HIMX

BigSully1 · November 16, 2007, 05:55:02 PM

http://stockcharts.com/h-sc/ui?s=HIMX&p=D&b=5&g=0&id=p59191861522

Himax Technologies, Inc.
No 26 Zih Lian Road
Fonghua Village
Tainan County, 744
Taiwan - Map
Phone: 886 6 505 0880
Fax: 886 6 507 0000
Web Site: http://www.himax.com.tw

DETAILS
Index Membership: N/A
Sector: Technology
Industry: Semiconductor - Specialized
Full Time Employees: 1,050

BUSINESS SUMMARY
Himax Technologies, Inc., together with its subsidiaries, engages in the design, development, and marketing of semiconductors that are used as components of flat panel displays. Its principal products include display drivers for large-sized thin film transistor liquid crystal display panels, which are used in desktop monitors, notebook computers, and televisions; and display drivers for small- and medium-sized thin film transistor liquid crystal display panels for mobile handsets and consumer electronics products, such as digital cameras, mobile gaming devices, and car navigation displays. The company also offers display drivers for panels using organic light-emitting diode technology and low temperature poly silicon technology. In addition, Himax Technologies provides television semiconductor solutions, as well as liquid crystal on silicon products. It markets its products to panel and television makers in Taiwan, the People's Republic of China, Korea, Japan, and Europe. The company was founded in 2001 and is headquartered in Tainan, Taiwan with additional offices in Hsinchu and Taipei, Taiwan; Suzhou and Shenzhen, China; Yokohama, Japan; Anyangsi Kyungkido, South Korea; and Irvine, California.
-----------------------------------------------------------------

Himax Reports Third Quarter 2007 Results
Thursday November 1, 4:00 pm ET

* Third quarter 2007 revenue increased to $243.3 million - record
high since inception
* Third quarter 2007 gross margin increased to 22.5% - marks
fourth consecutive quarter of improvement
* Fourth quarter 2007 revenue expected to grow around mid-single
digits, with gross margin to remain flat, and EPS to be in the
range of $0.16 to $0.17

Board Authorizes $40 Million Share Buyback Program

TAINAN, Taiwan, Nov. 1, 2007 (PRIME NEWSWIRE) -- Himax Technologies, Inc. (``Himax'' or ``Company'') (NasdaqGS:HIMX - News) today reported financial results for the third quarter ended September 30, 2007.

ADVERTISEMENT

Net revenue for the third quarter of 2007 was $243.3 million, representing 37.4% growth year-over-year and 9.2% growth sequentially.

Gross margin was 22.5% in the third quarter of 2007, up 510 basis points year-over-year and 210 basis points sequentially.

Operating margin was 8.2% in the third quarter of 2007. Operating income was $19.9 million, up from $0.8 million in the same period last year, and down from $24.9 million in the previous quarter.

Net income for the third quarter of 2007 was $21.8 million, up from $2.6 million in the same period last year, and down from $26.8 million in the previous quarter. The decline is primarily due to the grant of 2007 annual restricted share units at the end of September. This represents earnings per share of $0.11 per basic and diluted share, compared to $0.01 per basic and diluted share in the third quarter of 2006, and $0.14 per basic and diluted share in the second quarter of 2007.

Excluding share-based compensation and acquisition-related charges, non-GAAP operating margin was 14.9% in the third quarter of 2007. Non-GAAP operating income was $36.2 million, up from $12.2 million in the same period last year, and up from $28.1 million in the previous quarter.

Non-GAAP net income was $38.0 million, up from $14.1 million in the same period last year, and up from $30.0 million in the previous quarter. This represents earnings per share of $0.19 per basic and diluted share, compared to $0.07 per basic and diluted share in the third quarter of 2006, and $0.15 per basic and diluted share in the second quarter of 2007.

Share-based compensation was $15.7 million, compared to $11.5 million in the third quarter of 2006, and $1.5 million in the second quarter of 2007. Acquisition-related charges were $0.6 million, compared to $0 in the third quarter of 2006 and $1.6 million in the second quarter of 2007.

A reconciliation of our gross margin, operating margin and diluted EPS excluding share-based compensation and acquisition-related charges, a non-GAAP financial measure, to GAAP gross margin, GAAP operating margin and diluted GAAP EPS, our most comparable GAAP figure, is set out in the attached reconciliation schedule.

Jordan Wu, President and Chief Executive Officer of Himax, commented, ``We are pleased with the third quarter results as we achieved record high revenues. We were able to improve our gross margin for the fourth consecutive quarter, resulting in a seven fold increase in our year-over-year GAAP net income. Separately, on October 12, we announced plans to spin-off our TV and monitor chipset operation which will be named Himax Media Solutions, Inc., a wholly-owned subsidiary of Himax Taiwan upon its establishment. Himax Media Solutions, Inc. will be focusing on expanding market share in the global TV and monitor chipset market opportunity. We have identified certain strategic investors and plan to invite them to partner with us in the future. We believe this new company structure will allow us to better focus our resources for the global TV and monitor chipset market opportunity.''

Mr. Wu added, ``On November 1st, our board approved a share repurchase program that authorizes the Company to repurchase up to $40 million worth of the Company's American Depository Receipts. The program does not obligate Himax to acquire any particular amount of ADRs and may be modified or suspended at any time at the Company's sole discretion. With the repurchase program, we reaffirm our confidence and optimism in the long term future of the company. This also demonstrates our commitment to deliver value to our shareholders.''

