EXHIBIT 99.1
TAINAN, Taiwan, May 15, 2009 (GLOBE NEWSWIRE) -- Himax Technologies, Inc. (Nasdaq:HIMX) (the "Company") filed its Annual Report on Form 20-F for the fiscal year ended December 31, 2008 (the "2008 Form 20-F"). The 2008 Form 20-F provided updates to the Company's consolidated results of operations for the year ended December 31, 2008 that was previously announced in the Company's press release dated February 18, 2009 (the "Unaudited Results"). The updates are primarily to reflect a full allowance for doubtful accounts of $25.3 million related to Himax's accounts receivable from SVA-NEC Liquid Crystal Display Co., Ltd. ("SVA-NEC") as of December 31, 2008 and its associated tax benefit of $7.9 million, among other necessary adjustments such as an increase in RSU forfeiture rate estimates, in the fourth quarter of 2008.
SVA-NEC is a subsidiary of SVA (Group) Co., Ltd. ("SVA Group"). It is one of China's largest TFT-LCD panel manufacturers. Beginning in the second half of 2008, the worldwide financial crisis has adversely impacted the demand of TFT-LCD panels. As a result, the whole TFT-LCD industry has suffered from over-supply and has experienced significant pricing pressure and financial difficulty. Since around September 2008, SVA-NEC has delayed paying a large portion of our accounts receivable outstanding from them. At the time, SVA-NEC had undertaken to fully resolve these outstanding payments promptly. Moreover, it also made a few partial payments to the Company in January and February 2009. Therefore the Company did not make any allowance for doubtful accounts for SVA-NEC in the Unaudited Results furnished on February 19, 2009.
Subsequently, in late February 2009, it was reported that SVA Group was in financial distress, and in late March 2009, the Shanghai municipal government set up a conservatorship committee to assist in SVA Group's restructuring. Two other group companies of SVA Group, SVA Electron Co., Ltd. and SVA Information Industry Co., Ltd., are indirect shareholders of SVA-NEC and are listed on the Shanghai Stock Exchange. Since the end of March 2009, the stocks of these two companies have also suspended trading for extended periods of time. In view of this latest development and our increasing concern about SVA-NEC's financial condition, the Company concluded that our accounts receivable from SVA-NEC was impaired and the Company recognized a valuation allowance of $25.3 million for the probable credit loss as of December 31, 2008, the amount for which payment has not been collected thus far, on our accounts receivable outstanding from SVA-NEC as of December 31, 2008. This is the first time for the Company, since its in ception in 2001, to make such a large amount of allowance for doubtful accounts. Notwithstanding that, we will continue to seek to recover the accounts receivable from SVA-NEC even though our efforts may not be successful. In 2009 to date, the Company has made several shipments to SVA-NEC, the majority of which were guaranteed by credible third parties. To the extent that SVA-NEC's financial condition does not improve, the maximum amount of additional allowance for doubtful accounts in relation to those un-guaranteed shipments is $0.6 million.
The Company's revenues and gross profit for the fourth quarter and full year of 2008 remain unchanged as previously reported. The bad debt expense related to SVA-NEC resulted in an increase of $25.3 million in the Company's operating expenses and a decrease in the operating income by $25.3 million for the fourth quarter and full year of 2008. The bad debt expense related to SVA-NEC and its associated tax benefit together caused the Company's net income to decrease by $17.4 million for the fourth quarter and full year of 2008.
For the fourth quarter of 2008, revised operating loss was $21.3 million compared to previously reported operating income of $3.6 million. Revised tax benefit was $7.0 million compared to a tax expense of $0.7 million as furnished previously. As a result, the Company's revised net loss and loss per share were $13.2 million and $0.07, respectively, compared to a net income of $4.0 million and earnings per share of $0.02 as furnished previously.
For the full year of 2008, revised operating income was $60.2 million compared to previously reported operating income of $85.0 million. Revised tax benefit was $8.7 million compared to a tax benefit of $1.0 million as furnished previously. As a result, the Company's revised net income and earnings per share were $76.4 million and $0.40, respectively, compared to a net income of $93.5 million and earnings per share of $0.49, respectively, as furnished previously.
