EXHIBIT 99.1
TAINAN, Taiwan, May 10, 2011 (GLOBE NEWSWIRE) -- Himax Technologies, Inc. ("Himax" or "Company") (Nasdaq:HIMX) today reported financial results for the first quarter ended March 31, 2011.
For the first quarter of 2011, Himax reported net revenues of $141.1 million, representing a 19.6% decrease from $175.5 million in the first quarter of 2010, and a 0.1% decrease from $141.2 million in the fourth quarter of 2010. Gross margin was 20.1% in the first quarter of 2011, up 30 basis points year-over-year and down 140 basis points, sequentially. Operating income in the first quarter was $2.5 million, compared to $10.1 million for the same period last year and $12.9 million in the previous quarter.
Net income attributable to Himax stockholders for the first quarter of 2011 was $2.7 million or $0.02 per diluted ADS, down from $9.1 million or $0.05 per diluted ADS in the first quarter of 2010, and down from $11.7 million or $0.07 per diluted ADS in the fourth quarter of 2010.
Excluding share-based compensation and acquisition-related charges, non-GAAP operating income for the first quarter of 2011 was $4.3 million, down from $12.5 million in the same period last year, and down from $14.5 million in the previous quarter.
Non-GAAP net income attributable to Himax stockholders for the first quarter of 2011 was $4.1 million or $0.02 per diluted ADS, down from $11.2 million or $0.06 per diluted ADS in the first quarter of 2010, and down from $13.0 million or $0.07 per diluted ADS in the fourth quarter of 2010.
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, "In the first quarter, small and medium-sized applications and non-driver products continued to demonstrate strong growth momentum. Revenues from small and medium-sized applications and non-driver products both hit record highs as a percentage of revenues. The big picture summary of our first quarter performance is that while we achieved a more balanced product mix and continued to improve on customer diversification, our gross margin and bottom line profitability were not satisfactory. Notwithstanding the short-term unsatisfactory margin, we are encouraged by the fundamental improvements in our product and customer diversification, which is in line with the overall direction we set a long time ago and will greatly enhance our corporate value in the long-term. While the short-term low margin is a concern, we see this as temporary in nature and we are fully committed to improving our gross margin in short time."
Mr. Wu continued, "For the driver IC product line, cell phone, or more specifically, smart phone, and medium size panels are the two segments which show the best growth potential. We are leading the market in technologies such as color enhancement, 3D data processing, MIPI high speed interface as well as HD720 and WXGA resolutions. We are also excited about CMOS image sensors where we are seeing a surge in demand. Our customer base for CMOS image sensor is mostly leading brand names for both handsets and laptops. We continue to receive positive feedback regarding product performance and win new projects from these customers. On the wafer-level optics product line we just began our first mass production shipment and look for demand to pickup in the second quarter and onward."
Mr. Wu continued, "Moving to the second quarter, we are seeing strong demand pick-up across literally all product lines. However, even though the recent Japan earthquake has had limited impact on our own display driver supply chain, it does pose an uncertainty to our second quarter guidance as we are not entirely certain how the overall industry supply chain has been affected. For the second quarter, we expect revenues to go up 10% to 15% with gross margin to decline 1% to 1.5%. Our GAAP earnings per ADS is expected to be in the range of 2 to 3 cents."
Investor Conference Call / Webcast Details
The Company's management will review detailed first quarter 2011 results on Monday, May 9, 2011 at 7:00 PM NYC (7:00 AM, Tuesday, May 10, Taiwan time). The conference dial-in numbers are +1-201-689-8471 (international) and +1-877-407-4018 (U.S. domestic). A live webcast of the conference call will be available on the Company's website at www.himax.com.tw. The playback will be available beginning two hours after the call through 12:00 PM Taiwan time on Wednesday, May 16, 2011 (midnight U.S. Eastern Standard Time) at www.himax.com.tw and by telephone at +1-858-384-5517 (international) or +1-877-870-5176 (U.S. domestic). The conference ID number is 370986.
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 tablet PCs, 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, touch controller ICs, LCD TV and monitor chipset solutions, LCOS projector solutions, power management ICs, CMOS Image Sensors, Infinitely Color Technology and 2D to 3D conversion solutions. 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; Cheonan-si, Chungcheongnam-do, South Korea; and Irvine, California, USA.