Max Chan, Chief Financial Officer of Himax, said, ``We made our 2007 annual restricted share units grant of approximately $26.4 million at the end of September. Approximately 54.5%, or $14.4 million was paid out in cash, and vested and expensed immediately. The remainder of the grant will be vested in three equal installments over the next three years. Total share-based compensation accrued in the third quarter, including expenses from legacy grants amounted to $15.7 million, or $0.08 per diluted share.''

Looking forward, Mr. Wu added, ``We expect revenue to grow around mid-single digit in the fourth quarter and gross margin to remain flat. We expect diluted GAAP EPS to be in the range of $0.16 to $0.17. ''

Investor Conference Call / Webcast Details

The Company's management will review detailed third quarter 2007 results on Thursday, November 1, 2007 at 7:00 PM EDT (7:00 AM, Friday, November 2, Taiwan time). The conference call-in number is +1-201-689-8560 (international) and +1-877-407-0784 (U.S. domestic). A live webcast of the conference call will be available on the Company's website at http://www.himax.com.tw. The playback will be available beginning two hours after the conclusion of the conference call and will be accessible by dialing +1-201-612-7415 (international) and 1-877-660-6853 (U.S. domestic). The account number to access the replay is 3055 and the confirmation ID number is 258193.

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 digital cameras, mobile gaming devices and car navigation displays. In addition, the Company is expanding its product offering to include television semiconductor solutions, as well as LCOS products Based in Tainan, Taiwan, the Company has regional offices in Hsinchu and Taipei, Taiwan; Suzhou and Shenzhen, China; Yokohama, Japan and Anyangsi Kyungkido, South Korea; and Irvine, California, USA.

Forward-Looking Statements:

Certain statements in this press release, including statements regarding expected future financial results and industry growth, are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this press release. Factors that could cause actual results to differ include general business and economic conditions and the state of the semiconductor industry; level of competition; demand for end-use applications products; reliance on a small group of principal customers; continued success in technological innovations; development of alternative flat panel display technologies; ability to develop and protect our intellectual property; pricing pressures including declines in average selling prices; changes in customer order patterns; shortages in supply of key components; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; and other risks described from time to time in the Company's SEC filings, including its Form 20-F dated June 22, 2007, as amended. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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.)

(Figures in Thousands of U.S. Dollars, Except Per Share Data)

Three Months Ended
--------------------------------
September 30, June 30,
2007 2006 2007
-------- -------- --------
Revenues
Revenues from third parties, net $ 91,960 $ 88,878 $102,276
Revenues from related parties, net 151,377 88,227 120,607
-------- -------- --------
243,337 177,105 222,883
-------- -------- --------
Costs and expenses:
Cost of revenues 188,626 146,287 177,452
Research and development 26,171 24,267 15,328
General and administrative 4,891 3,190 3,222
Sales and marketing 3,758 2,586 1,995
-------- -------- --------
Total costs and expenses 223,446 176,330 197,997
-------- -------- --------
Operating income 19,891 775 24,886
-------- -------- --------

Non operating income (loss):
Interest income 1,429 2,000 1,514
Foreign exchange gains (losses), net (29) (1,298) 36
Other income, net 166 59 159
-------- -------- --------
1,566 761 1,709
-------- -------- --------
Income before income taxes
and minority interest 21,457 1,536 26,595
Income tax benefit -- (1,246) --
-------- -------- --------
Income before minority interest 21,457 2,782 26,595
Minority interest, net of tax 316 (157) 247
-------- -------- --------
Net income $ 21,773 $ 2,625 $ 26,842
======== ======== ========
Basic earnings per ordinary share
and ADS $ 0.11 $ 0.01 $ 0.14
======== ======== ========
Diluted earnings per ordinary share
and ADS $ 0.11 $ 0.01 $ 0.14
======== ======== ========

Basic Weighted Average
Outstanding Shares 197,690 197,110 197,656
Diluted Weighted Average
Outstanding Shares 197,733 199,729 198,013

Himax Technologies, Inc.
Unaudited Supplemental Financial Information
(Figures in Thousands of U.S. Dollars)

The amount of share-based compensation
included in applicable costs and
expenses categories is summarized
as follows:
Three Months Ended
--------------------------------
September 30, June 30,
2007 2006 2007
-------- -------- --------
Share-based compensation
Cost of revenues $ 355 $ 208 $ 25
Research and development 11,795 8,963 1,201
General and administrative 1,718 1,090 151
Sales and marketing 1,842 1,195 156
-------- -------- --------
Total $ 15,710 $ 11,456 $ 1,533
======== ======== ========

The amount of acquisition-related
charges included in applicable
expenses categories is summarized
as follows:

Research and development $ 250 $ -- $ 1,234
Sales and marketing 304 -- 408
-------- -------- --------
Total $ 554 $ -- $ 1,642
======== ======== ========

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Income
(Figures in Thousands of U.S. Dollars, Except Per Share Data)

Nine Months Ended
September 30,
2007 2006
--------- ---------
Revenues
Revenues from third parties, net $ 270,072 $ 238,939
Revenues from related parties, net 381,039 284,700
--------- ---------
651,111 523,639
--------- ---------
Costs and expenses:
Cost of revenues 514,908 422,351
Research and development 56,299 46,772
General and administrative 11,113 6,582
Sales and marketing 7,254 4,690
--------- ---------
Total costs and expenses 589,574 480,395
--------- ---------

