Himax Technologies, Inc. (ADR)(NASDAQ:HIMX) Reports Disposal Of Investment

0
1630

Himax Technologies, Inc. (ADR)(NASDAQ:HIMX) has reached a deal with a purchaser to dispose of a direct investment done over 2007 to 2008. The investment comprises a China-based operation offering display driver IC backend processing including wafer bumping, packaging and chip testing. Total proceeds from disposal comes at $32 million with a pre-tax gain of around $23 million. Gain after tax is projected to be $20.74 million, showcasing a contribution of 12 cents GAAP net income/diluted ADS.

The details

Himax’s preliminary investment amount of $8.96 million showcased a minority stake of 14.46% in the investee firm. The company kept no board representation in the investee firm and has not partaken in its management. It determined to dispose of the investment as it considered the strategic value of the investment has lessened.

The proceeds from the disposal will be utilized to partially fund the heavy capital expenditure for this year. This deal is subject to relevant government nods with closing anticipated to be no later than the close of the fourth quarter, 2017.

Earlier in an unrelated news, Himax Technologies responded to a research report released by Andrew Uerkwitz, an expert from Oppenheimer & Co. While the company respects the research analyst’s opinions, it reaffirms its operational and financial prospects and would caution shareholders that the report did not comprise any input from the firm.

Jordan Wu, the CEO and President of Himax, expressed that the strategic and business initiatives continue to be on track. They have publicly showcased management’s view on their businesses including 3D sensing opportunities and display driver IC segment with extremely consistent messages to the investment group.

They also recently reported 3D sensing total solution in the last week of August. They remain optimistic in their leading role in the 3D sensing supply chain, and demonstrate strong confidence that they will achieve the deliverables on the new and existing growth prospects.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.