a result of strong customer demands amid tight foundry capacity. While Himax will continue to pursue an aggressive inventory build-up strategy, its inventory position will likely remain at such a low level in the foreseeable future given the severe foundry capacity shortage prevailing in the market place.

Net cash inflow from operating activities for the third quarter was $33.5 million as compared to an inflow of $24.0 million for the same period last year and an outflow of $9.2 million last quarter.

Third quarter capital expenditures amounted to $1.2 million, versus $31.2 million a year ago and $0.7 million last quarter. The third quarter capex was for R&D related equipment for its IC design businesses.

Share Buyback Update

As of September 30, 2020, Himax had 172.4 million ADS outstanding, little changed from last quarter. On a fully diluted basis, the total number of ADS outstanding was 173.4 million.

Q
4
2020
Outlook
The Company briefly comments on the background for its upbeat Q4 gross margin guidance and its view on the sustainability of the higher margin.

First off, gross margin expansion has always been at the top of Himax’s agenda and the Company will surely work hard toward continuous profitability improvement. The upbeat Q4 gross margin guidance is mainly a reflection of the tight foundry capacity which results in better pricing and more favorable product mix. The foundry industry appears to be going through a structural change in the supply-demand dynamics for the mature process nodes – both 8” and 12”. Himax believes the current tightness is likely to persist throughout the next few years. Major volume applications such as display drivers for TDDI and AMOLED, PMIC for 5G smartphone, CIS that is ever upgrading in resolution, just to name a few, are significantly expanding in wafer consumption and competing for the same pool of mature nodes while the industry has no major expansion plan in sight for such capacity.

Himax is experiencing major foundry supply shortages in quite a few of its business areas, including TDDI and DDIC for smartphone, tablet and automotive applications as well as CMOS Image Sensor. For next year’s wafer demands, the Company has secured with its foundry partners a capacity which is already larger than its total shipment for this year. On top of that, Himax is developing additional capacities for various product areas with an aim to further its available foundry pool for the next few years. Some of these new capacities will start making contributions next year. The Company will report the progress in due course.

Another important factor for continuous gross margin improvement will come from a number of the Company’s non-driver products which are either already in volume production and look on track to grow in size, such as timing controller and ultralow power CIS, or will be new additions to its revenue stream, such as the WiseEye total solution and the WE-I ASIC chip.

Again, gross margin expansion will continue to be one of Himax’s major business goals for next year and beyond.

Display
D
river IC
Business

LDDIC
For the fourth quarter, the Company expects large display driver IC revenue to increase by high-single-digit sequentially. This is due to the extension of strong demand derived from persisting homeworking and distance education, resulting in growing monitor and notebook demands. The Company expects a decent sequential increase of around 20% in the monitor segment in the fourth quarter. As for notebook, it anticipates even stronger momentum in Q4, increasing more than 75% quarter over quarter. Himax has active design-in activities in high-end monitor and new generation low-power notebook where it provides not only the Company’s driver IC, but also timing controller. Especially in gaming monitors and e-learning notebooks, the Company anticipates more market share gains from the design-wins of Himax’s leading display driver ICs and Tcon with key customers.

With respect to TV, Himax expects mid-single-digit sequential decline in the next quarter owing to a correction to a surge in TV demand in the previous quarter. Recently, the Company saw top-tier TV brands with aggressive promotion tactics in 8K TVs in anticipation of major sporting events resuming across many countries after a long lockdown. Himax’s 8K TV display drivers and timing controller ICs have been widely adopted by multiple leading end customers.

It is worth highlighting that Himax has been developing and delivering timing controller products for many years and this segment already represents more than 5% of its total revenue. It is applied in a wide range of products such as TV, monitor, notebook and automotive. The Company’s technology not only provides higher resolution, higher frame rate and better image quality, it can also enable lower power in products where power consumption is critical. The margin and ASP of the timing controller product are much higher than those of display drivers, and the Company expects this segment to be an extensive long-term growth opportunity. Himax’s Tcon revenue in the fourth quarter, while limited by a capacity shortage in IC packaging due to competing demands from 5G chipsets, is on track to increase by more than 20% sequentially. This will represent more than 40% increase annually.

SMDDIC

Begin with the Himax’s smartphone business segment. The Company’s TDDI product roadmap as well as new design-wins and new production plans all position Himax well to gain market share throughout 2020 and into 2021.