Operating income 61,537 43,244
--------- ---------

Non operating income (loss):
Interest income 4,325 4,048
Impairment loss on an investment -- (1,500)
Foreign exchange losses, net (483) (132)
Interest expense -- (311)
Other income, net 367 172
--------- ---------
4,209 2,277
--------- ---------
Income before income taxes and
minority interest 65,746 45,521
Income tax expense -- 1,491
--------- ---------
Income before minority interest 65,746 44,030
Minority interest, net of tax 888 59
--------- ---------
Net income $ 66,634 $ 44,089
========= =========

Basic earnings per ordinary share
and ADS $ 0.34 $ 0.23
========= =========
Diluted earnings per ordinary share
and ADS $ 0.34 $ 0.23
========= =========

Basic Weighted Average
Outstanding Shares 197,671 190,484
Diluted Weighted Average
Outstanding Shares 197,834 193,698

Himax Technologies, Inc.
Unaudited Supplemental Financial Information
(Figures in Thousands of U.S. Dollars)

The amount of share-based compensation
included in applicable costs and
expenses categories is summarized
as follows:
Nine Months Ended
September 30,
2007 2006
--------- ---------
Share-based compensation
Cost of revenues $ 405 $ 250
Research and development 14,183 10,645
General and administrative 2,020 1,293
Sales and marketing 2,154 1,469
--------- ---------
Total $ 18,762 $ 13,657
========= =========

The amount of acquisition-related
charges included in applicable
expenses categories is summarized
as follows:

Research and development $ 2,273 $ --
Sales and marketing 810 --
--------- ---------
Total $ 3,083 $ --
========= =========

Himax Technologies, Inc.
Unaudited Condensed Consolidated Balance Sheets
(Figures in Thousands of U.S. Dollars, Except Per Share Data)

Sept. 30, June 30, Dec. 31,
2007 2007 2006
-------- -------- --------
Assets
Current assets:
Cash and cash equivalents $119,246 $137,508 $109,753
Marketable securities
available-for-sale 16,109 13,327 8,828
Restricted cash equivalents 171 171 108
Accounts receivable, less
allowance for doubtful
accounts, sales returns
and discounts 101,467 116,812 112,767
Accounts receivable from
related parties, less
allowance for doubtful
accounts, sales returns
and discounts 178,099 137,602 116,850
Inventories 125,983 125,146 101,341
Deferred income taxes 6,829 6,829 6,744
Prepaid expenses and
other current assets 12,903 10,113 10,324
-------- -------- --------
Total current assets $560,807 $547,508 $466,715
-------- -------- --------
Property, plant and
equipment, net 46,070 45,801 38,895
Deferred income taxes 12,842 12,842 11,405
Intangible assets, net 33,711 34,273 393
Investments in non-
marketable securities 2,584 1,857 817
Refundable deposits and
prepaid pension costs 612 593 569
-------- -------- --------
95,819 95,366 52,079
-------- -------- --------
Total assets $656,626 $642,874 $518,794
======== ======== ========

Liabilities, minority interest
and stockholders' equity
Current liabilities:
Accounts payable $160,269 $171,218 $120,407
Income tax payable 7,333 7,333 11,666
Dividends payable 39,710 -- --
Other accrued expenses and
other current liabilities 15,738 16,023 21,206
-------- -------- --------
Total current liabilities $223,050 $194,574 $153,279
Accrued pension liability $ 196 $ 196 $ 192
-------- -------- --------
Total liabilities $223,246 $194,770 $153,471
-------- -------- --------
Minority interest $ 3,084 $ 1,715 $ 1,396
-------- -------- --------
Stockholders' equity:

Ordinary share, US$0.0001 par value,
198,548,799, 197,661,063, and
193,600,302 shares issued and
outstanding at September 30, 2007,
June 30, 2007 and December 31, 2006,
respectively 20 20 19
Additional paid-in capital 260,980 259,189 221,666
Accumulated other comprehensive loss (146) (198) (275)
Unappropriated earnings 169,442 187,378 142,517
-------- -------- --------
Total stockholders' equity $430,296 $446,389 $363,927
-------- -------- --------
Total liabilities, minority interest
and stockholders' equity $656,626 $642,874 $518,794
======== ======== ========

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Figures in Thousands of U.S. Dollars)

