Post Time：Aug 06,2009Classify:Company NewsView：484
Highlights:
* Net income and EPS attributable to Himax stockholders in the second
quarter were $15.4 million and $0.08, respectively, each more than
tripling from the previous quarter
* Recapitalization in preparation for dual listing on the Taiwan Stock
Exchange and ADS ratio change will be effective on Monday, August
10, before the NASDAQ market opens
* Each ADS will represent the same percentage ownership of the share
capital of the Company immediately before and after the proposed
recapitalization and ADS ratio change
TAINAN, Taiwan, Aug. 5, 2009 (GLOBE NEWSWIRE) -- Himax Technologies, Inc. ("Himax" or "Company") (Nasdaq:HIMX) today reported financial results for the second quarter ended June 30, 2009.
For the second quarter of 2009, Himax reported net revenues of $184.9 million, representing a 25.1% decrease from $246.9 million for the second quarter of 2008 and a 47.2% increase from $125.7 million for the first quarter of 2009. Gross margin was 20.8% for the second quarter of 2009, down 470 basis points year-over-year and down 10 basis points sequentially. Operating income for the quarter was $14.8 million, compared to $34.8 million for the same period last year and operating income of $4.8 million for the previous quarter.
Net income attributable to Himax stockholders for the second quarter of 2009 was $15.4 million or $0.08 per diluted share attributable to Himax stockholders, down from $37.7 million or $0.20 per diluted share attributable to Himax stockholders for the second quarter of 2008 and up from $4.4 million or $0.02 per diluted share attributable to Himax stockholders for the first quarter of 2009.
Excluding share-based compensation and acquisition-related charges, non-GAAP operating income for the second quarter of 2009 was $17.7 million, down from $37.8 million for the same period last year, and up from $7.7 million for the previous quarter.
Non-GAAP net income attributable to Himax stockholders for the second quarter of 2009 was $17.9 million or $0.10 per diluted share attributable to Himax stockholders, down from $39.8 million or $0.21 per diluted share attributable to Himax stockholders for the second quarter of 2008, and up from $7.0 million or $0.04 per diluted share attributable to Himax stockholders for the first quarter of 2009.
Reconciliation of gross margin, operating margin, net margin and diluted EPS excluding share-based compensation and acquisition-related charges, a non-GAAP financial measure, to GAAP gross margin, GAAP operating margin, GAAP net 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, "Demand for our display drivers rebounded strongly in the second quarter, particularly for TV applications. However, the shortage in certain components for TFT-LCD panels, most notably the glass substrate, had limited the growth momentum in our customers' panel shipment and demand for our display drivers. Product-wise, we are leveraging our worldwide leadership in TFT-LCD display drivers to further expand our product portfolio into other display-related semiconductors. Last week, we announced our white LED driver line for the fast-growing netbook and notebook LED backlight market. Our TV chipset and monitor scaler line is ramping up revenues quickly as a result of increasing design-in activities and adoptions at a number of Chinese TV and monitor manufacturers, including certain tier-one brands."
Mr. Wu continued, "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. Concurrently with the recapitalization plan, if approved at the AGM, we will take into effect an ADS ratio change to have one ADS represent two ordinary shares, as compared to the current ratio of one ADS representing one ordinary share. As a result of the ADS ratio change, the percentage ownership of our share capital represented by each ADS, immediately before and after the proposed recapitalization and ADS ratio change, will remain unchanged. The proposed recapitalization and ADS ratio change, subjective to certain approvals, will become effective on Monday, August 10, before market opens."
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, gross margin to decline slightly and GAAP earnings per ADS to be in the range of $0.04 to $0.06 based on the assumption of having 185 million diluted weighted average shares, with each ADS representing one share. Our third quarter guidance on GAAP earnings per ADS have taken into account our 2009 restricted awards grant scheduled at the end of September. The 2009 restricted awards is assumed to be valued at around $10 to 14 million, of which approximately 50% to 70% to be vested and expensed immediately on the grant date."