The pandemic has weighed on the global smartphone shipment significantly due to supply chain disruption at the beginning of the year, followed by a lackluster consumer demand. However, the smartphone market has regained some momentum in Q3, and the momentum seems to have carried into Q4. On the backdrop of a rebounding smartphone market, the Company’s smartphone TDDI revenue is projected to have nice high-teens sequential growth in the fourth quarter although foundry capacity remains a growth constraint. Traditional display driver ICs for smartphone, after a temporary spike in Q3, is set to decline double digit in Q4.

As the Company stated before, AMOLED technology has advanced to become the mainstream display for high-end smartphones. Himax is highly committed in this field. Much progress has been made by collaborating with leading panel makers across China. Himax’s development started from smartphone, and extends to wearable, tablet and automotive with Chinese panel makers. Himax believes AMOLED driver IC will become one of the major growth engines for the Company’s small and medium panel driver IC business from 2021.

Turning to the tablet business, tablet has been one of Himax’s top sales contributors throughout 2020.  In the fourth quarter, it is on track for another sequential growth of over 20%. As mentioned on previous earnings calls, for consumers, tablet TDDI offers a lighter weight and slimmer and more stylish design as well as improved touch accuracy with added option for active stylus specifically geared towards high quality writing and drawing. Himax is a pioneer in the tablet TDDI technology and led the market for mass production in the first quarter of 2020. At present, Himax is the dominant supplier for literally all leading Android names. Tablet TDDI represents a tremendous upside potential for Himax thanks to its higher ASP and more units of TDDI chips in each tablet than those for smartphone. The company expects a sequential increase of around 80% for its tablet TDDI in the fourth quarter as the penetration of in-cell touch into tablet continues to accelerate. To expand and strengthen the Company’s position in the market for next generation models, Himax is working on new designs with resolution and touch accuracy upgrades, targeting large size tablets from key customers.

For traditional DDIC for tablet, the Company expects low-teens sequential decline for Q4, but sales to be up more than 50% compared to the same period last year due to booming tablet demand arising from homeworking and remote learning. The demand for traditional DDIC for tablet is also being eroded by in-cell TDDI but at a more moderate pace than that for smartphone.

Turning to the automotive sector. As the panels inside a car continue to grow in both number and size, the demand for automotive driver ICs is well positioned for healthy growth in the coming years. Although the global car demand has been badly hit by Covid-19, especially in the first half of the year, the market is showing signs of gradual recovery starting Q3. Himax’s automotive ICs, which enjoy higher gross margins, are experiencing a solid rebound lately with car makers rushing in for inventory replenishment after quite a few sluggish quarters.

The demand of automotive display ICs for more sophisticated and higher performing displays has continued its rising trajectory. Advanced new features such as in-cell touch, local dimming, cascade-topology connection and P2P high-speed interface bridging functions are being adopted with Himax being the primary partner for major automotive panel makers and tier-1 players to enable these new technologies. With these new technologies on track for more shipments starting 2021, Himax is confident that its automotive segment is hitting another inflection point with a strong and positive long-term outlook.

For the fourth quarter, revenue for the small and medium-sized driver IC business is expected to increase by around mid-teens sequentially with demand continuing to surpass supply. Capacity shortage remains a major factor that negatively impacts its capabilities to make more shipments to customers. In consideration of capacity constraints which may not be resolved shortly, the Company often has to strategically prioritize the production of products for those customer models where Himax is the key supplier and/or enjoy better profitability.

Non-Driver Product Categories

WLO

The fourth quarter WLO revenue declined sequentially as a result of lower shipments to an anchor customer. Himax’s WLO factory will continue to manufacture the anchor customer’s legacy product going forward. With the Company’s exceptional technologies of WLO in nanoimprinting manufacturing and diffraction optics design, it has been engaged by multiple customers / partners to develop future generation products covering a wide range of applications such as ToF 3D sensing, waveguide for AR goggles, biomedical devices and others.

3D Sensing

In smart phone application, Himax targets next generation Android smartphones and the Company is collaborating with leading laser and ToF sensor vendors to develop a new world-facing 3D sensing camera whereby it provides optical components and/or projectors which are critical for the performance of the whole ToF solution.

For non-smartphone 3D-sensing engagements where the Company provides a structured light-based 3D sensing total solution, its target markets range from smart door lock, facial recognition-based e-payment, business access control to biomedical inspection device. A number of recent design-wins will enter into mass production soon.

Alternatively, Himax also offers a market leading 3D decoder ASIC to those customers who wish to design their own structured light 3D sensing solution. Here the Company has had quite a few design-wins from customers targeting China’s vast e-payment market with some shipments already starting in the fourth quarter. The Company is also working with customers for industrial robotics, smart door lock and home security, all of which carry great potential for Himax’s 3D business in the future.

