Unassociated Document
 


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, 2007

Commission File Number: 000-51847

Himax Technologies, Inc.
(Translation of registrant’s name into English)

No.26, Zih Lian Road, Fonghua Village,
Sinshih Township, Tainan County 744,
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
“Himax Updates Third Quarter, Fourth Quarter and Full Year 2006 Results” dated May 9, 2007.
   



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 9th, 2007




 
Exhibit 99.1

HIMAX UPDATES THIRD QUARTER, FOURTH QUARTER AND FULL YEAR 2006 RESULTS

Himax Technologies, Inc. (“Himax” or ”Company”) (Nasdaq: HIMX) today updated financial results for the third quarter, fourth quarter and full year 2006 as compared to the financial results presented previously on November 7, 2006 and February 13, 2007.

Revenues remain at $177.1 million for the third quarter, $220.9 million for the fourth quarter and $744.5 million for the full year 2006. Net incomes are updated to $0.01, $0.16 and $0.39 per share as compared to $0.02, $0.15 and $0.39 per share presented previously for the third quarter, fourth quarter and the full year 2006 respectively.

Primary changes between originally presented and updated results are noted below:

(1) operating expenses were impacted by a change in the Company’s accounting treatment of its cash signing bonus plan from deferring and amortizing over a three-year period to charging as an expense in current period when paid, (2) income tax expense was decreased due primarily to a higher estimated tax exemption and the tax effect resulting from the change in the accounting treatment of the cash signing bonus plan, and (3) changes in certain classifications, e.g., the revenues between related parties and third parties in the statements of income; prepaid expenses and property and equipment in the balance sheets and reconciled items for the cash flows from operating and investing activities in the statements of cash flows.
 
A reconciliation of our corrected and originally presented gross margin and operating margin excluding share-based compensation, a non-GAAP financial measure, to our corrected and originally presented GAAP gross margin and GAAP operating margin, our most comparable GAAP figure, is set out in the attached reconciliation schedule.
 


- Tables Attached -
 
 
 
 

1



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.)
 
(Figures in Thousands of U.S. Dollars, Except Per Share Data)
 
   
   
Three Months
Ended September 30, 2006
 
Changes to
the
Originally
Presented
 
   
As
Corrected
 
 As
Originally
Presented
 
Revenues
             
 Revenues from third parties, net
 
$
88,878
 
$
89,044
 
$
(166
)
 Revenues from related parties, net
   
88,227
   
88,061
   
166
 
     
177,105
   
177,105
   
---
 
                     
Costs and expenses:
             
Cost of revenues
   
146,287
   
146,287
   
---
 
Research and development
   
24,267
   
22,685
   
1,582
 
General and administrative
   
3,190
   
3,027
   
163
 
Sales and marketing
   
2,586
   
2,364
   
222
 
Total costs and expenses
   
176,330
   
174,363
   
1,967
 
                     
Operating income
   
775
   
2,742
   
(1,967
)
                     
Non operating income (loss):
                   
Interest income
   
2,000
   
2,000
   
---
 
Foreign exchange losses, net
   
(1,298
)
 
(1,298
)
 
---
 
Other income, net
   
59
   
59
   
---
 
     
761
   
761
   
---
 
Income before income taxes and minority  interest 
   
1,536
   
3,503
   
(1,967
)
Income tax benefit
   
(1,246
)
 
(1,246
)
 
---
 
Income before minority interest
   
2,782
   
4,749
   
(1,967
)
Minority interest, net of tax
   
(157
)
 
(157
)
 
---
 
Net income
 
$
2,625
 
$
4,592
 
$
(1,967
)
               
Basic earnings per ordinary share and ADS
 
$
0.01
 
$
0.02
 
$
(0.01
)
Diluted earnings per ordinary share and ADS
 
$
0.01
 
$
0.02
 
$
(0.01
)
                     
Basic Weighted Average Outstanding Shares
   
197,110
   
197,110
   
---
 
Diluted Weighted Average Outstanding Shares
   
199,729
   
199,729
   
---
 

2




Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Income
(Figures in Thousands of U.S. Dollars, Except Per Share Data)
 
