Himax Reports Third Quarter 2010 Financial Results

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.

 

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Income
(These interim financials do not fully comply with U.S. GAAP because they omit all interim disclosure required by U.S. GAAP)
(Amounts in Thousands of U.S. Dollars, Except Per Share Data)
	Three Months Ended September 30,		Three Months Ended June 30,
	20 10	20 09	20 10
Revenues
Revenues from third parties, net	$ 71,064	$ 77,933	$ 94,939
Revenues from related parties, net	67,217	125,189	92,768
	138,281	203,122	187,707
Costs and expenses:
Cost of revenues	106,602	161,687	149,388
Research and development	23,267	21,772	18,341
General and administrative	4,948	4,985	4,197
Sales and marketing	4,139	3,856	2,752
Total costs and expenses	138,956	192,300	174,678
Operating income (loss)	(675)	10,822	13,029
Non operating income (loss):
Interest income	193	110	169
Equity in losses of equity method investees	(99)	(41)	(106)
Foreign exchange gains (losses), net	(345)	7	53
Interest expense	(71)	(3)	(5)
Other income, net	173	66	72
	(149)	139	183
Earnings (loss) before income tax es	(824)	10,961	13,212
Income tax expense (benefit)	(149)	2,933	2,174
Net income (loss)	(675)	8,028	11,038
Net loss attributable to noncontrolling interests	1,122	793	930
Net income attributable to Himax stockholders	$ 447	$ 8,821	$ 11,968
Basic earnings per ordinary share attributable to Himax stockholders	$ 0.001	$ 0.024	$ 0.034
Diluted earnings per ordinary share attributable to Himax stockholders	$ 0.001	$ 0.024	$ 0.033
Basic earnings per ADS attributable to Himax stockholders	$ 0.003	$ 0.048	$ 0.067
Diluted earnings per ADS attributable to Himax stockholders	$ 0.003	$ 0.048	$ 0.067
Basic Weighted Average Outstanding O rdinary Shares	352,589	367,026	355,426
Diluted Weighted Average Outstanding O rdinary Shares	353,767	368,905	358,011

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Income
(Amounts in Thousands of U.S. Dollars, Except Per Share Data)
	Nine Months Ended
	September 3 0 ,
	20 10	200 9
Revenues
Revenues from third parties, net	$  236,943	$  185,654
Revenues from related parties, net	264,543	328,051
	501,486	513,705
Costs and expenses:
Cost of revenues	396,763	407,667
Research and development	59,416	54,597
General and administrative	13,188	12,464
Sales and marketing	9,640	8,531
Total costs and expenses	479,007	483,259
Operating income	22,479	30,446
Non operating income (loss):
Interest income	466	676
Equity in losses of equity method investees	(264)	(41)
Foreign exchange losses, net	(303)	(402)
Interest expense	(76)	(3)
Other income (loss), net	333	(55)
	156	175
Earnings before income taxes	22,635	30,621
Income tax expense	4,074	4,899
Net income	18,561	25,722
Net loss attributable to the noncontrolling interests	2,992	2,891
Net income attributable to Himax stockholders	$  21,553	$  28,613
Basic earnings per ordinary share attributable to Himax stockholders	$0. 061	$0. 077
Diluted earnings per ordinary share attributable to Himax stockholders	$0. 061	$0. 077
Basic earnings per ADS attributable to Himax stockholders	$0. 121	$0. 154
Diluted earnings per ADS attributable to Himax stockholders	$0. 121	$0. 154
Basic Weighted Average Outstanding Shares	355,172	372,219
Diluted Weighted Average Outstanding Shares	355,775	372,588

Himax Technologies, Inc.
Unaudited Supplemental Financial Information
(Amounts in Thousands of U.S. Dollars)
The amount of share-based compensation included in applicable statements of income categories is summarized as follows:	Three Months Ended September 30,		Three Months Ended June 30,
	20 10	20 09	20 10
Share-based compensation
Cost of revenues	$ 174	$ 216	$ 21
Research and development	5,275	6,040	1,375
General and administrative	937	1,188	228
Sales and marketing	1,040	1,149	218
Income tax benefit	(1,108)	(1,631)	(131)
Total	$ 6,318	$ 6,962	$ 1,711
The amount of acquisition-related charges included in applicable statements of income categories is summarized as follows:
Acquisition-related charges
Research and development	$ 259	$ 260	$ 258
Sales and marketing	289	288	290
Income tax benefit	(264)	(162)	(200)
Total	$ 284	$ 386	$ 348

Himax Technologies, Inc.
Unaudited Supplemental Financial Information
(Amounts in Thousands of U.S. Dollars)
The amount of share-based compensation included in applicable statements of income categories is summarized as follows:	Nine Months Ended   September 3 0 ,
	20 10	200 9
Share-based compensation
Cost of revenues	$ 217	$ 242
Research and development	8,024	9,630
General and administrative	1,394	1,731
Sales and marketing	1,476	1,683
Income tax benefit	(1,426)	(2,027)
Total	$ 9,685	$ 11,259
The amount of acquisition-related charges included in applicable statements of income categories is summarized as follows:
Research and development	$ 776	$ 776
Sales and marketing	868	868
Income tax benefit	(603)	(486)
Total	$ 1,041	$ 1,158

