Himax Technologies, Inc.

Hello, ladies and gentlemen. Welcome to Himex Technologies, Inc., second quarter, 2026 earnings conference call. At this time, all participants are in the listening mode. And later, we will conduct a question and answer session. And instructions will follow at that time. And as a reminder, this conference call is being recorded. I would now like to turn the conference over to Ms. Karen Tiao, head of IR, PR at Himex. Ms. Tiao, please go ahead.

Welcome, everyone.

My name is Karen Tiao, head of IRPI at Hanex. Joining me today are Jordan Wu, President and Chief Executive Officer, and Jessica Pan, Chief Financial Officer. As our companies prepare comments, We have allocated time for our questions in the Q&A section. If you have not yet received a copy of today's result release, please email hf-ir at hymex.com.tw or himx at mcgroup.us or download a copy from Hymex's website. Before we begin the formal remarks, I would 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 the actual event of results to differ materially from those described in the conference call. A list of risk factors can be found in the company's latest SEC filing. foreign 20F in the section titled Rates, Factors, as may be amended. Except for the company's full year of 2025 financials, which were provided in the company's 20F and filed with the SEC on March 27, 2026, 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 and may vary materially from the audited consolidated financial information for the same period. On today's call, I will first review Himex consolidated financial performance for the second quarter 2026, followed by our third quarter outlook. Jordan will then give an update on the status of our business and after which we will take questions. You can submit your questions online through the webcast or by phone. We will review our financials on an IFRS basis. The rapid rise in AI demand is placing unprecedented strength on memory chip supply and affecting many non-AI applications, creating a more challenging cost and capacity environment across the industry. Against this backdrop, we are pleased to report that our second quarter revenues, gross margin, and profits all exceeded the guidance we provided on May 7, 2026. Second quarter revenues registered $227.4 million, representing a sequential increase of 14.2% and up 5.9% compared to the same period last year. Q2 revenues exceeded our guidance range of a 10 to 13% increase, primarily driven by better-than-expected automotive IC sales.