Investor Conference Call / Webcast Details
The Company's management will review detailed second quarter 2009 results on Wednesday, August 5, 2009 at 7:00 PM EDT (7:00 AM, Thursday, August 6, Taiwan time). The conference dial-in numbers are +1-201-689-8470 (international) and +1-877-407-9039 (U.S. domestic). A live webcast of the conference call will be available on the Company's website at
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 netbook computers, digital cameras, mobile gaming devices, portable DVD players, digital photo frame and car navigation displays. In addition, the Company is expanding its product offerings to include timing controllers, LCD TV and monitor chipset solutions, LCOS projector solutions, power management ICs and CMOS Image Sensors. Based in Tainan, Taiwan, the Company has regional offices in Hsinchu and Taipei, Taiwan; Ninbo, Foshan, Fuqing, Beijing, Shanghai, Suzhou and Shenzhen, China; Yokohama and Matsusaka, Japan; Anyang-si Kyungki-do, and Cheonan-si, Chungcheongnam-do, South Korea; and Irvine California, USA.
Forward-Looking Statements:
Factors that could cause our actual results to differ materially include, but not limited to, those expressed or implied in these forward-looking statements for a variety of reasons, including, among other things and not limited to, our anticipated growth strategies, our future business developments, results of operations and financial condition, our ability to develop new products, the expected growth of the display driver markets, the expected growth of end-use applications that use flat panel displays, particularly TFT-LCD panels, development of alternative flat panel display technologies, our ability to collect accounts receivable and manage inventory, changes in economic and financial market conditions, and other risks described from time to time in the Company's SEC filings, including those risks identified in the section entitled "Risk Factors" in its Form 20-F for the year ended December 31, 2008 filed with SEC on dated May 15, 2009, as amended.
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)
(Amounts in Thousands of U.S. Dollars, Except Per Share Data)
Three
Months
Three Months Ended
Ended June 30, March 31,
2009 2008 2009
------- ------- -------
Revenues
Revenues from third parties, net $63,348 $92,430 $44,373
Revenues from related parties, net 121,579 154,437 81,283
------- ------- -------
184,927 246,867 125,656
------- ------- -------
Costs and expenses:
Cost of revenues 146,539 183,797 99,441
Research and development 17,576 20,532 15,249
General and administrative 3,885 5,105 3,594
Sales and marketing 2,126 2,622 2,549
------- ------- -------
Total costs and expenses 170,126 212,056 120,833
------- ------- -------
Operating income 14,801 34,811 4,823
------- ------- -------
Non operating income (loss):
Interest income 284 924 282
Foreign exchange gains (losses), net 1,006 (522) (1,415)
Other income (loss), net 17 762 (138)
------- ------- -------
1,307 1,164 (1,271)
------- ------- -------
Earnings before income taxes 16,108 35,975 3,552
Income tax expense (benefit) 1,717 (702) 249
------- ------- -------
Net income 14,391 36,677 3,303
Net loss attributable to the noncontrolling
interests 1,032 1,037 1,066
------- ------- -------
Net income attributable to Himax
stockholders $15,423 $37,714 $ 4,369
======= ======= =======
Basic earnings per ordinary share and ADS
attributable to Himax stockholders $ 0.08 $ 0.20 $ 0.02
======= ======= =======
Diluted earnings per ordinary share and ADS
attributable to Himax stockholders $ 0.08 $ 0.20 $ 0.02
======= ======= =======
Basic Weighted Average Outstanding Shares 185,992 191,301 188,883
Diluted Weighted Average Outstanding Shares 186,801 192,552 188,883
Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Income
(Amounts in Thousands of U.S. Dollars, Except Per Share Data)
Six Months Ended
June 30,
2009 2008
-------- --------
Revenues
Revenues from third parties, net $107,721 $169,891
Revenues from related parties, net 202,862 308,564
-------- --------
310,583 478,455
-------- --------
Costs and expenses:
Cost of revenues 245,980 356,746
Research and development 32,825 41,078
General and administrative 7,479 8,975
Sales and marketing 4,675 5,180
-------- --------
Total costs and expenses 290,959 411,979
-------- --------
Operating income 19,624 66,476
-------- --------
Non operating income (loss):
Interest income 566 1,701
Foreign exchange gains (losses), net (409) 848
Other income (loss), net (121) 854
-------- --------
36 3,403
-------- --------
Earnings before income taxes 19,660 69,879
Income tax expense 1,966 --
-------- --------
Net income 17,694 69,879
Net loss attributable to the noncontrolling
interests 2,098 1,972
-------- --------
Net income attributable to Himax stockholders $19,792 $71,851
======== ========
Basic earnings per ordinary share and ADS
attributable to Himax stockholders $0.11 $0.38
======== ========
Diluted earnings per ordinary share and ADS
attributable to Himax stockholders $0.11 $0.37
======== ========
Basic Weighted Average Outstanding Shares 187,429 191,422
Diluted Weighted Average Outstanding Shares 187,569 192,518
Himax Technologies, Inc.