Ultralow power smart sensing

In order for Himax’s WiseEye technology to reach its maximum potential, it has adopted a flexible business model whereby, in addition to a total solution where it provides processor, image sensor and AI algorithm, the Company also offers those key parts individually in order to address the customer’s different needs and widen its market reach.

For the total solution offering, the Company’s current focus applications include notebook, TV, doorbell, door lock, and air conditioner as it continues to work out new solutions to cover further edge device AI markets. In partnership with leading players in their respective industries, a number of these solutions are slated to enter mass production in 2021. For the other type of business model where Himax only offers key parts, its strategy is to actively participate in the ecosystems led by the world’s leading AI and cloud service providers. In addition to the collaboration with Google on their TensorFlow Lite for Microcontrollers that Himax announced previously, the Company is making another major breakthrough by partnering with another world-leading cloud service provider with a business focus more toward healthcare, financial services, government, retail and industrial manufacturing. Separately, to further lower the technical barrier for using Himax’s WiseEye solution, the Company teamed up with a leading online store specialized in easy development tools for machine learning on edge devices. Himax is extremely excited about the rapid business progress and believes the Company’s WiseEye offerings will become a major contributor to its P&L in the near future.

CMOS Image Sensor

The Company continues to see extremely strong demands for its CMOS image sensors for IP camera and notebook, but its actual shipment has been badly capped by the foundry capacity available to it. Separately, Himax’s industry-first 2-in-1 CMOS image sensor that supports RGB mode for video conferencing and ultralow power AI mode for facial recognition has penetrated the laptop ecosystem for their most stylish super slim bezel designs. The Company expects to have small volume shipment toward late 2020 with more to come in next year.

Regarding ultralow power always-on CMOS image sensor, which targets in battery powered or always-on applications, Himax is getting promising feedback and design adoptions from customers in various markets, such as car recorders, surveillance, smart electric meters, drones, home appliances, and consumer electronics. In Q4, CIS revenue is expected to be flat sequentially although demand is much stronger than that. Again, its shipment is capped by foundry capacity constraint.

For non-driver IC business, the Company expects revenue to decrease by low-single-digit sequentially in the fourth quarter.

Fourth Quarter 2020 Guidance
The Company is providing the following financial guidance for the fourth quarter of 2020:
Net Revenue:	To increase by around 10% sequentially
Gross Margin:	To be around 29%, depending on final product mix
IFRS Profit:	To be around 15.0 cents to 16.0 cents per diluted ADS
Non-IFRS Profit (1):	To be around 15.1 cents to 16.1 cents per diluted ADS
( 1 ) Non- IFRS Profit excludes share-based compensation and acquisition-related charges

For the fourth quarter, Himax expects further revenue growth from the already high level of Q3 in most of its business sectors. Gross margin shall see a major uptick and could reach a quarterly historical high for Himax.

With the increase in revenue and margin growth in fourth quarter, net income shall increase sequentially. To further reward employees, there would be another $3.0 million of cash bonus in the fourth quarter which will be expensed immediately. This represents 1.4 cents lower in EPS.

HIMAX TECHNOLOGIES THIRD QUARTER 2020 EARNINGS CONFERENCE CALL
DATE:	Thursday, November 12th, 2020
TIME:	U.S.         8:00 a.m. EST
	Taiwan    9:00 p.m.
DIAL IN:	U.S. +1 (866) 444-9147
	INTERNATIONAL+1 (678) 509-7569
CONFERENCE ID:	4408778
WEBCAST:	https://edge.media-server.com/mmc/p/x93vx34d

A replay of the call will be available beginning two hours after the call through 11:30 a.m. US EST on November 20^th, 2020 (12:30 a.m. Taiwan time, November 21^st, 2020) on www.himax.com.tw and by telephone at +1 (855) 859-2056 (US Domestic) or +1 (404) 537-3406 (International). The conference ID number is 4408778. This call is being webcast by Nasdaq and can be accessed by clicking on this link or Himax’s website, where the webcast can be accessed through November 12^th, 2021.

About Himax Technologies, Inc.