   
Nine Months
Ended September 30, 2006
 
Changes to the
Originally
Presented
 
   
As
Corrected
 
 As
Originally
Presented
 
Revenues
             
 Revenues from third parties, net
 
$
238,939
 
$
239,105
 
$
(166
)
 Revenues from related parties, net
   
284,700
   
284,534
   
166
 
     
523,639
   
523,639
   
---
 
Costs and expenses:
                   
Cost of revenues
   
422,351
   
422,351
   
---
 
Research and development
   
46,772
   
45,190
   
1,582
 
General and administrative
   
6,582
   
6,419
   
163
 
Sales and marketing
   
4,690
   
4,468
   
222
 
Total costs and expenses
   
480,395
   
478,428
   
1,967
 
                     
Operating income
   
43,244
   
45,211
   
(1,967
)
                     
Non operating income (loss):
                   
Interest income
   
4,048
   
4,048
   
---
 
Impairment loss on an investment
   
(1,500
)
 
(1,500
)
 
---
 
Foreign exchange losses, net
   
(132
)
 
(132
)
 
---
 
Interest expense
   
(311
)
 
(311
)
 
---
 
Other income, net
   
172
   
172
   
---
 
     
2,277
   
2,277
   
---
 
                     
Income before income taxes and
minority interest
   
45,521
   
47,488
   
(1,967
)
Income tax expense
   
1,491
   
1,491
   
---
 
Income before minority interest
   
44,030
   
45,997
   
(1,967
)
Minority interest, net of tax
   
59
   
59
   
---
 
Net income
 
$
44,089
 
$
46,056
 
$
(1,967
)
                     
Basic earnings per ordinary share and ADS
 
$
0.23
 
$
0.24
 
$
(0.01
)
Diluted earnings per ordinary share and ADS
 
$
0.23
 
$
0.24
 
$
(0.01
)




3




Himax Technologies, Inc.
Unaudited Condensed Consolidated Balance Sheets
(Figures in Thousands of U.S. Dollars)
 
               
   
Sep 30,
 
Sep 30,
 
Changes to
the
Originally
Presented
 
   
2006
 
2006
 
   
As Corrected
 
 As Originally
Presented
 
Assets
             
Current assets:
             
Cash and cash equivalents
 
$
155,594
 
$
155,594
 
$
---
 
Marketable securities available-for-sale
   
4,072
   
4,072
   
---
 
Restricted cash equivalents and marketable securities
   
31
   
31
   
---
 
Accounts receivable, less allowance for sales returns and discounts
   
101,660
   
101,660
   
---
 
Accounts receivable from related parties, less allowance for sales returns and discounts
   
71,530
   
71,530
   
---
 
Inventories
   
106,977
   
106,977
   
---
 
Deferred income taxes
   
11,202
   
11,202
   
---
 
Prepaid expenses and other current assets
   
18,655
   
20,622
   
(1,967
)
Total current assets
 
$
469,721
 
$
471,688
 
$
(1,967
)
Property and equipment, net
   
34,946
   
34,946
   
---
 
Deferred income taxes
   
134
   
134
   
---
 
Intangible assets, net
   
61
   
61
   
---
 
Investments in non-marketable securities
   
1,723
   
1,723
   
---
 
Refundable deposits
   
603
   
603
   
---
 
 
   
37,467
   
37,467
   
---
 
Total assets
 
$
507,188
 
$
509,155
 
$
(1,967
)
                     
Liabilities, minority interest and stockholders’ equity
                   
Current liabilities:
                   
Accounts payable
 
$
106,829
 
$
106,829
 
$
---
 
Income tax payable
   
11,783
   
11,783
   
---
 
Other accrued expenses and other current liabilities
   
16,029
   
16,029
   
---
 
Total current liabilities
 
$
134,641
 
$
134,641
 
$
---
 
Minority interest
 
$
1,054
 
$
1,054
 
$
---
 
Stockholders’ equity:
                   