Unaudited Supplemental Financial Information
(Amounts in Thousands of U.S. Dollars)
Three
The amount of share-based compensation Months
included in applicable statements Three Months Ended
of income categories is summarized Ended June 30, March 31,
as follows: 2009 2008 2009
-------- -------- --------
Share-based compensation
Cost of revenues $ 13 $ 28 $ 13
Research and development 1,807 1,935 1,783
General and administrative 271 232 272
Sales and marketing 260 244 274
Income tax benefit (295) -- (101)
-------- -------- --------
Total $ 2,056 $ 2,439 $ 2,241
======== ======== ========
The amount of acquisition-related
charges included in applicable
statements of income categories is
summarized as follows:
Acquisition-related charges
Research and development $ 258 $ 239 $ 258
Sales and marketing 290 289 290
Income tax benefit (162) (920) (162)
-------- -------- --------
Total $ 386 $ (392) $ 386
======== ======== ========
Himax Technologies, Inc.
Unaudited Supplemental Financial Information
(Amounts in Thousands of U.S. Dollars)
The amount of share-based compensation
included in applicable statements of income Six Months Ended
categories is summarized as follows: June 30,
2009 2008
-------- --------
Share-based compensation
Cost of revenues $ 26 $ 56
Research and development 3,590 3,807
General and administrative 543 465
Sales and marketing 534 485
Income tax benefit (396) --
-------- --------
Total $ 4,297 $ 4,813
======== ========
The amount of acquisition-related charges included
in applicable statements of income categories is
summarized as follows:
Research and development $ 516 $ 479
Sales and marketing 580 578
Income tax benefit (324) (920)
-------- --------
Total $ 772 $ 137
======== ========
Himax Technologies, Inc.
Unaudited Condensed Consolidated Balance Sheets
(Amounts in Thousands of U.S. Dollars, Except Per Share Data)
June 30, March 31, December 31,
2009 2009 2008
---------- ---------- ----------
Assets
Current assets:
Cash and cash equivalents $ 136,760 $ 200,678 $ 135,200
Marketable securities
available-for-sale 2,447 3,919 13,870
Accounts receivable, less
allowance for doubtful accounts,
sales returns and discounts 65,257 52,689 51,029
Accounts receivable from related
parties, less allowance
for sales returns and discounts 142,064 87,959 104,477
Inventories 83,455 63,908 96,921
Deferred income taxes 21,439 20,747 21,446
Prepaid expenses and other
current assets 13,569 9,973 11,707
---------- ---------- ----------
Total current assets $ 464,991 $ 439,873 $ 434,650
---------- ---------- ----------
Property, plant and equipment, net 53,515 53,542 55,111
Deferred income taxes 23,023 22,278 23,029
Goodwill 26,846 26,846 26,846
Intangible assets, net 9,869 10,417 10,965
Investments in non-marketable
securities 11,970 11,619 11,619
Refundable deposits and prepaid
pension costs 1,290 1,251 1,168
Other assets 3,204 3,186 2,160
---------- ---------- ----------
129,717 129,139 130,898
---------- ---------- ----------
Total assets $ 594,708 $ 569,012 $ 565,548
========== ========== ==========
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable $ 136,550 $ 63,131 $ 53,720
Income tax payable 10,174 15,355 15,455
Other accrued expenses and other
current liabilities 17,891 15,761 22,455
---------- ---------- ----------
Total current liabilities $ 164,615 $ 94,247 $ 91,630
Accrued pension liabilities 207 200 214
Deferred income taxes 2,899 3,066 3,224
Income tax payable 474 459 474
Assets retirement obligation 169 -- --
---------- ---------- ----------
Total liabilities $ 168,364 $ 97,972 $ 95,542
---------- ---------- ----------
Himax stockholders' equity:
Ordinary shares, US$0.0001 par
value, 500,000,000 shares
authorized; 184,987,722,
187,303,186, and 190,119,594
shares issued and outstanding at
June 30, 2009, March 31,
2009, and December 31, 2008,
