奇景光電 (HIMX) 2011 Q4 法說會逐字稿

Greetings and welcome to the Himax Technologies Incorporated 2011 year end unaudited financial and investor update call. (Operator Instructions).

問候並歡迎參加 Himax Technologies Incorporated 2011 年末未經審計的財務和投資者更新電話會議。 （操作員說明）。

It is now my pleasure to introduce your host John Mattio, Senior Vice President of MZ North America. Thank you Mr Mattio, you may begin.

現在我很高興向您介紹您的主持人，MZ 北美高級副總裁 John Mattio。謝謝馬蒂奧先生，您可以開始了。

Thank you very much operator. Welcome everyone to Himax's fourth quarter and full year 2011 earnings call. Joining us from the Company are Mr Jordan Wu, President and Chief Executive Officer; and Ms Jackie Chang, Chief Financial Officer.

非常感謝運營商。歡迎大家參加奇景光電 2011 年第四季度和全年財報電話會議。加入我們的有總裁兼首席執行官吳小平先生；和首席財務官 Jackie Chang 女士。

After the Company's prepared comments we will have time for questions today. If you have not received a copy of today's results release, please call MZ Group at 212 301 7130 or access the press release on financial portals like Bloomberg, Yahoo, Google, or you can download a copy from Himax website at www.himax.com.tw. A copy of the release was also sent to the Himax distribution list. If you would like to be included on future updates please submit your request to us.

在公司準備好評論後，我們今天將有時間提問。如果您還沒有收到今天的業績報告，請致電 212 301 7130 聯繫 MZ Group 或訪問彭博、雅虎、谷歌等金融門戶網站上的新聞稿，或者您可以從 Himax 網站 www.himax.com 下載副本.tw。該版本的副本也已發送到 Himax 分發列表。如果您想參與未來的更新，請向我們提交您的請求。

Before we begin formal comments I would like to remind everyone that statements made in this conference call, including statements regarding expected future financial results and industry growth are forward looking statements that involve a number of risks and uncertainties that could cause actual results or events to differ materially from those described in this conference call. Factors that could cause actual results to differ include, but are 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, the demand for Himax products, reliance on a group of principle customers, the uncertainty of continued success in technological innovations, and other operational and market challenges.

在我們開始正式評論之前，我想提醒大家，本次電話會議中所做的聲明，包括有關預期未來財務結果和行業增長的聲明是前瞻性聲明，涉及許多可能導致實際結果或事件不同的風險和不確定性實質上來自本次電話會議中描述的內容。可能導致實際結果不同的因素包括但不限於一般商業和經濟狀況以及半導體行業的狀況、市場接受度、公司開發的驅動和非驅動產品的競爭力、對Himax 產品、對主要客戶群的依賴、技術創新持續成功的不確定性以及其他運營和市場挑戰。

This also includes the Company's Taiwan depository listing TDR, the capacity to maintain the full two-way fungibles between the Company's ordinary shares and ADS and other risks described from time-to-time in the Company's SEC filings, including those risk identified in the sections entitled Risk Factors, in its Forms 20-F for the year ended 31 December 2010, filed with the SEC dated 20 May 2011, as amended.

這還包括公司在台灣存託上市的 TDR、維持公司普通股和美國存託股之間完全雙向可互換的能力以及公司向美國證券交易委員會提交的文件中不時描述的其他風險，包括這些部分中確定的風險標題為風險因素，在其截至 2010 年 12 月 31 日的 20-F 表格中，於 2011 年 5 月 20 日向美國證券交易委員會提交，經修訂。

Except for the Company's full year 2010 financials which were provided on the Company's 20-F filed with the SEC, the financial information included in this conference call is unaudited and consolidated and prepared in accordance with US GAAP. Such financial information is generally internal and has not been subjected to the same review and scrutiny, including internal auditing procedures and audit by independent auditors, to which we subject our annual consolidated financial statements, and may materially differ from the audited consolidated financial information for the same period.

除了在公司向美國證券交易委員會提交的 20-F 文件中提供的公司 2010 年全年財務數據外，本次電話會議中包含的財務信息未經審計，並根據美國公認會計原則進行合併和編制。此類財務信息通常為內部財務信息，未經過我們年度合併財務報表所依據的相同審查和審查，包括內部審計程序和獨立審計師的審計，並且可能與本年度的經審計合併財務信息存在重大差異。同一時期。

Any evaluation of the financial information included in this conference call should also take into account our published audited consolidated financial statements and the notes to those statements.

對本次電話會議中包含的財務信息的任何評估還應考慮我們發布的經審計的綜合財務報表和這些報表的註釋。

In addition, the financial information included in this conference call is not necessarily indicative of our results for any future period. The Company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events, or otherwise.

此外，本次電話會議中包含的財務信息不一定代表我們未來任何時期的業績。公司不承擔因新信息、未來事件或其他原因而公開更新或修改任何前瞻性陳述的義務。

At this time I would now like to turn the call over to Mr Jordan Wu, President and Chief Executive Officer of Himax Technologies. Jordan, the floor is yours.

現在，我想將電話轉給 Himax Technologies 總裁兼首席執行官 Jordan Wu 先生。喬丹，地板是你的。

Thank you John, and thank you everyone for joining today's call. In today's earnings call, in addition to reporting our performance in the fourth quarter, I will also summarize our results for 2011 and highlight key milestones we achieved last year.

謝謝約翰，也感謝大家加入今天的電話會議。在今天的財報電話會議上，除了報告我們第四季度的業績外，我還將總結我們 2011 年的業績並強調我們去年取得的關鍵里程碑。

I will then provide our outlook for the first quarter 2012 and outline our strategic focus areas for the full year 2012.

然後，我將介紹我們對 2012 年第一季度的展望，並概述我們在 2012 年全年的戰略重點領域。

Our CFO Jackie Chang will then provide further details of our financial performance.

然後，我們的首席財務官 Jackie Chang 將提供我們財務業績的更多細節。

Our fourth quarter revenue gross margin earnings per ADS all met or exceeded our guidance. Our fourth quarter revenues came in at $169.2 million representing 19.8% growth year-over-year and 4.4% sequentially.

我們第四季度每 ADS 的收入毛利率都達到或超過了我們的指導。我們第四季度的收入為 1.692 億美元，同比增長 19.8%，環比增長 4.4%。

Revenues from large panel display drivers was $67 million, up 8% sequentially and down 5.8% from a year ago.

來自大型面板顯示驅動器的收入為 6700 萬美元，環比增長 8%，同比下降 5.8%。

The quarter-over-quarter increase was mainly due to the strong rush order demand from TV segment as many Chinese end customers pulled in their demands into Q4 to make up for the loss of working days during the Chinese New Year holidays in January. Large panel drivers accounted for 39.6% of our total revenues for the fourth quarter compared to 50.3% a year ago and 38.3% in the third quarter.

環比增長主要是由於電視部門的搶單需求強勁，因為許多中國終端客戶將需求拉入第四季度，以彌補一月份農曆新年假期的工作日損失。大型面板驅動器占我們第四季度總收入的 39.6%，而去年同期為 50.3%，第三季度為 38.3%。

We are happy to report that sales of small and medium size applications were a record high for us in the fourth quarter of 2011. (Inaudible) revenues from small and medium size applications were $80.6 million, up 14.2% from the same period last year and up 1.1% sequentially.

我們很高興地報告，我們在 2011 年第四季度的中小型應用程序銷售額創下歷史新高。（聽不清）中小型應用程序的收入為 8060 萬美元，比去年同期增長 14.2%，環比上漲 1.1%。

Driver IT for small and medium size applications accounted for 47.6% of total revenue for the fourth quarter, as compared to 40.7% for the same period last year, and 49.2% in the previous quarter.

第四季度中小型應用的驅動 IT 佔總收入的 47.6%，而去年同期為 40.7%，上一季度為 49.2%。

Sales from cell phone applications in particular enjoyed a spectacular 53% growth in the fourth quarter on a year-over-year basis, and up 2.5% sequentially, mostly thanks to strong demand of smartphones which nearly tripled year-over-year and doubled sequentially.

尤其是手機應用的銷售額在第四季度同比增長 53%，環比增長 2.5%，這主要歸功於智能手機的強勁需求，同比增長近三倍，環比增長了一倍.

We are extremely excited about the strong and steady growth in this sector which more or less offset low level sales in large panel display drivers versus last year. I will elaborate more on this later.

我們對該行業強勁而穩定的增長感到非常興奮，這或多或少地抵消了大面板顯示器驅動器與去年相比的低水平銷售。稍後我將對此進行詳細說明。

Fourth quarter revenues from non-driver businesses were $21.7 million, an increase of 71.3% from the same period last year and up 6.4% sequentially. Non-driver products accounted for 12.8% of our total revenues in the fourth quarter, as compared to 9% a year ago and 12.5% in the previous quarter.

第四季度非司機業務收入為 2170 萬美元，同比增長 71.3%，環比增長 6.4%。非驅動產品在第四季度占我們總收入的 12.8%，而去年同期為 9%，上一季度為 12.5%。

With double digit sales growth from many of our customers, revenues from related parties remained below 40% at 35.1% of total sales in Q4 last year, compared to 52.5% a year ago and 39.3% in the previous quarter.