A reconciliation of our revised and originally furnished gross margin, operating margin and net margin excluding share-based compensation and acquisition-related charges, a non-GAAP financial measure, to our revised and originally furnished GAAP gross margin, GAAP operating margin and GAAP net margin, our most comparable GAAP figure, is set out in the attached reconciliation schedule.
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 offering to include timing controllers, LCD TV 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, Suzhou and Shenzhen, China; Yokohama, Japan; Anyangsi Kyungkido, and Matsusaka, 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 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
Ended Dec. 31, 2008
As As
revised furnished
May 15, Feb 19,
2009 2009
-------- --------
Revenues
Revenues from third parties, net $ 46,977 $ 46,977
Revenues from related parties, net 77,301 77,301
-------- --------
124,278 124,278
-------- --------
Costs and expenses:
Cost of revenues 98,186 98,186
Research and development 15,945 16,298
General and administrative 3,951 3,961
Bad debt expense 25,297 --
Sales and marketing 2,179 2,277
-------- --------
Total costs and expenses 145,558 120,722
-------- --------
Operating income (loss) (21,280) 3,556
-------- --------
Non operating income (loss):
Interest income 900 900
Foreign exchange losses, net (603) (605)
Other income, net 186 186
-------- --------
483 481
-------- --------
Earnings (loss) before income taxes and minority
interest (20,797) 4,037
Income tax expense (benefit) (6,992) 700
-------- --------
Income (loss) before minority interest (13,805) 3,337
Minority interest 649 649
-------- --------
Net income (loss) $(13,156) $ 3,986
======== ========
Basic earnings (loss) per ordinary share and ADS $ (0.07) $ 0.02
======== ========
Diluted earnings (loss) per ordinary share
and ADS $ (0.07) $ 0.02
======== ========
Basic Weighted Average Outstanding Shares 192,305 192,305
Diluted Weighted Average Outstanding Shares 192,305 192,305
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 categories is summarized as follows:
Three Months
Ended Dec. 31, 2008
As As
revised furnished
May 15, Feb 19,
2009 2009
---------- ----------
Share-based compensation
Cost of revenues $ 14 $ 14
Research and development 1,496 1,850
General and administrative 207 260
Sales and marketing 208 263
Income tax benefit (53) (53)
---------- ----------
Total $ 1,872 $ 2,334
========== ==========
The amount of acquisition-related charges included in applicable
statements of income categories is summarized as follows:
Research and development $ 239 $ 239
Sales and marketing 290 290
Income tax benefit (162) (162)
---------- ----------
Total $ 367 $ 367
========== ==========
Himax Technologies, Inc.
Condensed Consolidated Statements of Income
(Amounts in Thousands of U.S. Dollars, Except Per Share Data)
Twelve Months Ended
December 31, 2008
Audited Unaud-
revised ited
results results
furni- furni-
shed shed
on on
May 15, Feb 19,
2009 2009
-------- --------
Revenues
Revenues from third parties, net $312,336 $312,336
Revenues from related parties, net 520,463 520,463
-------- --------
832,799 832,799
-------- --------
Costs and expenses:
Cost of revenues 628,693 628,693
Research and development 87,574 87,927
General and administrative 19,353 19,363
Bad debt expense 25,305 8
Sales and marketing 11,692 11,790
-------- --------
Total costs and expenses 772,617 747,781
-------- --------
Operating income 60,182 85,018
-------- --------
Non operating income (loss):
Interest income 3,315 3,315
Foreign exchange losses, net (844) (846)
Other income, net 1,382 1,382
-------- --------
3,853 3,851
-------- --------
Earnings before income taxes and
minority interest 64,035 88,869
Income tax benefit (8,689) (997)
-------- --------
Income before minority interest 72,724 89,866
Minority interest 3,657 3,657
-------- --------
Net income $ 76,381 $ 93,523
======== ========
Basic earnings per ordinary share and ADS $ 0.40 $ 0.49
======== ========
Diluted earnings per ordinary share and ADS $ 0.40 $ 0.49
======== ========
Basic Weighted Average Outstanding Shares 191,615 191,615
Diluted Weighted Average Outstanding Shares 191,877 191,843
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 categories is summarized Twelve Months Ended
as follows: December 31, 2008
As revised As furnished
May 15, Feb 19,
2009 2009
---------- ----------
Share-based compensation
Cost of revenues $ 435 $ 435
Research and development 15,861 16,215
General and administrative 2,813 2,866
Sales and marketing 2,691 2,746
Income tax benefit (687) (687)
---------- ----------
Total $ 21,113 $ 21,575
========== ==========
The amount of acquisition-related charges
included in applicable statements of income
categories is summarized as follows:
Research and development $ 957 $ 957
Sales and marketing 1,158 1,158
Income tax benefit (1,244) (1,244)
---------- ----------
Total $ 871 $ 871
========== ==========
Himax Technologies, Inc.