Three Months Ended
------------------------------
September 30, June 30,
2007 2006 2007
-------- -------- --------
Cash flows from operating activities:
Net income $ 21,773 $ 2,625 $ 26,842
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 4,179 1,119 2,587
Write-off of in-process research
and development -- -- 900
Share-based compensation expenses 1,284 11,456 1,533
Minority interest, net of tax (316) 157 (247)
Loss (gain) on disposal of
property, plant and equipment (16) -- 204
Gain on sale of subsidiary shares
and investments in non-marketable
securities, net (112) (11) (125)
Gain on sale of marketable
securities, net (31) (12) (23)
Deferred income taxes -- 132 (727)
Inventories write downs 3,264 469 5,103
Changes in operating assets and
liabilities:
Accounts receivable 15,850 (14,772) (8,661)
Accounts receivable from related
parties (40,994) (5,096) (31,856)
Inventories (4,032) (7,838) (10,868)
Prepaid expenses and other
current assets (4,390) (2,530) 486
Accounts payable (10,949) 8,815 49,753
Income tax payable -- (1,075) (4,333)
Other accrued expenses and other
current liabilities (114) 3,477 4,071
-------- -------- --------
Net cash provided by
(used in) operating activities (14,604) (3,084) 34,639
-------- -------- --------
Cash flows from investing
activities:
Purchase of property, plant
and equipment (2,500) (5,691) (6,877)
Proceeds from sale of property,
plant and equipment 3 -- 3
Purchase of available-for-sales
marketable securities (12,144) (10,608) (11,723)
Sales and maturities of
available-for-sale marketable
securities 9,404 8,480 11,258
Proceeds from sale of subsidiary
shares and investments in non-
marketable securities by Himax
Technologies Limited 144 27 131
Purchase of investments in non-
marketable securities (750) (1,410) (1,040)
Purchase of subsidiary shares
from minority interest (112) (64) (46)
Refund from (increase in)
refundable deposits (15) (92) 76
Release (pledge) of restricted
cash equivalents -- 424 (91)
-------- -------- --------
Net cash used in
investing activities (5,970) (8,934) (8,309)
-------- -------- --------

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Figures in Thousands of U.S. Dollars)

Three Months Ended
-----------------------------------
September 30, June 30,
2007 2006 2007
--------- --------- ---------
Cash flows from financing
activities:
Proceeds from issuance of
new shares by subsidiaries $ 2,290 $ 655 $ --
Acquisition of ordinary
shares for retirement -- -- (625)
--------- --------- ---------
Net cash provided by (used
in) financing activities 2,290 655 (625)
--------- --------- ---------
Effect of exchange rate
changes on cash and cash
equivalents 22 73 (35)
--------- --------- ---------
Net increase (decrease) in
cash and cash equivalents (18,262) (11,290) 25,670
Cash and cash equivalents
at beginning of period 137,508 166,884 111,838
--------- --------- ---------
Cash and cash equivalents
at end of period $ 119,246 $ 155,594 $ 137,508
========= ========= =========
Supplemental disclosures of
cash flow information:
Cash paid during the
period for income taxes $ 24 $ 21 $ 4,706
========= ========= =========
Supplemental disclosures of
non-cash investing and
financing activities:
Payable for purchase of
equipment and construction
in progress $ 6 $ (1,750) $ (4,473)
========= ========= =========
Dividends payable $ 39,710 $ -- $ --
========= ========= =========

Himax Technologies, Inc.
Unaudited Supplemental Data - Reconciliation Schedule
(Figures in Thousands of U.S. Dollars)

Gross Margin and Operating Margin Excluding Share-based Compensation
and Acquisition-Related Charges:

Three Months Ended
--------------------------------
September 30, June 30,
2007 2006 2007
-------- -------- --------
Revenues $243,337 $177,105 $222,883

Gross profit 54,711 30,818 45,431
Add: Share-based compensation
- Cost of revenues 355 208 25
Gross profit excluding share-
based compensation 55,066 31,026 45,456
Gross margin excluding share-
based compensation 22.6% 17.5% 20.4%

Operating income 19,891 775 24,886
Add: Share-based compensation 15,710 11,456 1,533
Operating income excluding
share-based compensation 35,601 12,231 26,419
Add: Acquisition-related
charges - In-process R&D
write off -- -- 900
- Intangible assets
amortization 554 -- 742
Operating income excluding
share-based compensation
and acquisition-related
charges 36,155 12,231 28,061
Operating margin excluding
share-based compensation
and acquisition-related
charges 14.9% 6.9% 12.6%
Net income excluding
share-based compensation
and acquisition-related
charges 38,037 14,081 30,017
Net margin excluding
share-based compensation
and acquisition-related
charges 15.6% 8.0% 13.5%

* 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 excluding share-based compensation and
acquisition-related charges equals net income excluding
share-based compensation and acquisition-related charges divided
by revenues

Himax Technologies, Inc.
Unaudited Supplemental Data - Reconciliation Schedule
(Figures in Thousands of U.S. Dollars)

Gross Margin and Operating Margin Excluding Share-based Compensation
and Acquisition-Related Charges:
Nine Months Ended
September 30,
2007 2006
-------- --------
Revenues $651,111 $523,639

Gross profit 136,203 101,288
Add: Share-based compensation
- Cost of revenues 405 250
Gross profit excluding share-
based compensation 136,608 101,538
Gross margin excluding share-
based compensation 21.0% 19.4%

Operating income 61,537 43,244
Add: Share-based compensation 18,762 13,657
Operating income excluding
share-based compensation 80,299 56,901
Add: Acquisition-related
charges - In-process R&D write
off 1,600 --
- Intangible assets
amortization 1,483 --
Operating income excluding
share-based compensation
and acquisition-related charges 83,382 56,901
Operating margin excluding
share-based compensation
and acquisition-related
charges 12.8% 10.9%
Net income excluding share-
based compensation and
acquisition-related charges 88,479 57,746
Net margin excluding share-
based compensation and
acquisition-related charges 13.6% 11.0%

* 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 excluding share-based compensation and
acquisition-related charges equals net income excluding
share-based compensation and acquisition-related charges divided
by revenues

