updated 11/8/2010 4:16:27 PM ET 2010-11-08T21:16:27

TAINAN, Taiwan, Nov. 8, 2010 (GLOBE NEWSWIRE) -- Himax Technologies, Inc. ("Himax" or "Company") (Nasdaq:HIMX) today reported financial results for the third quarter ended September 30, 2010.

For the third quarter of 2010, Himax reported net revenues of $138.3 million, representing a 31.9% decrease from $203.1 million in the third quarter of 2009, and a 26.3% decrease from $187.7 million in the second quarter of 2010. Gross margin was 22.9% in the third quarter of 2010, up 250 basis points year-over-year and sequentially. Operating loss in the third quarter was $0.7 million, compared to operating income of $10.8 million for the same period last year and $13.0 million in the previous quarter.

Net income attributable to Himax stockholders for the third quarter of 2010 was $0.4 million or 0.3 cents per diluted ADS, down from $8.8 million or $0.05 cents per diluted ADS in the third quarter of 2009, and down from $12.0 million or $0.07 cents per diluted ADS in the second quarter of 2010.

Excluding share-based compensation and acquisition-related charges, non-GAAP operating income for the third quarter of 2010 was $7.3 million, down from $20.0 million in the same period last year, and down from $15.4 million in the previous quarter.

Non-GAAP net income attributable to Himax stockholders for the third quarter of 2010 was $7.0 million or $0.04 per diluted ADS, down from $16.2 million or $0.09 per diluted ADS in the third quarter of 2009, and down from $14.0 million or $0.08 per diluted ADS in the second quarter of 2010.

Reconciliation of gross margin, operating margin (loss), net margin and diluted EPS excluding share-based compensation and acquisition-related charges, a non-GAAP financial measure, to GAAP gross margin, GAAP operating margin (loss), GAAP net margin and diluted GAAP EPS, most comparable GAAP figure, is set out in the attached reconciliation schedule.

Jordan Wu, President and Chief Executive Officer of Himax, commented, "We believe we are bottoming out from the current trough and our global driver IC market share is in a good position to grow again next year. Our core competence in display drivers remains strong as demonstrated by the steady year-over-year revenue growth of our small and medium- sized panel drivers. Large-sized display drivers remains a business we are fully committed to. Looking ahead, China's aggressive capacity expansion plans have made it the market segment with the highest growth potential over the next few years. We are confident that we are in a strong position to capture a major driver IC market share during this time of fast expansion."

Mr. Wu continued, "The third quarter non-driver sales, especially those from our LCOS product line, were lower than our expectation. Many of our LCOS customers built significant inventory during the second quarter, anticipating strong market demand over certain new product designs. However, at the end of second quarter 2010, the Chinese government took measures to crack down on the white-box handset market, which, at this stage, is a major end market for our LCOS products. Facing a high inventory level, our customers have slowed down placing new orders to us starting in the third quarter and toward the beginning of the fourth quarter. We are now seeing order flows returning towards normal levels as those overbuilt inventories are gradually being consumed."

Mr. Wu continued, "An area to highlight is our 2D to 3D conversion solutions, which have been embedded into a number of worldwide first-tier TV brands particularly in Japan and China. We continue to see enthusiastic adoption of our solutions from many other customers covering TV and other applications. Capped by the availability of 3D panels, however, our shipment this year has been insignificant. Today 3D panels are offered only by a small number of panel makers with a limited number of models. However, we are seeing more display makers offering a wide variety of 3D panels to the market, using different technologies. We expect our world leading 2D to 3D conversion products to benefit strongly next year with the increasing shipment and penetration of 3D panels."

Mr. Wu continued, "Revenues from CMOS image sensors and WLED drivers each experienced over 100% quarter-over-quarter growth in the third quarter. We expect both segments to carry strong momentum into the fourth quarter and next year. Our new generation sensors, in particular, are very competitive in cost and performance and are being adopted by numerous handset, notebook and web camera customers. We anticipate an explosive growth of our sensor sales next year."

Mr. Wu added, "Looking forward to the fourth quarter of 2010, we expect revenues to be approximately flat, gross margin to down by 1 to 2 percentage points, sequentially, and GAAP earnings per ADS to be in the range of $0.04 to $0.06 cents."

Investor Conference Call / Webcast Details

The Company's management will review detailed third quarter 2010 results on Monday, November 8, 2010 at 6:00 PM NYC (7:00 AM, Tuesday, November 9, Taiwan time). The conference dial-in numbers are +1-201-689-8471 (international) and +1-877-407-4018 (U.S. domestic). A live webcast of the conference call will be available on the Company's website at www.himax.com.tw . The playback will be available beginning two hours after the call through 1:00 PM Taiwan time on Tuesday, November 16, 2010 (midnight U.S. Eastern Standard Time) at www.himax.com.tw and by telephone at +1 858-384-5517 (international) or +1-877-870-5176 (U.S. domestic). The conference ID number is 358070.

About Himax Technologies, Inc.

Himax Technologies, Inc. designs, develops, and markets semiconductors that are critical components of flat panel displays. The Company's principal products are display drivers for large-sized TFT-LCD panels, which are used in desktop monitors, notebook computers and televisions, and display drivers for small- and medium-sized TFT-LCD panels, which are used in mobile handsets and consumer electronics products such as netbook computers, digital cameras, mobile gaming devices, portable DVD players, digital photo frame and car navigation displays. In addition, the Company is expanding its product offerings to include timing controllers, LCD TV and monitor chipset solutions, LCOS projector solutions, power management ICs, CMOS Image Sensors, Infinitely Color Technology and 2D to 3D conversion solutions. Based in Tainan, Taiwan, the Company has regional offices in Hsinchu and Taipei, Taiwan; Ninbo, Foshan, Fuqing, Beijing, Shanghai, Suzhou and Shenzhen, China; Yokohama and Matsusaka, Japan; Cheonan-si, Chungcheongnam-do, South Korea; and Irvine California, USA.

Forward-Looking Statements:

Factors that could cause actual events or results to differ materially include, but not limited to, general business and economic conditions and the state of the semiconductor industry; market acceptance and competitiveness of the driver and non-driver products developed by the Company; demand for end-use applications products; reliance on a small group of principal customers; the uncertainty of continued success in technological innovations; our ability to develop and protect our intellectual property; pricing pressures including declines in average selling prices; changes in customer order patterns; changes in estimated full-year effective tax rate; shortages in supply of key components; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; our ability to collect accounts receivable and manage inventory; the uncertainty of success in our Taiwan listing plan which is still under review by Taiwan regulatory authorities and subject to change due to, among other things, changes in either Taiwan or U.S. authorities' policies and Taiwan regulatory authorities' acceptance of the Company's Taiwan listing application and other risks described from time to time in the Company's SEC filings, including those risks identified in the section entitled "Risk Factors" in its Form 20-F for the year ended December 31, 2009 filed with SEC on dated June 3, 2010, as amended.

 

 

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