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Himax Technologies, Inc. Reports Third Quarter 2012 Financial Results

Himax Technologies, Inc. Reports Third Quarter 2012 Financial Results

           Company Meets Q3 Revenues, Gross Margin and EPS Guidance

  oSales increased 17.5% year-over-year to $190.4 million, the highest
    quarterly revenues since Q409
  oSmall and medium-sized panel driver sales increased 9.5% year over year to
    $87.3 million, achieving record-high quarterly revenues
  oNon-driver sales increased 30.2% year-over-year to $26.6 million
  oGross margin increased 480 basis points to 23.3% from 18.5% in Q311 and
    increased 20 basis points from 23.1% in Q212.
  oNon-GAAP net income increased 244.1% to $16.5 million from $4.8 million in
    Q311. Non-GAAP diluted earnings per ADS increased 259.3% to$9.7 cents from
    $2.7 cents in Q311
  oGAAP net income increased 1521.7% to $10.4 million from $0.6 million in
    Q311. GAAP diluted earnings per ADS increased 1425% to $6.1 cents from
    $0.4 cents in Q311

TAINAN, Taiwan, Nov. 7, 2012 (GLOBE NEWSWIRE) -- Himax Technologies, Inc.
(Nasdaq:HIMX) ("Himax" or "Company"), a leading supplier and fabless
manufacturer of display drivers and other semiconductor products, today
announced financial results for the third quarter ended September 30, 2012.

SUMMARY FINANCIALS

Third quarter 2012 Results Compared to Third quarter 2011 Results (USD in
millions) (unaudited)

                            Q3 2012           Q3 2011           CHANGE
Net Revenues                 $190.4          $162.1          +17.5%
Gross Profit                 $44.3           $30.0           +47.7%
Gross Margin                 23.3%             18.5%             +4.8%
GAAP Net Income Attributable $10.4           $0.6            +1521.7%
to Shareholders
Non-GAAP Net Income          $16.5 ^(1)       $4.8 ^(2)        +244.1%
Attributable to Shareholders
GAAP EPS (Per Diluted ADS,   $0.061          $0.004          +1425%
USD)
Non-GAAP EPS (Per Diluted    $0.097^(1)       $0.027^(2)       +259.3%
ADS, USD)

(1) Non-GAAP Net income attributable to common shareholders and EPS excludes
$5.6 million of share-based compensation expenses, net of tax and $0.5 million
non-cash acquisition related charges, net of tax.
(2) Non-GAAP Net income attributable to common shareholders and EPS excludes
$3.8 million of share-based compensation expenses, net of tax and $0.4 million
non-cash acquisition related charge, net of tax.


Third quarter 2012 Results Compared to Second quarter 2012 Results (USD in
millions) (unaudited)

                               Q3 2012          Q2 2012          CHANGE
Net Revenues                    $190.4           $189.5           +0.5%
Gross Profit                    $44.3            $43.7            +1.3%
Gross Margin                    23.3%            23.1%            +0.2%
GAAP Net Income Attributable to $10.4            $15.1            -31.1%
Shareholders
Non-GAAP Net Income             $16.5 ^(1)       $15.9 ^(2)       +3.5%
Attributable to Shareholders
GAAP EPS (Per Diluted ADS, USD) $0.061           $0.089           -31.5%
Non-GAAP EPS (Per Diluted ADS,  $0.097^(1)       $0.093^(2)       +4.3%
USD)
                               
(1) Non-GAAP Net income attributable to common shareholders and EPS excludes
$5.6 million of share-based compensation expenses, net of tax and $0.5 million
non-cash acquisition related charges, net of tax.
(2) Non-GAAP Net income attributable to common shareholders and EPS excludes
$0.4 million of share-based compensation expenses, net of tax and $0.4 million
non-cash acquisition related charges, net of tax.

"We are pleased with the top and bottom line financial improvements during the
third quarter of 2012. We will continue to execute our strategy and are
excited about further growth opportunities going forward," explained Mr.
Jordan Wu, President and Chief Executive Officer of Himax.

Third quarter 2012 Financial Results

Breakdown by Product Line (USD in millions) (unaudited)
                                         Q3 2012 %     Q3 2011 %     % Change
Display drivers for large-size panels     $76.5   40.2% $62.0   38.3% +23.4%
Display drivers for small/medium sized    $87.3   45.8% $79.7   49.2% +9.5%
panels
Non-driver products                       $26.6   14.0% $20.4   12.5% +30.2%
                                                                 
                                         Q3 2012 %     Q2 2012 %     % Change
Display drivers for large-size panels     $76.5   40.2% $79.7   42.1% -4.0%
Display drivers for small/medium sized    $87.3   45.8% $83.8   44.2% +4.1%
panels
Non-driver products                       $26.6   14.0% $26.0   13.7% +2.3%

Total revenues for the third quarter of 2012 increased 17.5% to $190.4 million
year-over-year and increased 0.5% sequentially. Strong sales in Himax's
large-size panel drivers and non-driver ICs were the primary contributors to
the Company's year over year revenue growth.