Himax Technologies, Inc. (NASDAQ: HIMX) is a fabless semiconductor solution provider dedicated to display imaging processing technologies. Himax is a worldwide market leader in display driver ICs and timing controllers used in TVs, laptops, monitors, mobile phones, tablets, digital cameras, car navigation, virtual reality (VR) devices and many other consumer electronics devices. Additionally, Himax designs and provides controllers for touch sensor displays, in-cell Touch and Display Driver Integration (TDDI) single-chip solutions, LED driver ICs, power management ICs, scaler products for monitors and projectors, tailor-made video processing IC solutions, silicon IPs and LCOS micro-displays for augmented reality (AR) devices and heads-up displays (HUD) for automotive. The Company also offers digital camera solutions, including CMOS image sensors and wafer level optics for AR devices, 3D sensing and machine vision, which are used in a wide variety of applications such as mobile phones, tablets, laptops, TVs, PC cameras, automobiles, security, medical devices, home appliance and Internet of Things. Founded in 2001 and headquartered in Tainan, Taiwan, Himax currently employs around 2,000 people from three Taiwan-based offices in Tainan, Hsinchu and Taipei and country offices in China, Korea, Japan, Israel, and the US. Himax has 2,915 patents granted and 551 patents pending approval worldwide as of September 30^th, 2020. Himax has retained its position as the leading display imaging processing semiconductor solution provider to consumer electronics brands worldwide.

http://www.himax.com.tw

Forward Looking Statements

Factors that could cause actual events or results to differ materially include, but not limited to, general business and economic conditions and the state of the semiconductor industry; market acceptance and competitiveness of the driver and non-driver products developed by the Company; demand for end-use applications products; reliance on a small group of principal customers; the uncertainty of continued success in technological innovations; our ability to develop and protect our intellectual property; pricing pressures including declines in average selling prices; changes in customer order patterns; changes in estimated full-year effective tax rate; shortages in supply of key components; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; our ability to collect accounts receivable and manage inventory and other risks described from time to time in the Company’s SEC filings, including those risks identified in the section entitled “Risk Factors” in its Form 20-F for the year ended December 31, 2019 filed with the SEC, as may be amended.

Company Contacts:

Eric Li
,
Chief IR/PR Officer

Himax Technologies, Inc.
Tel: +886-6-505-0880 Ext.60145
Fax: +886-2-2314-0877
Email: [email protected]
www.himax.com.tw

Karen Tiao, Investor Relations
Himax Technologies, Inc.
Tel: +886-2-2370-3999 Ext. 22326
Fax: +886-2-2314-0877
Email: [email protected]
www.himax.com.tw

Investor Relations – US Representative

Mark Schwalenberg, Senior Vice President
MZ North America
Tel: +1-312-261-6430
Email: [email protected]

-Financial Tables-

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of P rofit or L oss
( These interim financials do not fully comply with IFRS because they omit all interim disclosure required by IFRS )
(Amounts in Thousands of U.S. Dollars, Except Share and Per Share Data)
	Three Months Ended September 3 0 ,								Three Months Ended June 3 0 ,
		20 20				20 19				20 20
Revenues	$	239,934			$	164,254			$	1 86,984
Costs and expenses:
Cost of revenues		186,329				132,239				147,726
Research and development		33,073				29,156				28,403
General and administrative		6,530				6,053				5,662
Sales and marketing		4,558				4,447				3,548
Total costs and expenses		230 ,490				171,895				1 85,339
Operating income (loss)		9,444				(7,641	)			1 ,645
Non operating income (loss) :
Interest income		157				416				263
Changes in fair value of financial assets at fair value through profit or loss		131				(1	)			(83	)
Foreign currency exchange gains (losses), net		(139	)			91				1
Finance costs		(314	)			(634	)			(551	)
Share of profits (losses) of associates		(191	)			(135	)			12
Other income		96				19				22
		(260	)			(244	)			(336	)
Profit (loss) before income tax es		9,184				(7,885	)			1,309
Income tax expense		1,124				–				365
Profit (loss) for the period		8,060				(7,885	)			944
L oss at tributable to noncontrolling interests		391				705				439
Profit (loss) attributable to Himax T echnologies, Inc. stockholders	$	8,451			$	(7,180	)		$	1,383
Basic earnings (loss) per ADS attributable to Himax T echnologies, Inc. stockholders	$	0.049			$	(0.042	)		$	0.0 08
Diluted earnings (loss) per ADS attributable to Himax T echnologies, Inc. stockholders	$	0.049			$	(0.042	)		$	0.0 08
Basic Weighted Average Outstanding ADS		172,730				172,541				172, 618
Diluted Weighted Average Outstanding ADS		173,447				172,541				17 3,158