Ordinary share, US$0.0001 par value, 500,000,000 shares authorized
   
19
   
19
   
---
 
Additional paid-in capital
   
260,031
   
260,031
   
---
 
Accumulated other comprehensive income 
   
27
   
27
   
---
 
Unappropriated earnings
   
111,416
   
113,383
   
(1,967
)
Total stockholders’ equity
 
$
371,493
 
$
373,460
 
$
(1,967
)
Total liabilities, minority interest and stockholders’ equity
 
$
507,188
 
$
509,155
 
$
(1,967
)
                     

4



Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Figures in Thousands of U.S. Dollars)
 
   
Three Months
Ended September 30, 2006
 
 
 
   
As
Corrected
 
 As
Originally
Presented
 
Changes
to the
Originally Presented
 
               
Cash flows from operating activities:
             
               
Net income
 
$
2,625
 
$
4,592
 
$
(1,967
)
Adjustments to reconcile net income to net cash used in operating activities:
               
---
 
Depreciation and amortization
   
1,119
   
1,119
   
---
 
Share-based compensation expenses
   
11,456
   
11,456
   
---
 
Minority interest, net of tax
   
157
   
157
   
---
 
Gain on sale of subsidiary shares, net
   
(11
)
 
(11
)
 
---
 
Gain on sale of marketable securities, net
   
(12
)
 
(12
)
 
---
 
Deferred income taxes
   
132
   
132
   
---
 
Changes in operating assets and liabilities:
               
---
 
Accounts receivable
   
(14,772
)
 
(14,772
)
 
---
 
Accounts receivable from related parties
   
(5,096
)
 
(5,096
)
 
---
 
Inventories
   
(7,369
)
 
(7,369
)
 
---
 
Prepaid expenses and other current assets
   
(2,530
)
 
(4,497
)
 
1,967
 
Accounts payable
   
8,815
   
8,815
   
---
 
Income tax payable
   
(1,075
)
 
(1,075
)
 
---
 
Other accrued expenses and other current liabilities
   
3,477
   
3,477
   
---
 
Net cash used in operating activities
   
(3,084
)
 
(3,084
)
 
---
 
                     
Cash flows from investing activities:
                   
Purchase of land, property and equipment
   
(5,691
)
 
(5,691
)
 
---
 
Purchase of available-for-sales marketable securities
   
(10,608
)
 
(10,608
)
 
---
 
Sales and maturities of available-for-sale marketable securities
   
8,480
   
8,480
   
---
 
Proceeds from sale of subsidiary shares by Himax Technologies Limited
   
27
   
27
   
---
 
Purchase of investments in non-marketable securities
   
(1,410
)
 
(1,410
)
 
---
 
Purchase of subsidiary shares from minority interest
   
(64
)
 
(64
)
 
---
 
Increase in refundable deposits
   
(92
)
 
(92
)
 
---
 
Release of restricted cash equivalents and marketable securities
   
424
   
424
   
---
 
Net cash used in investing activities
   
(8,934
)
 
(8,934
)
 
---
 
                     
 





5



Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Figures in Thousands of U.S. Dollars)
             
 
   
Three Months
Ended September 30,
2006 
   
Changes to
the
Originally
Presented
 
   
As
Corrected
 
 As
Originally
Presented
   
Cash flows from financing activities:
             
Proceeds from issuance of new shares by subsidiaries
   
655
   
655
   
---
 
Net cash provided by financing activities
   
655
   
655
   
---
 
Effect of exchange rate changes on cash and cash equivalents
   
73
   
73
   
---
 
Net decrease in cash and cash equivalents
   
(11,290
)
 
(11,290
)
 
---
 
Cash and cash equivalents at beginning of period
   
166,884
   
166,884
   
---
 
Cash and cash equivalents at end of period
 
$
155,594
 
$
155,594
   
---
 
                     
Supplemental disclosures of cash flow information:
                   
Cash paid during the period for:
                   