Himax Technologies, Inc.
Unaudited Supplemental Data - Reconciliation Schedule

Diluted Earnings Per Share Excluding Share-based Compensation
and Acquisition-Related Charges:

Three Months Ended Nine Months Ended
September 30, September 30,
2007 2007
------------------ -----------------
Diluted GAAP EPS $0.11 $0.34

Add: Estimated share-based
compensation per diluted
share $0.08 $0.09
Add: Estimated acquisition-
related charges $ -- $0.02
Diluted non-GAAP EPS excluding
share-based compensation and
acquisition-related charges $0.19 $0.45

Numbers do not add up due to rounding

Contact:
Himax Technologies, Inc.
Max Chan, Chief Financial Officer
+886-2-3393-0877 Ext. 22300
[email protected]
Jackson Ko/Jessie Wang, Investor Relations
+886-2-3393-0877
Ext. 22240/22618
[email protected]
[email protected]

In the U.S.
The Ruth Group
David Pasquale
+1-646-536-7006
[email protected]

bjc · November 16, 2007, 06:22:23 PM

This stock seems grossly undervalued.

Maybe the market sees a vast decrease in the cost of these chips in the near future?

BigSully1 · November 16, 2007, 07:12:43 PM

Quote from: bjc on November 16, 2007, 06:22:23 PM
This stock seems grossly undervalued.

Maybe the market sees a vast decrease in the cost of these chips in the near future?

Yep, appearances can be deceiving. Sometimes cheap for a reason. Only bought a bit of this one before digging deeper.

BigSully1 · January 11, 2008, 02:31:41 PM

Breakout! But I never added anymore of it.

BigSully1 · January 14, 2008, 10:41:21 AM

Nice follow thru this morn.

BigSully1 · February 13, 2008, 04:53:01 PM

looks pretty damn good, with the exception for next Q's guidance. I think Up it goes?

Himax Reports Fourth Quarter 2007 Results
Wednesday February 13, 4:30 pm ET

* Fourth quarter 2007 revenues increased to $267.1 million -- record
high since inception
* Fourth quarter 2007 gross margin increased to 24.7% -- marks fifth
consecutive quarter of improvement

ADVERTISEMENT

TAINAN, Taiwan, Feb. 13, 2008 (PRIME NEWSWIRE) -- Himax Technologies, Inc. (``Himax'' or ``Company'') (NasdaqGS:HIMX - News) today reported financial results for the fourth quarter ended December 31, 2007.

Net revenues for the fourth quarter of 2007 was $267.1 million, representing 20.9% growth year-over-year and 9.8% growth sequentially.

Gross margin was 24.7% in the fourth quarter of 2007, up 580 basis points year-over-year and 220 basis points sequentially.

Operating margin was 15.9% in the fourth quarter of 2007. Operating income was $42.4 million, up from $22.3 million in the same period last year, and up from $19.9 million in the previous quarter.

Net income for the fourth quarter of 2007 was $46.1 million, up from $31.1 million in the same period last year, and up from $21.8 million in the previous quarter. This represents earnings per diluted share of $0.23, compared to $0.16 in the fourth quarter of 2006, and $0.11 in the third quarter of 2007.

Excluding share-based compensation and acquisition-related charges, non-GAAP operating margin was 16.6% in the fourth quarter of 2007. Non-GAAP operating income was $44.4 million, up from $23.8 million in the same period last year, and up from $36.2 million in the previous quarter.

Non-GAAP net income was $48.1 million, up from $32.6 million in the same period last year, and up from $38.0 million in the previous quarter. This represents earnings per diluted share of $0.24, compared to $0.16 in the fourth quarter of 2006, and $0.19 in the third quarter of 2007.

Share-based compensation was $1.6 million, compared to $1.5 million in the fourth quarter of 2006, and $15.7 million in the third quarter of 2007. Acquisition-related charges were $0.5 million, compared to $18 thousand in the fourth quarter of 2006 and $0.6 million in the third quarter of 2007.

Reconciliation of gross margin, operating margin and diluted EPS excluding share-based compensation and acquisition-related charges, a non-GAAP financial measure, to GAAP gross margin, GAAP operating 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, ``We have concluded another remarkable quarter with revenue, net income, and EPS all achieving record-high levels. Also, our fourth quarter revenue, gross margin, and EPS all came in higher than our previous guidance. As always, we introduced innovative and leading-edge display driver solutions in the past quarter which again illustrates Himax's capability in setting new industry standards and providing value to our customers' development of new products.''

Mr. Wu continued, ``During the past few months, we also made a couple of strategic moves in our non-driver IC areas where we formed business alliances with leading players in the industry. We believe these moves will provide significant values to our shareholders in the long term. In the beginning of 2008, Chi Mei Optoelectronics, one of the world's leading LCD panel manufacturers, and TPV Technologies Limited, the world's largest LCD monitor manufacturer and the world's largest LCD TV ODM, each took a minority ownership stake in Himax Media Solutions, a subsidiary of Himax. Additionally, we announced a strategic alliance with 3M, one of the world's leading companies in optics technologies, to commercialize LCOS mobile projectors by combining the two companies' proprietary technologies to deliver a complete mobile projector solution to consumer electronics manufacturers. These strategic alignments will provide Himax added competitive strength and further validate our strategy in the non-driver space.''

