Himax Technologies (NASDAQ:HIMX)

TAINAN, Taiwan, Jan. 20, 2012 (GLOBE NEWSWIRE) -- Himax Technologies, Inc. ("Himax" or "Company") (Nasdaq:HIMX), a leading supplier and fabless manufacturer of display drivers and other semiconductor products, today announced the appointment of Ms. Jackie Chang as the company's CFO with immediate effect. She will report to Jordan Wu, Himax's President and CEO. Chang succeeds Jessica Pan, the company's interim CFO. Pan will stay with the company to continue her role as head of accounting and treasury operations, reporting to Chang.

"On behalf of the company and our Board of Directors, it is with great excitement that we welcome Jackie to the Himax family," said Wu. "She has a proven record of excellence in finance, accounting and management and is well-suited to take up this critical position at a time when we diversify our product portfolio and expand our investor base. We are thrilled to have Jackie join our team."

Ms. Chang is an accomplished corporate executive with over 25 years of professional experience in finance, accounting and operations, having worked for both entrepreneurial and multinational corporations in retail, distribution and manufacturing segments, and for the past several years in the consumer electronics and automotive manufacturing industries. Previously, she was CFO of Castlink Corporation, where she was responsible for financial reporting and operations. Prior to that, she served as the VP of Finance and Operations for PlayHut, Inc. where she was in charge of the entire finance, auditing, supply chain management and procurement operations for the firm's multinational platform. Prior to joining PlayHut, Chang was an executive for Nissan North America for 13 years where she held several positions in finance, treasury, business planning, operations and accounting. As the General Manager of Treasury Control for Nissan, Ms. Chang consolidated the accounting procedures of Chinese GAAP to IFRS for Nissan's China joint venture operations and led the successful launch of the company's ERP systems.

Third Quarter 2011 Results

• For the third quarter of 2011, Himax reported net revenues of $162.1 million, representing a 17.2% increase from $138.3 million in the third quarter of 2010
• Non-GAAP net income attributable to Himax stockholders for the third quarter of 2011 was $4.8 million or $0.027 per diluted ADS, down from $7.0 million or $0.040 per diluted ADS in the third quarter of 2010, and down from $5.0 million or $0.028 per diluted ADS in the second quarter of 2011.

"We are currently in a strong position in the smart phone sector with leading technologies and competitive products. We carry a wide range of smart phone products including hVGA, WVGA, nHD, qHD resolution drivers for mainstream smartphones as well as the HD720 high resolution drivers of which we are one of the industry leaders in shipping to first-tier smart phone brand customers. We are also working with our panel partners in Taiwan, Japan, Korea and China to supply drivers for numerous smart phone brand customers. The growth momentum is expected to continue into the fourth quarter 2011 and beyond with strong demand from both Chinese and international brand customers."

Himax Technologies, Inc. updates its previously announced third quarter 2010 guidance.

The Company now expects

• revenue to decline approximately 26% sequentially, from the $187.7 million posted in the second quarter 2010.
  
• gross margin to increase slightly above the top of the previous gross margin guidance.
  
• GAAP earnings per ADS to be in the range of $0-0.01.
  
• Excluding share-based compensation and acquisition-related charges, non-GAAP earnings per ADS in the third quarter is expected to be in the range of $0.04-0.05. The revision is primarily to reflect adjustment in customer demand.

Previous guidance provided on August 10, 2010 had forecast third quarter 2010

• revenues to decline by 13-18% quarter over quarter.
  
• gross margin to increase by 1-2 percentage points from 20.4% in the second quarter.
  
• GAAP earnings per ADS to be in the range of $0-0.02.
  
• non-GAAP earnings per ADS to be in the range of $0.04-0.06.

Jordan Wu, President and Chief Executive Officer of Himax, commented, "As updated in our last earnings conference call, we experienced a sudden order cutback right around the same time when we provided our third quarter guidance in mid-August. These order adjustments continued in September while panel inventory levels remained a concern for panel makers. However, we managed to increase our gross margin primarily due to a more favorable product mix."

For the second quarter of 2010:

• Net revenues of $187.7 million, representing a 1.5% increase from $184.9 million in the second quarter of 2009, and a 7.0% increase from $175.5 million in the first quarter of 2010.
  
• Gross margin was 20.4% in the second quarter of 2010, down 40 basis points year-over-year, and up 60 basis points, sequentially.
  