Interest
 
$
---
 
$
---
 
$
---
 
Income taxes
 
$
21
 
$
21
 
$
---
 
Supplemental disclosures of non-cash investing and financing activities:
                   
Payable for purchase of equipment and construction in progress
 
$
(1,750
)
$
(1,750
)
$
---
 
 
 


6



Himax Technologies, Inc.
Unaudited Supplemental Data - Reconciliation Schedule
(Figures in Thousands of U.S. Dollars, Except Per Share Data)
 
 
Gross Margin and Operating Margin Excluding Share-based Compensation:
 
   
Three Months
Ended September 30, 2006
 
Changes
to the
Originally
Presented
 
   
As
Corrected
 
As
Originally
Presented
 
Revenues
 
$
177,105
 
$
177,105
 
$
---
 
                     
Gross profit
   
30,818
   
30,818
   
---
 
Add: Share-based compensation Cost of revenues
   
208
   
208
   
---
 
Gross profit excluding share-based compensation
   
31,026
   
31,026
   
---
 
Gross margin excluding share-based compensation
   
17.5
%
 
17.5
%
 
---
 
                     
Operating income
   
775
   
2,742
   
(1,967
)
Add: Share-based compensation
   
11,456
   
11,456
   
---
 
Operating income excluding share-based compensation
   
12,231
   
14,198
   
(1,967
)
Operating margin excluding share-based compensation
   
6.9
%
 
8.0
%
 
(1.1
%)
                     
*Gross margin excluding share-based compensation equals gross profit excluding share-based compensation divided by revenues
*Operating margin excluding share-based compensation equals operating income excluding share-based compensation divided by revenues

Diluted Earnings Per Share Excluding Share-Based Compensation:
 
   
Three Months
Ended September 30, 2006
 
Changes to the Originally Presented
 
   
As Corrected
 
As Originally Presented
 
Diluted GAAP EPS
 
$
0.01
 
$
0.02
 
$
(0.01
)
Add: Estimated share-based compensation per diluted share
   
0.06
   
0.06
   
---
 
                   
Diluted non GAAP EPS excluding share-based compensation
 
$
0.07
 
$
0.08
 
$
(0.01
)
                     
Numbers do not add up to rounding
                   



7



Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Income
(Figures in Thousands of U.S. Dollars, Except Per Share Data)
 
 
   
Three Months
Ended December 31, 2006
 
Changes to the Originally Presented
 
   
As
Corrected
 
 As Originally Presented
 
Revenues
             
 Revenues from third parties, net
 
$
90,947
 
$
91,920
 
$
(973
)
 Revenues from related parties, net
   
129,932
   
128,959
   
973
 
     
220,879
   
220,879
   
---
 
                     
Costs and expenses:
             
Cost of revenues
   
179,214
   
179,214
   
---
 
Research and development
   
13,883
   
13,642
   
241
 
General and administrative
   
3,180
   
3,108
   
72
 
Sales and marketing
   
2,280
   
2,150
   
130
 
Total costs and expenses
   
198,557
   
198,114
   
443
 
                     
Operating income
   
22,322
   
22,765
   
(443
)
                     
Non operating income (loss):
                   
Interest income
   
1,812
   
1,812
   
---
 
Foreign exchange gains (losses), net
   
(209
)
 
356
   
(565
)
Other income, net
   
61
   
61
   
---
 
     
1,664
   
2,229
   
(565
)
Income before income taxes and minority  interest 
   
23,986
   
24,994
   
(1,008
)
Income tax benefit
   
(6,937
)
 
(4,211
)
 
(2,726
)
Income before minority interest
   
30,923
   
29,205
   
1,718
 
Minority interest, net of tax
   
178
   
183
   
(5
)
Net income
 
$
31,101
 
$
29,388
 
$
1,713
 
               
Basic earnings per ordinary share and ADS
 
$
0.16
 
$
0.15
 
$
0.01
 
Diluted earnings per ordinary share and ADS
 
$
0.16
 
$
0.15
 
$
0.01
 
                     
Basic Weighted Average Outstanding Shares
   
198,154
   
198,147
   
7
 
Diluted Weighted Average Outstanding Shares
   
199,419
   
199,518
   
(99
)