Looking forward, Mr. Wu added, ``In 2008, display driver IC will continue to be our main business, for which our primary goal is still to gain further market share across all LCD panel applications. In addition, we remain fully committed to making Himax a world-leading semiconductor solution provider for displays with a more diversified product portfolio beyond driver IC. Overall, we expect revenues to decline sequentially in the first quarter of 2008, primarily due to seasonality. We expect revenues to decline by around 15% and gross margin to remain flat or decline slightly. We expect diluted GAAP EPS to be in the range of $0.13-$0.15.''

Investor Conference Call / Webcast Details

The Company's management will review detailed fourth quarter 2007 results on Wednesday, February 13, 2008 at 6:00 PM EDT (7:00 AM, Thursday, February 14, Taiwan time). The conference call-in number is +1-201-689-8560 (international) and +1-877-407-0784 (U.S. domestic). A live webcast of the conference call will be available on the Company's website at http://www.himax.com.tw. The playback will be available beginning two hours after the conclusion of the conference call and will be accessible by dialing +1-201-612-7415 (international) and 1-877-660-6853 (U.S. domestic). The account number to access the replay is 3055 and the confirmation ID number is 270446.

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 digital cameras, mobile gaming devices and car navigation displays. In addition, the Company is expanding its product offering to include television semiconductor solutions, as well as LCOS products. Based in Tainan, Taiwan, the Company has regional offices in Hsinchu and Taipei, Taiwan; Suzhou and Shenzhen, China; Yokohama, Japan and Anyangsi Kyungkido, South Korea; and Irvine, California, USA.

Forward-Looking Statements:

Certain statements in this press release, including statements regarding expected future financial results and industry growth, are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this press release. Factors that could cause actual results to differ include general business and economic conditions and the state of the semiconductor industry; level of competition; demand for end-use applications products; reliance on a small group of principal customers; continued success in technological innovations; development of alternative flat panel display technologies; ability to develop and protect our intellectual property; pricing pressures including declines in average selling prices; changes in customer order patterns; shortages in supply of key components; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; and other risks described from time to time in the Company's SEC filings, including its Form 20-F dated June 22, 2007, as amended. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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.)
(Figures in Thousands of U.S. Dollars, Except Per Share Data)

Three
Months
Three Months Ended
Ended September
December 31, 30,
2007 2006 2007
-------- ------- -------
Revenues
Revenues from third parties, net $101,683 $90,947 $91,960
Revenues from related parties, net 165,417 129,932 151,377
-------- ------- -------
267,100 220,879 243,337
-------- ------- -------

Costs and expenses:
Cost of revenues 201,255 179,214 188,626
Research and development 17,549 13,883 26,171
General and administrative 3,790 3,180 4,891
Sales and marketing 2,080 2,280 3,758
-------- ------- -------
Total costs and expenses 224,674 198,557 223,446
-------- ------- -------

Operating income 42,426 22,322 19,891
-------- ------- -------

Non operating income (loss):
Interest income 1,108 1,812 1,429
Foreign exchange gains (losses), net 11 (209) (29)
Other income, net 209 61 166
-------- ------- -------
1,328 1,664 1,566
-------- ------- -------
Income before income tax benefit and
minority interest 43,754 23,986 21,457
Income tax benefit (1,978) (6,937) --
-------- ------- -------
Income before minority interest 45,732 30,923 21,457
Minority interest, net of tax 321 178 316
-------- ------- -------
Net income $46,053 $31,101 $21,773
======== ======= =======

Basic earnings per ordinary share and ADS $0.23 $0.16 $0.11
======== ======= =======
Diluted earnings per ordinary share and ADS $0.23 $0.16 $0.11
======== ======= =======

Basic Weighted Average Outstanding
Shares 196,327 198,154 197,690
Diluted Weighted Average Outstanding
Shares 197,264 199,419 197,733

Himax Technologies, Inc.
Unaudited Supplemental Financial Information
(Figures in Thousands of U.S. Dollars)

The amount of share-based compensation Three
included in applicable costs and expenses Months
categories is summarized as follows: Three Months Ended
Ended September
December 31, 30,
2007 2006 2007
-------- ------- -------

Share-based compensation
Cost of revenues $17 $25 $355
Research and development 1,210 1,161 11,795
General and administrative 162 151 1,718
Sales and marketing 170 156 1,842
-------- ------- -------
Total $1,559 $1,493 $15,710
======= ======= =======

The amount of acquisition-related charges
included in applicable expenses categories
is summarized as follows:

Research and development $210 $18 $250
Sales and marketing 251 -- 304
-------- ------- -------
Total $461 $18 $554
======= ======= =======

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Income
(Figures in Thousands of U.S. Dollars, Except Per Share Data)

Twelve Months Ended
December 31,
2007 2006
-------- --------
Revenues
Revenues from third parties, net $371,755 $329,886
Revenues from related parties, net 546,456 414,632
-------- --------
918,211 744,518
-------- --------

Costs and expenses:
Cost of revenues 716,163 601,565
Research and development 73,848 60,655
General and administrative 14,903 9,762
Sales and marketing 9,334 6,970
-------- --------
Total costs and expenses 814,248 678,952
-------- --------