Revenues from large panel display drivers were $76.5 million, up 23.4% from a
year ago and down 4.0% from the second quarter of 2012 and accounted for 40.2%
of total revenues. The sequential decrease came in after three consecutive
quarters of growth and was attributed to slower demand from the TV models
which Himax's customers launched earlier this year. The sales increase over
the previous year was mainly due to the growing sales to the panel customers
in China. The Company will continue to strive toward winning more market share
in this segment.

Sales of small and medium-sized drivers reached another record high in the
third quarter. They came in at $87.3 million, up 9.5% in the third quarter
from the same period 2011 and up 4.1% from the previous quarter and accounted
for 45.8% of total revenues with tablet and automotive display being the
fastest growing applications. These products will continue to contribute
noteworthy growth in 2013. As the Company expected, sales for smartphone
driver ICs were flat from the second quarter of 2012 as a select group of
Himax customers in China, many of them leaders in higher end market, were
experiencing competitive pressure from lower-end peers penetrating the
marketplace aggressively. Notwithstanding the short-term momentum, smartphone
remains Himax's strongest-growing product segment overall driven by strong
demand from both Chinese and international brands. The Company has won further
design-wins from leading global brands which it will start shipment from the
fourth quarter. Additionally, the Company has also experienced positive
results from its efforts in working with the fast growing tier-2 smartphone
customers in China during the third quarter. The Company will continue to make
progress and gain market share in that area. The Company remains bullish on
the growth prospect of the smartphone segment for the remainder of 2012 and
beyond.

Revenues from Himax's non-driver businesses, which include CMOS image sensors,
LCOS microdisplays, touch panel controllers, power management ICs, LED diver
ICs, wafer level optics, timing controllers, ASIC services and IP licensing,
were $26.6 million, an increase of 30.2% from the same period last year and
2.3% higher than the second quarter of 2012 and accounted for 14.0% of total
revenues. Touch panel controller, power management ICs, WLED drivers, wafer
level optics, and operational amplifiers experienced double digit growth in
the third quarter 2012. The Company remains confident that its non-driver
business will continue to account for an increasing percentage of its sales
over time and it provides the most exciting long-term prospects for growth.

Gross margins were 23.3% for the three months ended September 30, 2012, up 480
basis points from 18.5% in the third quarter of 2011 and up 20 basis points
from 23.1% in the second quarter of 2012. This is the fourth consecutive
quarter of gross margin improvement for the Company. The increase in gross
margin is a direct result of a richer mix of Himax's higher-margin products
like those in its fast-growing non-driver category. The Company will also
focus on more value-added high-end driver IC products which have higher entry
barrier. Gross margin improvement will continue to be one of the Company's
business goals going forward.

Third quarter 2012 GAAP operating expenses were $31.1 million, up 2.1% from
$30.5 million a year ago and up 32.4% from $23.5 million in the previous
quarter. The sequential increase was primarily due to the expenses from the
2012 RSU vest of $6.3 million and higher salary expenses as the Company made
its annual salary adjustment in the third quarter. GAAP operating income was
$13.2 million, or 6.9% of sales, in the third quarter of 2012. It went down
$7.0 million sequentially and up $13.7 million year over year. The sequential
decline in operating income is also attributed to the RSU vest expenses and
salary expense increases identified above, which accounted for 4.0% of sales.

Reported GAAP net income was $10.4 million, or 6.1 cents per ADS, for the
third quarter of 2012 compared to $0.6 million, or 0.4 cents per ADS, in the
corresponding quarter a year ago, and $15.1 million, or 8.9 cents per ADS, in
the previous quarter. GAAP net income improved 1521.7% compared to third
quarter 2011 but decreased 31.1% quarter over quarter mainly due to the $6.3
million 2012 RSU charge in the third quarter.

Non-GAAP net income in the third quarter was $16.5 million, or 9.7 cents per
diluted ADS, up from $4.8 million, or 2.7 cents per ADS, for the same period
last year, and up from $15.9 million, or 9.3 cents per ADS, in the previous
quarter. Non-GAAP net income for the third quarter 2012 grew 244.1% over the
same period last year and 3.5% over second quarter of 2012.