Himax Technologies, Inc.
Unaudited Condensed Consolidated Balance Sheets
(Amounts in Thousands of U.S. Dollars, Except Per Share Data)
	September 3 0 ,	June 3 0 ,	December 3 1 ,
	2 010	2 010	200 9
Assets
Current assets:
Cash and cash equivalents	$ 80,139	$ 153,967	$ 110,924
Investments in marketable securities available-for-sale	2,470	3,900	10,730
Restricted cash equivalents	44,000	--	--
Accounts receivable, less allowance for doubtful accounts, sales returns and discounts	84,803	97,499	64,496
Accounts receivable from related parties, less allowance for sales returns and discounts	97,597	118,746	138,172
Inventories	111,664	79,261	67,768
Deferred income taxes	17,900	15,873	17,491
Prepaid expenses and other current assets	11,749	12,657	14,216
Total current assets	$ 450,322	$ 481,903	$ 423,797
Investment securities, including securities measured at fair value	19,135	12,643	11,619
Equity method investments	1,231	1,318	586
Property , plant and equipment, net	48,708	50,544	51,586
Deferred income taxes	25,121	23,426	24,548
Goodwill	26,846	26,846	26,846
Intangible assets, net	7,223	7,773	8,872
Other assets	2,460	2,440	2,594
	130,724	124,990	126,651
Total assets	$ 581,046	$ 606,893	$ 550,448
Liabilities and E quity
Current liabilities:
Short-term debt	$ 44,000	$ --	$ --
Accounts payable	106,350	134,266	88,079
Income taxes payable	11,681	7,661	14,147
Dividend payable	--	44,188	--
Other accrued expenses and other current liabilities	20,041	19,413	18,425
Total current liabilities	$ 182,072	$ 205,528	$ 120,651
Other liabilities	4,514	4,642	5,725
Total liabilities	$  186,586	$  210,170	$  126,376
Equity
Himax s tockholders' equity:
Ordinary shares, US$0.3 par value, 1,000,000,000 shares authorized; 353,842,764 shares, 353,502,962 shares, and 358,012,184 shares issued and outstanding at September 30, 2010, June 30, 2010, and December 31, 2009, respectively	$ 106,153	$ 106,051	$ 107,404
Additional paid-in capital	99,154	101,623	102,924
Accumulated other comprehensive income (loss)	454	(32)	4
Unappropriated retained earnings	186,577	186,039	209,121
Himax stockholders' equity	$ 392,338	$ 393,681	$ 419,453
Noncontrolling interests	2,122	3,042	4,619
Total equity	$ 394,460	$ 396,723	$ 424,072
Total liabilities and equity	$ 581,046	$ 606,893	$ 550,448

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
( Amounts in T housands of U . S . D ollars)
	Three Months Ended September 30,		Three Months Ended June 30,
	20 10	20 09	20 10
Cash flows from operating activities:
Net income (loss)	$ (675)	$ 8,028	$ 11,038
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	3,366	3,452	3,463
Bad debt expenses	--	533	--
Share-based compensation expenses	1,555	2,085	1,842
Equity in losses of equity method investees	99	41	106
Loss on disposal of property and equipment	34	34	--
Gain on disposal of marketable securities, net	(21)	(52)	(19)
Valuation gain on trading securities	(62)	--	--
Amortization of discount on investment securities	(18)	--	--
Deferred income tax expense (benefit)	(3,850)	(263)	2,639
Inventories write downs	2,210	2,649	1,371
Changes in operating assets and liabilities:
Accounts receivable	12,696	(11,308)	(25,211)
Accounts receivable from related parties	21,178	(6,797)	9,827
Inventories	(34,613)	(25,612)	(15,230)
Prepaid expenses and other current assets	908	1,905	1,098
Accounts payable	(27,918)	13,590	18,352
Income taxes payable	4,045	3,333	(8,844)
Other accrued expenses and other current liabilities	829	1,363	2,464
Other liabilities	(34)	--	(602)
Net cash provided by (used in) operating activities	(20,271)	(7,019)	2,294
Cash flows from investing activities:
Purchase of property and equipment	(1,233)	(2,365)	(1,720)
Proceeds from disposal of property and equipment	--	9	--
Purchase of available-for-sale marketable securities	(9,184)	(8,896)	(4,257)
Disposal of available-for-sale marketable securities	6,340	8,454	5,514
Purchase of non-marketable equity securities	(1,000)	--	(1,024)
Purchase of equity method investments	--	(312)	--
Purchase of trading securities	(684)	--	--
Release (pledge) of restricted cash equivalents and marketable securities	(44,004)	2,101	(62)
Decrease (increase) in other assets	7	(226)	134
Net cash used in investing activities	(49,758)	(1,235)	(1,415)