respectively $ 18 $ 19 $ 19
Additional paid-in capital 231,876 235,889 238,499
Accumulated other comprehensive
income (loss) 6 (71) (314)
Unappropriated retained earnings 189,263 229,336 224,967
---------- ---------- ----------
Himax stockholders' equity $ 421,163 $ 465,173 $ 463,171
Noncontrolling interests 5,181 5,867 6,835
---------- ---------- ----------
Total equity $ 426,344 $ 471,040 $ 470,006
---------- ---------- ----------
Total liabilities and stockholders'
equity $ 594,708 $ 569,012 $ 565,548
========== ========== ==========
Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
Three
Months
Three Months Ended
Ended June 30, March 31,
2009 2008 2009
-------- -------- --------
Cash flows from operating activities:
Net income attributable to Himax
stockholders $ 15,423 $ 37,714 $ 4,369
Adjustments to reconcile net income
attributable to Himax stockholders to
net cash provided by (used in)
operating activities:
Depreciation and amortization 3,530 3,067 3,196
Provision (reversal) for allowance for
doubtful accounts (129) 8 389
Share-based compensation expenses 2,351 2,439 2,342
Net loss attributable to the
noncontrolling interests (1,032) (1,037) (1,066)
Loss (gain) on disposal of property
and equipment (12) 79 19
Gain on disposal of subsidiary shares,
net -- (91) --
Loss (gain) on disposal of marketable
securities, net -- (648) 156
Deferred income tax benefit (1,604) (989) 1,292
Inventories write downs 3,223 5,944 3,976
Changes in operating assets and
liabilities:
Accounts receivable (12,439) (19,887) (2,049)
Accounts receivable from related
parties (54,097) 6,327 16,509
Inventories (22,770) (14,783) 29,037
Prepaid expenses and other current
assets (3,571) (456) 498
Accounts payable 73,419 17,481 9,411
Income tax payable (5,166) (6,162) (115)
Other accrued expenses and other
current liabilities 2,263 314 (3,333)
-------- -------- --------
Net cash provided by (used in)
operating activities (611) 29,320 64,631
-------- -------- --------
Cash flows from investing activities:
Purchase of property and equipment (2,870) (3,038) (3,097)
Proceeds from disposal of property and
equipment 1 -- --
Purchase of available-for-sale
marketable securities (5,147) (6,275) (6,552)
Disposal of available-for-sale
marketable securities 6,693 11,508 16,170
Proceeds from disposal of subsidiary
shares by Himax Technologies Limited 333 182 106
Purchase of investments in
non-marketable securities (351) -- --
Purchase of subsidiary shares from the
noncontrolling interests (33) (205) (50)
Increase in refundable deposits (17) (81) (100)
Pledge of restricted marketable
securities (21) (17) (1,014)
-------- -------- --------
Net cash provided by (used in)
investing activities (1,412) 2,074 5,463
-------- -------- --------
Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
Three
Months
Three Months Ended
Ended June 30, March 31,
2009 2008 2009
--------- --------- ---------
Cash flows from financing activities:
--------- --------- ---------
Distribution of cash dividends $ (55,496) $ (66,817) $ --
Proceeds from issuance of new
shares by subsidiaries 55 -- 47
Payments to acquire ordinary
shares for retirement (6,458) (7) (5,072)
--------- --------- ---------
Net cash used in financing
activities (61,899) (66,824) (5,025)
--------- --------- ---------
Effect of exchange rate changes
on cash and cash equivalents 4 (1) 409
--------- --------- ---------
Net increase (decrease) in cash
and cash equivalents (63,918) (35,431) 65,478
Cash and cash equivalents at
beginning of period 200,678 125,835 135,200
--------- --------- ---------
Cash and cash equivalents at end
of period $ 136,760 $ 90,404 $ 200,678
========= ========= =========
Supplemental disclosures of cash flow
information:
Cash paid during the period for
income taxes $ 7,608 $ 6,531 $ 26
========= ========= =========
Himax Technologies, Inc.