8




Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Income
(Figures in Thousands of U.S. Dollars, Except Per Share Data)
 
   
Twelve Months
Ended December 31, 2006
 
Changes to
the
Originally
Presented
 
   
As
Corrected
 
 As
Originally
Presented
 
Revenues
             
 Revenues from third parties, net
 
$
329,886
 
$
331,025
 
$
(1,139
)
 Revenues from related parties, net
   
414,632
   
413,493
   
1,139
 
     
744,518
   
744,518
   
---
 
Costs and expenses:
                   
Cost of revenues
   
601,565
   
601,565
   
---
 
Research and development
   
60,655
   
58,832
   
1,823
 
General and administrative
   
9,762
   
9,527
   
235
 
Sales and marketing
   
6,970
   
6,618
   
352
 
Total costs and expenses
   
678,952
   
676,542
   
2,410
 
                     
Operating income
   
65,566
   
67,976
   
(2,410
)
                     
Non operating income (loss):
                   
Interest income
   
5,860
   
5,860
   
---
 
Impairment loss on an investment
   
(1,500
)
 
(1,500
)
 
---
 
Foreign exchange gains (losses), net
   
(341
)
 
224
   
(565
)
Interest expense
   
(311
)
 
(311
)
 
---
 
Other income, net
   
233
   
233
   
---
 
     
3,941
   
4,506
   
(565
)
                     
Income before income taxes and
minority interest
   
69,507
   
72,482
   
(2,975
)
Income tax benefit
   
(5,446
)
 
(2,720
)
 
(2,726
)
Income before minority interest
   
74,953
   
75,202
   
(249
)
Minority interest, net of tax
   
237
   
242
   
(5
)
Net income
 
$
75,190
 
$
75,444
 
$
(254
)
                     
Basic earnings per ordinary share and ADS
 
$
0.39
 
$
0.39
   
---
 
Diluted earnings per ordinary share and ADS
 
$
0.39
 
$
0.39
   
---
 




9




Himax Technologies, Inc.
Unaudited Condensed Consolidated Balance Sheets
(Figures in Thousands of U.S. Dollars)
             
 
   
Dec 31,
 
Dec 31,
 
Changes to
the
Originally
Presented
 
   
2006
 
2006
 
   
As Corrected
 
 As Originally
Presented
 
Assets
             
Current assets:
             
Cash and cash equivalents
 
$
109,753
 
$
109,753
 
$
---
 
Marketable securities available-for-sale
   
8,828
   
8,828
   
---
 
Restricted cash equivalents and marketable securities
   
108
   
108
   
---
 
Accounts receivable, less allowance for doubtful accounts, sales returns and discounts
   
112,363
   
113,521
   
(1,158
)
Accounts receivable from related parties, less allowance for doubtful accounts, sales returns and discounts
   
117,254
   
116,096
   
1,158
 
Inventories
   
101,341
   
101,341
   
---
 
Deferred income taxes
   
7,362
   
6,721
   
641
 
Prepaid expenses and other current assets
   
10,343
   
10,404
   
(61
)
Total current assets
 
$
467,352
 
$
466,772
 
$
580
 
Property and equipment, net
   
38,895
   
41,918
   
(3,023
)
Deferred income taxes
   
11,405
   
11,454
   
(49
)
Intangible assets, net
   
393
   
393
   
---
 
Investments in non-marketable securities
   
817
   
817
   
---
 
Refundable deposits
   
550
   
550
   
---
 
 
   
52,060
   
55,132
   
(3,072
)
Total assets
 
$
519,412
 
$
521,904
 
$
(2,492
)
                     
Liabilities, minority interest and stockholders’ equity
                   
Current liabilities:
                   