由於我們許多客戶的銷售額均實現兩位數增長，去年第四季度關聯方收入佔總銷售額的 35.1% 仍低於 40%，而去年同期為 52.5%，上一季度為 39.3%。

We believe we have transformed our product mix and expanded our reach to other customers successfully. A more diversified customer base will reduce our dependence on any one single customer and help minimize our business risk.

我們相信我們已經成功地改變了我們的產品組合併擴大了我們對其他客戶的影響力。更多元化的客戶群將減少我們對任何單一客戶的依賴，並有助於將我們的業務風險降至最低。

Our GAAP gross margin for the fourth quarter was 22.1%, as compared to 21.5% a year earlier, and 18.1% in the previous quarter. The primary drive for the year-over-year and quarter-over-quarter increase in gross margin was the shift of our product mix.

我們第四季度的 GAAP 毛利率為 22.1%，而去年同期為 21.5%，上一季度為 18.1%。毛利率同比和環比增長的主要驅動力是我們產品組合的轉變。

Smartphone and non-driver segments were the major contributors to the improvement of gross margin in Q4.

智能手機和非駕駛員細分市場是第四季度毛利率改善的主要貢獻者。

Operating expenses for the fourth quarter were $26.2 million, [down] $4.3 million from the previous quarter. The reduction is partially the result of our higher RSU charges in Q3.

第四季度的運營費用為 2620 萬美元，比上一季度下降 430 萬美元。減少的部分原因是我們在第三季度較高的 RSU 費用。

In the (inaudible) protocol, we grant any RSUs to our staff at the end of September each year, which given (inaudible), leads to higher third quarter GAAP operating expenses compared to the other quarters of the year.

在（聽不清）協議中，我們在每年 9 月底向我們的員工授予任何 RSU，鑑於（聽不清），與今年其他季度相比，這導致第三季度 GAAP 運營費用更高。

The total value of our 2011 RSUs is approximately $3 million, out of which 97% were immediately (inaudible) expense in the fourth quarter 2011.

我們 2011 年 RSU 的總價值約為 300 萬美元，其中 97% 是 2011 年第四季度的即時（聽不清）費用。

The bottom line performance of our last quarter was complicated by a few factors, most of which are one-off in nature. This makes it hard for straightforward comparison on both quarterly and annual basis. I will therefore give you adjusted pre-tax results for now. Jackie will elaborate the full details a bit later.

我們上一季度的利潤表現因幾個因素而復雜化，其中大部分是一次性的。這使得很難在季度和年度基礎上進行直接比較。因此，我現在將為您提供調整後的稅前結果。 Jackie 稍後會詳細說明完整的細節。

Our non-GAAP adjusted pre-tax income for the fourth quarter was $10.3 million, up 51.5% year-over-year and up 83% from the previous quarter. The non-GAAP adjusted pre-tax income does not take into account such factors as RSU expenses, acquisition-related charges, bad debt collections, income taxes and tax credit provisions.

我們第四季度的非公認會計原則調整後的稅前收入為 1030 萬美元，同比增長 51.5%，比上一季度增長 83%。非公認會計原則調整後的稅前收入未考慮 RSU 費用、收購相關費用、壞賬回收、所得稅和稅收抵免規定等因素。

The strong bottom line improvement for the fourth quarter was mainly a result of strong smartphone sales, which enjoyed higher margins, and our well controlled operating expenses.

第四季度強勁的利潤改善主要是由於智能手機銷售強勁，利潤率更高，以及我們控制良好的運營費用。

I will now ask Jackie Chang, our CFO, to provide more clarity and detail on our financials. After Jackie's presentation we will further discuss our full year results and then 2012 outlook. Jackie.

我現在將請我們的首席財務官 Jackie Chang 就我們的財務狀況提供更清晰和詳細的信息。在 Jackie 的介紹之後，我們將進一步討論我們的全年業績和 2012 年展望。傑基。

Thank you Jordan. With that introduction we thought it best to address our appropriate adjustments and reasons to report our non-GAAP adjusted pre-tax income and earnings per share.

謝謝喬丹。通過該介紹，我們認為最好解決我們的適當調整和報告我們的非公認會計原則調整的稅前收入和每股收益的原因。

As mentioned earlier, our fourth quarter 2011 GAAP operating expenses were $26.2 million, up 50.2% from $17.4 million a year ago, and down 14.1% from $30.5 million in the previous quarter. The significant increase from last year was largely due to a bad debt collection of $8.6 million from SVA-NEC in Q4 2010, which was an offset against the sales expenses, whereas the significant sequential decrease was primarily due to the charge of 2011 RSU granted in the third quarter.

如前所述，我們 2011 年第四季度的 GAAP 運營費用為 2620 萬美元，比一年前的 1740 萬美元增長 50.2%，比上一季度的 3050 萬美元下降 14.1%。與去年相比顯著增加主要是由於 2010 年第四季度從 SVA-NEC 收回了 860 萬美元的壞賬，這抵消了銷售費用，而顯著的環比減少主要是由於 2011 年 RSU 授予的費用第三季度。

Ignoring the bad debt collection of Q4 2010 and the higher RSU charges of Q3 2011, our Q4 operating expenses actually stayed stable, compared to the previous quarter in the same period last year.

忽略 2010 年第 4 季度的壞賬回收和 2011 年第 3 季度較高的 RSU 費用，與去年同期相比，我們的第 4 季度運營費用實際上保持穩定。

Without counting the bad debt collection, RSU expenses, and acquisition related charges, our pre-tax income was $10.3 million in Q4 2010, up 61.5% from $6.8 million year-over-year and up 83.3% from $5.6 million in the previous quarter.

不計壞賬回收、RSU 費用和收購相關費用，我們 2010 年第四季度的稅前收入為 1030 萬美元，比去年同期的 680 萬美元增長 61.5%，比上一季度的 560 萬美元增長 83.3%。

Now let me spend a few minutes to explain our effective tax rate. Our Q4 2011 income tax expense were affected by two issues. First, high effective tax rate, which was resulted from two reasons -- one, our consolidated effective tax rate was artificially high because while our subsidiaries were loss making, their losses could not be used to offset against the profit made by the parent. This will reverse as the subsidiaries start to turn profitable, as we believe many of them will in the near future. Because their early profits will be tax-free due to their past losses, that can be carried forward for tax purposes.

現在讓我花幾分鐘時間來解釋一下我們的有效稅率。我們 2011 年第四季度的所得稅費用受到兩個問題的影響。第一，高實際稅率，這是由兩個原因造成的——一是我們的合併有效稅率人為地高，因為我們的子公司在虧損的同時，它們的損失不能用來抵消母公司的利潤。隨著子公司開始扭虧為盈，這種情況將發生逆轉，因為我們相信其中許多子公司將在不久的將來實現盈利。由於他們過去的虧損，他們的早期利潤將是免稅的，因此可以將其結轉用於稅收目的。

Another factor to lead to our higher effective tax rate was the New Taiwan dollar depreciation against the US dollar for the whole year last year. There are two areas of impact here. Firstly, while the our reporting currency is the US dollar, super majority of taxes incur Taiwan on the basis of our NT dollar book, which is the required reporting currency for the Taiwan tax authority. The NT dollar depreciation resulted in foreign exchange gains for our US dollar assets and therefore higher tax payable in Taiwan.

另一個導致我們提高有效稅率的因素是去年全年新台幣兌美元貶值。這裡有兩個影響領域。首先，雖然我們的報告貨幣是美元，但絕大多數稅款都是根據我們的台幣賬簿產生的，這是台灣稅務機關要求的報告貨幣。新台幣貶值導致我們的美元資產產生外匯收益，因此增加了在台灣的應納稅額。

The second impact was related to (inaudible) of deferred tax assets, which naturally is NT dollar based. The total additional income tax for the reason of NT dollar depreciation amounted to $5.5 million in the fourth quarter of 2011.

第二個影響與（聽不清）遞延稅項資產有關，這自然是以新台幣為基礎的。 2011年第四季度因新台幣貶值而產生的額外所得稅總額為550萬元。

The second issue impacting our fourth quarter 2011 taxes was non-cash tax credit provisions. As part of our typical accounting practices we reviewed our balance sheet in Q4 and decided to make provisions of approximately $3.3 million of tax credits. We applied for and were granted these tax credits in the past years mainly out of our R&D expenditure.

影響我們 2011 年第四季度稅收的第二個問題是非現金稅收抵免條款。作為我們典型會計實踐的一部分，我們在第四季度審查了我們的資產負債表，並決定提供大約 330 萬美元的稅收抵免。我們在過去幾年申請並獲得了這些稅收抵免，主要來自我們的研發支出。

We believe it is prudent to make such provisions given the uncertain global economic outlook.

鑑於全球經濟前景不明朗，我們認為作出此類撥備是審慎的做法。

Notwithstanding the provisions, these tax credits remain effective for the local tax authorities', meaning if we should make more pre-tax profits than we currently anticipated for this year, we will still be eligible to enjoy such tax credits.

儘管有規定，這些稅收抵免對地方稅務機關仍然有效，這意味著如果我們今年的稅前利潤超過我們目前的預期，我們仍然有資格享受這種稅收抵免。

Excluding the aforementioned tax credit provisions, our GAAP net income for fourth quarter would be $6.7 million, or $0.038 per ADS. GAAP net income attributable to shareholders for the fourth quarter was $3.7 million, or $0.021 per diluted ADS, compared to $11.7 million or $0.066 per diluted ADS a year, and $0.6 million or $0.004 per diluted ADS in the prior quarter.

