HIMX-US Q1 Revenue to Fall 2-6% as CPO Enters Pilot Output

HIMX-US (奇景光電) forecasts first-quarter revenue to decline 2-6% as Q4 results were up 2% to $23.1 million. Q1 is expected to be the annual trough, with growth resuming in H2 driven by strong design intake, low inventory from clients, and ramp-up of new automotive projects. The automotive market, less sensitive to memory price swings, is forecast to support a rebound. Guideline revenue guidance for 2026Q1: $17.5M-$19.5M; gross margin expected to remain stable or小幅下降; EPS $0.02–$0.04 per ADS. CPO initiatives, including a partnership with 3363-TW, are entering small-scale output in 2026 with a focus on 6.4T high-bandwidth optical transport and AI data centers. A NT$31.6B share offering by 3363-TW, in which HIMX participated, funds equipment and pilot readiness to position CPO as a major revenue driver over the next few years. 2025 highlights: 4Q revenue $23.1M, +2%; gross margin 30.4%, +0.2pp; net income $6.3M; EPS 3.6¢/ADS. Full-year 2025: $832.2M, -8.2%; gross margin 30.6%, +0.1pp; net income $43.9M, -44.9%; EPS $0.25/ADS.