Condensed Consolidated Balance Sheets
(Amounts in Thousands of U.S. Dollars, Except Per Share Data)
December 31, 2008
Audited
revised Unaudited
results results
furnished on furnished on
May 15, 2009 Feb 19, 2009
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 135,200 $ 135,200
Marketable securities available-for-sale 13,870 13,870
Restricted marketable securities -- 2,160
Accounts receivable, less allowance for
doubtful accounts, sales returns and
discounts 51,029 76,358
Accounts receivable from related parties,
less allowance for doubtful accounts,
sales returns and discounts 104,477 104,445
Inventories 96,921 96,921
Deferred income taxes 21,446 15,507
Prepaid expenses and other current assets 11,707 11,707
----------- -----------
Total current assets $ 434,650 $ 456,168
----------- -----------
Property, plant and equipment, net 55,111 55,111
Deferred income taxes 23,029 23,354
Goodwill 26,846 26,846
Intangible assets, net 10,965 10,965
Investments in non-marketable securities 11,619 11,619
Refundable deposits and prepaid pension
costs 1,168 1,168
Restricted marketable securities 2,160 --
----------- -----------
130,898 129,063
----------- -----------
Total assets $ 565,548 $ 585,231
=========== ===========
Liabilities, Minority Interest and
Stockholders' Equity
Current liabilities:
Accounts payable $ 53,720 $ 53,720
Income tax payable 15,455 17,900
Other accrued expenses and other
current liabilities 22,455 22,455
--------- ---------
Total current liabilities $ 91,630 $ 94,075
Accrued pension liabilities 214 214
Deferred income taxes 3,224 3,352
Income tax payable 474 --
----------- -----------
Total liabilities $ 95,542 $ 97,641
----------- -----------
Minority interest $ 6,835 $ 6,835
----------- -----------
Stockholders' equity:
Ordinary shares, US$0.0001 par value,
500,000,000 shares authorized;
190,119,594 shares issued and
outstanding at December 31, 2008 19 19
Additional paid-in capital 238,499 238,961
Accumulated other comprehensive loss (314) (334)
Unappropriated retained earnings 224,967 242,109
----------- -----------
Total stockholders' equity $ 463,171 $ 480,755
----------- -----------
Total liabilities, minority interest and
stockholders' equity $ 565,548 $ 585,231
=========== ===========
Himax Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
Three Months
Ended December 31, 2008
As revised As furnished
May 15, Feb 19,
2009 2009
-------- --------
Cash flows from operating activities:
Net income (loss) $(13,156) $ 3,986
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation and amortization 3,210 3,210
Bad debt expense 25,297 --
Share-based compensation expenses 1,926 2,388
Minority interest (649) (649)
Loss on disposal of property, plant and
equipment 6 6
Gain on disposal of subsidiary shares (27) (27)
Gain on disposal of marketable
securities, net (119) (119)
Deferred income tax benefit (11,026) (5,279)
Inventories write downs 3,359 3,359
Changes in operating assets and
liabilities:
Accounts receivable 29,070 29,038
Accounts receivable from related parties 41,197 41,229
Inventories 15,202 15,202
Prepaid expenses and other current
assets 3,677 3,677
Accounts payable (67,463) (67,463)
Income tax payable 3,430 5,400
Other accrued expenses and other current
liabilities (5,135) (4,925)
-------- --------
Net cash provided by operating
activities 28,799 29,033
-------- --------
Cash flows from investing activities:
Purchase of property and equipment (9,364) (9,364)
Proceeds from disposal of property and
equipment 3 3
Purchase of available-for-sale marketable
securities (21,487) (21,487)
Disposal of available-for-sale marketable
securities 16,763 16,763
Proceeds from disposal of subsidiary
shares by Himax Technologies Limited 56 56
Purchase of subsidiary shares from
minority interest (351) (351)
Increase in refundable deposits (3) (3)
Pledge of restricted marketable
securities (17) (49)