Year to Date 2012 Results (USD in millions) (unaudited)

                               YTD 2012         YTD 2011         CHANGE
Net Revenues                    $546.7           $463.8           +17.9%
Gross Profit                    $126.1           $88.2            +43.0%
Gross Margin                    23.1%            19.0%            +4.1%
GAAP Net Income Attributable to $36.8            $7.0             +427.0%
Shareholders
Non-GAAP Net Income             $44.6 ^(1)       $14.0 ^(2)       +219.5%
Attributable to Shareholders
GAAP EPS (Per Diluted ADS, USD) $0.216           $0.039           +453.8%
Non-GAAP EPS (Per Diluted ADS,  $0.261^(1)       $0.079^(2)       +230.4%
USD)
                               
(1) Non-GAAP Net income attributable to common shareholders and EPS excludes
$6.5 million of share-based compensation expenses, net of tax and $1.3 million
non-cash acquisition related charges, net of tax.
(2) Non-GAAP Net income attributable to common shareholders and EPS excludes
$5.7 million of share-based compensation expenses, net of tax and $1.3 million
non-cash acquisition related charges, net of tax.

Revenues were $546.7 million and gross profits were $126.1 million,
representing growth of 17.9% and 43.0% over the first nine months of 2011
respectively. Gross margin increased to 23.1% in the first nine months of
2012, up from 19.0% in the same period last year, a 410 basis point
improvement.

GAAP operating expenses were $78.3 million for the first nine months of 2012,
down $4.5 million, or 5.4% from the same period 2011. The significant
reduction was due to a better overall cost control and the reduction in the
ramp-up costs for production of WLO, WLM and LCOS products at Himax's in-house
factories for these product lines, offset by increased share-based expenses of
$0.9 million.

Operating income was $47.8 million, or 8.8% of sales, as compared to $5.4
million, or 1.2% of sales, for the first nine months of 2011, representing
$42.4 million or 780.9% increase year over year. The improvement in operating
income was a reflection of its overall top and bottom line financial
improvement from last year.

GAAP net income for the first nine months 2012 was $36.8 million, or 21.6
cents per diluted ADS, up from $7.0 million, or 3.9 cents per ADS, for the
same period last year. GAAP net income for the first nine months of 2012 grew
427.0% and GAAP EPS per diluted share grew 453.8% year over year.

Non-GAAP net income for the first nine months of 2012 was $44.6 million, or
26.1 cents per diluted ADS, up from $14.0 million, or 7.9 cents per ADS, for
the same period last year. Non-GAAP net income for the first nine months of
2012 grew 219.5% and Non-GAAP EPS per diluted ADS grew 230.4% over the same
period last year.

Balance Sheet and Cash Flow

The Company had $89.0 million in cash, cash equivalents and marketable
securities available for sale on September 30, 2012, compared to $103.2
million on June 30, 2012 and $90.8 million for the same time last year. The
Company made a cash payment for RSU of $6.3 million and a cash dividend of
$10.7 million during the quarter. Inventories at the end of September were
$128.3 million, up from $104.7 million a year ago and down from $139.2 million
a quarter ago.

Accounts receivable were $218.3 million on September 30, 2012 as compared to
$212.9 million on June 30, 2012 and $174.7 million a year ago. Day Sales
Outstanding ("DSO") was 109 days at end of third quarter 2012 versus 109 days
in the second quarter of 2012 and 103 days last year.

Net cash outflow from operating activities for the third quarter was $7.1
million. This is mainly because the Company had a relatively high inventory
level at the end of the second quarter as delivery for much goods prepared for
shipping before quarter-end was postponed into the third quarter out of short
notice by the customers. As a result, while the Company had to pay for those
goods in the third quarter, the Company will not get paid until the fourth
quarter. Himax expects to generate a substantial net cash inflow from
operations during the fourth quarter.

Share Buyback Update

With regards to the Company's $25 million dollars share buyback program, Himax
has purchased a total of $12.7 million, or approximately 9.1 million ADS
through September 30, 2012. Himax purchased approximately $0.4 million or 0.3
million ADS in the three months ended September 30, 2012. Himax management has
stated they will continue to execute the remaining share repurchase program in
accordance with Rule 10b-18.

December 2012 Non-Deal Road Show

Ms. Jackie Chang, CFO, Ms. Penny Lin, IR Manager, and John Mattio, US-Based IR
from the MZ Group, will host a number of investor meetings in the New York
Metro and Boston area from December 3^rd to 7^th, 2012. If you are interested
in meeting with the Company in a 1-1 session or group session, please contact
Himax's US or Taiwan based investor relations contact at the numbers below.