Accounts payable
 
$
120,407
 
$
120,407
 
$
---
 
Income tax payable
   
12,284
   
14,385
   
(2,101
)
Other accrued expenses and other current liabilities
   
21,398
   
21,274
   
124
 
Total current liabilities
 
$
154,089
 
$
156,066
 
$
(1,977
)
Other liabilities
   
---
   
191
   
(191
)
Total liabilities
 
$
154,089
 
$
156,257
 
$
(2,168
)
Minority interest
 
$
1,396
 
$
1,397
 
$
(1
)
Stockholders’ equity:
                   
Ordinary share, US$0.0001 par value, 500,000,000 shares authorized
   
19
   
19
   
---
 
Additional paid-in capital
   
221,666
   
221,666
   
---
 
Accumulated other comprehensive loss
   
(275
)
 
(207
)
 
(68
)
Unappropriated earnings
   
142,517
   
142,772
   
(255
)
Total stockholders’ equity
 
$
363,927
 
$
364,250
 
$
(323
)
Total liabilities, minority interest and stockholders’ equity
 
$
519,412
 
$
521,904
 
$
(2,492
)
                     

10



Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Figures in Thousands of U.S. Dollars)
 
   
Three Months
Ended December 31, 2006
 
Changes
to the
Originally
Presented
 
   
As
Corrected
 
As
Originally
Presented
   
               
Cash flows from operating activities:
             
               
Net income
 
$
31,101
 
$
29,388
 
$
1,713
 
Adjustments to reconcile net income to net cash provided by operating activities:
                   
Depreciation and amortization
   
1,680
   
1,869
   
(189
)
Share-based compensation expenses
   
1,493
   
1,493
   
---
 
Minority interest, net of tax
   
(178
)
 
(183
)
 
5
 
Gain on sale of subsidiary shares and investments in non-marketable securities, net
   
(49
)
 
(49
)
 
---
 
Gain on sale of marketable securities, net
   
(12
)
 
(12
)
 
---
 
Deferred income taxes
   
(7,332
)
 
(6,842
)
 
(490
)
Inventories write downs
   
2,050
   
2,691
   
(641
)
Changes in operating assets and liabilities:
                   
Accounts receivable
   
(10,488
)
 
(11,840
)
 
1,352
 
Accounts receivable from related parties
   
(45,667
)
 
(44,346
)
 
(1,321
)
Inventories
   
7,527
   
6,885
   
642
 
Prepaid expenses and other current assets
   
4,125
   
6,285
   
(2,160
)
Accounts payable
   
13,578
   
13,563
   
15
 
Income tax payable
   
457
   
2,601
   
(2,144
)
Other accrued expenses and other current liabilities
   
3,067
   
1,327
   
1,740
 
Net cash provided by operating activities
   
1,352
   
2,830
   
(1,478
)
                     
Cash flows from investing activities:
                   
Purchase of property and equipment
   
(4,187
)
 
(5,628
)
 
1,441
 
Purchase of available-for-sales marketable securities
   
(12,678
)
 
(12,678
)
 
---
 
Sales and maturities of available-for-sale marketable securities
   
7,940
   
7,940
   
---
 
Cash acquired in acquisition
   
17
   
---
   
17
 
Proceeds from sale of subsidiary shares and investments in non-marketable securities by Himax Technologies Limited
   
1,537
   
937
   
600
 
Purchase of subsidiary shares from minority interest
   
(602
)
 
(37
)
 
(565
)
Refund from refundable deposits
   
63
   
62
   
1
 
Pledge of restricted cash equivalents and marketable securities
   
(75
)
 
(74
)
 
(1
)
Net cash used in investing activities
   
(7,985
)
 
(9,478
)
 
1,493
 
                     
 




11



Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Figures in Thousands of U.S. Dollars)
             
 
 

 

 
 
Three Months
Ended December 31, 2006
 
  Changes to
the
Originally
Presented
 
 
 
As Corrected
 
 As
Originally
Presented
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
Proceeds from initial public offering, net of issuance costs
 
 
(392
)
 
(393
)
 
1
 
Acquisition of ordinary shares for retirement
 
 
(38,835
)
 
(38,835
)
 
---
 
Net cash used in financing activities
 
 
(39,227
)
 