Forward-Looking Statements:
Factors that could cause actual events or results to differ materially include, but not limited to, general business and economic conditions and the state of the semiconductor industry; market acceptance and competitiveness of the driver and non-driver products developed by the Company; demand for end-use applications products; reliance on a small group of principal customers; the uncertainty of continued success in technological innovations; our ability to develop and protect our intellectual property; pricing pressures including declines in average selling prices; changes in customer order patterns; changes in estimated full-year effective tax rate; shortages in supply of key components; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; our ability to collect accounts receivable and manage inventory; the uncertainty of success in our Taiwan listing plan which is still under review by Taiwan regulatory authorities and subject to change due to, among other things, changes in either Taiwan or US authorities' policies and Taiwan regulatory authorities' acceptance of the Company's Taiwan listing application 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, 2009 filed with SEC on dated June 3, 2010, as amended.
– Tables Attached –
| 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 | |||
| Three Months | December | ||
| Ended March 31, | 31, | ||
| 2011 | 2010 | 2010 | |
| Revenues | |||
| Revenues from third parties, net | $74,093 | $70,940 | $67,125 |
| Revenues from related parties, net | 67,000 | 104,558 | 74,081 |
| 141,093 | 175,498 | 141,206 | |
| Costs and expenses: | |||
| Cost of revenues | 112,783 | 140,773 | 110,884 |
| Research and development | 19,790 | 17,808 | 17,010 |
| General and administrative | 4,281 | 4,043 | 5,582 |
| Sales and marketing | 1,697 | 2,749 | (5,149) |
| Total costs and expenses | 138,551 | 165,373 | 128,327 |
| Operating income | 2,542 | 10,125 | 12,879 |
| Non operating income (loss): | |||
| Interest income | 140 | 104 | 141 |
| Equity in losses of equity method investees | (81) | (59) | (146) |
| Foreign exchange gains (losses), net | 117 | (11) | (596) |
| Interest expense | (97) | --- | (106) |
| Other income (loss), net | (234) | 88 | 487 |
| (155) | 122 | (220) | |
| Earnings before income taxes | 2,387 | 10,247 | 12,659 |
| Income tax expense | 597 | 2,049 | 2,154 |
| Net income | 1,790 | 8,198 | 10,505 |
| Net loss attributable to noncontrolling interests | 933 | 940 | 1,148 |
| Net income attributable to Himax stockholders | $2,723 | $9,138 | $11,653 |
| Basic earnings per ordinary share attributable to Himax stockholders | $0.01 | $0.03 | $0.03 |
| Diluted earnings per ordinary share attributable to Himax stockholders | $0.01 | $0.03 | $0.03 |
| Basic earnings per ADS attributable to Himax stockholders | $0.02 | $0.05 | $0.07 |
| Diluted earnings per ADS attributable to Himax stockholders | $0.02 | $0.05 | $0.07 |
| Basic Weighted Average Outstanding Ordinary Shares | 354,633 | 357,557 | 354,633 |
| Diluted Weighted Average Outstanding Ordinary Shares | 355,833 | 359,102 | 355,061 |
| Himax Technologies, Inc. | |||
| Unaudited Supplemental Financial Information | |||
| (Amounts in Thousands of U.S. Dollars) | |||
| Three | |||
| Months | |||
| Ended | |||
| The amount of share-based compensation included in applicable statements of income categories is summarized as follows: | Three Months | December | |
| Ended March 31, | 31, | ||
| 2011 | 2010 | 2010 | |
| Share-based compensation | |||
| Cost of revenues | $11 | $22 | $23 |
| Research and development | 869 | 1,374 | 779 |
| General and administrative | 142 | 229 | 131 |
| Sales and marketing | 140 | 218 | 137 |
| Income tax benefit | (178) | (187) | (177) |
| Total | $984 | $1,656 | $893 |
| The amount of acquisition-related charges included in applicable statements of income categories is summarized as follows: | |||
| Acquisition-related charges | |||
| Research and development | $258 | $259 | $259 |
| Sales and marketing | 289 | 289 | 289 |
| Income tax benefit | (125) | (139) | (125) |
| Total | $422 | $409 | $423 |
| Himax Technologies, Inc. | |||
