- First quarter 2011 revenue in-line with guidance with gross
margin of 20.1%
- Expects second quarter revenue to grow 10%-15% with gross
margin to decline 1%-1.5%
- Percentage of small and medium-sized driver and non-driver
revenue both reached record highs in the first quarter
TAINAN, Taiwan, May 10, 2011 (GLOBE NEWSWIRE) -- Himax
Technologies, Inc. ("Himax" or "Company") (Nasdaq:HIMX) today
reported financial results for the first quarter ended March 31,
2011.
For the first quarter of 2011, Himax reported net revenues of
$141.1 million, representing a 19.6% decrease from $175.5 million
in the first quarter of 2010, and a 0.1% decrease from $141.2
million in the fourth quarter of 2010. Gross margin was 20.1% in
the first quarter of 2011, up 30 basis points year-over-year and
down 140 basis points, sequentially. Operating income in the first
quarter was $2.5 million, compared to $10.1 million for the same
period last year and $12.9 million in the previous quarter.
Net income attributable to Himax stockholders for the first
quarter of 2011 was $2.7 million or $0.02 per diluted ADS, down
from $9.1 million or $0.05 per diluted ADS in the first quarter of
2010, and down from $11.7 million or $0.07 per diluted ADS in the
fourth quarter of 2010.
Excluding share-based compensation and acquisition-related
charges, non-GAAP operating income for the first quarter of 2011
was $4.3 million, down from $12.5 million in the same period last
year, and down from $14.5 million in the previous quarter.
Non-GAAP net income attributable to Himax stockholders for the
first quarter of 2011 was $4.1 million or $0.02 per diluted ADS,
down from $11.2 million or $0.06 per diluted ADS in the first
quarter of 2010, and down from $13.0 million or $0.07 per diluted
ADS in the fourth quarter of 2010.
Reconciliation of gross margin, operating margin, 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, 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, "In the first quarter, small and medium-sized
applications and non-driver products continued to demonstrate
strong growth momentum. Revenues from small and medium-sized
applications and non-driver products both hit record highs as a
percentage of revenues. The big picture summary of our first
quarter performance is that while we achieved a more balanced
product mix and continued to improve on customer diversification,
our gross margin and bottom line profitability were not
satisfactory. Notwithstanding the short-term unsatisfactory margin,
we are encouraged by the fundamental improvements in our product
and customer diversification, which is in line with the overall
direction we set a long time ago and will greatly enhance our
corporate value in the long-term. While the short-term low margin
is a concern, we see this as temporary in nature and we are fully
committed to improving our gross margin in short time."
Mr. Wu continued, "For the driver IC product line, cell phone,
or more specifically, smart phone, and medium size panels are the
two segments which show the best growth potential. We are leading
the market in technologies such as color enhancement, 3D data
processing, MIPI high speed interface as well as HD720 and WXGA
resolutions. We are also excited about CMOS image sensors where we
are seeing a surge in demand. Our customer base for CMOS image
sensor is mostly leading brand names for both handsets and laptops.
We continue to receive positive feedback regarding product
performance and win new projects from these customers. On the
wafer-level optics product line we just began our first mass
production shipment and look for demand to pickup in the second
quarter and onward."
Mr. Wu continued, "Moving to the second quarter, we are seeing
strong demand pick-up across literally all product lines. However,
even though the recent Japan earthquake has had limited impact on
our own display driver supply chain, it does pose an uncertainty to
our second quarter guidance as we are not entirely certain how the
overall industry supply chain has been affected. For the second
quarter, we expect revenues to go up 10% to 15% with gross margin
to decline 1% to 1.5%. Our GAAP earnings per ADS is expected to be
in the range of 2 to 3 cents."
Investor Conference Call / Webcast Details
The Company's management will review detailed first quarter 2011
results on Monday, May 9, 2011 at 7:00 PM NYC (7:00 AM, Tuesday,
May 10, 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 12:00 PM
Taiwan time on Wednesday, May 16, 2011 (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 370986.
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 tablet PCs, 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, touch controller ICs, 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 US
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.