Conference Call

Himax Technologies, Inc. will hold a conference call with investors and
analysts tomorrow, November 8, 2012 at 8:00 a.m. US Eastern Standard Time to
discuss the Company's third quarter and year-to-date 2012 financial results.
Details of the call follow below.

DATE:          Thursday, November 8, 2012            
                                                   
TIME:          U.S.8:00 a.m. EST                    
              TAIWAN 9:00 p.m.                     
                                                   
DIAL IN:       U.S. 1-877-407-4018                   
              INTERNATIONAL 1-201-689-8471           
                                                   
CONFERENCE ID: 402099                                
              
WEBCAST:       http://public.viavid.com/index.php?id=102174

A replay of the call will be available beginning two hours after the call
through midnight November 15, 2012 (12 p.m. November 16, Taiwan time) on
www.himax.com.tw and by telephone at +1-877-870-5176 (US Domestic) or
+1-858-384-5517 (International). The conference ID number is 402099. This call
is being webcast by ViaVid Broadcasting and can be accessed by clicking on
this http://public.viavid.com/index.php?id=102174or at ViaVid's website at
http://www.viavid.net, where the webcast can be accessed through November 7,
2013.

About Himax Technologies, Inc.

Himax Technologies, Inc. (HIMX) is a fabless semiconductor solution provider
dedicated to display imaging processing technologies. Himax is a worldwide
market leader in display driver ICs and timing controllers used in TVs,
laptops, monitors, mobile phones, tablets, digital cameras, car navigation,
and many other consumer electronics devices. Additionally, Himax designs and
provides controllers for touch sensor displays, LCOS micro-displays used in
palm-size projectors and head-mounted displays, LED driver ICs, power
management ICs, scaler products for monitors and projectors, tailor-made video
processing IC solutions and silicon IPs. The company also offers digital
camera solutions, including CMOS image sensors and wafer level optics, which
are used in a wide variety of applications such as mobile phone, tablet,
laptop, TV, PC camera, automobile, security and medical devices. Founded in
2001 and headquartered in Tainan, Taiwan, Himax currently employs 1,400 people
from three Taiwan-based offices in Tainan, Hsinchu and Taipei and country
offices in China, Korea, Japan and the US. Himax has 1,657 patents granted and
1,504 patents pending approval worldwide as of September 30, 2012. Himax has
retained its position as the leading display imaging processing semiconductor
solution provider to consumer electronics brands worldwide.

http://www.himax.com.tw

About Non-GAAP Financial Measures

To supplement the unaudited consolidated statement of income and comprehensive
income presented in accordance with GAAP, the Company is also providing
non-GAAP measures of income before income tax expenses, net income, net income
attributable to us and basic and diluted earnings per share for the three and
nine months ended September 30, 2012 and 2011, which are adjusted from results
based on GAAP to exclude the non-cash transactions. The non-GAAP financial
measures are provided to enhance the Investors' overall understanding of our
current performance in on-going core operations as well as the prospects for
the future. These measures should be considered in addition to results
prepared and presented in accordance with GAAP, but should not be considered a
substitute for or superior to GAAP results. The Company uses both GAAP and
non-GAAP information in evaluating our operating business results internally
and therefore deems it important to provide all of this information to
investors. The non-GAAP adjustments include share based compensations and
acquisition related charges.

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 U.S. 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, 2011 filed with the
SEC, as may be amended.

                            -- FINANCIAL TABLES –


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 September 30,     Ended June30,
                                     2012         2011       2012
Revenues                                                    
 Revenues from third parties, net    $125,671     $98,404    $126,164
 Revenues from related parties, net  64,742       63,717     63,346
                                     190,413      162,121    189,510
                                                           
Costs and expenses:                                         
Cost of revenues                     146,113      132,134    145,794
Research and development            21,494       21,292     15,717
General and administrative          5,056        5,146      4,066
Sales and marketing                 4,588        4,072      3,728
Total costs and expenses              177,251      162,644    169,305
                                                           
Operating income (loss)               13,162       (523)      20,205
                                                           
Non operating income (loss):                                
Interest income                       58           126        100
Equity in losses of equity method     (30)         (82)       (12)
investees
Foreign exchange gains (losses), net  (63)         759        185
Interest expense                      (77)         (131)      (97)
Other income (loss), net              502          (271)      (17)
                                     390          401        159
Earnings (loss) before income taxes  13,552       (122)      20,364
Income tax expense (benefit)         3,388        (31)       5,447
Net income (loss)                    10,164       (91)       14,917
Net loss attributable to              247          733        188
noncontrolling interests
Net income attributable to Himax      $10,411      $642       $15,105
stockholders
                                                           
