Himax Technologies has updated its previously announced third-quarter 2010 guidance. The company now expects revenues to decline approximately 26% sequentially from the US$187.7 million posted in the second quarter 2010, gross margin to increase slightly above the top of the previous gross margin guidance, and GAAP earnings per ADS to be in the range of US$0-0.01.

Excluding share-based compensation and acquisition-related charges, non-GAAP earnings per ADS in the third quarter will be in the range of US$0.04-0.05. The revision is primarily to reflect adjustment in customer demand, the company said.

Previous guidance provided on August 10, 2010 had forecast third-quarter 2010 revenues to decline by 13-18% quarter over quarter, with gross margin to increase by 1-2 percentage points from 20.4% in the second quarter, GAAP earnings per ADS to be in the range of US$0-0.02 and non-GAAP earnings per ADS to be in the range of US$0.04-0.06.

Jordan Wu, president and CEO of Himax, commented, "As updated in our last earnings conference call, we experienced a sudden order cutback right around the same time when we provided our third-quarter guidance in mid-August. These order adjustments continued in September while panel inventory levels remained a concern for panel makers. However, we managed to increase our gross margin primarily due to a more favorable product mix."