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spk23: Good day and thank you for standing by. Welcome to the HighMax Technologies fourth quarter and full year 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your host, Mr. Mark Schwalemberg from MZ Group. Please go ahead.
spk20: Welcome everyone to the HighMax fourth quarter and full
spk12: year 2023 earnings call. Joining us from the company are Mr. Jordan Wu, President and Chief Executive Officer, Ms. Jessica Pan, Chief Financial Officer, and Mr. Eric Lee, Chief IR PR Officer. After the company's prepared remarks, we have allocated time for questions in a Q&A session. If you've not yet received a copy of today's results release, please email himx at mzgroup.us, access the press release on financial portals, or download a copy from HighMax's website at .com.tw. Before we begin the formal remarks, I'd like to remind everyone that some of the statements in this conference call, including statements regarding expected future financial results and industry growth, are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this conference call. A list of factors can be found in the company's SEC filings, form 20F for the year ended December 31st, 2020. In the section entitled risk factors as may be amended, except for the company's full year of 2022 financials, which were provided in the company's 20F and filed with the SEC on April 6th, 2023, the financial information included in this conference call is unaudited and consolidated and prepared in accordance with IFRS accounting. Such financial information is generated internally and has not been subjected to the same review and scrutiny, including internal auditing procedures and external audits by an independent auditor to which we subject our annual consolidated financial statements. It may vary materially from the audited consolidated financial information for the same period. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. I will now like to turn the call over to Mr. Eric Lee. Eric, the floor is yours.
spk19: Thank you, Mark. And thank you everyone for joining us. My name is Eric Lee, chief IRPL officer at HiMACS. On today's call, I will first review the HiMACS consolidated finance performance for the first quarter and full year, 2023, followed by our first quarter 2024 outlook. Jordan will then give an update on the status of our business, after which we will take questions. We will review our financials on an IFI basis. We are delighted to announce that Q4, 2023 revenues and the profits both surpass the guidance. Five growth margin was in line with the guidance issued on November 9, 2023. This was primarily attributable to better than expected order momentum in major product categories, as well as cost improvement. Fourth quarter revenues registered $227.7 million, a decrease of .5% sequentially, but exceeding our guidance range of a 5% to 11% decline. Growth margin came in at .3% within our guidance range of around 30%, but down from .4% last quarter. Q4 profit per diluted ADS was 13.5 cents, surpassing the guidance range of 9 cents to 13 cents. Revenue from large display driver came in at $33.6 million, reflecting a sequential decrease of 23.1%. The decline was predominantly driven by prevailing weak macroeconomic conditions amid the traditional peak seasonality in the fourth quarter. RTVIC sales declined mid-Tings sequentially due to ongoing strict production and inventory control measures of leading customers. Monitors and notebook IC sales both declined double digit quarter over quarter, caused by slowdown in order momentum as customers put forward their inventory purchases during entire quarter. Sales of large panel driver IC accounted for .8% of total revenue for the quarter, compared to .3% last quarter and .6% a year ago. Exceeding the guidance range, small and medium-sized display driver segment revenue reached 163.1 million, a sequential increase of 1.2%. This was underpinned by our performing sales, particularly in TDDI products for automotive and tablet markets. Q4 automotive driver sales, combining both traditional DDI-C and the TDDI, experienced a slight decline following robust order restocking in both during the third quarter. However, Q4 automotive TDDI sales still increased high-Tings sequentially, bucking the industry downturns thanks to our solid pipeline of the design win project. Meanwhile, our industrial leading cutting-edge automotive LTDI product started mass production for CD-Auto's NEV in the third quarter of 2023. Taken together, this not only stardifies our leadership in next generation automotive display, but also reflects the robust market demand for advanced display technology. Jordan will elaborate in a few minutes. Fourth quarter automotive business encompassing driver automotive TCOM and Olay sales continued to be our largest revenue contributor at over 45% of total sales. For tablet, Q4 sales grew high-Tings sequentially, exceeding our guidance, driven by successful new product launches by our customers during the quarter. Conversely, smartphone driver sales declined as expected, amidst a subdued festival season characterized by sluggish demand. The small and the medium-sized driver