| Unaudited Condensed Consolidated Balance Sheets | |||
| (Amounts in Thousands of U.S. Dollars, Except Per Share Data) | |||
March 31, 2011 | December 31, 2010 | March 31, 2010 | |
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $109,519 | $96,842 | $155,932 |
| Investments in marketable securities available-for-sale | 6,834 | 8,632 | 5,198 |
| Accounts receivable, less allowance for doubtful accounts, sales returns and discounts | 83,098 | 80,212 | 71,354 |
| Accounts receivable from related parties, less allowance for sales returns and discounts | 83,690 | 95,964 | 129,519 |
| Inventories | 130,057 | 117,988 | 65,401 |
| Deferred income taxes | 11,871 | 11,977 | 17,590 |
| Restricted cash and cash equivalents | 57,500 | 58,500 | --- |
| Prepaid expenses and other current assets | 16,136 | 15,809 | 13,753 |
| Total current assets | $498,705 | $485,924 | $458,747 |
| Investment securities, including securities measured at fair value | 24,568 | 24,622 | 11,619 |
| Equity method investments | 781 | 869 | 1,430 |
| Property, plant and equipment, net | 48,658 | 47,561 | 50,783 |
| Deferred income taxes | 24,502 | 24,729 | 24,695 |
| Goodwill | 26,846 | 26,846 | 26,846 |
| Intangible assets, net | 6,125 | 6,674 | 8,322 |
| Other assets | 2,043 | 2,395 | 2,541 |
| 133,523 | 133,696 | 126,236 | |
| Total assets | $632,228 | $619,620 | $584,983 |
| Liabilities and Equity | |||
| Current liabilities: | |||
| Short-term debt | $57,000 | $57,000 | $ --- |
| Accounts payable | 124,066 | 115,922 | 115,916 |
| Income taxes payable | 9,182 | 9,125 | 16,495 |
| Deferred income taxes | 94 | 96 | --- |
| Other accrued expenses and other current liabilities | 25,843 | 23,605 | 16,017 |
| Total current liabilities | $216,185 | $205,748 | $148,428 |
| Other liabilities | 6,786 | 6,896 | 5,605 |
| Total liabilities | $222,971 | $212,644 | $154,033 |
| Equity | |||
| Himax stockholders' equity: | |||
| Ordinary shares, US$0.3 par value, 1,000,000,000 shares authorized; 353,842,764 shares, 353,842,764 shares, and 355,531,454 shares issued and outstanding at March 31, 2011, December 31, 2010, and March 31, 2010, respectively | $106,153 | $106,153 | $106,659 |
| Additional paid-in capital | 100,824 | 100,291 | 102,123 |
| Accumulated other comprehensive income | 994 | 1,204 | 35 |
| Unappropriated retained earnings | 200,953 | 198,230 | 218,259 |
| Himax stockholders' equity | $408,924 | $405,878 | $427,076 |
| Noncontrolling interests | 333 | 1,098 | 3,874 |
| Total equity | $409,257 | $406,976 | $430,950 |
| Total liabilities and equity | $632,228 | $619,620 | $584,983 |
| Himax Technologies, Inc. | |||
| Unaudited Condensed Consolidated Statements of Cash Flows | |||
| (Amounts in Thousands of U.S. Dollars) | |||
| Three | |||
| Months | |||
| Ended | |||
| Three Months | December | ||
| Ended March 31, | 31, | ||
| 2011 | 2010 | 2010 | |
| Cash flows from operating activities: | |||
| Net income | $1,790 | $8,198 | $10,505 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Depreciation and amortization | 3,279 | 3,522 | 3,275 |
| Share-based compensation expenses | 1,162 | 1,843 | 1,071 |
| Equity in losses of equity method investees | 81 | 59 | 146 |
| Gain on disposal of marketable securities, net | (193) | (59) | (197) |
| Unrealized loss (gain) on conversion option | 460 | --- | (258) |
| Interest income from amortization of discount on investment in corporate bonds | (48) | --- | (34) |
| Deferred income tax expense (benefit) | 242 | (375) | 6,067 |
| Inventories write downs | 2,764 | 2,864 | 4,112 |
| Changes in operating assets and liabilities: | |||
| Accounts receivable | (2,886) | (6,858) | 4,591 |
| Accounts receivable from related parties | 12,289 | 8,656 | 1,645 |
| Inventories | (14,833) | (498) | (10,436) |
| Prepaid expenses and other current assets | (325) | 462 | (4,058) |
| Accounts payable | 8,144 | 27,837 | 9,572 |
| Income taxes payable | 52 | 2,354 | (3,348) |
| Other accrued expenses and other current liabilities | 258 | (2,199) | 3,673 |
| Other liabilities | (11) | --- | 3,476 |
| Net cash provided by operating activities | 12,225 | 45,806 | 29,802 |
| Cash flows from investing activities: | |||