排除上述稅收抵免條款，我們第四季度的 GAAP 淨收入將為 670 萬美元，即每 ADS 0.038 美元。第四季度歸屬於股東的 GAAP 淨收入為 370 萬美元，即每攤薄 ADS 0.021 美元，而上一季度為每年 1170 萬美元或每攤薄 ADS 0.066 美元，以及每攤薄 ADS 60 萬美元或 0.004 美元。

The significant decrease from last year was primarily due to the $8.6 million bad debt collected from SVA-NEC in Q4 2010. Excluding the bad debt recovery, net of [these associated tax] benefits at time of the bad debt expense was charged. GAAP net income for fourth quarter of 2010 was $5.4 million or $0.031 per ADS.

與去年相比大幅下降的主要原因是 2010 年第四季度從 SVA-NEC 收取的 860 萬美元壞賬。不包括壞賬回收，扣除壞賬費用時的[這些相關稅收]收益。 2010 年第四季度的 GAAP 淨收入為 540 萬美元或每股 ADS 0.031 美元。

We have provided the reconciliation detailing the above in the earnings release for those of you who wish to follow along. We believe non-GAAP adjusted figures can best provide investors with a picture which is more reflective of our underlying performance.

我們在收益發布中為希望跟進的人提供了對上述內容的詳細說明。我們認為，非公認會計原則調整後的數據最能為投資者提供更能反映我們基本業績的圖景。

I will talk about the fourth quarter and full year balance sheet analysis together a bit later, after Jordan gives the 2011 full year business review.

稍後，在喬丹給出 2011 年全年業務回顧之後，我將一起討論第四季度和全年資產負債表分析。

Jordan.

約旦。

Thank you Jackie.

謝謝杰基。

Now let me summarize our 2011 full year performance.

現在讓我總結一下我們2011年全年的表現。

2011 was a year full of both challenges and progress. While we lost share in large panel drivers, we also benefited from small and medium size panels, especially in the smartphone segment. Meanwhile, we also picked up strong momentum during last year across all our (inaudible) businesses, which we have cultivated for years.

2011年是充滿挑戰和進步的一年。雖然我們在大型面板驅動器中失去了份額，但我們也受益於中小型面板，尤其是在智能手機領域。與此同時，去年我們在所有（聽不清）業務中也獲得了強勁勢頭，這些業務是我們多年來培育的。

We are confident that the strong momentum will continue through this year and beyond.

我們相信，強勁的勢頭將持續到今年及以後。

Large panel drivers remained [top of] the market with high customer content concentration, as they are still just a small number of large panel makers in the market.

大型面板驅動商仍然是市場[頂部]，客戶內容高度集中，因為他們仍然只是市場上少數大型面板製造商。

We continued to experience declines in our large panel drivers business last year, primarily because one of our major customers continued to diversify their driver IT supplies (inaudible).

去年，我們的大型面板驅動器業務繼續下滑，主要是因為我們的一個主要客戶繼續使其驅動器 IT 供應多樣化（聽不清）。

We are confident that our competitiveness in this segment remains strong and will continue to strive towards winning more market share in this account and others.

我們有信心，我們在該領域的競爭力依然強勁，並將繼續努力在該客戶和其他客戶中贏得更多市場份額。

During 2011 we did gain share in the large panel sector in China, where there are relatively new panel makers emerging in the marketplace with the greatest competitor expansion plan.

在 2011 年，我們確實在中國的大型面板領域獲得了份額，市場上出現了相對較新的面板製造商，並製定了最大的競爭對手擴張計劃。

We were also able to fill our small and medium size [trial businesses] and significantly expand our market share there. The market for small size panel manufacturing is a lot more fragmented with a much larger number of customers participating in the marketplace.

我們還能夠填補我們的中小型 [試驗業務] 並顯著擴大我們在那裡的市場份額。小尺寸面板製造市場更加分散，參與市場的客戶數量更多。

The fact that we were able to achieve outstanding performance in this area last year was a strong indication of our continued competitiveness in the driver IT industry.

去年我們能夠在這一領域取得出色的表現，這有力地表明了我們在驅動程序 IT 行業的持續競爭力。

Meanwhile, our non-driver products remained on an excellent growth track, [each showing strong] momentum. 2011 marked the first year in our history where non-driver sales reached a double digit percentage of our total revenue. We believe this growth momentum will continue into 2012 and beyond.

同時，我們的非驅動產品保持在良好的增長軌道上，[每個都表現出強勁的]勢頭。 2011 年是我們歷史上第一年非司機銷售額達到我們總收入的兩位數百分比。我們相信這種增長勢頭將持續到 2012 年及以後。

Our revenues totaled $633 million in 2011, representing a 1.1% decline year-over-year. The decline was a result of the 26.2% reduction of large panel driver sales, which represented 32.7% of 2011 revenue as compared to 57% in 2010. We don't expect further loss of market share for large size drivers with our [15] major customers for this year.

2011 年，我們的總收入為 6.33 億美元，同比下降 1.1%。下降的原因是大型面板驅動器銷售額減少了 26.2%，佔 2011 年收入的 32.7%，而 2010 年為 57%。我們預計我們的 [15] 大尺寸驅動器的市場份額不會進一步下降今年的主要客戶。

Moreover, as we mentioned earlier, we are confident that we will gain share in China where there are great panel capacity expansion plans, providing attractive new driver IT business opportunities for this year, especially in the large panel segment.

此外，正如我們之前提到的，我們有信心在中國有很大的面板產能擴張計劃，為今年提供有吸引力的新驅動IT商機，特別是在大面板領域。

Small and medium size drivers on the other hand grew 26.2% year-over-year, representing 34.6% of our total sales, as compared to 34.8% a year ago. This strong growth momentum will continue through this year, thanks mainly to the fast growing smartphone demand.

另一方面，中小型司機同比增長 26.2%，占我們總銷售額的 34.6%，而去年同期為 34.8%。這種強勁的增長勢頭將持續到今年，這主要歸功於智能手機需求的快速增長。

We believe the increase in sales from the small and medium size drivers will also help boost our growth margin this year.

我們相信，中小型驅動器的銷售增長也將有助於提高我們今年的增長幅度。

Non-driver products grew 53.1% year-over-year, representing 12.7% of our total sales, as compared to 8.2% a year ago.

非驅動產品同比增長 53.1%，占我們總銷售額的 12.7%，而去年同期為 8.2%。

We achieved numerous milestones for non-driver products in 2011. The first year we commenced mass production for several new products areas, including touch controller ICs, CMOS image sensors, wafer-level optics, wafer-level camera modules, and 2D and 3D conversion solutions.

2011 年，我們在非驅動產品方面實現了無數里程碑。第一年，我們開始量產多個新產品領域，包括觸摸控制器 IC、CMOS 圖像傳感器、晶圓級光學器件、晶圓級攝像頭模塊以及 2D 和 3D 轉換解決方案。

Moreover, our LCOS micro-display solutions, power management ICs and WLED drivers all delivered strong shipments in 2011.

此外，我們的 LCOS 微顯示解決方案、電源管理 IC 和 WLED 驅動器在 2011 年均出貨強勁。

These accomplishments are illustrations of our strong R&D capability and our commitment to a more diversified product portfolio. We are confident that the strong growth momentum from all our non-driver products will continue through 2012 and beyond.

這些成就證明了我們強大的研發能力和我們對更多元化產品組合的承諾。我們相信，我們所有非驅動產品的強勁增長勢頭將持續到 2012 年及以後。

Gross margin in 2011 was 19.8%, compared to 21% in 2010, or (inaudible) income of $10.7 million or $0.061 per ADS, compared to $33.2 million or $0.187 per ADS last year.

2011 年毛利率為 19.8%，而 2010 年為 21%，或（聽不清）收入為 1070 萬美元或每份 ADS 0.061 美元，而去年為 3320 萬美元或每份 ADS 0.187 美元。

We expect our small and medium size driver IT and non-driver products to contribute to our revenue, gross profit and net income growth in 2012.

我們預計我們的中小型驅動 IT 和非驅動產品將在 2012 年為我們的收入、毛利和淨收入增長做出貢獻。

We are past the period of (inaudible) in the initial stage of mass production in 2011 and expect a further ramp up of our non-driver products to generate higher gross margins in our driver products, leading to higher overall margins.

我們已經過了 2011 年量產初期的（聽不清）時期，預計我們的非驅動產品將進一步增加，以在我們的驅動產品中產生更高的毛利率，從而帶來更高的整體利潤率。

As I did with our report of the fourth quarter, I will now pass the floor to Jackie again to explain the details for our full year financial results. Jackie.

正如我對第四季度報告所做的那樣，我現在將再次請 Jackie 解釋我們全年財務業績的詳細信息。傑基。

Thank you again Jordan. First, let me start with our GAAP numbers and I will detail to you our adjusted numbers which we feel will properly reflect our underlying performance.

再次感謝喬丹。首先，讓我從我們的 GAAP 數字開始，我將向您詳細介紹我們認為將正確反映我們的基本業績的調整後數字。

In terms of 2011 full year performance, our GAAP operating expenses were $109 million, compared to $99.7 million a year earlier. Excluding the bad debt collection from SVA-NEC, GAAP operating expenses were little changed from last year at $110.5 million and $108.5 million for 2011 and 2010, respectively.