IC segment accounted for .6% of total sales for the quarter compared to .6% in the previous quarter and a year ago. Fourth quarter, non-driver sales also exceeded guidance with revenue of 31 million, but declined .2% for a quarter ago. The -than-expected performance is attributable to resurgence in orders from our TCOM product line. Adoption of our automotive's local DMIT-COM is relatively expanding as evidenced by hundreds of projects of work across the board. This paves the way for robust growth in coming years, mirroring the success seen in our automotive TDDI. Jordan will share some insights shortly. Non-driver products accounted for .6% of total revenue and compared to .1% in the previous quarter and .8% a year ago. Fourth quarter operating expenses were $52.3 million, a decrease of .9% of the previous quarter and roughly flat compared to a year ago. The substantial sequential decrease was caused mainly by decreased annual bonus and the salary expenses, particularly offset by an increase in R&D expenses. Our standard practice of granting annual bonuses, including cash and ISU, at the end of September each year, can lead to higher IFI's operating expenses in the third quarter compared to other quarters of the year. Amidst the prevailing macroeconomic headwinds, we are currently exercising strict budget and expense control with four year 2023 OPEC's client, 4% compared to the year before. Fourth quarter operating income was $16.7 million or .3% of sales compared to .5% of sales for the same period last year and the .6% of sales last quarter. The sequential increase was primarily a result of lower operating expenses for lower annual bonus compensation, partially offset by decreased sales and the gross margin in fourth quarter. The year over year decrease was primarily a result of lower sales and the gross margin compared to the same period last year. Fourth quarter after tax profit was $23.6 million or 13.5 cents per diluted ADS compared to $11.2 million or 6.4 cents per diluted ADS last quarter and the $42.2 million or 24.1 cents in the same period last year. It's worth noting that the favorable after tax profit exceeds the positive tax adjustment made to rectify overestimate tax expenses for preceding quarter this year. As a reminder and for the purpose of year over year comparison, we made a divestiture of long term assets during Q4, 2022, resulting in a non-operating income of around $11 million on an after tax basis. Now let's quickly review the financial performance for the full year, 2023. Revenue totaled $945.4 million, reflecting .3% decline compared to 2022. Persistence subdued the global demand coupled with the looming recession concerns presented significant challenges to our operation throughout 2023. This market dynamics adversely affected both demand and the procurement process of panel customers, particularly in the realm of customers electronics. Yet our optimism in the automotive business remains steadfast as automotive TDDI sales witnessed a remarkable surge of over 50%, reflecting the resilience and the potential of our largest business segment. Revenue from large panel display drivers totaled $175.7 million in 2023, marking a decrease of .5% year over year, and presenting .6% of total sales as compared to 22% in 2022. Small and medium sized driver sales totaled $629.2 million, reflecting a decrease of .2% year over year, and accounting for .5% of our total revenues as compared to .8% in 2022. Non driver product sales totaled $140.5 million, a decrease of .2% year over year, and representing .9% of our total sales as compared to .2% a year ago. Inventory management also presented unique challenges for us throughout the sluggish demand environment this year. To navigate these circumstances, our primary objectives were the strategic depression of assets inventory, while also technically controlling our wafer stock. Following quarters of aggressive destocking, which often involved sacrificing short term gross margin, inventory decreased to near historical norm by end of 2023. The remaining stock feature promising customer design inks and the loan product life cycles that laid the groundwork for a more stable outlook in 2024. Gross margin in 2023 was 27.9%, decreasing from .5% in 2022. As a reminder, in Q2, we strategically terminated high cost boundary capacity agreement, leading to a depressed Q2 gross margin of just 21.7%. Despite the temporary margin construction, this decision liberates new wafer stocks from minimum fulfillment constraints, while positioning us to capitalize on the term runs in demand. Operating expenses in 2023 were $220.3 million, a decline of 4% from 2022, primarily a result of the lower vested portion of the annual bonus compensation awarded to employees in 2023 and the preceding years, partially offset by increased salary and R&D expenses. 