Operating income was $67.1 million, or 9.1% of sales, as compared to $16.6 million, or 2.6% of sales, for 2011, representing 303.8% increase year over year.
GAAP net income for the twelve months 2012 was $51.2 million, or 30 cents per diluted ADS, up from $10.7 million, or 6.1 cents per diluted ADS, for the same period last year. The significant improvement in GAAP net income was a result of its overall revenue growth of 16.5%, gross margin improvement to 23.1% in 2012 from 19.8% in 2011 and operating expense reduction of $5.5 million. 2012 GAAP net income grew 377.9% and GAAP EPS per diluted ADS grew 391.8% year-over-year.
Non-GAAP net income for 2012 was $59.9 million, or 35.1 cents per diluted ADS, up from $18.3 million, or 10.3 cents per diluted ADS, for 2011. Non-GAAP net income for 2012 grew 227.3% and non-GAAP EPS per diluted ADS grew 240.8% over 2011.
Balance Sheet and Cash FlowThe Company had $138.9 million in cash, cash equivalents and marketable securities available for sale on December 31, 2012, compared to $89.0 million on September 30, 2012 and $106.3 million as of December 31, 2011. Additionally, restricted cash balance was $73.0 million at the end of December 2012, as compared to $84.2 million at the end of December 2011. Inventories at the end of December were $ 116.7 million, up from $113.0 million a year ago and down from $128.3 million a quarter ago. Accounts receivable were $209.0 million on December 31, 2012 as compared to $218.3 million on September 30, 2012 and $181.1 million a year ago. Day Sales Outstanding ("DSO") was 103 days at end of 2012 versus 104 days in 2011 and 109 days at end of the last quarter. Net cash inflow from operating activities for full year 2012 was $52.2 million, an increase of 20.1% from $43.4 million in 2011. The improvement in cash from operations was a result of higher net income and better working capital management. Himax invested $6.6 million on capital expenditures in 2012, down substantially from $18.9 million spent in 2011.