Operating income 103,963 65,566
-------- --------

Non operating income (loss):
Interest income 5,433 5,860
Impairment loss on an investment -- (1,500)
Foreign exchange losses, net (472) (341)
Interest expense -- (311)
Other income, net 576 233
-------- --------
5,537 3,941
-------- --------
Income before income tax benefit and minority
interest 109,500 69,507
Income tax benefit (1,978) (5,446)
-------- --------
Income before minority interest 111,478 74,953
Minority interest, net of tax 1,209 237
-------- --------
Net income $112,687 $75,190
======== ========

Basic earnings per ordinary share and ADS $0.57 $0.39
======== ========
Diluted earnings per ordinary share and ADS $0.57 $0.39
======== ========

Basic Weighted Average Outstanding Shares 196,862 192,475
Diluted Weighted Average Outstanding Shares 197,522 195,090

Himax Technologies, Inc.
Unaudited Supplemental Financial Information
(Figures in Thousands of U.S. Dollars)

The amount of share-based compensation included
in applicable costs and expenses categories is
summarized as follows: Twelve Months Ended
December 31,
2007 2006
-------- --------
Share-based compensation
Cost of revenues $422 $275
Research and development 15,393 11,806
General and administrative 2,182 1,444
Sales and marketing 2,324 1,625
-------- --------
Total $20,321 $15,150
======== ========

The amount of acquisition-related charges included
in applicable expenses categories is summarized
as follows:

Research and development $2,483 $18
Sales and marketing 1,061 --
-------- --------
Total $3,544 $18
======== ========

Himax Technologies, Inc.
Unaudited Condensed Consolidated Balance Sheets
(Figures in Thousands of U.S. Dollars, Except Per Share Data)

December September December
31, 30, 31,
2007 2007 2006
-------- --------- --------
Assets
Current assets:
Cash and cash equivalents $94,780 $119,246 $109,753
Marketable securities available-for-sale 15,208 16,109 8,828
Restricted cash equivalents 97 171 108
Accounts receivable, less allowance for
doubtful accounts, sales returns and
discounts 88,683 101,467 112,767
Accounts receivable from related
parties, less allowance for doubtful
accounts, sales returns and discounts 194,902 178,099 116,850
Inventories 116,550 125,983 101,341
Deferred income taxes 12,884 6,829 6,744
Prepaid expenses and other current
assets 15,834 12,903 10,324
-------- --------- --------
Total current assets $538,938 $560,807 $466,715
-------- --------- --------
Property, plant and equipment, net 46,161 46,070 38,895
Deferred income taxes 20,833 12,842 11,405
Intangible assets, net 35,088 33,711 393
Investments in non-marketable
securities 7,138 2,584 817
Refundable deposits and prepaid pension
costs 604 612 569
-------- --------- --------
109,824 95,819 52,079
-------- --------- --------
Total assets $648,762 $656,626 $518,794
======== ========= ========

Liabilities, minority interest and
stockholders' equity
Current liabilities:

Accounts payable $147,221 $160,269 $120,407
Income tax payable 19,497 7,333 11,666
Dividends payable -- 39,710 --
Other accrued expenses and other
current liabilities 19,395 15,738 21,206
-------- --------- --------
Total current liabilities $186,113 $223,050 $153,279
Accrued pension liability $272 $196 $192
-------- --------- --------
Total liabilities $186,385 $223,246 $153,471
-------- --------- --------
Minority interest $10,211 $3,084 $1,396
-------- --------- --------
Stockholders' equity:

Ordinary share, US$0.0001 par value,
191,979,691, 198,548,799, and
193,600,302 shares issued and
outstanding at December 31, 2007,
September 30, 2007 and December 31,
2006, respectively 20 20 19
Additional paid-in capital 236,703 260,980 221,666
Accumulated other comprehensive loss (52) (146) (275)
Unappropriated earnings 215,495 169,442 142,517
-------- --------- --------
Total stockholders' equity $452,166 $430,296 $363,927
-------- --------- --------
Total liabilities, minority interest
and stockholders' equity $648,762 $656,626 $518,794
======== ========= ========

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Figures in Thousands of U.S. Dollars)
Three
Months
Ended
Three Months September
Ended December 31, 30,
2007 2006 2007
--------- --------- ---------
Cash flows from operating
activities:
Net income $46,053 $31,101 $21,773
Adjustments to reconcile net
income to net cash provided
by (used in) operating
activities:
Depreciation and amortization 2,892 1,680 2,755
Share-based compensation
expenses 1,559 1,493 1,284
Minority interest, net of tax (321) (178) (316)
Gain on disposal of property,
plant and equipment -- -- (16)
Gain on sale of subsidiary
shares and investments in
non-marketable securities, net (160) (49) (112)
Gain on sale of marketable
securities, net (28) (12) (31)
Deferred income taxes (14,189) (6,714) --
Inventories write downs 4,231 2,050 3,784
Changes in operating assets and
liabilities:
Accounts receivable 12,697 (10,791) 15,850
Accounts receivable from
related parties (16,708) (45,364) (40,994)
Inventories 5,210 7,527 (4,552)
Prepaid expenses and other
current assets (2,276) 4,316 (2,966)
Accounts payable (13,051) 13,578 (10,949)
Income tax payable 12,164 (161) --
Other accrued expenses and other
current liabilities 3,180 2,876 (114)
--------- --------- ---------
Net cash provided by (used in)
operating activities 41,253 1,352 (14,604)
--------- --------- ---------
Cash flows from investing
activities:
Purchase of property, plant and
equipment (3,138) (4,187) (2,500)
Proceeds from sale of property,
plant and equipment 3 -- 3
Purchase of available-for-sales
marketable securities (11,028) (12,678) (12,144)
Cash acquired (paid) in
acquisition (36) 17 --
Sales and maturities of
available-for-sale marketable
securities 12,002 7,940 9,404
Proceeds from sale of
subsidiary
shares and investments in non-
marketable securities by Himax
Technologies Limited 253 1,537 144
Purchase of investments in non-
marketable securities (4,531) -- (750)
Purchase of subsidiary shares
from minority interest (120) (602) (112)
Refund from (increase in)
refundable deposits (23) 63 (15)
Release (pledge) of restricted
cash equivalents 100 (75) --
--------- --------- ---------
Net cash used in investing
activities (6,518) (7,985) (5,970)
--------- --------- ---------

