In a bid to end the drop in its shares, Himax Technologies (NASDAQ:HIMX) pre-announced strong quarterly results. That morning, the stock rose, only to give up gains. The market sentiment is too weak to support even good news.
The company reported Q1 revenue of $184.6 million, a solid 13% increase from last year. Gross margins are up sequentially, from 20.6% in Q4/2019 to 22.7%. GAAP EPS is 1.9 cents. Strong laptop sales may have lifted the company’s results, as did large panel driver sales. This is a welcome change.
Though BlackBerry (TSX:BB) has a bigger market cap, the stock faces multiple headwinds that may send it lower. The company reported revenue growing 13% to $291 million. Services revenue only grew by 16% to $287 million. Once again, non-GAAP earnings were $51 million but this translates to a GAAP loss of $41 million.
BlackBerry’s pivot toward cybersecurity, through its Cylance acquisition, is not paying off. IoT and other segments that it previously touted as growth drivers are disappointments. The firm has $990 million in liquidity, which suggests investors should expect no stock dilution in the near-term. Still, insider selling may accelerate. It is better to sell now to avoid further losses than to hope for a recovery. Investors have better plays to play the rebound.