Basic earnings per ordinary share     $0.031       $0.002     $0.044
attributable to Himax stockholders
Diluted earnings per ordinary share   $0.031       $0.002     $0.044
attributable to Himax stockholders
Basic earnings per ADS attributable   $0.061       $0.004     $0.089
to Himax stockholders
Diluted earnings per ADS attributable $0.061       $0.004     $0.089
to Himax stockholders
                                                           
BasicWeighted Average Outstanding    169,782      176,698    170,283
ADS
DilutedWeighted Average Outstanding  169,929      176,876    170,586
ADS


Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Income
(Amounts in Thousands of U.S. Dollars, Except Per Share Data)
                                                                   
                                                                   
                                                          Nine Months
                                                          Ended September 30,
                                                          2012      2011
Revenues                                                            
 Revenues from third parties, net                         $355,308  $264,947
 Revenues from related parties, net                       191,308   198,846
                                                          546,616   463,793
                                                                   
Costs and expenses:                                                 
Cost of revenues                                          420,484   375,599
Research and development                                 53,910    60,376
General and administrative                               12,811    13,172
Sales and marketing                                      11,580    9,216
Total costs and expenses                                   498,785   458,363
                                                                   
Operating income                                           47,831    5,430
                                                                   
Non operating income (loss):                                        
Interest income                                            243       396
Equity in losses of equity method investees                (114)     (275)
Foreign exchange gains (losses), net                       (219)     776
Interest expense                                           (273)     (330)
Other income (loss), net                                   694       (27)
                                                          331       540
Earnings before income taxes                              48,162    5,970
Income tax expense                                        12,040    1,492
Net income                                                36,122    4,478
Net loss attributable to noncontrolling interests          707       2,511
Net income attributable to Himax stockholders              $36,829   $6,989
                                                                   
Basic earnings per ordinary share attributable to Himax    $0.108    $0.020
stockholders
Diluted earnings per ordinary share attributable to Himax  $0.108    $0.020
stockholders
Basic earnings per ADS attributable to Himax stockholders  $0.216    $0.039
Diluted earnings per ADS attributable to Himax             $0.216    $0.039
stockholders
                                                                   
BasicWeighted Average Outstanding ADS                     170,691   177,107
DilutedWeighted Average Outstanding ADS                   170,702   177,197


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      Three Months          Three Months
income categories is summarized as                              Ended
follows:
                                         Ended September 30,   June 30,
                                         2012        2011      2012
Share-based compensation                                      
Cost of revenues                         $150        $96       $6
Research and development                 4,570       3,139     366
General and administrative               1,009       554       62
Sales and marketing                      1,004       684       76
Income tax benefit                       (1,118)     (744)     (87)
Total                                     $5,615      $3,729    $423
                                                             
The amount of acquisition-related charges included in applicable statements of
income categories is summarized as follows:
                                                             
Acquisition-related charges                                   
Research and development                 $305        $259      $240
Sales and marketing                      289         289       290
Income tax benefit                       (125)       (125)     (125)
Total                                     $469        $423      $405


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   Nine Months
as follows:
                                                          Ended September 30,
                                                          2012      2011
Share-based compensation                                            
Cost of revenues                                          $161      $118
Research and development                                  5,309     4,874
General and administrative                                1,133     839
Sales and marketing                                       1,157     963
Income tax benefit                                        (1,291)   (1,099)
Total                                                      $6,469    $5,695
                                                                   
The amount of acquisition-related charges included in applicable statements of
income categories is summarized as follows:
                                                                   
Acquisition-related charges                                         
Research and development                                  $786      $775
Sales and marketing                                       868       868
Income tax benefit                                        (375)     (375)
Total                                                      $1,279    $1,268


Himax Technologies, Inc.
GAAP Unaudited Condensed Consolidated Balance Sheets
(Amounts in Thousands of U.S. Dollars, Except Per Share Data)
                                          September 30, June 30, December 31,
                                          2012          2012     2011
Assets                                                          
Current assets:                                                 
Cash and cash equivalents                  $88,822       $102,992 $106,164
Restricted cash and cash equivalents       73,000        63,000   84,200
Investments in marketable securities       171           167      165
available-for-sale
Accounts receivable, less allowance for
doubtful accounts, sales returns and       136,284       129,045  101,280
discounts
Accounts receivable from related parties,
less allowance for sales returns and       82,019        83,832   79,833
discounts
Inventories                               128,339       139,158  112,985
Deferred income taxes                     16,760        16,432   16,217
Prepaid expenses and other current assets 15,012        15,108   14,865
Total current assets                       $540,407      $549,734 $515,709
                                                               