就 2011 年全年業績而言，我們的 GAAP 運營費用為 1.09 億美元，而去年同期為 9970 萬美元。剔除 SVA-NEC 的壞賬回收，GAAP 運營費用與去年相比變化不大，2011 年和 2010 年分別為 1.105 億美元和 1.085 億美元。

GAAP operating income was $16.6 million, as compared to $35.4 million a year earlier. Excluding the bad debt collection from SVA-NEC, GAAP operating income were $15.1 million and $26.6 million for 2011 and 2010, respectively.

GAAP 營業收入為 1660 萬美元，而去年同期為 3540 萬美元。不包括 SVA-NEC 的壞賬回收，2011 年和 2010 年的 GAAP 營業收入分別為 1510 萬美元和 2660 萬美元。

With total revenue declining only slightly from the previous year, the operating income decline was primarily due to the lower gross margin from 21.0% to 19.9% , or $9.6 million reduction of gross profit, as well as $2.0 million of higher operating expenses.

由於總收入僅比上年略有下降，營業收入下降的主要原因是毛利率從 21.0% 下降至 19.9%，或毛利潤減少 960 萬美元，以及營業費用增加 200 萬美元。

Our cash, cash equivalent and marketable securities available for sale went up to $106.3 million at the end of December from $105.5 million a year ago, and $90.8 million a quarter ago.

截至 12 月底，我們可供出售的現金、現金等價物和有價證券從一年前的 1.055 億美元和一季度前的 9080 萬美元增至 1.063 億美元。

On top of our above cash position, restricted cash was $84.2 million at end of December, up from $58.5 million during the same period last year, and down from $84.7 million at the end of last quarter.

除上述現金狀況外，12 月底受限現金為 8420 萬美元，高於去年同期的 5850 萬美元，低於上季度末的 8470 萬美元。

Inventories at the end of December were $113 million compared to $118 million during the same period last year, and $104.7 million a quarter ago. We had a slight increase in inventories at the quarter end, primarily due to higher rush customer orders to be fulfilled during the first quarter 2012.

12 月底的庫存為 1.13 億美元，而去年同期為 1.18 億美元，上一季度為 1.047 億美元。我們在季度末的庫存略有增加，主要是由於 2012 年第一季度要完成的客戶訂單增加。

Accounts receivables at end of December were $181.1 million as compared to $176.2 million a year, and $174.7 million last quarter.

12 月底的應收賬款為 1.811 億美元，而去年同期為 1.762 億美元，上一季度為 1.747 億美元。

DSOs were 104 days at end of 2011, little change versus 100 days last year and 204 days at end of last quarter.

2011 年底 DSO 為 104 天，與去年的 100 天和上一季度末的 204 天相比變化不大。

Net cash inflow from operating activities for the fourth quarter was $17.3 million, as compared to $29.8 million during the same period last year and $17.4 million in the previous quarter. Cumulative cash flows from operations in 2011 were $43.4 million versus $57.6 million the year before.

第四季度經營活動的淨現金流入為 1730 萬美元，而去年同期為 2980 萬美元，上一季度為 1740 萬美元。 2011 年經營活動的累計現金流為 4340 萬美元，而前一年為 5760 萬美元。

With regard to our $25 million dollars share buyback program, we have purchased a total of $9.2 million, or approximately 7.1 million ADS shares through 10 February 2012. We will continue to execute the remaining share repurchase program in accordance with Rule 10b-18.

關於我們 2500 萬美元的股票回購計劃，截至 2012 年 2 月 10 日，我們總共購買了 920 萬美元或約 710 萬股 ADS 股票。我們將繼續按照規則 10b-18 執行剩餘的股票回購計劃。

Jordan.

約旦。

Looking ahead into year 2012. We believe that our business is bottoming out and we are on track to regain robust top line and bottom line sales growth this year.

展望 2012 年。我們相信我們的業務正在觸底反彈，我們有望在今年重新獲得強勁的收入和利潤增長。

We also foresee a more balanced business portfolio with small and medium panel driver and non-driver businesses continue to contribute more significantly to our growth.

我們還預見到一個更加平衡的業務組合，中小型面板驅動器和非驅動器業務將繼續為我們的增長做出更大貢獻。

We are currently in a strong position in the smartphone sector with [new] technologies, competitive products, and good customer [line up]. We carry a comprehensive range of products, covering both mainstream and high-end smartphones. We are also working with panel maker partners in Taiwan, China, Japan, and Korea to supply drivers for numerous smartphone brand customers.

我們目前在智能手機領域處於強勢地位，擁有[新技術]、有競爭力的產品和良好的客戶[陣容]。我們擁有全面的產品系列，涵蓋主流和高端智能手機。我們還與台灣、中國、日本和韓國的面板製造商合作夥伴合作，為眾多智能手機品牌客戶提供驅動器。

The growth momentum is expected to continue in 2012 with strong demand coming from both Chinese and international brand customers.

由於來自中國和國際品牌客戶的強勁需求，預計增長勢頭將在 2012 年繼續。

As stated earlier, our non-driver products grew 53.1% last year, with many products experiencing double digit growth. We expect another year of strong growth momentum for our non-driver products.

如前所述，我們的非驅動產品去年增長了 53.1%，其中許多產品實現了兩位數的增長。我們預計我們的非驅動產品將再有一年強勁的增長勢頭。

I will now elaborate a bit on our four particular non-driver segments which we believe will see robust sales growth this year. I will discuss about the repositioning of our TV and monitor [chips] (inaudible).

我現在將詳細說明我們的四個特定的非驅動細分市場，我們認為這些細分市場今年將出現強勁的銷售增長。我將討論重新定位我們的電視和顯示器 [芯片]（聽不清）。

CMOS image sensor, while in its first year of commercial shipment, already accounted for a significant portion of our non-driver sales last year. We currently offer 3 mega pixel, 2 mega pixel, 1.3 mega pixel, HD, VGA and QVGA products, focusing on handset, laptop and tablet applications.

CMOS 圖像傳感器雖然在其商業出貨的第一年，但已占我們去年非驅動器銷售額的很大一部分。我們目前提供3兆像素、2兆像素、1.3兆像素、高清、VGA和QVGA產品，專注於手機、筆記本電腦和平板電腦應用。

We plan to release new sensor products this year to further strengthen our product portfolio and to penetrate into new markets such as TV Cam, PC Cam, drive recorder, surveillance and automotive applications.

我們計劃在今年發布新的傳感器產品，以進一步加強我們的產品組合併打入電視攝像頭、PC 攝像頭、行車記錄儀、監控和汽車應用等新市場。

CMOS image sensor is and will continue to be a fast growing area for us. While we are a newcomer to the market, our sensors have been highly praised by many to have outperformed those offered by the incumbent players in terms of image quality.

CMOS 圖像傳感器現在並將繼續成為我們快速增長的領域。雖然我們是市場的新手，但我們的傳感器在圖像質量方面已經超越了現有廠商提供的傳感器，因此受到了許多人的高度評價。

Consequently we have numerous design-wins from customers ranging from camera module makers, contract manufacturers to system integrators with world leading brand names. 2011 was the year when we put our name clearly in the map. We are confident that 2012 will be a year of strong sales growth in this product area.

因此，我們從相機模塊製造商、合同製造商到擁有世界領先品牌的系統集成商等客戶中贏得了無數設計勝利。 2011 年是我們將自己的名字清楚地寫在地圖上的一年。我們有信心，2012 年將是該產品領域銷售強勁增長的一年。

We expect our touch panel controller to be the next bright spot for our non-driver products. In the fourth quarter, we started to ship our multi-finger capacitive touch controllers to a world-leading smartphone maker.

我們預計我們的觸控面板控制器將成為我們非驅動產品的下一個亮點。在第四季度，我們開始向一家世界領先的智能手機製造商發貨我們的多指電容式觸控控制器。

With our proven product quality and first-tier customer shipping record, we are confident that we will continue to gain more new customers in the future. We are now working closely with several touch panel makers and a few leading handset and tablet PC brand names.

憑藉我們久經考驗的產品質量和一流的客戶出貨記錄，我們有信心在未來繼續獲得更多新客戶。我們現在正與幾家觸控面板製造商以及一些領先的手機和平板電腦品牌密切合作。

We will also leverage our leading market share in the small and medium panel drivers and solid customer relationships we have built over the years for the long-term success in this fast growing segment.

我們還將利用我們在中小型面板驅動器方面的領先市場份額和我們多年來建立的穩固客戶關係，在這個快速增長的領域取得長期成功。

We made solid shipments for LCOS panels last year, mainly from cell phone-embedded PICO projector sales into third world countries as well as sales for certain toy and educational applications.

去年我們的 LCOS 面板出貨量穩定，主要來自手機嵌入式 PICO 投影儀向第三世界國家的銷售以及某些玩具和教育應用的銷售。

We remain committed to the long term development of LCOS micro display and its new applications. We achieved major technology breakthroughs in both color and brightness performance for our proprietary color-filter type LCOS panel last year. We are particularly excited about certain projects we are working on with a number of top-tier customers in developing brand new applications using our LCOS panels. We typically receive development fees for such tailor-made products.