2023 operating income was $43.2 million, or .6% of sales, a decrease from 257.6 million, or .4% of sales in 2022. Our net profit for 2023 was $50.6 million, or 29 cents diluted ADS, as compared to $237 million, or $1.36 per diluted ADS in 2022. Turning to the balance sheet, we had $206.4 million of cash, cash equivalents and other financial assets as of December 31, 2023. This compares to $29.9 million at the same time last year, and $155.4 million a quarter ago. We achieved a strong positive operating cash flow of $68.7 million for the fourth quarter, as a result of substantial reduction in the inventory across major product lines. As of December 31, 2023, we had $40.5 million in long-term unsecured loan, with $6 million representing the current portion. Our year-end inventories were $217.3 million, lower than $259.6 million last quarter, and $370.9 million at the end of last year. Our inventory level has declined steadily over the last five quarters, and reached a healthy level by end of 2023. Accounts receivable at the end of December 2023 was $235.8 million, a decline from $248.5 million last quarter, and a downfall of $261.1 million a year ago. DSO was 91 days at the quarter end, as compared to 95 days last quarter, and 79 days a year ago. Fourth quarter capital expenditures were $15.1 million, versus $2.6 million last quarter, and $2.3 million a year ago. Fourth quarter CAFEX was mainly allocated to in-house testers for our IC design business, in addition to other &D-related equipment. Total capital expenditures for 2023 was $23.4 million, as compared to $11.8 million in 2022. As of December 31, 2023, HIMACS has 174.7 million ADS outstanding, unchanged from last quarter. On a fully diluted basis, the total number of ADS outstanding for the fourth quarter was 175 million. Now turning to our first quarter 2024 guidance. We expect first quarter revenues to decline 9% to 16% sequentially. Growth margin is expected to be around 28.5%, depending on the final product mix. The first quarter profit attributable to shareholders is estimated to be in the range of $0.02 to $0.05 per fully diluted ADS. I will now turn the call over to Jordan to discuss our Q1 outlook. Jordan, the floor is yours.
spk07: Traditionally, business operations in the first quarter decelerate due to the new year holidays. This year, exacerbated conditions due to sluggish demand are causing panel makers to traditionally lower factory utilizations in an attempt to support panel pricing and profitability. In tandem, OEMs and end customers are maintaining their cautious approach with heightened procurement scrutiny. Even with inventories now at more manageable levels, this shift has resulted in short-term forecast and more frequent last minute orders, ultimately constraining our visibility, particularly in consumer electronics products. To fortify the resilience of our operations, we are actively implementing strategies to optimize costs and diversify suppliers in both foundries and backend sources to enhance supply flexibility and cost effectiveness. The recent partnership with Nextchip for the automotive market illustrated our supplier diversification strategy. It also highlighted our strategic approach to better align with customers' regional supply policies, particularly addressing the surging demand in China's automotive industry. In addition, our recent presence at the CES provided a comprehensive outlook on our strategic focus for the upcoming years, covering automotive, Wi-Fi AI, and optical technologies. In automotive, our primary organ contributor, we remain as optimistic as ever, given our extensive and parallel product portfolio across a broad spectrum of technologies, from mainstream LCD technology to the immersion OLED technology. Notably, within the automotive LCD display sector, we have secured hundreds of design wins in TDDI and LogoDiming TECAN, and continue to see ongoing expansion in our pipeline. The majority of these design wins are slated for mass production in the next two years, underscoring our continued market dominance moving forward. Furthermore, our expansion into automotive OLED displays, covering all of TDDI TECAN and touch controller, bolsters our market share leadership by offering customers an integrated bundle solution. As a reminder, our automotive driver business represented 36% of our total sales in the full year 2023, and we anticipated were expand to well over 40% of our total sales in 2024. In the AI domain, we are relentlessly dedicated to our Wi-Fi product line, where we have already achieved industry leading ultra-low power consumption and AI inference performance. Our shipment with Wi-Fi is also now further supported through strategic collaborations with ecosystem partners and system integration companies, covering a broad range of AI applications. Concurrently, we are actively expanding our easy to adopt YSI module offering for the endpoint AI market to cater to its diverse needs and capitalize on the extensive opportunities in endpoint AI. Looking further out on the horizon, while the realization of the air course may span several years, the ultra-illuminance color sequential from the air course micro display that we unveiled at the CES marked a major technology breakthrough that we believe will pave the way for the realization of true see-through air goggles. In summary, driven by accelerating growth in our automotive segment, and expanding and expansion beyond our core driver business, we are well positioned for sustainable long-term revenue growth and profitability.