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of P rofit or L oss
(Amounts in Thousands of U.S. Dollars, Except Share and Per Share Data)
			Nine Months Ended Se ptember 30 ,
					20 20				20 1 9
Revenues				$	611,512			$	496,906
Costs and expenses:
Cost of revenues					476,727				395,078
Research and development					89,165				87,815
General and administrative					17,996				17,730
Sales and marketing					11,888				13,246
Total costs and expenses					595,776				513,869
Operating i ncome ( loss )					15,736				(16,963		)
Non operating income (loss) :
Interest income					816				1,492
Changes in fair value of financial assets at fair value through profit or loss					(17	)			6
Foreign currency exchange gains (losses), net					(193	)			401
Finance costs					(1,458	)			(1,655		)
Share of losses of associates					(270	)			(96		)
Other income					153				66
					(969	)			214
Pr ofit (l oss ) before income tax es					14,767				(16,749		)
Income tax expense					2,953				–
Profit (l oss) for the period					11,814				(16,749		)
L oss attributable to noncontrolling interests					1,314				2,099
Profit (loss) attributable to Himax T echnologies, Inc. stockholders				$	13,128			$	(14,650		)
Basic earnings (loss) per ADS attributable to Himax T echnologies, Inc. stockholders				$	0.076			$	( 0.085		)
Dilute d earnings (loss) per ADS attributable to Himax T echnologies, Inc. stockholders				$	0.076			$	( 0.085		)
Basic Weighted Average Outstanding ADS					172,643				172,541
Diluted Weighted Average Outstanding ADS					173,284				172,541

Himax Technologies, Inc.
Unaudited Supplemental Financial Information
(Amounts in Thousands of U.S. Dollars)
The amount of share-based compensation included in applicable statements of profit or loss categories is summarized as follows:	Three Months Ended September 3 0 ,									Three Months Ended June 3 0 ,
		20 20					20 1 9				20 20
Share-based compensation
Cost of revenues	$	72				$	–			$	5
Research and development		4,076					60				122
General and administrative		328					22				15
Sales and marketing		537					10				26
Income tax benefit		(1,081	)				(21	)			(31	)
Total	$	3,932				$	71			$	137
The amount of acquisition-related charges included in applicable statements of profit or loss categories is summarized as follows:
Acquisition-related charges
Research and development	$	276				$	276			$	277
Income tax benefit		(65	)				(64	)			(65	)
Total	$	211				$	212			$	212

Himax Technologies, Inc.
Unaudited Supplemental Financial Information
(Amounts in Thousands of U.S. Dollars)
The amount of share-based compensation included in applicable statements of profit or loss categories is summarized as follows:	Nine Months Ended September 30 ,
			20 20				20 1 9
Share-based compensation
Cost of revenues		$	87			$	–
Research and development			4,467				86
General and administrative			368				26
Sales and marketing			603				19
Income tax benefit			(1,176	)			(30	)
Total		$	4,349			$	101
The amount of acquisition-related charges included in applicable statements of profit or loss categories is summarized as follows:
Acquisition-related charges
Research and development		$	829			$	1,217
Income tax benefit			(194	)			(309	)
Total		$	635			$	908

Himax Technologies, Inc.
IFRS Unaudited Condensed Consolidated S tatement s of F inancial P osition
(Amounts in Thousands of U.S. Dollars)
		September 3 0 , 20 20				June 3 0 , 20 20				September 3 0 , 201 9
A ssets
Current assets:
Cash and cash equivalents		$	131,823			$	96,130			$	116,579
Financial assets at amortized cost			8,294				10,929				11,278
Financial assets at fair value through profit or loss			2,734				–				97
Accounts receivable, net			221,100				206,075				157,320
Inventories			125,725				161,474				167,581
Income taxes receivable			81				75				55
Restricted deposit			104,000				164,000				164,000
Other receivable from related party			1,200				1,200				1,200
Other current assets			26,294				24,246				19,732
Total current assets			621,251				6 64,129				637,842
Financial assets at fair value through profit or loss			13,480				13,352				9,761
Financial assets at fair value through other comprehensive income			730				737				703
Equity method investments			3,761				3,660				4,036
Property , plant and equipment, net			135,123				137,530				141,835
Deferred tax assets			14,714				14,537				13,389
Goodwill			28,138				28,138				28,138
Other i ntangible assets, net			7,550				7,953				9,161
Restricted deposit			138				135				128
Other non-current assets			2,105				2,033				2,149
			205,739				2 08,075				209,300
Total assets		$	826,990			$	8 72,204			$	847,142
Liabilities and E quity
Current liabilities:
Short-term unsecured borrowings		$	–			$	58,437			$	90,606
Current portion of long-term unsecured borrowings			6,000				–				–
Short-term secured borrowings			104,000				164,000				164,000
Accounts payable			153,153				161,474				114,825
Income taxes payable			5,340				3,960				1,618
Other payable to related party			2,480				2,740				2,620
Other current liabilities			38,700				34,749				37,458
Total current liabilities			309,673				425,360				411,1 27
Long-term unsecured borrowings			54,000				–				–
Net defined benefit liabilit ies			51				50				149
Deferred tax liabilities			1,222				1,284				1,440
Other non-current liabilities			16,689				9,989				4,471
			71,962				11 , 323				6,060
Total liabilities			381,635				436,683				417,1 87
Equity
Ordinary shares			107,010				107,010				107,010
Additional paid-in capital			106,276				105,686				104,829
Treasury shares			(8,486	)			(8,656	)			(8,764	)
Accumulated other comprehensive income			(980	)			(1,110	)			(1,334	)
Retained earnings			238,931				230,564				229,507
Equity attributable to owners of Himax Technologies, Inc.			442,751				433,494				431,2 48
Noncontrolling interests			2,604				2,027				(1,293	)
Total equity			445,355				435,521				429,9 55
Total liabilities and equity		$	826,990			$	8 72,204			$	847,142