我們將繼續致力於 LCOS 微顯示及其新應用的長期發展。去年，我們專有的濾色片型 LCOS 面板在色彩和亮度性能方面取得了重大技術突破。我們對我們正在與一些頂級客戶合作使用我們的 LCOS 面板開發全新應用程序的某些項目感到特別興奮。我們通常會收取此類定制產品的開發費用。

We achieved very strong sales growth for our LED driver product line last year. With promising new design-wins across customers in Taiwan, Japan and China, we are looking forward to another year of phenomenal growth this year. We also launched our integrated power management ICs for panels last year and have since won quite a number of new projects from tier one customers - many of them praised the robustness of our products.

去年，我們的 LED 驅動器產品線實現了非常強勁的銷售增長。憑藉在台灣、日本和中國的客戶中贏得新設計的希望，我們期待今年又一個驚人的增長年。去年，我們還推出了用於面板的集成電源管理 IC，此後贏得了許多來自一級客戶的新項目——其中許多人稱讚我們產品的穩健性。

Mass production has commenced during this quarter. Again, we are excited about the strong sales prospect for this new product line this year.

本季度已開始批量生產。同樣，我們對今年這一新產品線的強勁銷售前景感到興奮。

We decided to reposition our TV and monitor chipset team at the end of last year. We stopped the development of our integrated TV chipset and turned the team's focus into providing solutions for customers who need sophisticated, tailor-made video processing ICs.

我們決定在去年底重新定位我們的電視和顯示器芯片組團隊。我們停止了集成電視芯片組的開發，並將團隊的重點轉向為需要復雜、量身定制的視頻處理 IC 的客戶提供解決方案。

We have had some exciting early successes in the engagement of such customers. We will continue to maintain our monitor scaler business and strengthen our product line there by offering high value added scalers such as one with 3D function.

我們在吸引此類客戶方面取得了一些令人興奮的早期成功。我們將繼續維持我們的顯示器縮放器業務，並通過提供高附加值的縮放器（例如具有 3D 功能的縮放器）來加強我們的產品線。

As part of the repositioning, we transferred some of the manpower internally at the end of last year to enhance our driver IC and touch panel controller teams. By stopping new TV chipset development and transferring manpower internally, we will be able to cut our expenses significantly while better utilizing our resources.

作為重新定位的一部分，我們在去年底內部調動了部分人力，以加強我們的驅動 IC 和触控面板控制器團隊。通過停止新的電視芯片組開發和內部轉移人力，我們將能夠顯著削減開支，同時更好地利用我們的資源。

Our goal is to turn this business with substantial historical losses into profitability soon.

我們的目標是盡快將這項歷史虧損嚴重的業務轉為盈利。

In the first quarter, we expect a mid-single-digit decline in our revenues compared to the last quarter with gross margin being flat or down slightly. Given that the first quarter has fewer working days due to Chinese New Year and that it is a cyclically low season, we believe it will be the bottom of the year in terms of sales.

與上一季度相比，我們預計第一季度的收入將出現中個位數的下降，毛利率持平或略有下降。鑑於第一季度因農曆新年工作日減少，且是周期性淡季，我們認為這將是銷售量的底部。

GAAP earnings attributable to shareholders per ADS are expected to be in the range of $0.03 to $0.04 per ADS based on $472 million outstanding ADS.

根據 4.72 億美元的未償 ADS 計算，每 ADS 歸屬於股東的 GAAP 收益預計在每 ADS 0.03 美元至 0.04 美元之間。

The (inaudible) each year has improved by (inaudible) the last quarter reversed our expectation that the effective income tax rate will be back to more normal level versus the unusually high level of the last quarter as explained earlier.

（聽不清）上個季度每年（聽不清）都有所改善，這扭轉了我們的預期，即有效所得稅率將回到更正常的水平，而不是如前所述的上個季度的異常高水平。

Thank you for your interest in Himax. We appreciate you joining today's call and we look forward to a productive and profitable year in 2012.

感謝您對 Himax 的關注。感謝您參加今天的電話會議，我們期待 2012 年是富有成效和盈利的一年。

Operator we will now open the floor for questions.

接線員，我們現在開始提問。

Thank you. We will now be conducting a question and answer session. (Operator Instructions)

謝謝你。我們現在將進行問答環節。 （操作員說明）

One moment please while we poll for questions.

請稍等片刻，而我們正在調查問題。

Thank you. Our first question is from the line of Jay Srivatsa with Chardan Capital Markets. Please proceed with your question.

謝謝你。我們的第一個問題來自 Chardan Capital Markets 的 Jay Srivatsa。請繼續您的問題。

Yeah, thanks for taking my questions. Congratulations on a good quarter Jordan and Jackie. Let me ask a couple of questions in terms of guidance. You mentioned that there is seasonal weakness largely driven the holidays in China. Are you expecting demand, both in the small panel and large panel, could be down or otherwise?

是的，謝謝你提出我的問題。祝賀喬丹和傑基取得了不錯的四分之一。讓我問幾個關於指導的問題。您提到季節性疲軟在很大程度上推動了中國的假期。您是否預計小型面板和大型面板的需求可能會下降或其他情況？

Thank you Jay, but I'm not sure I got your question clearly. You talk about guidance, right?

謝謝杰伊，但我不確定我是否清楚地了解了你的問題。你說的是指導，對吧？

Let me repeat. I said, in terms of guidance you said, you've guided for it to be down 5 mid-single digit. Just my question is, is it specifically in one of the segments, meaning large panel or small panel or is it both?

讓我重複一遍。我說，就你所說的指導而言，你已經指導它下降了 5 個中個位數。只是我的問題是，它是專門在其中一個部分中的，意思是大面板或小面板，還是兩者兼而有之？

Oh, I see. Okay. If you look at our current forecast, again, this is a disclaimer, the forecast may change and we're just talking about a forecast. I think we are looking at some flash to increase of (inaudible) large panel, am I right? Yes. (Inaudible) rush orders coming from the China market and some decline in small panels.

我懂了。好的。如果您再次查看我們當前的預測，這是一個免責聲明，預測可能會發生變化，我們只是在談論預測。我想我們正在尋找一些閃光來增加（聽不清）大面板，對嗎？是的。 （聽不清）來自中國市場的搶單和小面板的一些下降。

Okay. Your largest competitor has guided for -- I mean, not only did they have a decline in Q4, they've guided for further decline in Q1 in terms of revenues, much higher than what you've guided to. I guess the question is, are you seeing any market share shift relative to large competitor or is it just you're gaining new customers?

好的。你最大的競爭對手已經指導了——我的意思是，他們不僅在第四季度有所下降，而且在第一季度的收入方面進一步下降，遠高於你的指導。我想問題是，您是否看到相對於大型競爭對手的任何市場份額發生變化，或者您是否只是在獲得新客戶？

I'm not sure I want to comment too much on our competitor, but I think it really is -- I think -- I mean, we're starting to really rebuild, quote unquote, our momentum since a couple or four years ago when I think we've been regaining our market share in both large panel and small panel sector. I mentioned earlier our small panel design (inaudible), [our product line up] are particularly strong. So I think it's really a combination of all these factors together and on top of the fact that we are actually enjoying strong momentum [for our final quarter].

我不確定我想對我們的競爭對手發表太多評論，但我認為這確實是 - 我認為 - 我的意思是，我們開始真正重建，引用不引用，自兩四年前以來的勢頭當我認為我們已經在大面板和小面板領域重新獲得了市場份額時。我之前提到我們的小面板設計（聽不清），[我們的產品線]特別強大。所以我認為這實際上是所有這些因素的結合，除此之外，我們實際上正享受著強勁的勢頭（最後一個季度）。

But something to add Jay -- I'd like to add was that I think for the last couple - for three quarters we've been outperforming our peers in the sector. So I think that if that trend continues I think our forecasts are more -- actually better than the others are probably a reflection of our continuing trends in the past three quarters.

但要補充一點，傑伊——我想補充的是，我認為在最後一對——四分之三的時間裡，我們的表現一直優於該行業的同行。所以我認為，如果這種趨勢繼續下去，我認為我們的預測會更多——實際上比其他預測更好，這可能反映了我們過去三個季度的持續趨勢。

Clearly--

清楚地 -

All right.

好的。

--we all understand that our downfall over the past few years was primarily due to the fact that a lot of major customers decided to diversify, right? So I think once that they are (inaudible) participation comes to an end, certainly we [are subject the more] level playing field with our competitors. And as you have seen over the last few quarters as Jackie just mentioned, I think we have performed pretty strongly in both large and small panel sectors.

——我們都知道，我們過去幾年的失敗主要是因為很多大客戶決定多元化，對吧？所以我認為，一旦他們（聽不清）參與結束，我們肯定會[受到更多]與競爭對手的公平競爭。正如你在過去幾個季度中看到的 Jackie 剛剛提到的那樣，我認為我們在大型和小型面板領域的表現都相當強勁。

All right. You spoke about the non-driver products, but yet in the last three quarters revenues from non-driver has been virtually flat, give or take. So I guess the question is, when do you expect to see touch control and image sensor business really start to materially increase in terms of revenue contribution?

好的。您談到了非司機產品，但在過去三個季度，來自非司機的收入幾乎持平，或多或少。所以我想問題是，您預計觸控和圖像傳感器業務在收入貢獻方面何時真正開始大幅增長？

We do expect -- firstly on image sensor, we do expect our sensor revenue to pick up strongly (inaudible) with the launch of our SP sensor which is soon becoming the mandatory sensor for your laptop and (inaudible) PC. We have good timing for that product, good performance and we have numerous design [wheels] going on at the moment.

