LCD driver IC designer Himax Technologies expects its second-quarter revenues to grow 10-15% from US$141 million recorded in the first quarter and gross margin to shed 1.4pp from 20.1% during the same period.

In the first quarter of 2011, small- and medium-size applications and non-driver products made up 42.3% and 11.7% of total revenue respectively, both hit record highs. In contrast, the percentage of applications for large-size panels of total revenues has been decreasing. The growth for small- and medium-size applications are mainly due to the increased popularity of smartphones and tablet PCs, according to Himax.

The drop in gross margins in first- and second-quarter 2011 was due to increased shipments of IC products with low to medium margins, plus the strong Taiwan dollar and increased price of gold which made lowering costs difficult. The goal for the coming quarters will be to increase gross margin, Himax commented.

Non-driver products will be the fuel for further growth of the company, stated Himax. Himax Imaging, a subsidiary of Himax, demonstrated significant growth in first-quarter 2011 in comparison with the previous quarter. Limited by the short supply of wafers, Himax Imaging's CMOS image censors are facing shortage as well. Hopefully this problem can be solved in second quarter, Himax added.