• Operating income in the second quarter was $13.0 million, compared to $14.8 million for the same period last year and $10.1 million in the previous quarter.
  
• Net income attributable to Himax stockholders for the second quarter of 2010 was $12.0 million or $0.07 per diluted ADS, down from $15.4 million or $0.08 per diluted ADS in the second quarter of 2009, and up from $9.1 million or $0.05 per diluted ADS in the first quarter of 2010.
  
• Excluding share-based compensation and acquisition-related charges, non-GAAP operating income for the second quarter of 2010 was $15.4 million, down from $17.7 million in the same period last year, and up from $12.5 million in the previous quarter.
  
• Non-GAAP net income attributable to Himax stockholders for the second quarter of 2010 was $14.0 million or $0.08 per diluted ADS, down from $17.9 million or $0.10 per diluted ADS in the second quarter of 2009, and up from $11.2 million or $0.06 per diluted ADS in the first quarter of 2010.

Mr. Wu added, "We are seeing softening demand since June with talks of end product sell-through noticeably slowing down and customers getting cautious on inventory levels. Over the past ten days, in particular, we have seen our customers significantly cut back their forecasts for August and September. While we are actively talking to our customers, we have not yet come to a conclusion as to whether this is a short-term over-reaction or if it has long-term implications. We are uncertain if this is specific to Himax or this is an industry-wide phenomenon."

For the third quarter 2010, we expect:

• Revenues to decline by 13% to 18%.
  
• Gross margin to increase by 1-2 percentage points.
  
• GAAP earnings per ADS to be in the range of $0-0.02. 
  
• Excluding share-based compensation and acquisition-related charges, our third quarter 2010 non-GAAP earnings per ADS guidance is $0.04-0.06."

Jordan Wu, President and Chief Executive Officer of Himax, commented, "Demand for our display drivers rebounded strongly in the second quarter.

Mr. Wu added, "Looking forward, the shortage of glass substrate for TFT-LCD panels is expected to continue in the third quarter of 2009, which is a factor of uncertainty for our third quarter guidance. In addition, the capacity tightness for certain of our semiconductor subcontractors, particularly the backend packaging and testing houses, would increase our costs of revenues and may negatively impact our gross margin.

For the third quarter, we expect revenues to grow by double-digit percentage points sequentially.

^a The above forecasts reflect the Company's current and preliminary
Source: See views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

^b Non-GAAP EPS figures generally exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures.

"To comply with Taiwan listing requirements and to ensure sufficient float on the Taiwan Stock Exchange, the Board has proposed some necessary revisions to our Memorandum and Articles of Associations and a recapitalization plan to effect a change in the par value of our ordinary shares from $0.0001 per share to $0.30, or approximately NT$10, per share, and an increase in the number of ordinary shares outstanding to double the current amount.

Source: GlobeNewswire (August 5, 2009)

Mr. Wu continued, "While the global financial crisis has had a profound impact on the TFT-LCD industry, we believe that it is a great opportunity for us to capitalize on our strategy and grow our business. Customers around the world are paying attention to suppliers' financial soundness, looking for industry's leaders who have sufficient resources to fund R&Ds, product developments, and customer services on a sustainable basis. Even amid the global economic downturn, our financial position has grown stronger over the past quarter. With no debts, our cash, cash equivalents and marketable securities available for sale were $204.6 million on March 31, 2009, a $55.5 million increase from the previous quarter. Backed by our strong balance sheet, we remain confident in the long-term growth prospects of our business and remain committed to adding value to our shareholders."

Mr. Wu added, "We are seeing a strong, across the board rebound in the demand for our display drivers, as customers' capacity utilizations have been substantially improved. We expect rush orders to continue throughout the second quarter."

^a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

^b These interim financials do not fully comply with US GAAP because they omit all interim disclosure required by US GAAP).

Guidance Report:

Himax Technologies, Inc. announced that fourth-quarter results will be lower than the company's previous guidance given on November 4, 2008, as customers reduce orders amid the slowing worldwide economy.

Fourth Quarter 2008 Guidance Ending December

Implied Full Year 2008 Guidance Ending December

With no debts, our balance sheet remains strong and we are confident that we will continue to generate positive operating cash flow in the fourth quarter. Though the short-term visibility is quite limited, we remain focused on investing in R&D and improving our operating efficiency. We will continue to execute the $50 million share buy-back program announced on November 14, 2008."

Source: GlobeNewswire (December 5, 2008)