我們確實希望 - 首先是圖像傳感器，我們確實希望我們的傳感器收入隨著我們的 SP 傳感器的推出而強勁（聽不清）回升，該傳感器很快將成為您的筆記本電腦和（聽不清）PC 的強制性傳感器。我們對該產品有很好的時機，良好的性能，並且目前我們有許多設計[輪子]正在進行中。

So we do believe our sensors segment to pick up particularly strongly starting from Q2 and we are looking ahead with exciting year for our sensor.

因此，我們確實相信我們的傳感器領域將從第二季度開始特別強勁地回升，我們期待著我們的傳感器迎來激動人心的一年。

As far as touch controller is concerned, it's slightly more difficult to say. I mean, certainly we are newcomer and we started our shipment last quarter -- in Q4 last year with one major customer and meaning our dependence on that major customer at the moment, for the time being, is quite high. Certainly we are working very hard to penetrate to other customers. We have made good progress but touch controllers does require a long design (inaudible) time. So it is -- while we remain very excited about its prospects, I think it is probably -- we probably have a lower degree of certainty in terms of when exactly we'll see the second major customer comes in.

就觸控控制器而言，說起來稍微有點困難。我的意思是，我們當然是新來者，我們在上個季度開始發貨——去年第四季度與一個主要客戶合作，這意味著我們目前對該主要客戶的依賴度很高。當然，我們正在努力滲透到其他客戶。我們取得了不錯的進展，但觸摸控制器確實需要很長的設計（聽不清）時間。所以它是 - 雖然我們仍然對其前景感到非常興奮，但我認為它可能是 - 我們可能對我們何時會看到第二個主要客戶進來的確定性較低。

All right. Last question from me. Looking beyond Q1, typically Q2 tends to be a strong quarter for you. Are you seeing signs in the end markets to give you the confidence that you will have a pretty good Q2 as you look beyond your Q1?

好的。我的最後一個問題。展望第一季度之後，通常第二季度對您來說往往是一個強勁的季度。您是否看到終端市場的跡象讓您有信心在 Q1 之後擁有一個相當不錯的 Q2？

Jay, again, we don't typically provide guidance for Q2 but to answer your question, yes, we do see a good visibility from this point of time into Q2. We're pretty sure of the size of customer demand all across large panel, small panel and non-driver product areas.

傑伊，我們通常不會為第二季度提供指導，但為了回答您的問題，是的，我們確實看到了從這個時間點到第二季度的良好可見性。我們非常確定客戶在大面板、小面板和非驅動產品領域的需求規模。

Thank you very much. Good luck.

非常感謝。祝你好運。

Thank you Jay.

謝謝杰。

(Operator Instructions)

（操作員說明）

One moment please while we poll for questions.

請稍等片刻，而我們正在調查問題。

Thank you. Our next question comes from the line of Jessica Chang with Deutsche Bank. Please proceed with your question.

謝謝你。我們的下一個問題來自德意志銀行的 Jessica Chang。請繼續您的問題。

Hi. Good morning Jordan and Jackie. Glad to see your good first quarter results. Have a few quick questions.

你好。早上好喬丹和傑基。很高興看到你們第一季度的良好業績。有幾個快速的問題。

First, can you tell us what your revenue contribution from smartphones, if possible, can you indicate the revenue contribution for Q3, Q4 and the entire 2011?

首先，您能否告訴我們您對智能手機的收入貢獻是多少，如果可能的話，您能否指出 Q3、Q4 和整個 2011 年的收入貢獻？

Thank you Jessica. I will pass the question on to Jackie.

謝謝你傑西卡。我會把這個問題轉給傑基。

Hi Jessica.

嗨，傑西卡。

Hi.

你好。

Yeah, to answer your question, our Q4 smartphone revenue was around $31 million, representing about 18.3% of our total revenue. The Q3 smartphone revenue was about $15 million, representing 9.6% of our total revenue. For the full year the smartphone revenue was $67 million, representing 10.6% of our total revenue.

是的，回答你的問題，我們第四季度的智能手機收入約為 3100 萬美元，約占我們總收入的 18.3%。第三季度智能手機收入約為 1500 萬美元，占我們總收入的 9.6%。全年智能手機收入為 6700 萬美元，占我們總收入的 10.6%。

Oh, great. Thank you. In terms of the non-driver business, would it be possible you can break it down by the few key areas?

哦，太好了。謝謝你。在非司機業務方面，您是否可以將其分解為幾個關鍵領域？

We -- because this field too small in our total revenue, so we don't typically provide the detailed breakdown. I think once certain segments becomes more significant on its own we will start to provide some detail.

我們——因為這個領域在我們的總收入中太小了，所以我們通常不提供詳細的細分。我認為一旦某些部分變得更加重要，我們將開始提供一些細節。

Oh, okay. Or would you be able to rank by the revenue contribution?

哦好的。或者你能按收入貢獻排名嗎？

Okay. In terms of (inaudible) because I mentioned earlier in my prepared remarks, quite a number of segments -- in quite a number of segments we actually had the first year of mass production last year. So I guess it's probably a good idea that we provide you with just Q4--

好的。就（聽不清）而言，因為我之前在準備好的評論中提到了相當多的細分市場——在相當多的細分市場中，我們實際上在去年第一年進行了大規模生產。所以我想我們只為您提供第四季度可能是個好主意——

Okay.

好的。

--because if you -- the Q4 picture could be materially different from that of Q1 when (inaudible) actually have -- did they even have any mass production?

- 因為如果你 - 第四季度的圖片可能與第一季度的圖片（聽不清）實際上有很大不同 - 他們甚至有任何大規模生產嗎？

Okay.

好的。

So I will present here--

所以我將在這裡介紹——

Okay.

好的。

--so by rank--

——所以按等級——

So to answer your question to rank the non-driver products for Q4 2011, I guess number one was the CMOS sensor and number two is touch panel controllers and followed by LCOS and the rest.

因此，要回答您對 2011 年第四季度非驅動產品排名的問題，我猜排名第一的是 CMOS 傳感器，第二位是觸控面板控制器，其次是 LCOS 和其他產品。

Oh, okay.

哦好的。

I'm sorry?

對不起？

Excuse me, no, no. Correction. I think number one would be our timing controller or panel.

對不起，不，不。更正。我認為排名第一的是我們的時序控制器或面板。

So TCON's still the largest?

那麼TCON還是最大的嗎？

Yes, TCON's still the largest.

是的，TCON 仍然是最大的。

Okay. TCON and then CMOS image sensor and then touch panel controller and LCOS and the others.

好的。 TCON，然後是CMOS圖像傳感器，然後是觸摸屏控制器和LCOS等。

Yeah.

是的。

Yes. Yeah, that's correct.

是的。是的，這是正確的。

Then in terms of the gross margins, can you also rank?

那麼在毛利率方面，你也能排名嗎？

That's a more interesting question. Well actually, seriously, I think we actually mentioned quite a few times in our previous calls that the last year for our non-driver products, gross margins in particular -- last year was a tricky year in the sense that quite a few of our products actually went through very early stage of mass production where we actually suffer from low yields and sometimes even worse, customer returns and so on, a lot of which we did learn a lot of experience. So actually we, in our earlier remarks, we mentioned that last year when we pick up the license and this year is the year when we believe we start to see those products contributing strongly to our gross margin.

這是一個更有趣的問題。好吧，說真的，我認為我們實際上在之前的電話會議中多次提到，去年我們的非驅動產品，特別是毛利率 - 去年是一個棘手的一年，因為我們的很多產品實際上經歷了非常早期的大規模生產階段，我們實際上遭受了低產量，有時甚至更糟糕的是，客戶退貨等等，其中很多我們確實學到了很多經驗。所以實際上，我們在之前的評論中提到，去年我們拿到了許可證，而今年是我們相信我們開始看到這些產品對我們的毛利率做出巨大貢獻的一年。

Now, to get back to your question, if I want to rank the overall gross margin of each particular segment I would say certainly small items such as 2D to 3D converters enjoyed extremely high margin and I mentioned about our repositioning of our [TV team] and so they are -- we are turning them into a (inaudible) services to customers and (inaudible) the margin is very, very high.

現在，回到你的問題，如果我想對每個特定細分市場的整體毛利率進行排名，我會說肯定是小項目，例如 2D 到 3D 轉換器，利潤率非常高，我提到了我們對 [電視團隊] 的重新定位所以他們是 - 我們正在將它們變成為客戶提供的（聽不清）服務，並且（聽不清）利潤率非常非常高。

Then touch panel controller is a very high margin business, I would say followed by [WLED] drivers and power management ICs, the analog devices and LCOS, then timing controller and then sensor I think would probably come last in terms of gross margin.

然後觸摸面板控制器是一個利潤率非常高的業務，我會說其次是[WLED]驅動器和電源管理IC，模擬設備和LCOS，然後是時序控制器，然後是傳感器，我認為就毛利率而言可能會排在最後。

Having said that (inaudible) though, I believe everything is -- everything is generally high gross margin and (inaudible) on average.