(39,228
)
 
1
 
Effect of exchange rate changes on cash and cash equivalents
 
 
19
 
 
15
 
 
4
 
Net decrease in cash and cash equivalents
 
 
(45,841
)
 
(45,861
)
 
20
 
Cash and cash equivalents at beginning of period
 
 
155,594
 
 
155,594
 
 
---
 
Cash received from the acquisition of subsidiary
 
 
---
 
 
20
 
 
(20
)
Cash and cash equivalents at end of period
 
$
109,753
 
$
109,753
 
 
---
 
 
 
 
 
 
 
 
 
 
 
 
Supplemental disclosures of cash flow information:
 
 
 
 
 
 
 
 
 
 
Cash paid during the period for:
 
 
 
 
 
 
 
 
 
 
Interest
 
$
---
 
$
---
 
$
---
 
Income taxes
 
$
110
 
$
18
 
$
92
 
Supplemental disclosures of non-cash investing and financing activities:
 
 
 
 
 
 
 
 
 
 
Payable for purchase of equipment and construction in progress
 
$
2,721
 
$
4,481
 
$
(1,760
)
 
 
 
 
 
 
 
 
 
 
 
Fair value of common stocks issued by Himax Display, Inc. in the acquisition of Integrated Microdisplays Limited
 
$
538
 
$
---
 
$
538
 

 

12



Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Figures in Thousands of U.S. Dollars)
       
 
 
   
Twelve Months
Ended December 31, 2006
   
Changes to
the
Originally
Presented
 
   
As
Corrected
 
As
Originally
Presented
   
               
Cash flows from operating activities:
             
               
Net income
 
$
75,190
 
$
75,444
 
$
(254
)
Adjustments to reconcile net income to net cash provided by operating activities:
                   
Depreciation and amortization
   
5,221
   
5,410
   
(189
)
Share-based compensation expenses
   
15,150
   
15,150
   
---
 
Impairment loss on investments in non-marketable securities
   
1,500
   
1,500
   
---
 
Loss on disposal of property and equipment
   
36
   
36
   
---
 
Minority interest, net of tax
   
(237
)
 
(242
)
 
5
 
Gain on sale of subsidiary shares and investments in non-marketable securities, net
   
(137
)
 
(137
)
 
---
 
Gain on sale of marketable securities, net
   
(60
)
 
(60
)
 
---
 
Deferred income taxes
   
(9,556
)
 
(9,066
)
 
(490
)
Inventories write downs
   
5,165
   
9,417
   
(4,252
)
Changes in operating assets and liabilities:
                   
Accounts receivable
   
(31,934
)
 
(33,286
)
 
1,352
 
Accounts receivable from related parties
   
(47,566
)
 
(46,245
)
 
(1,321
)
Inventories
   
(1,502
)
 
(5,755
)
 
4,253
 
Prepaid expenses and other current assets
   
558
   
751
   
(193
)
Accounts payable
   
14,606
   
14,591
   
15
 
Income tax payable
   
(1,341
)
 
803
   
(2,144
)
Other accrued expenses and other current liabilities
   
4,603
   
2,863
   
1,740
 
Net cash provided by operating activities
   
29,696
   
31,174
   
(1,478
)
                     
Cash flows from investing activities:
                   
Purchase of property and equipment
   
(17,829
)
 
(19,270
)
 
1,441
 
Purchase of available-for-sales marketable securities
   
(31,911
)
 
(31,911
)
 
---
 
Sales and maturities of available-for-sale marketable securities
   
27,128
   
27,128
   
---
 
Purchase of investment in non-marketable securities
   
(817
)
 
(1,410
)
 
593
 
Cash acquired in acquisition
   
17
   
---
   
17
 
Proceeds from sale of subsidiary shares and investments in non-marketable securities by Himax Technologies Limited
   
1,142
   
1,143
   
(1
)
Purchase of subsidiary shares from minority interest
   
(773
)
 
(208
)
 
