FORM 6-K
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule
13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of May, 2006
Commission File Number: 000-51847
Himax Technologies, Inc.
(Exact name of registrant as specified in its charter)
10th Floor, No. 605, Chungshan Road
Hsinhua, Tainan County 712
Taiwan, Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes No X Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes No X Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes No X If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
| Himax Technologies, Inc. | ||||
| INDEX TO EXHIBITS | ||||
| Exhibit | ||||
| 99.1 | Press release entitled, “HIMAX REPORTS FIRST QUARTER 2006 RESULTS” dated May 8, 2006. | |||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| HIMAX TECHNOLOGIES, INC. | ||
| By: | /s/ Max Chan | |
| Name: | Max Chan | |
| Title: | Chief Financial Officer | |
Date: May 1, 2006
HIMAX REPORTS FIRST QUARTER 2006 RESULTS
- First quarter 2006 net revenue increased to $174.9 million, 81% year-over-year growth
- First quarter 2006 net income increased to $21.9 million, 117% year-over-year growth; diluted EPS of $0.12 represents 115% year-over-year growth
Tainan, Taiwan, May 9, 2006 - Himax Technologies, Inc. (the Company) (Nasdaq: HIMX) today reported financial results for the first quarter ended March 31, 2006.
Net revenue for the first quarter of 2006 was $174.9 million, an 81% increase as compared to $96.4 million for the first quarter of 2005, and a 1% decrease as compared to $177.3 million in the fourth quarter of 2005. Net income for the first quarter of 2006 was $21.9 million, or $0.12 per diluted share, representing a 117% increase compared to net income of $10.1 million, or $0.06 per diluted share in the first quarter of 2005, and a 29% increase compared to $17.0 million, or $0.09 per diluted share in the fourth quarter of 2005. Share-based compensation was $1.1 million, $1.5 million and $4.1 million in the first quarter of 2006, the first quarter of 2005 and the fourth quarter of 2005, respectively.
Gross margin in the first quarter of 2006 was 21.5%, as compared to 22.2% in the first quarter of 2005, and 21.2% in the fourth quarter of 2005. Operating margin was 13.5% in the first quarter of 2006, as compared to 11.6% in the first quarter of 2005, and 10.8% in the fourth quarter of 2005.
Excluding share-based compensation, gross margin in the first quarter of 2006 was 21.5%, as compared to 22.2% in the first quarter of 2005, and 21.3% in the fourth quarter of 2005, with an operating margin of 14.1%, 13.2%, and 13.1% respectively.
Jordan Wu, President and Chief Executive Officer of Himax, commented, “We are pleased with the first quarter’s results given our continued business momentum and record earnings. Overall display driver revenue continued to grow across large panel applications and small-and-medium-sized applications. In large panel applications, display drivers for TV panels delivered strong growth, offsetting seasonally weak demand in the monitor segment. In small-and medium-sized based applications, shipments of display drivers for both mobile and consumer electronics applications increased from the previous quarter, but we experienced significant ASP erosion, primarily due to the product mix changing towards the lower price, lower resolution segment, including LTPS display drivers.”
Max Chan, Chief Financial Officer of Himax, said, “Our operating income for the first quarter increased 111% to $23.6 million from $11.2 million for the same period a year ago and increased 23% compared to $19.1 million in the fourth quarter 2005. The company was operating cash flow positive in the first quarter. We are also now debt-free, having raised approximately $147 million in our IPO on March 31, after deducting underwriting discounts and commissions and estimated offering expenses. We will continue to execute our growth plan while working to increase shareholder value.”
Looking forward, Mr. Wu added, “We expect the business environment in the second quarter of 2006 to be similar to that of the first quarter of 2006 as large panel display driver shipments will be impacted by the increased inventory levels of large panel manufacturers. While PC-related demand should improve sequentially, revenues from display drivers for TVs are expected to decline. Revenues from third-party customers are expected to grow as a result of fab production ramp-up’s and increased sourcing from Himax, offsetting an inventory-related decline in revenues from related parties. We forecast unit shipments of small and medium-sized display drivers will increase while average selling prices will continue to decline. Specifically, we expect net revenue in the second quarter of 2006 will be in the range of low single digit growth to a low single digit decline sequentially, which will result in a more than 50% year-on-year growth. We expect diluted GAAP earnings per ADS to be in the range of $0.10 to $0.11, which reflects approximately $1 million of share-based compensation, and is based on approximately 197.5 million diluted weighted-average outstanding shares used in the calculation. Based on typical seasonal patterns in the panel industry and indications from our customers, we expect shipments and revenues to increase significantly in the second half of 2006. We also expect to continue to increase our share of the large panel and small and medium-sized display driver markets.”
Investor Conference Call / Webcast Details
The
Company’s management will review detailed first quarter 2006 results on Monday, May 8, 2006 at 7:00 PM EST (7:00 AM, May 9, Taiwan time). The conference call-in number is
201-689-8562. A live webcast of the conference call will be available at the Company’s
website at 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
201-612-7415. The account number to access the replay is 3055 and the confirmation
ID number is 200644.
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 LCD TV chipset
solutions and LCOS microdisplays. 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.
| Contacts: | ||||
| Max Chan | Jackson Ko | In the U.S. | ||
| Chief Financial Officer | Investor Relations | David Pasquale | ||
| Himax Technologies, Inc. | Himax Technologies, Inc. | The Ruth Group | ||
| +886-2-3393-0877 Ext. 22300 | +886-2-3393-0877 Ext. 22240 | 646-536-7006 | ||
| max_chan@himax.com.tw | jackson_ko@himax.com.tw | dpasquale@theruthgroup.com |
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 F-1 dated March 13, 2006, 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.