| Purchase of property and equipment | (1,851) | (2,388) | (1,831) |
| Purchase of available-for-sale marketable securities | (6,014) | (5,577) | (15,958) |
| Disposal of available-for-sale marketable securities | 7,733 | 11,190 | 10,399 |
| Purchase of investment securities | --- | --- | (5,500) |
| Purchase of equity method investments | --- | (897) | (9) |
| Release (pledge) of restricted cash equivalents and marketable securities | 1,002 | --- | (13,512) |
| Decrease in other assets | 1 | 69 | 88 |
| Net cash provided by (used in) investing activities | 871 | 2,397 | (26,323) |
| Himax Technologies, Inc. | |||
| Unaudited Condensed Consolidated Statements of Cash Flows | |||
| (Amounts in Thousands of U.S. Dollars) | |||
| Three | |||
| Months | |||
| Ended | |||
| Three Months | December | ||
| Ended March 31, | 31, | ||
| 2011 | 2010 | 2010 | |
| Cash flows from financing activities: | |||
| Proceeds from issuance of new shares by subsidiaries | $21 | 65 | 95 |
| Payments to acquire ordinary shares for retirement | --- | (3,642) | --- |
| Proceeds from disposal of subsidiary shares to noncontrolling interests by Himax Technologies Limited | --- | 418 | 135 |
| Purchase of subsidiary shares from noncontrolling interests | (461) | (38) | (60) |
| Proceeds from borrowing of short-term debt | --- | --- | 13,000 |
| Net cash provided by (used in) financing activities | (440) | (3,197) | 13,170 |
| Effect of foreign currency exchange rate changes on cash and cash equivalents | 21 | 2 | 54 |
| Net increase in cash and cash equivalents | 12,677 | 45,008 | 16,703 |
| Cash and cash equivalents at beginning of period | 96,842 | 110,924 | 80,139 |
| Cash and cash equivalents at end of period | $109,519 | $155,932 | $96,842 |
| Supplemental disclosures of cash flow information: | |||
| Cash paid during the period for: | |||
| Interest expense | $97 | $ --- | $165 |
| Income taxes | $206 | $47 | $41 |
| 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 | |||
| Ended | |||
| Three Months | December | ||
| Ended March 31, | 31, | ||
| 2011 | 2010 | 2010 | |
| Revenues | $141,093 | $175,498 | $141,206 |
| Gross profit | 28,310 | 34,725 | 30,322 |
| Add: Share-based compensation – Cost of revenues | 11 | 22 | 23 |
| Gross profit excluding share-based compensation | 28,321 | 34,747 | 30,345 |
| Gross margin excluding share-based compensation | 20.1% | 19.8% | 21.5% |
| Operating income | 2,542 | 10,125 | 12,879 |
| Add: Share-based compensation | 1,162 | 1,843 | 1,070 |
| Operating income excluding share-based compensation | 3,704 | 11,968 | 13,949 |
| Add: Acquisition-related charges –Intangible assets amortization | 547 | 548 | 548 |
| Operating income excluding share-based compensation and acquisition-related charges | 4,251 | 12,516 | 14,497 |
| Operating margin excluding share-based compensation and acquisition-related charges | 3.0% | 7.1% | 10.3% |
| Net income attributable to Himax stockholders | 2,723 | 9,138 | 11,653 |
| Add: Share-based compensation, net of tax | 984 | 1,656 | 893 |
| Add: Acquisition-related charges, net of tax | 422 | 409 | 423 |
| Net income attributable to Himax stockholders excluding share-based compensation and acquisition-related charges | 4,129 | 11,203 | 12,969 |
| Net margin attributable to Himax stockholders excluding share-based compensation and acquisition-related charges | 2.9% | 6.4% | 9.2% |
| *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 Ordinary Share Attributable to Himax stockholders Excluding Share-based Compensation and Acquisition-Related Charges: | |
| Three Months | |
| Ended March 31, | |
| 2011 | |
| Diluted GAAP EPS attributable to Himax stockholders | $0.01 |
| Add: Share-based compensation per diluted share | $--- |
| Add: Acquisition-related charges per diluted share | $--- |
| Diluted non GAAP EPS attributable to Himax stockholders excluding share-based compensation and acquisition-related charges | $0.01 |
CONTACT: Jessie Wang / Jessica Huang
Investor Relations
Himax Technologies, Inc.
+886-2-2370-3999 Ext. 22618 / 22513
jessie_wang@himax.com.tw
jessica_huang@himax.com.tw
In the U.S.
Joseph Villalta
The Ruth Group
+1-646-536-7003
jvillalta@theruthgroup.com