GAAP operating expenses were $47.2 million for the first six months 2012, down $5.1 million or 9.7% from $52.3 million for the same period 2011. The significant reduction was due to better overall cost controls and the reduction in the ramp-up costs for WLO, WLM and LCOS products at Himax's dedicated factories for these product lines.
Operating income of $34.7 million represented a 482.4% increase from the first half of 2011. The improvement in operating income was mainly the result of gross margin expansion and cost control measures identified above.
GAAP net income for the first half 2012 was $26.4 million, or 15.4 cents per diluted ADS, up from $6.3 million, or 3.6 cents per ADS, for the same period last year. GAAP net income for the first half of 2012 grew 316.2% over the same period last year.
Non-GAAP net income for the first half 2012 was $28.1 million, or 16.4 cents per diluted ADS, up from $9.2 million, or 5.1 cents per ADS, for the same period last year. Non-GAAP net income for the first half of 2012 grew 206.6% over the same period last year.All of the above are strong indications that Himax has delivered a solid performance that has lifted its overall financial results. Balance Sheet and Cash Flow The Company had $103.2 million in cash and cash equivalents on June 30, 2012, compared to $102.1 million on March 31, 2012. Inventory at end of June was $139.2 million compared to $118.5 million at end of last quarter, reflecting a few customer orders that were pushed out to the third quarter. Accounts receivable were approximately $212.9 million on June 30, 2012 compared to $189.0 million on March 31, 2012. Day Sales Outstanding ("DSO") was 109 days at end of second quarter 2012 versus 103 days in the first quarter of 2012.