Himax Technologies posts mixed 2Q results

Himax Tech 2nd-quarter adj. profit tops Street but revenue misses analysts' expectations

Associated Press

NEW YORK (AP) -- Taiwanese microchip maker Himax Technologies Inc. said its second-quarter net income rose 29 percent as small and medium-sized panel driver sales increased.

Its adjusted profit beat Wall Street projections, but revenue fell short and the company's third-quarter revenue forecast left some disappointed as well.

The stock fell in premarket trading Thursday.

Himax, whose chips are used in Google Glass, earned $19.4 million, or 11 cents per share, for the period ended June 30. That's up from $15.1 million, or 9 cents per shares, a year ago.

Removing acquisition-related charges and stock-based compensation expense, earnings were 12 cents per share.

Analysts, on average, expected earnings of 11 cents per share, according to a FactSet poll.

Revenue climbed 9 percent to $207 million from $189.5 million. Himax said that this was its highest quarterly revenue since 2008's fourth quarter.

Wall Street was looking for $208.6 million in revenue.

Shares of Himax declined 35 cents, or 5.2 percent, to $6.35 before the market open.

Small and medium-sized panel driver sales rose 32 percent due to sales from the smartphone sector. These sales made up 53.6 percent of the quarter's total revenue. Large-sized panel sales fell 19 percent because of lower sales to Innolux Corp., which shed its 15 percent equity stake in Himax in June.

Non-driver sales, which include COMS image sensors, touch panel controllers and other items, increased 22 percent.

Gross margin improved to 24.6 percent from 23.1 percent on a better mix of products. It was the highest quarterly gross margin since 2008's third quarter.

Himax anticipates third-quarter adjusted earnings between about 10 and 12 cents per share. Revenue is expected to fall 5 percent to 12 percent from the second quarter's $207 million. This implies approximately $182 million to $197 million.

Analysts predict earnings of 9 cents per share on revenue of $218.8 million.

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