-------- --------
Net cash used in investing activities (14,400) (14,432)
-------- --------
Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
Three Months
Ended December 31, 2008
As revised As furnished
May 15, Feb 19,
2009 2009
---------- ----------
Cash flows from financing activities:
Proceeds from issuance of new shares
by subsidiaries $ 1,034 $ 824
Payments to acquire of ordinary shares
for retirement (3,195) (3,195)
---------- ----------
Net cash used in financing activities (2,161) (2,371)
---------- ----------
Effect of exchange rate changes on cash
and cash equivalents (146) (169)
---------- ----------
Net increase in cash and cash equivalents 12,092 12,061
Cash and cash equivalents at beginning
of period 123,108 123,139
---------- ----------
Cash and cash equivalents at end of period $ 135,200 $ 135,200
========== ==========
Supplemental disclosures of cash flow
information:
Cash paid during the period for
income taxes $ 517 $ 517
========== ==========
Himax Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
Twelve Months
Ended December 31, 2008
Audited
revised Unaudited
results results
furnished on furnished on
May 15, 2009 Feb 19, 2009
------------ ------------
Cash flows from operating activities:
Net income $ 76,381 $ 93,523
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 12,318 12,318
Bad debt expense 25,305 --
Share-based compensation expenses 9,086 9,548
Minority interest (3,657) (3,657)
Loss on disposal of property and
equipment 89 89
Gain on disposal of subsidiary
shares (341) (341)
Gain on disposal of marketable
securities, net (913) (913)
Deferred income tax benefit (12,348) (6,601)
Inventories write downs 18,028 18,028
Changes in operating assets and
liabilities:
Accounts receivable 12,342 12,318
Accounts receivable from related
parties 89,850 89,882
Inventories 1,371 1,371
Prepaid expenses and other
current assets 8,012 8,012
Accounts payable (93,301) (93,301)
Income tax payable (3,206) (1,236)
Other accrued expenses and other
current liabilities (2,516) (2,306)
------------ ------------
Net cash provided by operating
activities 136,500 136,734
------------ ------------
Cash flows from investing activities:
Purchase of property and equipment (17,490) (17,490)
Proceeds from disposal of property
and equipment 32 32
Purchase of available-for-sales
marketable securities (68,892) (68,892)
Disposal of available-for-sale
marketable securities 71,172 71,172
Proceeds from disposal of
subsidiary shares by Himax
Technologies Limited 719 719
Purchase of investments in non-
marketable securities (4,481) (4,481)
Purchase of subsidiary shares from
minority interest (673) (673)
Increase in refundable deposits (86) (86)
Pledge of restricted marketable
securities (2,065) (2,065)
------------ ------------
Net cash used in investing
activities (21,764) (21,764)
------------ ------------
Himax Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
Twelve Months
Ended December 31, 2008
Audited
revised Unaudited
results results
furnished on furnished on
May 15, 2009 Feb 19, 2009
------------ ------------
Cash flows from financing activities:
Distribution of cash dividends $ (66,817) $ (66,817)
Proceeds from issuance of new shares
by subsidiaries 1,123 913
Payments to acquire ordinary shares
for retirement (8,656) (8,656)
------------ ------------
Net cash used in financing activities (74,350) (74,560)
------------ ------------
Effect of exchange rate change on cash
and cash equivalents 34 10
------------ ------------
Net increase in cash and cash equivalents 40,420 40,420
Cash and cash equivalents at beginning
of year 94,780 94,780
------------ ------------
Cash and cash equivalents at end of year $ 135,200 $ 135,200
============ ============
Supplemental disclosures of cash flow
information:
Cash paid during the year for
income taxes $ 7,175 $ 7,175
============ ============
Himax Technologies, Inc.