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
( Amounts in T housands of U . S . D ollars)
		Three Months Ended September 3 0 ,								Three Months Ended Ju ne 3 0 ,
			20 20				20 19				20 20
Cash flows from operating activities:
Profit (loss) for the period		$	8,060			$	(7,885	)		$	944
Adjustments for:
Depreciation and amortization			5,530				6,004				5,881
Share-based compensation expenses			251				92				168
Gain on disposal of property, plant and equipment, net			(2	)			–				(242	)
Changes in fair value of financial assets at fair value through profit or loss			(131	)			1				83
Interest income			(157	)			(416	)			(263	)
Finance costs			314				634				551
Income tax expense			1,124				–				365
Share of losses (profits) of associates			191				135				(12	)
Inventories write downs			2,205				8,174				3,413
Unrealized foreign currency exchange losses (gains)			32				182				(59	)
			17,417				6,921				10,829
Changes in:
Accounts receivable			(15,025	)			18,905				(19,340	)
Inventories			33,544				12,780				(16,456	)
Other current assets			(398	)			2,649				(602	)
Accounts payable			(8,321	)			(19,399	)			15,875
Other payable to related party			(260	)			260				300
Net defined benefit liabilities			1				–				1
Other current liabilities			3,579				2,180				1,365
Other non-current liabilities			4,139				200				–
Cash generated from operating activities			34,676				24,496				(8,028	)
Interest received			120				213				548
Interest paid			(313	)			(639	)			(555	)
Income tax paid			(1,010	)			(86	)			(1,123	)
Net cash provided by (used in) operating activities			33,473				23,984				(9,158	)
Cash flows from investing activities:
Acquisitions of property, plant and equipment			(1,162	)			(31,222	)			(708	)
Proceeds from disposal of property, plant and equipment			2				–				247
Acquisitions of intangible assets			–				(18	)			(6	)
Acquisitions of financial assets at amortized cost			(866	)			(959	)			(1,425	)
Proceeds from disposal of financial assets at amortized cost			3,787				1,896				1,446
Acquisitions of financial assets at fair value through profit or loss			(9,547	)			(4,339	)			(2,483	)
Proceeds from disposal of financial assets at fair value through profit or loss			6,866				21,287				2,502
Proceeds from capital reduction of investment			–				17				–
Acquisitions of equity method investments			–				(129	)			–

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
( Amounts in T housands of U . S . D ollars)
		Three Months Ended September 3 0 ,								Three Months Ended June 3 0 ,
			20 20				20 1 9				20 20
Decrease (increase) in refundable deposits			(345	)			21				177
Releases (pledges) of restricted deposit			(3	)			323				(3	)
Cash received in advance from disposal of land			1,486				–				–
Net cash p rovided by ( used in ) investing activities			218				(13,123	)			(253	)
Cash flows from financing activities:
Payments of cash dividends			(4	)			–				–
Proceeds from issuance of new shares by subsidiaries			884				–				–
Proceeds from short-term unsecured borrowings			10,000				60,000				58,403
Repayments of short-term unsecured borrowings			(68,403	)			(46,385	)			(67,818	)
Proceeds from long-term unsecured borrowings			60,000				–				–
Proceeds from short-term secured borrowings			107,000				67,000				87,000
Repayments of short-term secured borrowings			(167,000	)			(67,000	)			(87,000	)
Release of restricted deposit			60,000				–				–
Payment of lease liabilities			(709	)			(392	)			(669	)
Proceeds from exercise of employee stock options			253				–				173
Net cash provided by (used in) financing activities			2,021				13,223				(9,911	)
Effect of foreign currency exchange rate change s on cash and cash equivalents			(19	)			(362	)			(225	)
Net increase ( decrease ) in cash and cash equivalents			35,693				23,722				(19,547	)
Cash and cash equivalents at beginning of period			96,130				92,857				115,677
Cash and cash equivalents at end of period		$	131,823			$	116,579			$	96,130