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Figures in Thousands of U.S. Dollars)
Three
Months
Ended
Three Months September
Ended December 31, 30,
2007 2006 2007
---------- ---------- ----------
Cash flows from financing
activities:
Payment of cash dividends $(39,710) $-- $--
Proceeds from issuance of new
shares by subsidiaries 8,307 --- 2,290
Proceeds from initial public
offering, net of issuance
costs -- (392) --
Acquisition of ordinary
shares for retirement (27,879) (38,835) --
---------- ---------- ----------
Net cash provided by (used
in) financing activities (59,282) (39,227) 2,290
---------- ---------- ----------
Effect of exchange rate change 81 19 22
---------- ---------- ----------
Net decrease in cash and cash
equivalents (24,466) (45,841) (18,262)
Cash and cash equivalents at
beginning of period 119,246 155,594 137,508
---------- ---------- ----------
Cash and cash equivalents at
end of period $94,780 $109,753 $119,246
========== ========== ==========

Supplemental disclosures of
cash flow information:
Cash paid during the period
for income taxes $32 $110 $24
========== ========== ==========
Supplemental disclosures of
non-cash investing and
financing activities:
Payable for purchase of
equipment and construction
in progress $(242) $(971) $6
========== ========== ==========
Dividends payable $-- $-- $39,710
========== ========== ==========
Fair value of ordinary shares
issued by Himax Display, Inc.
in the acquisition of
Integrated Microdisplays
Limited $-- $538 $--
========== ========== ==========
Fair value of additional
ordinary shares to be issued
by Himax Technologies, Inc.
pursuant to the contingent
consideration provision in
the acquisition of Wisepal
Technologies, Inc. $1,687 $-- $--
========== ========== ==========

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Figures in Thousands of U.S. Dollars)

Twelve Months
Ended December 31,

2007 2006
--------- ---------
Cash flows from operating activities:

Net income $112,687 $75,190
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Depreciation and amortization 10,260 5,221
Write-off of in-process research and
development 1,600 --
Share-based compensation expenses 5,895 15,150
Minority interest, net of tax (1,209) (237)
Loss on disposal of property and equipment 223 36
Gain on sales of subsidiary shares and
investment in non-marketable
securities, net (418) (137)
Gain on sale of marketable securities, net (112) (60)
Impairment loss on investments in non-
marketable securities -- 1,500
Deferred income taxes (14,915) (8,938)
Inventories write down 16,235 5,165
Changes in operating assets and liabilities:
Accounts receivable 25,970 (32,237)
Accounts receivable from related parties (78,043) (47,263)
Inventories (31,013) (1,502)
Prepaid expenses and other current assets (4,841) 749
Accounts payable 26,169 14,606
Income tax payable 7,831 (1,959)
Other accrued expenses and other current
liabilities 846 4,412
--------- ---------
Net cash provided by operating activities 77,165 29,696
--------- ---------

Cash flows from investing activities:
Purchase of land, property and equipment (18,998) (17,829)
Proceeds from sale of property, plant and
equipment 9 --
Purchase of available-for-sales marketable
securities (52,476) (31,911)
Sales and maturities of available-for-sale
marketable securities 46,303 27,128
Cash acquired in acquisition 6,161 17
Proceeds from sale of subsidiary shares and
investment in non-marketable
securities by Himax Technologies Limited 562 1,142
Purchase of investments in non-marketable
securities (6,321) (817)
Purchase of subsidiary shares from minority
interest (295) (773)
Return of refundable deposits 22 171
Release of restricted cash equivalents and
marketable securities 11 13,945
--------- ---------
Net cash used in investing activities (25,022) (8,927)
--------- ---------

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Figures in Thousands of U.S. Dollars)

Twelve Months
Ended December 31,

2007 2006
Cash flows from financing activities:
Payment of cash dividends $(39,710) $--
Proceeds from issuance of ordinary shares -- 147,408
Proceeds from issuance of new shares by
subsidiaries 11,814 676
Acquisition of ordinary shares for
retirement (39,345) (38,835)
Proceeds from borrowing of short-term debt -- 11,303
Repayment of short-term debt -- (38,577)
Repayment of long-term debt -- (89)
--------- ---------
Net cash provided by (used in) financing
activities (67,241)

la-onda · June 04, 2008, 10:45:53 PM

new 52 weeks high

is there any research tool update Rams?

3SOF

News:

HIMX

BigSully1

bjc

BigSully1

BigSully1

BigSully1

BigSully1

la-onda