Overview

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 solution, power management ICs and LCOS microdisplays. Based in Tainan, Taiwan, the Company has regional offices in Hsinchu and Taipei, Taiwan; Ninbo, Foshan, Suzhou and Shenzhen, China; Yokohama, Japan and Anyangsi Kyungkido, South Korea.

---

Investment Highlights

---

Profile

If you have a computer, television, portable DVD player, GPS navigation system, cell phone, digital camera and other electronic equipment, chances are that you are already using products that are made by Himax Technologies, Inc. (Nasdaq: HIMX).  The Company designs, develops, and markets semiconductors that are critical components of flat panel displays. In addition, the Company is expanding its product offering to include LCD TV chipset solution, power management ICs and LCOS microdisplays.  All the technical words may not register with most people, but the components made by HIMX are critical too many of the electronic devices that are currently in consumers homes, cars and even pockets.

The Company boasts hundreds of patents in their name and offices and factories all throughout Asia. Himax Technologies is comfortably situated in a huge and quickly growing industry that even with the global financial slowdown of late, is expected to increase by leaps and bounds over the next decade or so. With customers such as Samsung, Hannstar, Wintek, Optrex and many other large multinational electronic companies receiving Himax's semiconductors, the long term outlook for this Company seems positive.

As with almost every publicly traded company, Himax's stock has taken a beating and is sitting close to its 52 week low.  The Company is also feeling the pain from the global slowdown, and it's quite evident from the Company's fourth quarter 2008 guidance announcement. The Company expects fourth quarter 2008 revenues to decline by 46%-49% from the $230.1 million posted in the third quarter of 2008. Previous guidance provided on November 4 forecasted revenues to decline by 23-28% quarter over quarter. Gross margin is expected to decline by 3-4 percentage points from the 24.5% posted in the third quarter of 2008. The Company had previously guided for gross margin to decline by 2-3 percentage points sequentially. The Company now expects fourth quarter EPS to be in the range of $0.02-0.04, down from the previous guidance of $0.06-0.08.

Jordan Wu, President and Chief Executive Officer of Himax, commented, "Over the past few weeks, we've seen dramatic reduction in customer orders primary as a result of the extreme slowing of the worldwide economy. Facing the unprecedented industry downturn, we have taken immediate cost-saving measures during the quarter. We expect fourth quarter operating expenses, on both GAAP and Non-GAAP basis, to be significantly lower than the third quarter 2008. With no debts, our balance sheet remains strong and we are confident that we will continue to generate positive operating cash flow in the fourth quarter. Though the short-term visibility is quite limited, we remain focused on investing in R&D and improving our operating efficiency. We will continue to execute the $50 million share buy-back program announced on November 14, 2008."

With expectations of being cash flow positive and debt free in Q4, 08 all while revenues drop considerably, Himax Technologies caught the attention of AllPennyStocks.com.  Investors are encouraged to take a closer look at Himax Technologies, Inc. (Nasdaq: HIMX) as it tries to establish itself as a leader in the burgeoning semiconductor industry.

---

Display Drivers

Himax develops source drivers, gate drivers, timing controllers and integrated drivers for large-sized panels principally used in notebook computers, desktop monitors, and televisions as well as consumer electronics products like digital cameras, digital video recorders, personal digital assistants, mobile gaming devices, portable DVD players and car navigation displays. Display drivers used in large-sized applications feature different key characteristics, depending on the end-use application. Low power consumption is a key requirement for display drivers used in notebook computers for the purposes of portability and battery conservation. For display drivers used in desktop monitors; low cost is more desirable than lower power consumption. For advanced televisions; display drivers must meet the requirements of larger panels, such as higher data transmission rates, wider viewing angles, faster response time, higher color depth and better image performance. Himax also develops display drivers for mobile handset displays that combine source driver, gate driver, timing controller, memory, power circuit and other functions into a single chip.