Unaudited Supplemental Data - Reconciliation Schedule
(Amounts in Thousands of U.S. Dollars)
Gross Margin, Operating Margin and Net Margin Excluding Share-based
Compensation and Acquisition-Related Charges:
Three
Months
Three Months Ended
Ended June 30, March 31,
2009 2008 2009
--------- --------- ---------
Revenues $ 184,927 $ 246,867 $ 125,656
Gross profit 38,388 63,070 26,215
Add: Share-based compensation -
Cost of revenues 13 28 13
Gross profit excluding share-based
compensation 38,401 63,098 26,228
Gross margin excluding share-based
compensation 20.8% 25.6% 20.9%
Operating income 14,801 34,811 4,823
Add: Share-based compensation 2,351 2,439 2,342
Operating income excluding share-based
compensation 17,152 37,250 7,165
Add: Acquisition-related charges -
Intangible assets amortization 548 528 548
Operating income excluding share-based
compensation and acquisition-related
charges 17,700 37,778 7,713
Operating margin excluding share-based
compensation and acquisition-related
charges 9.6% 15.3% 6.1%
Net income attributable to Himax
stockholders 15,423 37,714 4,369
Add: Share-based compensation, net of
tax 2,056 2,439 2,241
Add: Acquisition-related charges, net
of tax 386 (392) 386
Net income attributable to Himax
stockholders excluding share-based
compensation and acquisition-related
charges 17,865 39,761 6,996
Net margin attributable to Himax
stockholders excluding share-based
compensation and acquisition-related
charges 9.7% 16.1% 5.6%
*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 attributable to Himax stockholders excluding share-based
compensation and acquisition-related charges equals net income
attributable to Himax stockholders excluding share-based
compensation and acquisition-related charges divided by revenues
Himax Technologies, Inc.
Unaudited Supplemental Data - Reconciliation Schedule
(Amounts in Thousands of U.S. Dollars)
Gross Margin, Operating Margin and Net Margin Excluding Share-based
Compensation and Acquisition-Related Charges:
Six Months
Ended June 30,
2009 2008
-------- --------
Revenues $310,583 $478,455
Gross profit 64,603 121,709
Add: Share-based compensation - Cost of revenues 26 56
Gross profit excluding share-based compensation 64,629 121,765
Gross margin excluding share-based compensation 20.8% 25.4%
Operating income 19,624 66,476
Add: Share-based compensation 4,693 4,813
Operating income excluding share-based compensation 24,317 71,289
Add: Acquisition-related charges -Intangible assets
amortization 1,096 1,057
Operating income excluding share-based compensation
and acquisition-related charges 25,413 72,346
Operating margin excluding share-based compensation
and acquisition-related charges 8.2% 15.1%
Net income attributable to Himax stockholders 19,792 71,851
Add: Share-based compensation, net of tax 4,297 4,813
Add: Acquisition-related charges, net of tax 772 137
Net income attributable to Himax stockholders
excluding share-based compensation and
acquisition-related charges 24,861 76,801
Net margin attributable to Himax stockholders
excluding share-based compensation and
acquisition-related charges 8.0% 16.1%
*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 attributable to Himax stockholders excluding share-based
compensation and acquisition-related charges equals net income
attributable to Himax stockholders excluding share-based
compensation and acquisition-related charges divided by revenues
Diluted Earnings Per Share Attributable to Himax stockholders
Excluding Share-based Compensation and Acquisition-Related Charges:
Three Months Six Months
Ended June 30, Ended June 30,
2009 2009
------------- -------------
Diluted GAAP EPS attributable to Himax
stockholders $0.08 $0.11
Add: Share-based compensation per
diluted share $0.01 $0.02
Add: Acquisition-related charges per
diluted share $ -- $ --
Diluted non GAAP EPS attributable to
Himax stockholders excluding share-based
compensation and acquisition-related
charges $0.10 $0.13
Numbers do not add up due to rounding
CONTACT: Himax Technologies, Inc.
Max Chan, Chief Financial Officer
+886-2-2370-3999 Ext. 22300
Investor Relations
Jessie Wang
+886-2-2370-3999 Ext. 22618
The Ruth Group
In the U.S.
Joseph Villalta
+1-646-536-7003
Source: globenewswireAuthor: shangyi