話雖如此（聽不清），但我相信一切都是——一切通常都是高毛利率和（聽不清）平均水平。

Okay. So this rank is like maybe the level for the first half or for this year, right?

好的。所以這個排名可能是上半年或今年的水平，對吧？

I think, barring any major surprises, I think this could potentially be a long term kind of rank for their--

我認為，除非有任何重大意外，否則我認為這可能是他們的長期排名——

Oh, long term rank, okay.

哦，長期排名，好吧。

--their relative gross margins, yes.

- 他們的相對毛利率，是的。

All right. Because you had quite good margin expansion in Q4 so given that some of your new products still in the very early production stage well you actually built your margin expansion largely through the smartphone increase in terms of revenue weights in Q4.

好的。因為你們在第四季度的利潤率擴張非常好，所以考慮到你們的一些新產品仍處於非常早期的生產階段，你們實際上主要通過智能手機增加第四季度的收入權重來實現利潤率擴張。

Yes, definitely.

當然是。

And also on your smartphone driver IC, do you also see the segment also improve their margin (inaudible) itself?

在您的智能手機驅動 IC 上，您是否也看到該細分市場本身也提高了利潤率（聽不清）？

Ah, interesting question. We did enjoy a early start, right, and we -- both (inaudible) and Chinese (inaudible) -- by the way, we are very excited about the potential of Chinese local brand names smartphone business, which we believe will be growing very strongly in the foreseeable future and it's an area where we do enjoy a very good customer coverage.

啊，有趣的問題。我們確實很早就開始了，對，而且我們——無論是（聽不清）還是中國人（聽不清）——順便說一下，我們對中國本土品牌智能手機業務的潛力感到非常興奮，我們相信這將非常增長在可預見的未來，這是一個我們確實享有非常好的客戶覆蓋率的領域。

Now, about the -- on the question about whether the smartphone driver IC will continue to enjoy potentially highest gross margin compared to the average driver IC. It's -- driver ICs is always competitive, I don't want to say - I don't want to present a too optimistic view. I think, so far, at the moment certainly it is better margin and we'll certainly continue to fight to defend our margin by offering earlier products, better (inaudible), better shipments and so on. But it's a competitive market so that's all I can say.

現在，關於智能手機驅動IC與普通驅動IC相比是否會繼續享有潛在最高毛利率的問題。這是——驅動IC總是有競爭力的，我不想說——我不想提出過於樂觀的看法。我認為，到目前為止，目前肯定是利潤率更高，我們肯定會繼續通過提供更早的產品、更好的（聽不清）、更好的出貨量等來捍衛我們的利潤率。但這是一個競爭激烈的市場，所以我只能這麼說。

Okay. Then given you probably will -- you should still enjoy good market (inaudible) smartphone proliferation and also your non-driver ICs are gaining momentum. What's your gross margin potentially the target for this year -- would it be like maintaining at the Q4 level or even maybe there would be some upside?

好的。那麼你可能會 - 你應該仍然享受良好的市場（聽不見）智能手機的普及，而且你的非驅動 IC 正在獲得動力。您今年的潛在目標毛利率是多少？是否會維持在第四季度的水平，甚至可能會有一些上行空間？

I certainly hope we will do better than Q4 for the whole year. And certainly -- we certainly -- it is our chance to improve that (inaudible) our overall gross margin for this year against last.

我當然希望我們全年都能比第四季度做得更好。當然 - 我們當然 - 這是我們提高今年（聽不清）我們今年的整體毛利率與去年相比的機會。

(Inaudible)--

（聽不清）——

As you know, our Q4, we did have the best gross margin among the four quarters of last year. So we certainly hope the average margin for this year will be higher than Q4.

如您所知，我們第四季度的毛利率確實是去年四個季度中最好的。所以我們當然希望今年的平均利潤率會高於第四季度。

Okay. Do you have any preliminary target for your revenue contribution from non-driver segments, overall together?

好的。您對非驅動因素部分的收入貢獻有任何初步目標嗎？

20%.

20%。

20% for this year?

今年20%？

Yeah.

是的。

And given the basis you assume you should have revenue growth, right?

鑑於您認為您應該有收入增長的基礎，對嗎？

Oh, yeah. Of course.

哦耶。當然。

Okay. Yeah. Oh, so my final question is, in terms of the largest sized market segment, you've since mentioning you've been working with customers from China and also you see your share at a major client is getting gradually stabilized. My question is, would it be possible you can maybe see a little bit market recovery (inaudible) the major client or you expect more overall market share upside coming from new customer acquisition?

好的。是的。哦，所以我的最後一個問題是，就最大的細分市場而言，您已經提到您一直在與來自中國的客戶合作，並且您看到您在主要客戶中的份額正在逐漸穩定。我的問題是，您是否有可能看到主要客戶的市場復甦（聽不清），或者您預計新客戶的獲取會帶來更多的整體市場份額上升？

In terms of market share I think (inaudible) should be the market share increase for Himax naturally I think will come from new customers because of the fact that they are new, right? They come from nowhere. So any gains is a pure gain for us. And we do believe we will enjoy the good market share over those - you mentioned (inaudible) in China. Now back to our major customers, we still think we work extremely hard to make sure we provide the best service possible to our major customers. So it's -- over there in the competitive market, I believe, given the customer has -- from their strategies point of view, right, they've decided to diversify and now they (inaudible) they wanted, I think, from now on it is a case of more level playing field for us and our competitors there.

就市場份額而言，我認為（聽不清）應該是 Himax 的市場份額增加自然我認為將來自新客戶，因為他們是新客戶，對吧？他們不知從何而來。因此，任何收益對我們來說都是純粹的收益。我們相信我們將在中國享有比您提到的（聽不清）更好的市場份額。現在回到我們的主要客戶，我們仍然認為我們非常努力地確保我們為我們的主要客戶提供最好的服務。因此，我相信，在競爭激烈的市場中，考慮到客戶已經 - 從他們的戰略角度來看，是的，他們已經決定多元化，現在他們（聽不清）他們想要，我想，從現在開始對於我們和我們的競爭對手來說，這是一個更公平的競爭環境。

So we are quite confident. We will fight for a better market share over there, and recently we do see a rush order coming from first customers, not just one but across our large panel customers for TV in particular for the China demand. So that kind of explains our -- somehow our Q1. You mentioned earlier, to address Jay's question, that Q1 is a typical slow season. However we do see large panel demand kind of outgrowing the small panel and I think that is mainly thanks to our rush orders coming from China TV.

所以我們很有信心。我們將在那裡爭取更好的市場份額，最近我們確實看到來自第一批客戶的緊急訂單，不僅僅是一個客戶，而是我們的大面板電視客戶，特別是中國的需求。所以這解釋了我們的 - 不知何故我們的 Q1。您之前提到，為了回答傑伊的問題，第一季度是一個典型的淡季。然而，我們確實看到大型面板需求的增長超過了小型面板，我認為這主要歸功於我們來自中國電視的緊急訂單。

Thank you. You mean rush large panel order for TVs from China and it's from -- most of the rush order is from the major client, major customer?

謝謝你。你的意思是來自中國的電視大面板緊急訂單，它來自——大部分緊急訂單來自主要客戶，主要客戶？

I did say across customers, not just one. But certainly in terms of percentage, certainly it comes largely from the major customer because he has always been our major customer.

我確實說過客戶，而不僅僅是一個。但當然就百分比而言，它肯定主要來自主要客戶，因為他一直是我們的主要客戶。

Okay. All right. That's the question I have for today. Thank you very much Jordan and Jackie.

好的。好的。這就是我今天要問的問題。非常感謝喬丹和傑基。

Thank you.

謝謝你。

Thank you Jessica.

謝謝你傑西卡。

Thank you. Our next question comes from the line of Caroline Wong with Merrill Lynch. Please proceed with your question.

謝謝你。我們的下一個問題來自美林證券的 Caroline Wong。請繼續您的問題。

Hello Jordan and Jackie. Hi.

你好喬丹和傑基。你好。

Hi. Morning.

你好。早晨。

Good morning. I would like to ask about the [ASP] trends for the coming quarters for your overseas trending -- overall trending in 2012. What do you see in the large panel driver IC and also small and medium?

早上好。我想問一下你們海外趨勢的[ASP]未來幾個季度的趨勢——2012年的整體趨勢。你在大面板驅動IC和中小型面板驅動IC中看到了什麼？

I think (inaudible) receive strong orders from our large panel customers in particular rush orders as I mentioned earlier. In the meantime we do -- we have -- we do face a little bit of product pressure from our large panel customers. As you will appreciate, our customers in large panel (inaudible) in particular, are now in seriously -- in a pretty tough market for them, so I think naturally they would demand for a better product support from their major suppliers. So I would say in Q1 (inaudible) I would say (inaudible) be probably in a range of 2% to 3%, 2 percentage. If -- the product pressure is probably less so for small panel.

我認為（聽不清）從我們的大型面板客戶那裡收到了強勁的訂單，尤其是我之前提到的緊急訂單。與此同時，我們確實 - 我們有 - 我們確實面臨來自大型面板客戶的一點產品壓力。如您所見，我們的大型面板（聽不清）客戶現在正處於一個非常艱難的市場中，因此我認為他們自然會要求主要供應商提供更好的產品支持。所以我會說在第一季度（聽不清）我會說（聽不清）可能在 2% 到 3%、2% 的範圍內。如果——小面板的產品壓力可能較小。

I see.