---

LCD TV Chipset

Himax Media Solutions, a subsidiary of Himax Technologies, provides TFT-LCD television and monitor semiconductor solutions. They produce television chipsets specifically designed to meet the requirements of advanced television systems, including audio processors, analog interfaces, channel receivers, DTV decoders and video processors. Himax’s high-performance video processors target high-end segments and provide 3D noise reduction, scaling function and dynamic color adaptation. The recent acquisition of minority stakes in Himax Mobile Solutions by Chi Mei Optoelectronics and TPV Technology Ltd., the world’s largest manufacturer of LCD monitors and the world’s largest LCD TV ODM, will add to Himax’ competitive strength as well as expand its market share in the LCD TV.

---

LCOS Microdisplays

Himax Display, Himax Technologies second subsidiary, designs and manufactures LCOS products. LCOS technology is beginning to migrate into the mass production stage for commercial applications and is expected to be utilized in near-to-eye applications and mini-projectors. In early 2008, the subsidiary announced a strategic alliance with 3M, one of the world’s leading companies in optic technology, to commercialize LCOS mobile projectors by combining Himax's proprietary technologies to deliver a complete mobile projection solution to consumer electronic manufacturers such as mobile phones, digital cameras, and other portable devices.

---

Power Management ICs

Himax Analogic, Himax Technologies third subsidiary, provides power management solutions including class-D audio amplifiers, step up DC-to-DC switching regulators, and white light LED drivers. Class-D audio amplifiers consume little power and are suitable for applications concerned with power dissipation. Step-up DC-to-DC converters work as a stable power supplier in electronic devices, providing sufficient voltage and current to light up diodes and keep LED brightness uniform and stable.

---

Growth Strategy

Himax aims to become one of the world’s leading providers of semiconductors for flat panel display applications through:

• Growing large panel display driver revenues and share
• Achieving small/medium driver business leadership
• Establishing a strong position in LCD TV chipset market
• Commercializing LCOS micro-display technology
• Pursuing constant innovation to develop new products
• Maintaining focus on effective supply chain

---

Market Opportunity

Flat panel displays continue to see demand growth due to superior performance and viewing experience they offer users. Thin film transistor liquid crystal display, or TFT-LCD technology, has established itself as the mainstream technology in the PC, notebook and monitor segments, and is being increasingly adopted in both the TV and small- and medium- size segments, including mobile handsets. Taiwan-based semiconductor companies, such as Himax, are well positioned to work closely with panel manufacturers in the design, production and distribution of semiconductors.

• Global unit shipments of large-TFT-LCD display drivers will grow from 4 billion units in 2007 to 7.4 billion in 2012.
• Global unit shipments of small-TFT-LCD display drivers will grow from 2.2 billion units in 2007 to 2.8 billion in 2012.
• Global unit shipments of medium-size LCD panel display drivers are expected to grow from 382 million units in 2007 to 768 million in 2012.

(Source: iSuppli)

The flat panel display semiconductor segment is one of the largest opportunities in the industry. Going forward, key drivers of growth will be rising unit shipments of TFT-LCD based displays, and the high resolution and performance enhancements of these displays.

The industry trend for large-sized applications currently leans towards low power consumption notebook computer display drivers, low cost desktop monitor display drivers and display drivers that can support high speed interface technologies, have greater color depth and enhanced color through RGB independent gamma for use in advanced televisions. System, panel and components manufacturers are responding to this trend with substantial investments, collectively helping to reduce cost and enhance performance.

The trend among the mobile handset display driver industry focuses on incorporating multimedia functions. Leading drivers in the industry must have the capability to support high-speed interfaces as well as offer a greater array of color depth and enhanced image quality.

For display drivers used in medium-sized consumer electronic products, industry movement centers on the ability to provide higher channels, and the integration of timing controllers in video processors. Trends in display drivers used in small-sized consumer electronics products are focused towards single-chip solutions which expertly combine a source driver, gate driver, timing controller and power circuit into a single, stand-alone chip.