spk13: Furthermore,
spk07: our automotive YSI and air course product lines have attracted a strong global client base, which significantly extends our reach and strengthens our presence in markets worldwide, while diversifying regional exposure and adding stability to our operations. With that, I will now begin with an update on the large panel driver YSI business. In Q1 2024, we anticipate a sequential decline of single digit in large display driver YSI revenue, primarily attributed to weaker than expected sales through during the slow season. As I mentioned, panel makers are deliberately lowering factory utilization, striving to safeguard panel prices by constraining panel supply amidst the prevailing sluggish market. We expect Q1 sales for TV and monitor ICs to decline quarter over quarter. However, Q1 notebook IT sales are poised for a decent increase. Boostered by customer restocking, following several quarters of muted demand. In the notebook market, as customers strive to differentiate and add value to their products, a discernible trend is unfolding, marked by increasing adoption of touch features and AMOLED displays in premium notebooks and upcoming AI PCs. Touch features enhance user interaction and enrich AI user experience, while AMOLED display elevates visual enhancements in areas such as gaming and entertainment. It's crucial to emphasize our heightened focus and the growing significance of both technologies. Notably, during CES this year, we unveiled industry-leading on-sale AMOLED touch controller and in-sale TVDI for premium OLED and LCD notebooks respectively. Our on-sale AMOLED touch controller is designed to address this demand for accurate touch response and enhance handwriting capability. In the emergent mid-size OLED displays for notebooks, the feature thinner, lighter, brighter, and wider color garment visual experience. What distinguishes our touch controller is the comprehensive set of features, which include support for various OLED panel types, enriched, flexible, and hybrid. The capability to handle responsive touch operations of up to 10 fingers and compatibility with various industry standard active stylus protocols. By expanding our OLED portfolio to include the touch controller IC along with existing DVIC and TECON, we provide a comprehensive AMOLED notebook solution. Meanwhile, our recently launched in-sale TVDI for LCD notebooks offers precise touch sensitivity, vibrant multi-finger operation, and acute active stylus functionalities along with support for large size, high resolution, low power consumption, and thin bezel designs. By leveraging these extensive product portfolios, we are well positioned to capitalize on this market shift through collaborations with key Korean and Chinese panel makers, where mass production is scheduled to commence in the second half of this year for next generation premium notebook models. Furthermore, the incorporation of high value added features increases the counter value gained per panel while presenting the new opportunity for HiMax. Looking ahead to 2025, we anticipate a decent replacement cycle when armed with leading solutions for higher market launched lately, HiMax's presence in the notebook market will be further lifted.
spk22: Turning to
spk07: the small and medium-sized display driver IC business, first quarter revenue is expected to decline high teams sequentially. On the backdrop of traditional losses analysis, where demand for consumer electronics remains sluggish,
spk18: smartphone
spk07: and tablet sales are projected to decline single digit and double digit respectively in Q1. Automotive revenue is also expected to decline mid-teens sequentially, following robust order replenishment in previous quarters. In contrast, Q1 automotive TDI sales are still poised for sequential growth. Define recent reports of slow electronic vehicle demand in China. The swift and ongoing expansion of TDI adoption as evident by our over 400 secure design win projects positions us significantly ahead of our peers. With approximately 30% of awarded projects currently mass production and the continuous influx of new pipeline and design wins across the board, our leadership position is reinforced looking ahead into 2024 and beyond. Remarkably, automotive TDI sales are anticipated to account for almost half of total automotive driver sales in Q1.