Unaudited Supplemental Data - Reconciliation Schedule
(Amounts in Thousands of U.S. Dollars)
Gross Margin, Operating Margin (Loss) and Net Margin (Loss) Excluding
Share-based Compensation and Acquisition-Related Charges:
Three Months
Ended December 31, 2008
As revised As furnished
May 15, 2009 Feb 19, 2009
------------ ------------
Revenues $ 124,278 $ 124,278
Gross profit 26,092 26,092
Add: Share-based compensation - Cost
of revenues 14 14
Gross profit excluding share-based
compensation 26,106 26,106
Gross margin excluding share-based
compensation 21.0% 21.0%
Operating income (loss) (21,280) 3,556
Add: Share-based compensation 1,925 2,387
Operating income (loss) excluding
share-based compensation (19,355) 5,943
Add: Acquisition-related charges-
Intangible assets amortization 529 529
Operating income (loss) excluding
share-based compensation and
acquisition-related charges (18,826) 6,472
Operating margin (loss) excluding
share-based compensation and
acquisition-related charges (15.1%) 5.2%
Net income (loss) (13,156) 3,986
Add: Share-based compensation, net
of tax 1,872 2,334
Add: Acquisition-related charges,
net of tax 367 367
Net income (loss) excluding share-based
compensation and acquisition-related
charges (10,917) 6,687
Net margin (loss) excluding share-based
compensation and acquisition-related
charges (8.8%) 5.4%
* Gross margin excluding share-based compensation equals gross
profit excluding share-based compensation divided by revenues
* Operating margin (loss) excluding share-based compensation and
acquisition-related charges equals operating income excluding
share-based compensation and acquisition-related charges divided
by revenues
* Net margin (loss) 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
(Amounts in Thousands of U.S. Dollars Except for Share Data)
Gross Margin, Operating Margin and Net Margin Excluding Share-based
Compensation and Acquisition-Related Charges:
Twelve Months
Ended December 31, 2008
As revised As furnished
May 15, 2009 Feb 19, 2009
------------ ------------
Revenues $832,799 $832,799
Gross profit 204,106 204,106
Add: Share-based compensation - Cost
of revenues 435 435
Gross profit excluding share-based
compensation 204,541 204,541
Gross margin excluding share-based
compensation 24.6% 24.6%
Operating income 60,182 85,018
Add: Share-based compensation 21,800 22,262
Operating income excluding share-based
compensation 81,982 107,280
Add: Acquisition-related charges-
Intangible assets amortization 2,115 2,115
Operating income excluding share-based
compensation and acquisition-related
charges 84,097 109,395
Operating margin excluding share-based
compensation and acquisition-related
charges 10.1% 13.1%
Net income 76,381 93,523
Add: Share-based compensation, net
of tax 21,113 21,575
Add: Acquisition-related charges, net
of tax 871 871
Net income excluding share-based
compensation and acquisition-related
charges 98,365 115,969
Net margin excluding share-based
compensation and acquisition-related
charges 11.8% 13.9%
* 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
Diluted Earnings (Loss) Per Share Excluding Share-based Compensation
and Acquisition-Related Charges:
Three Months
Ended December 31, 2008
As revised As furnished
May 15, 2009 Feb 19, 2009
------------ ------------
Diluted GAAP EPS $(0.07) $0.02
Add: Share-based compensation per
diluted share $0.01 $0.01
Add: Acquisition-related charges per
diluted share $-- $--
Diluted non GAAP EPS excluding share-based
compensation and acquisition-related charges $(0.06) $0.03
Numbers do not add up due to rounding
Diluted Earnings Per Share Excluding Share-based Compensation
and Acquisition-Related Charges:
Twelve Months
Ended December 31, 2008
As revised As furnished
May 15, 2009 Feb 19, 2009
------------ ------------
Diluted GAAP EPS $0.40 $0.49
Add: Share-based compensation per
diluted share $0.11 $0.11
Add: Acquisition-related charges per
diluted share $-- $--
Diluted non GAAP EPS excluding share-based
compensation and acquisition-related charges $0.51 $0.60
Numbers do not add up due to rounding
CONTACT: Himax Technologies, Inc.
Max Chan, Chief Financial Officer
+886-2-2370-3999 Ext. 22300
max_chan@himax.com.tw
Jessie Wang, Investor Relations
+886-2-2370-3999 Ext. 22618
jessie_wang@himax.com.tw
In the U.S.
The Ruth Group
Joseph Villalta
+1-646-536-7003
jvillalta@theruthgroup.com