Odds are 50/50. This is an area of growth HIMX is targeting. The reason I give it high odds is the fact that HIMX does perform (and expense themselves) R&D work for customers in their high expected growth areas.
More importantly, Look how quickly Jay felt the need to backtrack on his comments of the last couple days. There was no time to really crunch any data between the conference call, the time it took to write the hit piece and the time it took to get it out there.
2nd quarter in a row he tried to submarine the conference call just prior to it. Second time in a row the actual #'s blew him out of the water.
And it is the "investment" by HIMX (undoubtedly with HIMX IP) that secures the future runway. If you have good tech, and the cash to "help" a customer on the development side, the trade off is you keep your Intellectual Property. It is baked into their offering, they cannot go elsewhere without a 100% redesign of that module of the item.
Beats the alternative: Hey (insert customer name) we have this chip we want you to use in your new product....
Their payout percentage is on the investor presentation. 75% is at the high end, but the company is loyal to their investors...
Actually, Guttenburg rebutted Gomes declaration that Google was using HIMX LCoS (see March 2013 timeframe) for a couple weeks before he changed his tune.
From seeking alpha HIMX breaking news page:
Himax jumps on strong guidance; Lenovo deal confirmed
Himax (HIMX +5.1%) expects Q3 revenue to be up 12.1%-17.1% Y/Y, better than a consensus for 9.1% growth. EPS guidance of $0.102-$0.117 is above a $0.10 consensus. Opex is expected to be up ~20% Y/Y.
TV LCD driver ICs are expected to fuel Q3 growth - Himax expects Y/Y large-panel driver IC growth for the first time since Q4 2012. Driver shipments for 4K TVs are expected to more than double Y/Y, with strong growth expected to continue in later quarters.
In addition, smartphone-related sales are expected to "rebound strongly" from Q3 levels due to higher orders from a Korean customer (likely Samsung) and solid Chinese demand. Tablet driver demand remains weak, while automotive demand is expected to see steady growth.
Non-driver sales are expected to see nearly 20% Q/Q growth, with momentum continuing in 2015. Himax sees image sensor sales more than doubling in 2014, and touch controllers growing strongly again in Q3. An LCoS microdisplay deal with Lenovo (previous) is confirmed.
Q2 gross margin -50 bps Q/Q and -40 bps Y/Y to 24.2%. Small/medium-panel driver sales -3.5% Y/Y to $107M, large-panel sales -21.1% to $50.8M, non-driver products +21.6% to $38.6M
LOL... I was more interested in the Chardan analyst tone... Choice of words as well... Maybe there is something there maybe not..
A 2 bit preacher is easy to read.
Wu is always professional. He delivers as promised. Yes it's all about the bottom line.