我懂了。

As well as the ASP outlook for the year is hard to say.

以及今年的 ASP 前景很難說。

Understood.

明白了。

Did that answer your question?

這回答了你的問題嗎？

Yeah.

是的。

Thank you. Our next question comes from the line of Jerry Su at Credit Suisse. Please proceed with your question.

謝謝你。我們的下一個問題來自瑞士信貸的 Jerry Su。請繼續您的問題。

Hi Jordan. A few questions here. One is that on the gross margin side, I think the Q4 has seen a pretty good improvement. Because you commented that after your gross margin in fourth quarter, is this mainly from product mix or you have seen some cost reduction?

嗨喬丹。這裡有幾個問題。一是在毛利率方面，我認為第四季度的改善非常好。因為您評論說，在您的第四季度毛利率之後，這主要來自產品組合還是您看到了一些成本降低？

Oh, it's always both. I mean, cost reduction is an ongoing effort and we do work very hard on cost reduction every quarter, including this quarter and every quarter going forward this year. It comes from a few areas. For example, we would transfer our product from one [foundry] to another to achieve better cost. We will move our process -- sometimes it's a matter of process migration, sometimes it is (inaudible) effort, even test time reduction while [in the meantime] assuring our product quality, et cetera. So there are, indeed, numerous efforts which is ongoing all the time. So cost reduction has always contributed to our gross margin. Certainly I -- and I will leave it for Jackie to come in on the product mix. Certainly I think -- we mentioned earlier our smartphone is a major contributor--

哦，總是兩者兼而有之。我的意思是，降低成本是一項持續的努力，我們每個季度都在努力降低成本，包括本季度和今年以後的每個季度。它來自幾個領域。例如，我們會將我們的產品從一個[代工廠]轉移到另一個以實現更好的成本。我們將移動我們的流程——有時這是流程遷移的問題，有時是（聽不清）努力，甚至是在 [同時] 確保我們的產品質量的同時減少測試時間，等等。因此，確實有許多一直在進行的努力。因此，降低成本一直為我們的毛利率做出貢獻。當然，我 - 我會把它留給傑基來參與產品組合。我當然認為——我們之前提到我們的智能手機是主要貢獻者——

(Inaudible).

（聽不見）。

--for our gross (inaudible) Jackie.

——獻給我們粗魯（聽不清）的傑基。

Yeah. I think, Jerry, to answer your question, yes it did come from product mix, mainly from the smartphone because the smartphone sales represent about 18.3% of our total revenue in Q4 versus 9.86% in Q3. Gross margin, per se, for the smartphone are much higher than most of our large panel driver IC as well as the (inaudible) phones. So I would say that our Q4 gross margin improvement primarily came from the smartphone increase in sales in Q4. Of course mixed with the cost reduction effort that we continue to make.

是的。我想，傑瑞，回答你的問題，是的，它確實來自產品組合，主要來自智能手機，因為智能手機銷售額占我們第四季度總收入的 18.3% 左右，而第三季度為 9.86%。就其本身而言，智能手機的毛利率遠高於我們的大多數大型面板驅動 IC 以及（聽不清）手機。所以我想說，我們第四季度毛利率的提高主要來自第四季度智能手機銷量的增長。當然，與我們繼續做出的降低成本的努力混合在一起。

Having said that though, we embarked on a major cost reduction effort for our (inaudible) product last year and I think it's closing to the end, need such effort towards the end of the year (inaudible) next year. So we do expect some good cost reduction as an effort to improve our gross margin for (inaudible) products. And certainly (inaudible) as Jackie mentioned (inaudible) a low gross margin compared to smartphones but (inaudible) business something we don't intend to give up and it's a long term concern that we do try very hard to improve the costs there as well.

儘管如此，我們去年開始為我們的（聽不清）產品進行重大成本降低工作，我認為它已經接近尾聲，需要在明年年底（聽不清）之前做出這樣的努力。因此，我們確實期望一些良好的成本降低，以提高我們（聽不清）產品的毛利率。當然（聽不清）正如 Jackie 提到的（聽不清）與智能手機相比毛利率低，但（聽不清）我們不打算放棄的業務，這是一個長期的擔憂，我們確實努力改善那裡的成本，因為出色地。

Oh, okay. Thank you. Next question is regarding to all your small medium sized driver IC business. I think recently we have heard that there is some kind of inventory buildup in the Chinese smartphone market for the past month and some panel makers or component makers are saying that the inventory need one or two months to digest. I'm just wondering -- I just wondering if Himax has seen the same trend or in Q1 I think you also commented that small medium sized revenue would decline more. Is this the main reason and when will it start to take off?

哦好的。謝謝你。下一個問題是關於你們所有的中小型驅動 IC 業務。我想最近我們聽說過去一個月中國智能手機市場存在某種庫存積壓，一些面板製造商或零部件製造商表示庫存需要一兩個月才能消化。我只是想知道——我只是想知道 Himax 是否看到了同樣的趨勢，或者在第一季度我想你也評論說中小型收入會下降更多。這是主要原因嗎？它什麼時候開始起飛？

I think the answer is yes. It definitely explains partially why we are guiding for a slight decline for Q1 and slight decline for also for small medium sized panels (inaudible). I think certainly the inventory buildup actually starting at the end of Q4 when customers expected a long Chinese New Year holiday so they did build up more inventory and now it's a sell off period. We -- before this conference call we actually (inaudible) customers in China and see if they will give us (inaudible). There are promises starting from March that demand would pick up and the industry will be back to more normal again. So we don't believe on our side we'll see excess inventory on our side at the end of the quarter for small panel in China.

我認為答案是肯定的。它肯定部分解釋了為什麼我們指導第一季度略有下降，中小型面板也略有下降（聽不清）。我認為庫存的增加實際上是從第四季度末開始的，當時客戶預計農曆新年假期會很長，所以他們確實增加了庫存，現在是一個拋售期。我們——在這次電話會議之前，我們實際上（聽不清）中國的客戶，看看他們是否會給我們（聽不清）。從 3 月開始，人們承諾需求將回升，該行業將再次恢復正常。因此，我們不相信在本季度末我們會看到中國小型面板的庫存過剩。

Okay. Thank you. Last question is also regarding to a small medium sized. Could you give us some color on the resolution -- the (inaudible) resolution you are shipping now for the Chinese market?

好的。謝謝你。最後一個問題也與中小型企業有關。你能給我們一些關於分辨率的顏色 - 你現在為中國市場提供的（聽不清的）分辨率嗎？

Okay. I believe you are referring primarily to (inaudible). So we have -- starting from the most high end, we believe we are probably the first to successfully (inaudible) smartphone panel which, however, it's not for Chinese customers. It's for international brands. For China such high resolution is still very, very rare and now the mainstream for smartphone is (inaudible) and to a lesser extent (inaudible) and I think it will remain like this for the rest of the year, and as well as (inaudible) is concerned (inaudible).

好的。我相信您主要指的是（聽不清）。所以我們有 - 從最高端開始，我們相信我們可能是第一個成功（聽不清）智能手機面板的人，但它不適合中國客戶。這是給國際品牌的。對於中國來說，這樣的高分辨率仍然非常非常罕見，現在智能手機的主流是（聽不清），在較小程度上是（聽不清），我認為今年剩下的時間都會保持這種狀態，以及（聽不清） ) 擔心（聽不清）。

Certainly for our product line up we're very low end all the way down to [each year] (inaudible) and again we have higher end product (inaudible) [nHD, WECA] and even all the way up to (inaudible) as I mentioned earlier.

當然，對於我們的產品系列，我們一直是非常低端的產品，一直到 [每年]（聽不清），我們再次擁有高端產品（聽不清）[nHD，WECA]，甚至一直到（聽不清）作為我前面提到過。

Okay. And for the LHD and qHD products, how do you see the trend to -- in this year?

好的。對於 LHD 和 qHD 產品，您如何看待今年的趨勢？

They are -- it does depend the entire international (inaudible) brand. Somewhere the demand has remained stable and we are hoping demands from (inaudible) will [pick] up this year although we are less certain about that. But China is the real deal I think in my view. It's -- end of last year was the time of their commencement in smartphone shipments but they -- the demand has come in so strongly from Chinese brands and over there (inaudible).

它們是——它確實取決於整個國際（聽不清）品牌。在某個地方，需求一直保持穩定，我們希望（聽不清）的需求今年會[回升]，儘管我們對此不太確定。但在我看來，中國才是真正的交易。去年年底是他們開始出貨智能手機的時候，但他們的需求來自中國品牌和那裡（聽不清）。

Okay. Thank you.

好的。謝謝你。

That is all the time we have for questions. I would now like to turn the floor back over to Jordan for closing comments.

這就是我們提出問題的所有時間。我現在想把發言權轉回給 Jordan 來結束評論。

Well thank you everyone for taking the time to join us in today's call and we look forward to talking with you again at our upcoming -- the next earnings call in early May. Thank you and have a nice day.

好吧，感謝大家抽出寶貴時間參加今天的電話會議，我們期待在即將到來的五月初的下一次收益電話會議上再次與您交談。謝謝你，祝你有美好的一天。

This concludes today's teleconference. (Operator Instructions) and thank you for your participation.

今天的電話會議到此結束。 （操作員說明）並感謝您的參與。