Himax Technologies, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2016. For the quarter, the company reported revenues of $218,081,000 against $165,582,000 a year ago. Operating income was $15,296,000 against loss of $2,461,000 a year ago. Earnings before income taxes were $14,832,000 against loss of $1,779,000 a year ago. Net income attributable to the company stockholders was $13,598,000 or $0.079 per basic and diluted ADS against loss of $2,332,000 or $0.014 per basic and diluted ADS a year ago. Net cash provided by operating activities was $2,860,000 against $14,143,000 a year ago. The year-over-year decrease was a result of higher receivables although net profit actually increased. Purchases of property and equipment were $1,861,000 against $2,554,000 a year ago. The capital expenditure in the third quarter consisted mainly of purchases of R&D related equipment. Third quarter non-GAAP net income was $21.3 million, or 12.4 cents per diluted ADS, compared to $20.2 million last quarter and $1.7 million the same period last year.

For the nine months, the company reported net revenues of $599,474,000 against $513,812,000 a year ago. Operating income was $52,374,000 against $22,061,000 a year ago. Earnings before income taxes were $52,308,000 against $23,893,000 a year ago. Net income attributable to the company stockholders was $46,473,000 or $0.270 per basic and diluted ADS against $19,065,000 or $0.111 per diluted ADS a year ago. Net cash provided by operating activities was $37,457,000 against net cash used in operating activities of $3,337,000 a year ago. Purchases of property and equipment were $5,743,000 against $6,415,000 a year ago. Net income attributable to company stockholders excluding share-based compensation and acquisition-related charges was $54,948,000 compared to $24,115,000 a year ago. Diluted non-GAAP earnings per ADS attributable to company stockholders excluding share-based compensation and acquisition-related charges were $0.319.

For the fourth quarter of 2016, the company's net revenue to be down 4.0% to 9% sequentially, representing a 11.5% to 17.6% year-over-year growth, gross margin to be slightly down sequentially, as compared to 22.9% reported in the fourth quarter of 2015; GAAP EPS is to be 8.5 to 11.0 cents per diluted ADS, as compared to 3.6 cents reported in the fourth quarter of 2015; non-GAAP EPS is to be 8.7 to 11.2 cents per diluted ADS, as compared to 3.8 cents reported in the fourth quarter of 2015.

The company has assumed a 14.0% income tax rate for 2016, calculated based on exchange rate of TWD 31.5 against the USD, which is also the exchange rate as of beginning of November 2016.