– Tables Attached
–
Himax Technologies,
Inc. |
Unaudited Condensed
Consolidated Statements of Income |
(These interim
financials do not fully comply with US GAAP because they omit all
interim disclosure required by US GAAP) |
(Amounts in Thousands
of U.S. Dollars, Except Per Share Data) |
|
|
|
|
|
|
|
Three |
|
|
|
Months |
|
|
|
Ended |
|
Three
Months |
December |
|
Ended March
31, |
31, |
|
2011 |
2010 |
2010 |
Revenues |
|
|
|
Revenues from third parties, net |
$74,093 |
$70,940 |
$67,125 |
Revenues from related parties, net |
67,000 |
104,558 |
74,081 |
|
141,093 |
175,498 |
141,206 |
|
|
|
|
Costs and expenses: |
|
|
|
Cost of revenues |
112,783 |
140,773 |
110,884 |
Research and development |
19,790 |
17,808 |
17,010 |
General and administrative |
4,281 |
4,043 |
5,582 |
Sales and marketing |
1,697 |
2,749 |
(5,149) |
Total costs and
expenses |
138,551 |
165,373 |
128,327 |
|
|
|
|
Operating income |
2,542 |
10,125 |
12,879 |
|
|
|
|
Non operating income
(loss): |
|
|
|
Interest income |
140 |
104 |
141 |
Equity in losses of equity method
investees |
(81) |
(59) |
(146) |
Foreign exchange gains (losses), net |
117 |
(11) |
(596) |
Interest expense |
(97) |
--- |
(106) |
Other income (loss), net |
(234) |
88 |
487 |
|
(155) |
122 |
(220) |
Earnings before income
taxes |
2,387 |
10,247 |
12,659 |
Income tax expense |
597 |
2,049 |
2,154 |
Net income |
1,790 |
8,198 |
10,505 |
Net loss attributable to
noncontrolling interests |
933 |
940 |
1,148 |
Net income attributable to Himax
stockholders |
$2,723 |
$9,138 |
$11,653 |
|
|
|
|
Basic earnings per ordinary share
attributable to Himax stockholders |
$0.01 |
$0.03 |
$0.03 |
Diluted earnings per ordinary share
attributable to Himax stockholders |
$0.01 |
$0.03 |
$0.03 |
Basic earnings per ADS attributable
to Himax stockholders |
$0.02 |
$0.05 |
$0.07 |
Diluted earnings per ADS attributable
to Himax stockholders |
$0.02 |
$0.05 |
$0.07 |
|
|
|
|
Basic Weighted Average Outstanding
Ordinary Shares |
354,633 |
357,557 |
354,633 |
Diluted Weighted Average Outstanding
Ordinary Shares |
355,833 |
359,102 |
355,061 |
Himax Technologies,
Inc. |
Unaudited Supplemental
Financial Information |
(Amounts in Thousands
of U.S. Dollars) |
|
|
|
Three |
|
|
|
Months |
|
|
|
Ended |
The amount of share-based
compensation included in applicable statements of income categories
is summarized as follows: |
Three
Months |
December |
|
Ended March
31, |
31, |
|
2011 |
2010 |
2010 |
Share-based compensation |
|
|
|
Cost of revenues |
$11 |
$22 |
$23 |
Research and development |
869 |
1,374 |
779 |
General and administrative |
142 |
229 |
131 |
Sales and marketing |
140 |
218 |
137 |
Income tax benefit |
(178) |
(187) |
(177) |
Total |
$984 |
$1,656 |
$893 |
|
|
|
|
The amount of acquisition-related
charges included in applicable statements of income categories is
summarized as follows: |
|
|
|
|
|
|
|
Acquisition-related charges |
|
|
|
Research and development |
$258 |
$259 |
$259 |
Sales and marketing |
289 |
289 |
289 |
Income tax benefit |
(125) |
(139) |
(125) |
Total |
$422 |
$409 |
$423 |
Himax Technologies,
Inc. |
Unaudited Condensed
Consolidated Balance Sheets |
(Amounts in Thousands
of U.S. Dollars, Except Per Share Data) |
|
March 31, 2011 |
December 31,
2010 |
March 31, 2010 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$109,519 |
$96,842 |
$155,932 |
Investments in marketable
securities available-for-sale |
6,834 |
8,632 |
5,198 |
Accounts receivable, less
allowance for doubtful accounts, sales returns and
discounts |
83,098 |
80,212 |
71,354 |
Accounts receivable from
related parties, less allowance for sales returns and
discounts |
83,690 |
95,964 |
129,519 |
Inventories |
130,057 |
117,988 |
65,401 |
Deferred income
taxes |
11,871 |
11,977 |
17,590 |
Restricted cash and cash
equivalents |
57,500 |
58,500 |
--- |
Prepaid expenses and other
current assets |
16,136 |
15,809 |
13,753 |
Total current
assets |
$498,705 |
$485,924 |
$458,747 |
|
|
|