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
( Amounts in T housands of U . S . D ollars)
	Three Months Ended September 3 0 ,		Three Months Ended  June 3 0 ,
	2010	2009	2010
Cash flows from financing activities:
Distribution of cash dividends	$ (44,097)	$ --	$ --
Proceeds from issuance of new shares by subsidiaries	117	120	76
Payments to acquire ordinary shares for retirement	(4,210)	(14,023)	(2,903)
Proceeds from disposal of subsidiary shares to noncontrolling interests by Himax Technologies Limited	364	14	94
Purchase of subsidiary shares from noncontrolling interests	--	(61)	(109)
Proceeds from borrowing of short-term debt	44,000	80,000	160,000
Repayment of short-term debt	--	(80,000)	(160,000)
Net cash used in financing activities	(3,826)	(13,950)	(2,842)
Effect of foreign currency exchange rate change s on cash and cash equivalents	27	6	(2)
Net decrease in cash and cash equivalents	(73,828)	(22,198)	(1,965)
Cash and cash equivalents at beginning of period	153,967	136,760	155,932
Cash and cash equivalents at end of period	$ 80,139	$ 114,562	$ 153,967
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest expense	$ --	$ 3	$ 5
Income taxes	$ 45	$ 5	$ 8,196
Supplemental disclosures of non-cash financing activities:
Dividend Payable	$ --	$ --	$ 44,188

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 September 30,		Three Months Ended June 30,
	20 10	20 09	20 10
Revenues	$ 138,281	$ 203,122	$ 187,707
Gross profit	31,679	41,435	38,319
Add: Share-based compensation – Cost of revenues	174	216	21
Gross profit excluding share-based compensation	31,853	41,651	38,340
Gross margin excluding share-based compensation	23.0%	20.5%	20.4%
Operating income (loss)	(675)	10,822	13,029
Add: Share-based compensation	7,426	8,593	1,842
Operating income excluding share-based compensation	6,751	19,415	14,871
Add: Acquisition-related charges –Intangible assets amortization	548	548	548
Operating income excluding share-based compensation and acquisition-related charges	7,299	19,963	15,419
Operating margin excluding share-based compensation and acquisition-related charges	5.3%	9.8%	8.2%
Net income attributable to Himax stockholders	447	8,821	11,968
Add: Share-based compensation, net of tax	6,318	6,962	1,711
Add: Acquisition-related charges, net of tax	284	386	348
Net income attributable to Himax stockholders excluding share-based compensation and acquisition-related charges	7,049	16,169	14,027
Net margin attributable to Himax stockholders excluding share-based compensation and acquisition-related charges	5.1%	8.0%	7.5%
*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

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:
	Nine Months Ended September 30,
	20 10			200 9
Revenues	$501,486			$513,705
Gross profit	104,723			106,038
Add: Share-based compensation – Cost of revenues	217			242
Gross profit excluding share-based compensation	104,940			106,280
Gross margin excluding share-based compensation	20.9%			20.7%
Operating income	22,479			30,446
Add: Share-based compensation	11,111			13,286
Operating income excluding share-based compensation	33,590			43,732
Add: Acquisition-related charges –Intangible assets  amortization	1,644			1,644
Operating income excluding share-based compensation and acquisition-related charges	35,234			45,376
Operating margin excluding share-based compensation and acquisition-related charges	7.0%			8.8%
Net income attributable to Himax stockholders	21,553			28,613
Add: Share-based compensation, net of tax	9,685			11,259
Add: Acquisition-related charges, net of tax	1,041			1,158
Net income attributable to Himax stockholders excluding share-based compensation and acquisition-related charges	32,279			41,030
Net margin attributable to Himax stockholders excluding share-based compensation and acquisition-related charges	6.4%			8.0%
*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 O rdinary Share Attributable to Himax stockholders Excluding Share-based Compensation and Acquisition-Related Charges:
	Three Months Ended September 30,	Nine Months Ended September 30,
	20 10	20 10
Diluted GAAP EPS attributable to Himax stockholders	$0.001	$0.061
Add: Share-based compensation per diluted share	$0.018	$0.027
Add: Acquisition-related charges per diluted share	$0.001	$0.003
Diluted non GAAP EPS attributable to Himax stockholders excluding share-based compensation and acquisition-related charges	$0.020	$0.091
Numbers do not add up due to rounding

CONTACT: Himax Technologies, Inc.
         Investor Relations
         Jessie Wang, Ext. 22618
           [e-mail]
         Jessica Huang, Ext. 22513
           [e-mail]
         [phone]
         
         The Ruth Group
         In the U.S.
         Joseph Villalta
         [phone]
         [e-mail]

« First ‹ Previous 1 2 3 4