The Google (GOOG) Glass components-maker said it expects fourth-quarter revenue flat or slightly lower than $192.8 million in the third quarter. Analysts surveyed by Yahoo! Finance expected revenue of $207.98 million. The company said it anticipates earnings between 7.5 cents and 9.5 cents a share, lower than analysts' expectations of 11 cents a share.
The Taiwanese manufacturer attributed the weak guidance to decreasing demand for large-size LCD components which accounts for 30% of revenue. During the third-quarter, sales of these components dropped 25% on the year-ago period, adding to a 19% drop seen in the second quarter.
Offsetting weakness for large-size LCD drivers, Himax reported 15.1% growth in sales of small- to medium-panel drivers, contributing 52.1% to total revenue. Non-driver sales, which include microdisplays provided to Google, grew 30.5% to $34.6 million compared to third quarter 2012.
Though inching 1.3% higher, third-quarter revenue missed estimates by $720,000, as analysts expected $193.52 million. Earnings of 11 cents a share beat estimates by 1 cent.
TheStreet's fundamental analysis expert Bryan Ashenberg had this to say about Himax:
"Trifecta Stocks holding Himax Technologies beat its third-quarter earnings estimate by a penny as earnings came in at $0.11 and revenue rose 1.3% year-over-year to $192.8 million, in line with consensus. The company issued lowered guidance, in line with our earnings preview. Our bottom line is that we are still focused on the LCoS pickup and view near-term volatility as a buying opportunity.