– Tables Attached –
Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Income
(These interim
financials do not fully comply with US GAAP because they omit the statement
of
cash flows and all interim disclosure required by US GAAP.)
(Figures in Thousands
of U.S. Dollars, Except Per Share Data)
| Three
Months Ended Mar 31, |
Three Months Ended Dec 31, 2005 |
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| 2006 | 2005 | |||||||||||
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| Revenues | ||||||||||||
| Revenues from third parties, net | $ | 65,427 | $ | 30,251 | $ | 78,696 | ||||||
| Revenues from related parties, net | 109,432 | 66,166 | 98,638 | |||||||||
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| 174,859 | 96,417 | 177,334 | ||||||||||
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| Costs and expenses: | ||||||||||||
| Cost of revenues | 137,298 | 75,027 | 139,664 | |||||||||
| Research and development | 10,902 | 8,191 | 13,957 | |||||||||
| General and administrative | 2,058 | 1,187 | 2,556 | |||||||||
| Sales and marketing | 1,007 | 818 | 2,018 | |||||||||
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| Total costs and expenses | 151,265 | 85,223 | 158,195 | |||||||||
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| Operating income | 23,594 | 11,194 | 19,139 | |||||||||
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| Non operating income (loss): | ||||||||||||
| Interest income | 205 | 2 | 323 | |||||||||
| Other than temporary impairment loss on investments | ||||||||||||
| in non-marketable securities | --- | --- | (129 | ) | ||||||||
| Foreign exchange gains (losses), net | (232 | ) | (192 | ) | 135 | |||||||
| Interest expense | (284 | ) | (7 | ) | (114 | ) | ||||||
| Other income (loss), net | 55 | 44 | (92 | ) | ||||||||
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| (256 | ) | (153 | ) | 123 | ||||||||
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| Income before income taxes and minority interest | 23,338 | 11,041 | 19,262 | |||||||||
| Income tax expense | 1,491 | 961 | 2,313 | |||||||||
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| Income before minority interest | 21,847 | 10,080 | 16,949 | |||||||||
| Minority interest, net of tax | 92 | 53 | 31 | |||||||||
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| Net income | $ | 21,939 | $ | 10,133 | $ | 16,980 | ||||||
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| Basic earnings per ordinary share and ADS | $ | 0.12 | $ | 0.06 | $ | 0.10 | ||||||
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| Diluted earnings per ordinary share and ADS | $ | 0.12 | $ | 0.06 | $ | 0.09 | ||||||
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| Basic Weighted Average Outstanding Shares | 177,395 | 175,660 | 176,854 | |||||||||
| Diluted Weighted Average Outstanding Shares | 181,091 | 180,124 | 180,707 | |||||||||
Himax Technologies, Inc.
Supplemental
Financial Information (Unaudited)
(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 Mar 31, |
Three Months Ended Dec 31, 2005 |
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| 2006 | 2005 | ||||||||
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| Share-based compensation | |||||||||
| Cost of revenues | $ | 24 | $ | 37 | $ | 89 | |||
| Research and development | 864 | 1,117 | 3,033 | ||||||
| General and administrative | 105 | 164 | 380 | ||||||
| Sales and marketing | 145 | 205 | 628 | ||||||
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| Total | $ | 1,138 | $ | 1,523 | $ | 4,130 | |||
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Himax Technologies, Inc.
Unaudited
Condensed Consolidated Balance Sheets
(In thousands of US dollars)
| Mar
31, 2006 |
Dec
31, 2005 |
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| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 31,247 | $ | 7,086 | ||
| Marketable securities available-for-sale | 3,150 | 3,989 | ||||
| Restricted cash equivalents and marketable | ||||||
| securities | 14,558 | 14,053 | ||||
| Accounts receivable, less allowance for sales | ||||||
| returns and discounts | 73,178 | 80,158 | ||||
| Accounts receivable from related parties | 71,540 | 69,688 | ||||
| Inventories | 99,539 | 105,004 | ||||
| Deferred income taxes | 9,645 | 8,965 | ||||
| Prepaid expenses and other current assets | 10,328 | 11,113 | ||||
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| Total current assets | $ | 313,185 | $ | 300,056 | ||
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| Property and equipment, net | $ | 25,943 | $ | 24,426 | ||
| Deferred income taxes | 145 | 151 | ||||
| Intangible assets, net | 74 | 81 | ||||
| Investments in non-marketable securities | 1,813 | 1,813 | ||||
| Refundable deposits | 488 | 712 | ||||
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| 28,463 | 27,183 | |||||
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| Total assets | $ | 341,648 | $ | 327,239 | ||
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| Liabilities and stockholders’ equity | ||||||
| Current liabilities: | ||||||
| Short-term debt | $ | 38,577 | $ | 27,274 | ||
| Current portion of long-term debt | - | 89 | ||||
| Accounts payable | 85,489 | 105,801 | ||||
| Income tax payable | 15,915 | 13,625 | ||||
| Other accrued expenses and other current | ||||||
| liabilities | 12,167 | 13,995 | ||||
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| Total current liabilities | $ | 152,148 | $ | 160,784 | ||
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| Minority interest | $ | 609 | $ | 624 | ||
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| Stockholders’ equity: | ||||||
| Ordinary share, US$0.0001 par value, | ||||||
| 500,000,000 shares authorized | 18 | 18 | ||||
| Additional paid-in capital | 99,570 | 98,450 | ||||
| Accumulated other comprehensive income | 37 | 36 | ||||
| Unappropriated earnings | 89,266 | 67,327 | ||||
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| Total stockholders’ equity | $ | 188,891 | $ | 165,831 | ||
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| Total liabilities and stockholders’ equity | $ | 341,648 | $ | 327,239 | ||
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