spk15: Meanwhile,
spk07: a prominent trend is emerging as more customers opt for our TDI or LTDI coupled with our logo dimming T-con as their standard development platform for crafting new automotive displays of various sizes. This movement has shown the interest of leading panel makers, tier ones and common sectors across the spectrum who acknowledge the benefits of our supreme bundle solution to accelerate their new panel development and elevate their product values. Moving on to our industry leading LTDI, HiMAC is proud to be pioneering the introduction of LTDI to the automotive display market. Once again, we stand as the first company in the whole, in the world to initiate mass production of LTDI starting with GD Auto's NEVs in the third quarter of 2023. For displays larger than 30 inches, the incorporation of LTDI signifies increased content value for HiMAC on a per panel basis. Where such large displays usually necessitate six or more LTDI chips and at least one logo dimming T-con, this opens a new revenue stream for us and fortifies our market leadership moving forward. During CES this year, HiMAC presented the most comprehensive product lineup for display semiconductor technologies ranging from traditional DDIC and TDDI to cutting edge LTDI and logo dimming T-con for LCD panels and extending into AMOLED display solutions. Our AMOLED portfolio, which used to be comprised of DDIC and T-con, now expands to on sale touch controller. It's important to point out that the automotive industry upholds stringent standards of quality and reliability, surpassing loads of consumer electronics. In acknowledgement of these heightened requirements, our recently unveiled AMOLED touch controller IC is meticulously engineered with an industry leading touch signal to noise ratio exceeding 45 dB, making it the ideal solution to meet the needs of flexible OLED panels. Often required for automotive application. It also provides improved sensitivity to challenging user conditions, such as glove wearing and wayfinger operations, guaranteeing exceptional performance with display quality free from interference by touch display directions. Furthermore, our touch controller supports multi-finger capacitive touch. It's compatible with multiple OLED panel types and has the capability to cascade multiple chips in support of larger than 20 inch displays. With project awards from leading AMOLED panel manufacturers, our automotive AMOLED touch controller is poised to commence mass production in the upcoming quarters. We continue to strive forward. We continue to strive towards providing the most extensive array of automotive display solutions in the market. This commitment involves fostering robust partnerships with panel makers, TA1 suppliers, and car manufacturers across the globe, ensuring comprehensive solutions like catered to award wide spectrum of customer preferences and industry requirements. In terms of our smartphone and tablet product lines, we continue to see leg-luster demand in the market. On a positive note, our inventory has substantially rebalanced to a satisfactory level. With the starting process nearly complete, we placed reverse stars for select products starting in Q2 last year. Concurrently, we are diligently working on improving our cost structure through supplier diversification and strategic alliances, thereby positioning ourselves for an anticipated resurgence in demand.
spk16: Next,
spk07: for an update on our AMOLED business. As I mentioned earlier, we are actively venturing into AMOLED market by forging strategic partnerships with panel manufacturers in Korea and China, spanning a diverse range of applications, including automotive, tablet, notebook, and smartphones. As I just covered, we have made great progress in automotive, tablet, notebook markets, where we offer comprehensive solutions covering DDIZ, T-Con, and touch controller. Mass production for most of these new solutions is expected to commence the second half of 2024. In the smartphone AMOLED display driver segment, however, the prevailing slowdown in smartphone market demand has led to adjustments to our initial timeline. Nevertheless, collaborations with customers in Korea and China are ongoing with verification and partnership projects underway. I would like to now turn to our non-driver IT business update.