Recent News and Press Releases

•Himax Technologies Schedules Fourth Quarter 2008 and Year-End Financial Results Conference Call
GlobeNewswire (Wed, Jan 21)

•Himax Adjusts Fourth Quarter 2008 Guidance
GlobeNewswire (Fri, Dec 5)

•Himax Announces Share Buyback
GlobeNewswire (Fri, Nov 14)

•Himax Reports Third Quarter 2008 Financial Results
GlobeNewswire (Mon, Nov 3)

•Himax Allied With Wingtech, China's Largest Handset Solution Provider, for LCOS Mobile Projectors
GlobeNewswire (Mon, Nov 3)

---

Management

Dr. Biing-Seng Wu, Chairman of the Board

Jordan Wu, President, Chief Executive Officer and Director

Chih-Chung Tsai, Chief Technology Officer, Senior VP

Max Chan, Chief Financial Officer
 

---

Contact

Himax Technologies, Inc.

Max Chan, Chief Financial Officer
Phone: +886-2-2370-3999 Ext. 22300
Email: max_chan@himax.com.tw

Investor Relations:

Jessie Wang
Phone: +886-2-2370-3999 Ext. 22618
Email: jessie_wang@himax.com.tw

The Ruth Group - In the U.S.

Joseph Villalta
Phone: +1-646-536-7003
Email: jvillalta@theruthgroup.com

---

FORWARD LOOKING STATEMENTS

This report includes forward-looking statements that reflect Himax Technologies, Inc. current expectations about its future results, performance, prospects and opportunities. Himax Technologies, Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Himax Technologies, Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.

---

Disclaimer

AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for Himax Technologies, Inc. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

© 1999-2009 AllPennyStocks.com. All rights reserved. AllPennyStocks.com is not a Registered Broker/Dealer or Financial Advisor, nor do we hold ourselves out to be. All materials presented on our web site and individual reports released to the public through this web site, e-mail or any other means of transmission are not to be regarded as investment advice and are only for informative purposes. Before making a purchase or sale of any securities featured on our web site or mentioned in our reports, we strongly encourage and recommend consultation with a registered securities representative. This is not to be construed as a solicitation or recommendation to buy or sell securities. As with any stock, companies we select to profile involve a degree of investment risk and volatility. Particularly Small-Caps and OTC-BB stocks. All investors are cautioned that they may lose all or a portion of their investment if they decide to make a purchase in any of our profiled companies. Past performance of our profiled stocks is not indicative of future results. The accuracy or completeness of the information on our web site or within our reports is only as reliable as the sources they were obtained from. The profile and opinions expressed herein are expressed as of the date the profile is posted on site and are subject to change without notice. No investor should assume that reliance on the views, opinions or recommendations contained herein will produce profitable results. AllPennyStocks.com may hold positions in securities mentioned herein, and may make purchases or sales in such securities featured on our web site or within our reports. In order to be in full compliance with the Securities Act of 1933, Section 17(b), AllPennyStocks.com will disclose in it's disclaimer, what, if any compensation was received for our efforts in researching, presenting and disseminating this information to our subscriber database and featuring the report on the AllPennyStocks.com web site. AllPennyStocks.com has not been compensated for its efforts in presenting the HIMX profile on its web site and distributing it to its database of subscribers as well as other services. AllPennyStocks.com may decide to purchase or sell shares on a voluntary basis in the open market before, during or after the profiling period of this report. As of the profile date, no shares have been sold. Information presented on our web site and within our reports contain "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as “expects’”, “will,” “anticipates,” “estimates, “believes,” or that by statements indicating certain actions “may,” “could,” or “might” occur.

THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SMALL CAP SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.

We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission (SEC) at: http://www.sec.gov and/or the National Association of Securities Dealers (NASD) at: http://www.nasd.com. Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.