(565
)
Refund from refundable deposits
   
171
   
170
   
1
 
Release of restricted cash equivalents and marketable securities
   
13,945
   
13,946
   
(1
)
Net cash used in investing activities
   
(8,927
)
 
(10,412
)
 
1,485
 
 
13

 
             
Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Figures in Thousands of U.S. Dollars)
       
 
 
   
Twelve Months
Ended December 31, 2006
   
Changes to
the
Originally Presented
 
   
As
Corrected
 
As
Originally Presented
 
Cash flows from financing activities:
             
Proceeds from initial public offering, net of issuance costs
   
147,408
   
147,407
   
1
 
Proceeds from issuance of new shares by subsidiaries
   
676
   
668
   
8
 
Acquisition of ordinary shares for retirement
   
(38,835
)
 
(38,835
)
 
---
 
Proceeds from borrowing of short-term debt
   
11,303
   
11,303
   
---
 
Repayment of short-term debt
   
(38,577
)
 
(38,577
)
 
---
 
Repayment of long-term debt
   
(89
)
 
(89
)
 
---
 
Net cash provided by financing activities
   
81,886
   
81,877
   
9
 
Effect of exchange rate changes on cash and cash equivalents
   
12
   
8
   
4
 
Net Increase in cash and cash equivalents
   
102,667
   
102,647
   
20
 
Cash and cash equivalents at beginning of year
   
7,086
   
7,086
   
---
 
Cash received from the acquisition of subsidiary
         
20
   
(20
)
Cash and cash equivalents at end of year
 
$
109,753
 
$
109,753
   
---
 
                     
Supplemental disclosures of cash flow information:
                   
Cash paid during the year for:
                   
Interest
 
$
311
 
$
311
 
$
---
 
Income taxes
 
$
5,695
 
$
5,603
 
$
92
 
Supplemental disclosures of non-cash investing and financing activities:
                   
Payable for purchase of equipment and construction in progress
 
$
1,846
 
$
3,606
 
$
(1,760
)
                     
Fair value of common stocks issued by Himax Display, Inc. in the acquisition of Integrated Microdisplays Limited
 
$
538
 
$
---
 
$
538
 
                     






14




Himax Technologies, Inc.
Unaudited Supplemental Data - Reconciliation Schedule
(Figures in Thousands of U.S. Dollars, Except Per Share Data)
 
Gross Margin and Operating Margin Excluding Share-based Compensation:
 
   
Three Months
Ended December 31, 2006
 
Changes to the Originally Presented
 
   
As
Corrected
 
As
Originally Presented
 
Revenues
 
$
220,879
 
$
220,879
 
$
---
 
                     
Gross profit
   
41,665
   
41,665
   
---
 
Add: Share-based compensation Cost of revenues
   
25
   
25
   
---
 
Gross profit excluding share-based compensation
   
41,690
   
41,690
   
---
 
Gross margin excluding share-based compensation
   
18.9
%
 
18.9
%
 
---
 
                     
Operating income
   
22,322
   
22,765
   
(443
)
Add: Share-based compensation
   
1,493
   
1,493
   
---
 
Operating income excluding share-based compensation
   
23,815
   
24,258
   
(443
)
Operating margin excluding share-based compensation
   
10.8
%
 
11.0
%
 
(0.2
%)
                     
*Gross margin excluding share-based compensation equals gross profit excluding share-based compensation divided by revenues
*Operating margin excluding share-based compensation equals operating income excluding share-based compensation divided by revenues

Diluted Earnings Per Share Excluding Share-Based Compensation and Acquisition Related Cost:
 
   
Three Months
Ended December 31, 2006
 
Changes to the Originally Presented
 
   
As Corrected
 
As Originally Presented
 
Diluted GAAP EPS
 
$
0.16
 
$
0.15
 
$
0.01
 
Add: Estimated share-based compensation per diluted share
   
0.01
   
0.01
   
---
 
 
   
             
Diluted non GAAP EPS excluding share-based compensation
 
$
0.16
 
$
0.16
 
$
---
 
                     
Numbers do not add up to rounding
                   
     
   
       

 
 
15