|
Investment securities, including
securities measured at fair value |
24,568 |
24,622 |
11,619 |
Equity method
investments |
781 |
869 |
1,430 |
Property, plant and equipment,
net |
48,658 |
47,561 |
50,783 |
Deferred income
taxes |
24,502 |
24,729 |
24,695 |
Goodwill |
26,846 |
26,846 |
26,846 |
Intangible assets, net |
6,125 |
6,674 |
8,322 |
Other assets |
2,043 |
2,395 |
2,541 |
|
133,523 |
133,696 |
126,236 |
Total assets |
$632,228 |
$619,620 |
$584,983 |
|
|
|
|
Liabilities and Equity |
|
|
|
Current liabilities: |
|
|
|
Short-term debt |
$57,000 |
$57,000 |
$ --- |
Accounts payable |
124,066 |
115,922 |
115,916 |
Income taxes payable |
9,182 |
9,125 |
16,495 |
Deferred income taxes |
94 |
96 |
--- |
Other accrued expenses and
other current liabilities |
25,843 |
23,605 |
16,017 |
Total current
liabilities |
$216,185 |
$205,748 |
$148,428 |
Other liabilities |
6,786 |
6,896 |
5,605 |
Total liabilities |
$222,971 |
$212,644 |
$154,033 |
|
|
|
|
Equity |
|
|
|
Himax stockholders'
equity: |
|
|
|
Ordinary shares, US$0.3 par
value, 1,000,000,000 shares authorized; 353,842,764 shares,
353,842,764 shares, and 355,531,454 shares issued and outstanding
at March 31, 2011, December 31, 2010, and March 31, 2010,
respectively |
$106,153 |
$106,153 |
$106,659 |
Additional paid-in
capital |
100,824 |
100,291 |
102,123 |
Accumulated other comprehensive
income |
994 |
1,204 |
35 |
Unappropriated retained
earnings |
200,953 |
198,230 |
218,259 |
Himax stockholders'
equity |
$408,924 |
$405,878 |
$427,076 |
Noncontrolling
interests |
333 |
1,098 |
3,874 |
Total equity |
$409,257 |
$406,976 |
$430,950 |
Total liabilities and
equity |
$632,228 |
$619,620 |
$584,983 |
Himax Technologies,
Inc. |
Unaudited Condensed
Consolidated Statements of Cash Flows |
(Amounts in Thousands
of U.S. Dollars) |
|
|
|
Three |
|
|
|
Months |
|
|
|
Ended |
|
Three
Months |
December |
|
Ended March
31, |
31, |
|
2011 |
2010 |
2010 |
|
|
|
|
Cash flows from operating
activities: |
|
|
|
Net income |
$1,790 |
$8,198 |
$10,505 |
Adjustments to reconcile net income to net
cash provided by operating activities: |
|
|
|
Depreciation and
amortization |
3,279 |
3,522 |
3,275 |
Share-based compensation
expenses |
1,162 |
1,843 |
1,071 |
Equity in losses of equity
method investees |
81 |
59 |
146 |
Gain on disposal of marketable
securities, net |
(193) |
(59) |
(197) |
Unrealized loss (gain) on
conversion option |
460 |
--- |
(258) |
Interest income from
amortization of discount on investment in corporate bonds |
(48) |
--- |
(34) |
Deferred income tax expense
(benefit) |
242 |
(375) |
6,067 |
Inventories write downs |
2,764 |
2,864 |
4,112 |
Changes in operating assets and
liabilities: |
|
|
|
Accounts receivable |
(2,886) |
(6,858) |
4,591 |
Accounts receivable from
related parties |
12,289 |
8,656 |
1,645 |
Inventories |
(14,833) |
(498) |
(10,436) |
Prepaid expenses and other
current assets |
(325) |
462 |
(4,058) |
Accounts payable |
8,144 |
27,837 |
9,572 |
Income taxes payable |
52 |
2,354 |
(3,348) |
Other accrued expenses and
other current liabilities |
258 |
(2,199) |
3,673 |
Other liabilities |
(11) |
--- |
3,476 |
Net cash provided by operating
activities |
12,225 |
45,806 |
29,802 |
|
|
|
|
Cash flows from investing
activities: |
|
|
|
Purchase of property and
equipment |
(1,851) |
(2,388) |
(1,831) |
Purchase of available-for-sale
marketable securities |
(6,014) |
(5,577) |
(15,958) |
Disposal of available-for-sale
marketable securities |
7,733 |
11,190 |
10,399 |
Purchase of investment
securities |
--- |
--- |
(5,500) |
Purchase of equity method
investments |
--- |
(897) |
(9) |
Release (pledge) of restricted
cash equivalents and marketable securities |
1,002 |
--- |
(13,512) |
Decrease in other assets |
1 |
69 |
88 |
Net cash provided by (used in)
investing activities |
871 |
2,397 |
(26,323) |
Himax Technologies,
Inc. |
|
|
|
Unaudited Condensed Consolidated
Statements of Cash Flows |
|
|
|
(Amounts in Thousands of U.S.