Investment securities, including           $12,926       $24,619  $24,506
securities measured at fair value
Equity method investments                  295           322      439
Property, plant and equipment, net         53,119        54,173   57,150
Deferred income taxes                     5,785         13,830   13,649
Goodwill                                   30,923        26,846   26,846
Intangible assets, net                     6,557         3,431    4,494
Other assets                               2,427         2,434    2,185
                                          112,032       125,655  129,269
Total assets                               $652,439      $675,389 $644,978
                                                               
Liabilities and Equity                                          
Current liabilities:                                            
Short-term debt                           $73,000       $63,000  $84,200
Accounts payable                          129,959       159,407  134,353
Income taxes payable                      8,687         12,753   3,644
Other accrued expenses and other current   22,688        31,082   23,163
liabilities
Total current liabilities                 $234,334      $266,242 $245,360
Other liabilities                          3,860         5,018    4,560
Total liabilities                          $238,194      $271,260 $249,920
                                                               
Equity                                                          
Himax stockholders' equity:                                     
Ordinary shares, US$0.3 par value,
1,000,000,000 shares authorized;
356,699,482 shares issued and 339,834,778, $107,010      $107,010 $107,010
339,047,694 and 349,279,556 outstanding at
September 30, 2012, June 30, 2012, and
December 31, 2011, respectively
Additional paid-in capital                104,700       104,580  103,051
Treasury shares, at cost (16,864,704
ordinary shares, 17,651,788 ordinary
shares and 7,419,926 ordinary shares at    (11,805)      (12,213) (4,502)
September 30, 2012, June 30, 2012, and
December 31, 2011, respectively)
Accumulated other comprehensive income    (488)         137      166
Unappropriated retained earnings           213,861       203,450  187,712
Himax stockholders' equity                 $413,278      $402,964 $393,437
Noncontrolling interests                   967           1,165    1,621
Total equity                               $414,245      $404,129 $395,058
Total liabilities and equity               $652,439      $675,389 $644,978


Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
                                           Three Months        Three Months
                                           Ended September 30, Ended June 30,
                                           2012      2011      2012
                                                             
Cash flows from operating activities:                         
Net income (loss)                           $10,164   $(91)   $14,917
Adjustments to reconcile net income (loss) to net cash provided
by (used in)                                                    
operating activities:
Depreciation and amortization               3,152     3,162     3,165
Share-based compensation expenses           451       1,600     510
Loss on disposal of property, plant and     30        114       --
equipment
Loss (gain) on disposal of marketable       (635)     36        11
securities, net
Unrealized loss on conversion option        62        298       62
Interest income from amortization of        (18)      (41)      (41)
discount on investment in corporate bonds
Equity in losses of equity method investees 30        82        12
Deferred income tax expense                 7,587     2,020     257
Inventories write downs                     3,241     1,813     4,115
Changes in operating assets and                               
liabilities:
Accounts receivable                         (7,239)   (1,921)   (25,956)
Accounts receivable from related parties    1,811     6,542     2,077
Inventories                                 7,579     17,873    (24,758)
Prepaid expenses and other current assets   (320)     1,890     424
Accounts payable                            (29,448)  (12,224)  24,476
Income taxes payable                        (4,067)   (2,431)   4,967
Other accrued expenses and other current    1,568     (316)     (1,066)
liabilities
Other liabilities                           (1,039)   (980)     36
Net cash provided by (used in) operating    (7,091)   17,426    3,208
activities
                                                             
Cash flows from investing activities:                         
Purchase of property and equipment          (1,746)   (7,128)   (1,009)
Proceeds from disposal of property and      --        7         --
equipment
Purchase of available-for-sale marketable   (3,351)   (5,193)   (5,526)
securities
Disposal of available-for-sale marketable   7,984     5,158     5,515
securities
Proceeds from disposal of equity method     --        371       --
investment
Cash acquired in acquisition                546       --        --
Release (pledge)of restricted cash          (3)       9         2
equivalents and marketable securities
Decrease (increase) in other assets         585       65        (132)
Net cash provided by (used in) investing    4,015     (6,711)   (1,150)
activities



Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
                                                             
                                                             
                                      Three Months            Three Months
                                      Ended September 30,     Ended June 30,
                                      2012        2011        2012
Cash flows from financing activities:                        
Distribution of cash dividends         $(10,680) $(21,224) $ --
Proceeds from issuance of new shares   33          10          86
by subsidiaries
Payments to repurchase ordinary        (511)       (2,062)     (1,147)
shares
Proceeds from disposal of subsidiary
shares to noncontrolling interests by  --          --          97
Himax Technologies Limited
Proceeds from disposal of subsidiary
shares to noncontrolling interests by  78          720         1
Himax Imaging, Inc.
Purchase of subsidiary shares from     (9)         (1,383)     (3)
noncontrolling interests
Release (pledge) of restricted cash
equivalents and marketable securities  (10,000)    (27,200)    21,200
(for borrowing of short-term debt)
Proceeds from borrowing of short-term  73,000      27,200      146,800
debt
Repayment of short-term debt           (63,000)    --          (168,000)
Net cash used in financing activities  (11,089)    (23,939)    (966)
Effect of foreign currency exchange
rate changes on cash and cash          (5)         (9)         (12)
equivalents
Net increase (decrease) in cash and    (14,170)    (13,233)    1,080
cash equivalents
Cash and cash equivalents at beginning 102,992     103,887     101,912
of period
Cash and cash equivalents at end of    $88,822     $90,654     $102,992
period
                                                            
Supplemental disclosures of cash flow                        
information:
Cash paid during the period for:                            
Interest expense                       $77         $188        $97
Income taxes                           $174        $95         $123
Supplemental disclosures of non-cash                         
investing and financing activities:
Dividend Payable                       $ --        $ --        $10,680
Fair value of ordinary shares issued
by HimaxDisplay, Inc. in the          $541        $ --        $ --
acquisition of SpatialPhotonics, Inc.


Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
                                                          Nine Months
                                                          Ended September 30,
                                                          2012      2011
                                                                   
Cash flows from operating activities:                               
Net income                                                $36,122   $4,478
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Depreciation and amortization                              9,630     9,613
Share-based compensation expenses                          1,478     3,921
Loss on disposal of property, plant and equipment          30        114
Gain on disposal of equity method investment               --        (313)
Gain on disposal of marketable securities, net             (631)     (351)
Unrealized loss (gain) on conversion option                (28)      902
Interest income from amortization of discount on           (101)     (130)
investment in corporate bonds
Equity in losses of equity method investees                114       275
Deferred income tax expense                               6,938     1,279
Inventories write downs                                    9,973     6,381
Changes in operating assets and liabilities:                        
Accounts receivable                                        (35,004)  (14,071)
Accounts receivable from related parties                   (2,191)   15,587
Inventories                                                (25,326)  6,943
Prepaid expenses and other current assets                  (566)     1,465
Accounts payable                                           (4,394)   (2,376)
Income taxes payable                                       5,042     (6,291)
Other accrued expenses and other current liabilities       (1,029)   625
Other liabilities                                          (334)     (1,897)
Net cash provided by (used in) operating activities       (277)     26,154
                                                                   
Cash flows from investing activities:                               
Purchase of property and equipment                         (4,361)   (17,653)
Proceeds from disposal of property and equipment           --        7
Purchase of available-for-sale marketable securities       (15,124)  (14,047)
Disposal of available-for-sale marketable securities       19,753    22,392
Proceeds from disposal of equity method investment         --        371
Purchase of investment securities                          (3)       --
Cash acquired in acquisition                               546       --
Release (pledge) of restricted cash equivalents and        (5)       1,007
marketable securities
Decrease in other assets                                   429       34
Net cash provided by (used in) investing activities        1,235     (7,889)


Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
                                                      Nine Months
                                                      Ended September 30,
                                                      2012        2011
Cash flows from financing activities:                             
Distribution of cash dividends                         $(10,680) $(21,224)
Proceeds from issuance of new shares by subsidiaries   116         41
Payments to repurchase ordinary shares                (8,222)     (2,129)
Proceeds from disposal of subsidiary shares to         97          --
noncontrolling interests by Himax Technologies Limited
Proceeds from disposal of subsidiary shares to         411         720
noncontrolling interests by Himax Imaging, Inc.
Purchase of subsidiary shares from noncontrolling      (13)        (1,911)
interests
Release (pledge) of restricted cash equivalents and
marketable securities (for borrowing of short-term     11,200      (27,200)
debt)
Proceeds from borrowing of short-term debt             304,000     27,200
Repayment of short-term debt                           (315,200)   --
Net cash used in financing activities                  (18,291)    (24,503)
Effect of foreign currency exchange rate changes on    (9)         50
cash and cash equivalents
Net decrease in cash and cash equivalents              (17,342)    (6,188)
Cash and cash equivalents at beginning of period       106,164     96,842
Cash and cash equivalents at end of period             $88,822     $90,654
                                                                 
Supplemental disclosures of cash flow information:                
Cash paid during the period for:                                 
Interest expense                                       $273        $364
Income taxes                                           $360        $6,280
Supplemental disclosures of non-cash investing                    
activities:
Fair value of ordinary shares issued by HimaxDisplay, $541        $ --
Inc. in the acquisition of Spatial Photonics, Inc.


