-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 C8yGd0X7w+Hit5JPJXldDyFZmSDLYGpEMt4adtjo9PK4u/V82mckVcigFIsIkDOD
 94nFxTsYgxB7tJPnix91BA==

<SEC-DOCUMENT>0001171843-08-000967.txt : 20081119
<SEC-HEADER>0001171843-08-000967.hdr.sgml : 20081119
<ACCEPTANCE-DATETIME>20081119152652
ACCESSION NUMBER:		0001171843-08-000967
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080930
FILED AS OF DATE:		20081119
DATE AS OF CHANGE:		20081119

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Himax Technologies, Inc.
		CENTRAL INDEX KEY:			0001342338
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			E9
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-51847
		FILM NUMBER:		081200869

	BUSINESS ADDRESS:	
		STREET 1:		10TH FLOOR, NO. 605, CHUNGSHAN ROAD
		STREET 2:		HSINHUA, TAINAN COUNTY 712
		CITY:			TAIWAN
		STATE:			F5
		ZIP:			-
		BUSINESS PHONE:		866 (6) 505-0880

	MAIL ADDRESS:	
		STREET 1:		10TH FLOOR, NO. 605, CHUNGSHAN ROAD
		STREET 2:		HSINHUA, TAINAN COUNTY 712
		CITY:			TAIWAN
		STATE:			F5
		ZIP:			-
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>f6k_111908.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<html>
  <head>
    <title>Unassociated Document</title>
    <!--Licensed to: GlobeNewswire, Inc.-->
    <!--Document Created using EDGARizer 4.0.6.3-->
    <!--Copyright 1995 - 2008 EDGARfilings, Ltd., an IEC company. All rights reserved-->
    </head>
    <body bgcolor="#ffffff">
  <div id="lockwidth" style="width: 640px">
    <div align="center">
      <div><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="4">UNITED
STATES<br>SECURITIES AND EXCHANGE COMMISSION</font><br>Washington, D.C.
20549</font></div>
      <div>&#160;</div>
      <div><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="4">FORM
6-K</font></font></div>
      <div>&#160;</div>
      <div><font style="DISPLAY: inline; FONT-WEIGHT: bold">REPORT OF FOREIGN PRIVATE
ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF
1934</font></div>
      <div>&#160;</div>
      <div><font size="2">For the month of <font style="DISPLAY: inline; FONT-WEIGHT: bold">November 2008</font>.</font></div>
      <div>&#160;</div>
      <div><font size="2">Commission File Number: <font style="DISPLAY: inline; FONT-WEIGHT: bold">000-51847</font></font></div>
      <div>&#160;</div>
      <div><font size="4"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Himax
Technologies, Inc.</font></font><br><font size="2">(Translation of registrant's
name into English)</font></div>
      <div>&#160;</div>
      <div><font style="DISPLAY: inline; FONT-WEIGHT: bold">No.26, Zih Lian Road,
Fonghua Village,<br>Sinshih Township, Tainan County 744<br>Taiwan, Republic of
China</font><br><font size="2">(Address of principal executive
office)</font></div>
      <div>&#160;</div>
    </div>
    <div><font size="2">Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.<br>Form 20-F [ x ]
&#160;&#160;&#160;&#160;&#160;Form 40-F [ &#160; ]</font></div>
    <div>&#160;</div>
    <div><font size="2">Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
____</font></div>
    <div>&#160;</div>
    <div><font size="2"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Note:</font>
Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K
if submitted solely to provide an attached annual report to security
holders.</font></div>
    <div>&#160;</div>
    <div><font size="2">Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
____</font></div>
    <div>&#160;</div>
    <div><font size="2"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Note:</font>
Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K
if submitted to furnish a report or other document that the registrant foreign
private issuer must furnish and make public under the laws of the jurisdiction
in which the registrant is incorporated, domiciled or legally organized (the
registrant's "home country"), or under the rules of the home country exchange on
which the registrant's securities are traded, as long as the report or other
document is not a press release, is not required to be and has not been
distributed to the registrant's security holders, and, if discussing a material
event, has already been the subject of a Form 6-K submission or other Commission
filing on EDGAR.</font></div>
    <div>&#160;</div>
    <div><font size="2">Indicate by check mark whether the registrant by furnishing
the information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934. Yes [ &#160;] &#160;&#160;&#160;&#160;&#160;No [
&#160;]</font></div>
    <div>&#160;</div>
    <div><font size="2">If "Yes" is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b): 82-____.</font></div>
    <div>&#160;</div>
    <div>
      <div>
        <hr style="COLOR: black" align="left" noshade size="2" width="100%">
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font style="FONT-WEIGHT: bold; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Exhibit
Index</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">(c)&#160;&#160;&#160;&#160;
Exhibit
99.1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Himax
Technologies Inc. </font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Third