Dollars) |
|
|
|
|
|
|
|
|
|
|
Three |
|
|
|
Months |
|
|
|
Ended |
|
Three
Months |
December |
|
Ended March
31, |
31, |
|
2011 |
2010 |
2010 |
Cash flows from financing
activities: |
|
|
|
Proceeds from issuance of new shares by
subsidiaries |
$21 |
65 |
95 |
Payments to acquire ordinary shares for
retirement |
--- |
(3,642) |
--- |
Proceeds from disposal of subsidiary
shares to noncontrolling interests by Himax Technologies
Limited |
--- |
418 |
135 |
Purchase of subsidiary shares from
noncontrolling interests |
(461) |
(38) |
(60) |
Proceeds from borrowing of short-term
debt |
--- |
--- |
13,000 |
Net cash provided by
(used in) financing activities |
(440) |
(3,197) |
13,170 |
Effect of foreign currency exchange
rate changes on cash and cash equivalents |
21 |
2 |
54 |
Net increase in cash and cash
equivalents |
12,677 |
45,008 |
16,703 |
Cash and cash equivalents at
beginning of period |
96,842 |
110,924 |
80,139 |
Cash and cash equivalents at end of
period |
$109,519 |
$155,932 |
$96,842 |
|
|
|
|
Supplemental disclosures of cash flow
information: |
|
|
|
Cash paid during the period for: |
|
|
|
Interest expense |
$97 |
$ --- |
$165 |
Income taxes |
$206 |
$47 |
$41 |
Himax Technologies,
Inc. |
Unaudited Supplemental
Data – Reconciliation Schedule |
(Amounts in Thousands
of U.S. Dollars) |
|
|
|
|
Gross Margin, Operating
Margin and Net Margin Excluding Share-based Compensation and
Acquisition-Related Charges: |
|
|
|
Three |
|
|
|
Months |
|
|
|
Ended |
|
Three
Months |
December |
|
Ended March
31, |
31, |
|
2011 |
2010 |
2010 |
Revenues |
$141,093 |
$175,498 |
$141,206 |
Gross profit |
28,310 |
34,725 |
30,322 |
Add: Share-based compensation – Cost of
revenues |
11 |
22 |
23 |
Gross profit excluding share-based
compensation |
28,321 |
34,747 |
30,345 |
Gross margin excluding share-based
compensation |
20.1% |
19.8% |
21.5% |
Operating income |
2,542 |
10,125 |
12,879 |
Add: Share-based compensation |
1,162 |
1,843 |
1,070 |
Operating income excluding share-based
compensation |
3,704 |
11,968 |
13,949 |
Add: Acquisition-related charges –Intangible
assets amortization |
547 |
548 |
548 |
Operating income excluding share-based
compensation and acquisition-related charges |
4,251 |
12,516 |
14,497 |
Operating margin excluding share-based
compensation and acquisition-related charges |
3.0% |
7.1% |
10.3% |
Net income attributable to Himax
stockholders |
2,723 |
9,138 |
11,653 |
Add: Share-based compensation, net of
tax |
984 |
1,656 |
893 |
Add: Acquisition-related charges, net of
tax |
422 |
409 |
423 |
Net income attributable to Himax stockholders
excluding share-based compensation and acquisition-related
charges |
4,129 |
11,203 |
12,969 |
Net margin attributable to Himax stockholders
excluding share-based compensation and acquisition-related
charges |
2.9% |
6.4% |
9.2% |
|
|
|
|
*Gross margin excluding
share-based compensation equals gross profit excluding share-based
compensation divided by revenues |
*Operating margin excluding
share-based compensation and acquisition-related charges equals
operating income excluding share-based compensation and
acquisition-related charges divided by revenues |
*Net margin attributable to Himax
stockholders excluding share-based compensation and
acquisition-related charges equals net income attributable to Himax
stockholders excluding share-based compensation and
acquisition-related charges divided by revenues |
Diluted Earnings Per
Ordinary Share Attributable to Himax stockholders Excluding
Share-based Compensation and Acquisition-Related
Charges: |
|
|
|
Three Months |
|
Ended March 31, |
|
2011 |
Diluted GAAP EPS attributable to Himax
stockholders |
$0.01 |
Add: Share-based compensation per diluted
share |
$--- |
Add: Acquisition-related charges per diluted
share |
$--- |
|
|
Diluted non GAAP EPS attributable to Himax
stockholders excluding share-based compensation and
acquisition-related charges |
$0.01 |
|
|
CONTACT: Jessie Wang / Jessica Huang
Investor Relations
Himax Technologies, Inc.
+886-2-2370-3999 Ext. 22618 / 22513
jessie_wang@himax.com.tw
jessica_huang@himax.com.tw
In the U.S.
Joseph Villalta
The Ruth Group
+1-646-536-7003
jvillalta@theruthgroup.com
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