Himax Technologies, Inc.
Non-GAAP 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 September 30,       EndedJune 30,
                                   2012         2011         2012
Revenues                            $190,413     $162,121     $189,510
                                                           
Gross profit                        44,300       29,987       43,716
Add: Share-based compensation –     150          96           6
Cost of revenues
Gross profit excluding share-based  44,450       30,083       43,722
compensation
Gross margin excluding share-based  23.3%        18.6%        23.1%
compensation
                                                           
Operating income (loss)             13,162       (523)        20,205
Add: Share-based compensation       6,733        4,473        510
Operating income excluding          19,895       3,950        20,715
share-based compensation
Add: Acquisition-related charges    594          548          530
–Intangible assets amortization
Operating income excluding
share-based compensation and        20,489       4,498        21,245
acquisition-related charges
Operating margin excluding
share-based compensation and        10.8%        2.8%         11.2%
acquisition-related charges
Net income attributable to Himax    10,411       642          15,105
stockholders
Add: Share-based compensation, net  5,615        3,729        423
of tax
Add: Acquisition-related charges,   469          423          405
net of tax
Net income attributable to Himax
stockholders excluding share-based  16,495       4,794        15,933
compensation and
acquisition-related charges
Net margin attributable to Himax
stockholders excluding share-based  8.7%         3.0%         8.4%
compensation and
acquisition-related charges
                                                           
*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.
Non-GAAP 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:
                                              Nine Months
                                              Ended September 30,
                                              2012             2011
Revenues                                       $546,616         $463,793
                                                              
Gross profit                                   126,132          88,194
Add: Share-based compensation – Cost of        161              118
revenues
Gross profit excluding share-based             126,293          88,312
compensation
Gross margin excluding share-based             23.1%            19.0%
compensation
Operating income                              47,831           5,430
Add: Share-based compensation                  7,760            6,794
Operating income excluding share-based         55,591           12,224
compensation
Add: Acquisition-related charges –Intangible   1,654            1,643
assets amortization
Operating income excluding share-based         57,245           13,867
compensation and acquisition-related charges
Operating margin excluding share-based         10.5%            3.0%
compensation and acquisition-related charges
Net income attributable to Himax stockholders  36,829           6,989
Add: Share-based compensation, net of tax      6,469            5,695
Add: Acquisition-related charges, net of tax   1,279            1,268
Net income attributable to Himax stockholders
excluding share-based compensation and         44,577           13,952
acquisition-related charges
Net margin attributable to Himax stockholders
excluding share-based compensation and         8.2%             3.0%
acquisition-related charges
                                                              
*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 ADS Attributable to Himax stockholders Excluding
Share-based Compensation and Acquisition-Related Charges:
                                                               
                                                  Three Months  Nine Months
                                                  Ended         Ended
                                                   September 30, September 30,
                                                  2012          2012
Diluted GAAP earning per ADS attributable to Himax $0.061        $0.216
stockholders
Add: Share-based compensation per ADS              $0.033        $0.038
Add: Acquisition-related charges per ADS           $0.003        $0.007
                                                               
Diluted non-GAAP earning per ADS attributable to
Himax stockholders excluding share-based           $0.097        $0.261
compensation and acquisition-related charges
                                                               
Numbers do not add up due to rounding                           
                                                               

CONTACT: For the Company
         Jackie Chang, CFO
         Himax Technologies, Inc.
         Tel: 886-2-2370-3999 Ext.22300
         Fax: 886-2-2314-0877
         Email: jackie_chang@himax.com.tw
         www.himax.com.tw
        
         Penny Lin, Investor Relations
         Himax Technologies, Inc.
         Tel: 886-2-2370-3999 Ext.22320
         Fax: 886-2-2314-0877
         Email: penny_lin@himax.com.tw
         www.himax.com.tw
        
         Investor Relations - US Representative
         MZ North America
         John Mattio, SVP
         Tel: +1-212-301-7130
         Email: john.mattio@mzgroup.us
         www.mz-ir.com
 
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