Quarter 2008 Earnings Call Transcript dated </font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">November
3, 2008.</font></font></div>
    </div>
    <div>&#160;</div>
    <div>
      <hr style="COLOR: black" align="left" noshade size="2" width="100%">
    </div>
    <div style="TEXT-ALIGN: center"><font style="FONT-WEIGHT: bold; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
    <div>&#160;</div>
    <div><font size="2">Pursuant to the requirements of the Securities Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized. </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%">
          <tr valign="top">
            <td width="47%">&#160;</td>
            <td width="6%">&#160;</td>
            <td width="47%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Himax Technologies,
      Inc.</font></font><br><font size="2">(Registrant)</font><br><br></td>
          </tr>
          <tr valign="top">
            <td width="47%"><font size="2">Date: November 19, 2008</font></td>
            <td width="6%">&#160;</td>
            <td width="47%"><font size="2"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">/s/ MAX
      CHAN</font></font><br>Max Chan<br><font style="DISPLAY: inline; FONT-STYLE: italic">Chief Financial
      Officer</font></font></td>
          </tr>
      </table>
    </div>
    <div align="center">
      <div>
      </div>
      <div>&#160;</div>
    </div>
  </div></body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>exh_991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title>Unassociated Document</title>
    <!--Licensed to: GlobeNewswire, Inc.-->
    <!--Document Created using EDGARizer 4.0.6.3-->
    <!--Copyright 1995 - 2008 EDGARfilings, Ltd., an IEC company. All rights reserved-->
    </head>
    <body bgcolor="#ffffff">
  <div id="lockwidth" style="width: 640px">
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Exhibit
99.1</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Himax
Technologies Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Third
Quarter 2008 Earnings</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">November
3, 2008</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Operator: </font>Greetings, and
welcome to the Himax Technologies Incorporated Third Quarter Earnings 2008
Conference Call.&#160;&#160;At this time, all participants are in a listen-only
mode.&#160;&#160;A brief question and answer session will follow the formal
presentation.&#160;&#160;If anyone should require Operator assistance during the
conference, please press star zero on your telephone key pad.&#160;&#160;As a
reminder, this conference is being recorded.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">It is now
my pleasure to introduce your host, Mr. Joseph Villalta of the Ruth
Group.&#160;&#160;Thank you Mr. Villalta, you may begin.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Joseph Villalta: </font>Thank you,
Operator.&#160;&#160;Welcome everyone to Himax&#8217;s Third Quarter 2008 Earnings
Call.&#160;&#160;Joining us from the company are Mr. Jordan Wu, President and
Chief Executive Officer, and Mr. Max Chan, Chief Financial
Officer.&#160;&#160;After the company&#8217;s prepared comments we will then have time
for any questions.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">If you
have not yet received a copy of today&#8217;s results release, please call The Ruth
Group at 646-536-7026.&#160;&#160;Or you can get a copy off of Himax&#8217;s website
at <font style="DISPLAY: inline; TEXT-DECORATION: underline">www.himax.com.tw</font>.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Before we
begin the formal remarks, I&#8217;d like to remind everyone that some of the
statements 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 events
or results to differ materially from those described in this conference
call.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Factors
that could cause actual results to differ include, but not limited to, general
business and economic conditions and the state of the semiconductor industry;
the level of competition; demand for end-user application products; reliance on
a small group of principal customers; the uncertainty of continued success in
technological innovations; our ability to develop and protect our intellectual
property; pricing pressures including declines in average selling prices;
changes in customer order patterns; shortages in supply of key components;
changes in environmental laws and regulations; exchange rate fluctuations;
regulatory approvals for further investments in our subsidiaries; and other
risks described from time to time in the company&#8217;s SEC filings, including those
risks identified in the section entitled "Risk Factors" in its Form 20-F for the
year ended December 31, 2007 filed with SEC dated June 20, 2008, as
amended.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">The
financial information included in this conference call is unaudited and
consolidated, and prepared in accordance with the US GAAP. Such financial
information is generated internally 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 auditedconsolidated financial