spk14: First,
spk07: for an update on our T-Con business. We expect Q1 T-Con sales to increase by single digits frequently, driven by increasing T-Con shipments for automotive displays and OLED displays for tablets. Despite sub-field and market demand, we are actively developing next generation T-Con IC for OLED tablets, notebooks, and automotive applications.
spk06: The initiative
spk07: aims to broaden and diversify our product offerings, while also positioning ourselves to capitalize on the market resurgence. Thanks to our cutting edge logo-diving technology, Hymax is the industry leader in automotive T-Con with an unchallenged leading position of over 100 design wins projects under our belt. At CES 2024, we unveiled our latest logo-diving T-Con, which features advanced image enhancement with wide color spectrum, ensuring exceptional visual quality that supports resolutions of up to 12K by 1K, and exceptional dynamic contrast enhancement tailored to real-time display content. All while adhering to power efficiency and stringent automotive safety standards. The rapid increase in customer adoption reflects the growing traction and trust in our solutions. We expect a decent growth trajectory for logo-diving T-Con over the next few years. Switching gears to the wide-size smart image sensing total solution. The cutting edge endpoint AI integration featuring Hymax's ultra-low power AI processor, always on CMOS image sensor, and advanced CNN-based AI algorithms.
spk02: During
spk07: CES this year, we highlighted a range of application demonstrations, which have swiftly gained adoption across various domains. Featuring our industry leading ultra-low power and potent AI capabilities. We achieved noteworthy progress with customers, particularly in implementing YSI in smart door locks. The collaboration with the China smart-dog leader Desmond, marks a groundbreaking feature advancement in the door lock industry. As our ultra-low power YSI AI, with remarkably low power consumption of just one milliwatt, enables the world's first smart door lock featuring uninterrupted surveillance with 24-7 real-time sensory monitoring. Where at the same time significantly extending battery life. We also showcase an adoption of YSI in a capture endoscope. The highly encouraging advancement in the medical area. Our YSI AI solution empowers tiny pill sized capture endoscopes, which are easy to swallow, facilitating smooth medical examination processes.
spk11: The device
spk07: consumes minimal power to sustain continuous image capture and transmission for up to 12 hours. This creates significantly simplified medical process, which compared, when compared to conventional procedures, which often involves the use of invasive endoscope tubes. We're excited about the potential for this transformative development for the healthcare industry, and expect to commence production with a customer in 2025.
spk17: Turning to
spk07: an update on YSI 2, our new generation AI processor. We are honored to report that YSI 2 was awarded the 2023 Best AI Product Award by EE Awards Asia. Further elevating high message YSI AI prominence in the industry. YSI 2 is pioneering a new standard in endpoint AI benchmarks, earning recognition for its outstanding AI inference capability. Industry leading ultra low power efficiency and advanced security features. In the realm of context aware AI, YSI 2 facilitates high precision detection with features such as face mesh, facial landmark, hand gesture, and human pose and skeleton, which expands the intuitive user friendly scope of interactive applications in real life, all achieved with minimal power consumption. Moreover, YSI 2 streamlines the system integration with a reset of peripheral interfaces. Effectively lowering the system costs for edge appliances by eliminating the need for costly power hungry discrete MCUs otherwise required to process various sensor data. Additionally, YSI 2 both versatile sensor fusion capabilities encompassing image, video, audio, vibration, and thermal inputs. This enables sophisticated integral and highly accurate detection with low latency, especially suitable in anomaly detection with timely warnings, making it an ideal solution for a range of industrial applications, notably in automated and unmanned factories. Alongside our ongoing collaboration with end customers, significant progress is being made in partnerships with major CPU and APSLC players in preparation for their next generation smart notebooks, AI PCs, surveillance applications, and the host of other endpoint AI applications. We will provide more details as they come about.