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
( Amounts in T housands of U . S . D ollars)
				Nine Months Ended September 30,
						20 20				20 1 9
Cash flows from operating activities:
Profit (loss) for the period					$	11,814			$	(16,749	)
Adjustments for:
Depreciation and amortization						17,165				18,533
Share-based compensation expenses						763				131
Gain on disposal of property, plant and equipment, net						(244	)			(6	)
Changes in fair value of financial assets at fair value through profit or loss						17				(6	)
Interest income						(816	)			(1,492	)
Finance costs						1,458				1,655
Income tax expense						2,953				–
Share of losses of associates						270				96
Inventories write downs						9,695				17,932
Unrealized foreign currency exchange losses (gains)						(18	)			68
						43,057				20,162
Changes in:
Accounts receivable						(56,157	)			31,696
Inventories						8,354				(22,952	)
Other current assets						(292	)			(2,596	)
Accounts payable						38,833				(35,675	)
Other payable to related party						260				(1,177	)
Net defined benefit liabilities						1				50
Other current liabilities						103				(777	)
Other non-current liabilities						4,065				200
Cash generated from operating activities						38,224				(11,069	)
Interest received						849				1,315
Interest paid						(1,498	)			(1,675	)
Income tax paid						(2,673	)			(4,356	)
Net cash provided by (used in) operating activities						34,902				(15,785	)
Cash flows from investing activities:
Acquisitions of property, plant and equipment						(4,962	)			(43,193	)
Proceeds from disposal of property, plant and equipment						249				14
Acquisitions of intangible assets						(78	)			(114	)
Acquisitions of financial assets at amortized cost						(3,028	)			(3,286	)
Proceeds from disposal of financial assets at amortized cost						5,998				3,034
Acquisitions of financial assets at fair value through profit or loss						(13,135	)			(46,971	)
Proceeds from disposal of financial assets at fair value through profit or loss						10,465				47,007
Acquisition of business						–				(700	)
Acquisition of a subsidiary, net of cash acquired						–				(400	)
Proceeds from capital reduction of investment						–				47
Acquisitions of equity method investments						–				(129	)
Decrease (increase) in refundable deposits						(3,182	)			88
Releases (pledges) of restricted deposit						(5	)			328
Cash paid for loan made to related party						–				(1,200	)
Cash received from loan made to related party						–				2,780
Cash received in advance from disposal of land						1,486				–
Net cas h used in investing activities						(6,192	)			(42,695	)

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
( Amounts in T housands of U . S . D ollars)
				Nine Months Ended September 30,
						20 20				20 1 9
Cash flows from financing activities:
Payments of cash dividends						(4	)			–
Proceeds from issuance of new shares by subsidiaries						884				–
Proceeds from short-term unsecured borrowings						208,137				177,006
Repayments of short-term unsecured borrowings						(265,355	)			(106,385	)
Proceeds from long-term unsecured borrowings						60,000				–
Proceeds from short-term secured borrowings						231,000				131,000
Repayments of short-term secured borrowings						(291,000	)			(131,000	)
Release of restricted deposit						60,000				–
Payment of lease liabilities						(1,840	)			(1,356	)
Proceeds from exercise of employee stock options						426				–
Net cash provided by financing activities						2,248				69,265
Effect of foreign currency exchange rate change s on cash and cash equivalents						(190	)			(643	)
Net increase in cash and cash equivalents						30,768				10,142
Cash and cash equivalents at beginning of period						101,055				106,437
Cash and cash equivalents at end of period					$	131,823			$	116,579