spk10: Concurrently,
spk07: to meet various application requirements and context and extend market reach, we are in collaborations with numerous ecosystem partners and system integration companies, offering hands-on development tools and rigorous AI models to streamline customer development efforts and reduce costs for their AI product introduction. The launch of our production-ready YSI modules exemplifies this business model. These modules incorporate HiMEX's low-power CMOS image sensor, YSI1 or YSI2 AI processor, and versatile AI models from either in-house or third-party partners. Meticulously designed with tiny form factors, highly integrated and -and-play characteristics. The modules feature user programmable preloaded AI models to facilitate seamless system integration, lowering the entry barrier and costs for AI development. This initiative is particularly well suited for early-stage market engagement applications. Furthermore, we continue to collaborate with ecosystem partners to unveil a spectrum of -and-play AI modules that incorporate advanced low-code slash low-code AI solutions. By leveraging their strengths in specific domains and existing channels, these collaborative efforts ensure we can meet diverse development needs for both software and hardware. Notably, at CES 2024, our partnership with SEED Studio on its battery-powered endpoint AI vision processing module, GLOVE Vision AI Module V2, significantly underscores our dedication to making AI technology easily accessible. After years of dedicated efforts to enhance our AI capabilities in actual low-power AI processing and image sensing for endpoint AI applications, we believe that our wide-side AI business will emerge as a multi-year structure growth driver for Hi-MEX. Lastly, I would like to provide an update on our optical product lines. Hi-MEX is a distinguished industry leader with a diverse range of optical and opto-electronics products crucial for building emergent metaverse applications. We strive to innovate and advance various technologies in this arena, including weather-level optics, 3D sensing, liquid crystal on silicon, among others, pushing the envelope in a variety of fields. Our technological expertise and extensive manufacturing experience are evident in our growing clientele for AR slash VR goggles and ongoing engineering projects. Now, let's review some recent progress we have made.
spk14: First,
spk07: on our advancement in air-cost technology, Hi-MEX boasts a decade-long expertise and proven track record for shipments for AR goggles with global leading names. Our latest breakthrough color sequential front-lit air-cost micro-display offers unparalleled industry-leading brightness of up to 180,000 nits, providing ultra-luminance performance in vibrant RGB displays. It also features superior optical power efficiency, a compact form factor, and ultra-lightweight design, which make it the best choice for the next generation of -to-AR devices. Currently, we are actively involved in follow-up engineering activities in collaboration with key tech players and anticipate significant opportunities in the coming years.
spk16: Next,
spk07: let's discuss the recent introduction of nano-imprint optical film technology in automotive lighting by Hi-MEX's subsidiary, CMVT, in collaboration with StarE industry, a global leader in automotive lighting manufacturing. The -the-art technology was implemented within a leading edge LED edge-lit type automotive lighting. By leveraging our nano-imprint optical film, side-emitting LED light is reflected or refracted towards the illumination direction of the automotive lamps, ensuring uniformity, minimizing fixture size, and enabling precise control of light compared to conventional, direct-lit type automotive lighting. This results in enhanced efficiency, reduced LED usage, and the ability to create versatile patterns at a significantly lower cost. This groundbreaking development unlocks not only extensive visual possibilities for automotive lighting, but also interior light decoration design, as well as related illumination applications. We will provide more updates as they come about. We believe our optical and optoelectronics technologies is poised to play an important enabling role in developing next-generation metaverse applications. We are committed to advancing these technologies with collaboratively expanding application possibilities with industry leaders who are deeply devoted to advancing their next-generation metaverse-related products. Born on driver IT business, we expect revenue to decline single digits sequentially the first quarter. That concludes my report for this quarter. Thank you for your interest in IMAX. We appreciate your joining today's call. And now, ready to take questions.
spk23: As a reminder, to ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please stand by while we compile the
spk21: Q&A roster. Once again, if you have a question at this time, please press star 1-1 on your telephone. I'm showing no questions at this time. I would now like to turn
spk23: it back to Jordan Wu for closing remarks.
spk07: As a final note, Eric Lee, our chief IRP officer, will maintain Mr. Mopsy next to you. And continue to attend the rest of the conferences. We will announce the details as they come about. Thank you and have a nice day.
spk23: This concludes today's conference call. Thank you for participating. You may now disconnect.
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