Himax Technologies, Inc.
Non- IFRS Unaudited Supplemental Data – Reconciliation Schedule
(Amounts in Thousands of U.S. Dollars)
Gross Margin, Operating Margin and Net Margin Excluding Share- B ased Compensation and Acquisition-Related Charges:
	Three Months Ended September 3 0 ,								Three Months Ended June 3 0 ,
		20 20				20 19				20 20
Revenues	$	239,934			$	164,254			$	186,984
Gross profit		53,605				32,015				39,258
Add: Share-based compensation – cost of revenues		72				–				5
Gross profit excluding share-based compensation		53,677				32,015				39,263
Gross margin excluding share-based compensation		22.4	%			19.5	%			21.0	%
Operating income (loss)		9,444				(7,641	)			1,645
Add: Share-based compensation		5,013				92				168
Operating income (loss) excluding share-based compensation		14,457				(7,549	)			1,813
Add: Acquisition-related charges –intangible assets amortization		276				276				277
Operating income (loss) excluding share-based compensation and acquisition-related charges		14,733				(7,273	)			2,090
Operating margin excluding share-based compensation and acquisition-related charges		6.1	%			(4.4	%)			1.1	%
Profit (loss) attributable to Himax Technologies, Inc. stockholders		8,451				(7,180	)			1,383
Add: Share-based compensation, net of tax		3,932				71				137
Add: Acquisition-related charges, net of tax		211				212				212
Profit (loss) attributable to Himax Technologies, Inc. stockholders excluding share-based compensation and acquisition-related charges		12,594				(6,897	)			1,732
Net margin attributable to Himax Technologies, Inc. stockholders excluding share-based compensation and acquisition-related charges		5.2	%			(4.2	%)			0.9	%
*Gross margin excluding share-based compensation equals gross profit excluding share-based compensation divided by revenues
*Operating margin excluding share-based compensation and acquisition-related charges equals operating income (loss) excluding share-based compensation and acquisition-related charges divided by revenues
*Net margin attributable to Himax Technologies, Inc. stockholders excluding share-based compensation and acquisition-related charges equals profit (loss) attributable to Himax Technologies, Inc. stockholders excluding share-based compensation and acquisition-related charges divided by revenues

Himax Technologies, Inc.
Non- IFRS Unaudited Supplemental Data – Reconciliation Schedule
(Amounts in Thousands of U.S. Dollars)
Gross Margin, Operating Margin and Net Margin Excluding Share- B ased Compensation and Acquisition-Related Charges:
			Nine Months Ended September 30 ,
					20 20				20 1 9
Revenues				$	611,512			$	496,906
Gross profit					134,785				101,828
Add: Share-based compensation – cost of revenues					87				–
Gross profit excluding share-based compensation					134,872				101,828
Gross margin excluding share-based compensation					22.1	%			20.5	%
Operating income (loss)					15,736				(16,963	)
Add: Share-based compensation					5,525				131
Operating income (loss) excluding share-based compensation					21,261				(16,832	)
Add: Acquisition-related charges –intangible assets amortization					829				1,217
Operating income (loss) excluding share-based compensation and acquisition-related charges					22,090				(15,615	)
Operating margin excluding share-based compensation and acquisition-related charges					3.6	%			(3.1	%)
Profit (loss) attributable to Himax Technologies, Inc. stockholders					13,128				(14,650	)
Add: Share-based compensation, net of tax					4,349				101
Add: Acquisition-related charges, net of tax					635				908
Profit (loss) attributable to Himax Technologies, Inc. stockholders excluding share-based compensation and acquisition-related charges					18,112				(13,641	)
Net margin attributable to Himax Technologies, Inc. stockholders excluding share-based compensation and acquisition-related charges					3.0	%			(2.7	%)
*Gross margin excluding share-based compensation equals gross profit excluding share-based compensation divided by revenues
*Operating margin excluding share-based compensation and acquisition-related charges equals operating income (loss) excluding share-based compensation and acquisition-related charges divided by revenues
*Net margin attributable to Himax Technologies, Inc. stockholders excluding share-based compensation and acquisition-related charges equals profit (loss) attributable to Himax Technologies, Inc. stockholders excluding share-based compensation and acquisition-related charges divided by revenues

Diluted Earnings Per ADS Attributable to Himax Technologies, Inc. S tockholders Excluding Share-based Compensation and Acquisition-Related Charges: (Amounts in U.S. Dollars)
	Three Months Ended September 30 ,			Nine Months Ended September 30 ,
	2020			2020
Diluted IFRS earnings per ADS attributable to Himax Technologies, Inc. stockholders	$0.049			$0.076
Add: Share-based compensation per ADS	$0.023			$0.025
Add: Acquisition-related charges per ADS	$0.001			$0.004
Diluted non-IFRS earnings per ADS attributable to Himax Technologies, Inc. stockholders excluding share-based compensation and acquisition-related charges	$0.073			$0.105
Numbers do not add up due to rounding