statements, and may vary materially from the audited consolidated financial
information for the same period.&#160;&#160;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.&#160;&#160;In addition, the financial information included in this
conference call is not necessarily indicative of our results for any future
period.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">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.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">At this
time, I would now like to turn the call over to Mr. Jordan Wu.&#160;&#160;Please
go ahead, sir.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;<br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu: </font>Thank you Joseph
and thank you everyone for joining us on today&#8217;s call.&#160;&#160;Before we
discuss our third quarter results in detail and provide fourth quarter guidance,
I would like to briefly recap several statements we have made over the past
couple of months regarding our third quarter guidance.&#160;&#160;&#160;&#160;As
you know, the&#160;&#160;global financial&#160;&#160;market&#160;&#160;turmoil
and the slowing of</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">consumer
spending have added a number of complexities and uncertainties to our business
which has made it difficult to provide guidance.&#160;&#160;We initially
provided our third quarter guidance in early August; during a period when our
customers were ratcheting down their third quarter
forecasts.&#160;&#160;Subsequently, in early September, we raised our third
quarter guidance to reflect our more definitive near-term views.&#160;&#160;On
October 6, we pre-announced our third quarter revenues, which were in the mid
range of our raised (sp?) guidance and re-affirmed our raised gross margin and
EPS guidance.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">While a
quarter has past since our previous conference call, predicting our financial
results with high accuracy remains tough, if not tougher, in today&#8217;s business
environment.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Now, to
our third quarter 2008 financial results.&#160;&#160;I will start with brief
highlights of Himax&#8217;s overall performance during the third quarter and discuss
our outlook for the fourth quarter.&#160;&#160;Max Chan, our CFO, will then
provide further details on our financial performance.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Our third
quarter revenues were $230.1 million, representing a 5.5% decline year-over-year
and a 6.8% decline sequentially.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Revenues
from large panel display drivers were down 17.4% from the same period last year
and down 18.0% sequentially, accounting for 72.4% of our total revenues in the
third quarter.&#160;&#160;During the quarter, most of our large panel customers
lowered their fab utilizations.&#160;&#160;The resulting
weaker&#160;&#160;demand for driver ICs, coupled with declining ASP, negatively
impacted our revenues.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Despite
the downturn in our large panel display drivers, the third quarter of 2008 was a
remarkable quarter for our small and medium-sized driver business. We recorded
record revenues of $48.3 million, up 39.5% year-over-year and up 58.2%
sequentially.&#160;&#160;Percentage of total revenues also achieved a record
high at 21%, compared to 12.4% last quarter.&#160;&#160;Among various
small-and-medium sized applications, demand for our handset display drivers was
particularly strong in the third quarter, with revenue doubling sequentially. On
top of that, during the third quarter we became Taiwan&#8217;s largest display driver
vendor for small and medium-sized TFTLCD applications.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">As with
our small and medium-sized driver business, our non-driver business also
achieved record highs in both revenues and percentage of total revenues in the
third quarter of 2008.&#160;&#160;Revenues from non-driver business were $15.1
million in the third quarter, up 114.4% year-over-year and up 14.4%
sequentially, accounting for 6.6% of our total revenues.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Gross
margin was 24.5% in the third quarter of 2008, up two percentage points
year-over-year, but down one percentage point sequentially.&#160;&#160;Gross
margin came in at the high end of our guidance.&#160;&#160;The sequential
decline in gross margin was primarily due to the price pressure we faced from
our customers, especially those in the large panel segments. Nevertheless, the
pressure was partially offset by our cost reduction efforts we made such as
improving designs and processes, diversifying product offerings, and leveraging
our economies of scale.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Our third
quarter GAAP EPS was $0.09, down from $0.11 the same period last year and down
from $0.20 in the second quarter of 2008.&#160;&#160;Similar to our gross
margin, our GAAP EPS also came in at the high end of our
guidance.&#160;&#160;The sequential decline in our GAAP EPS was primarily due to
the reduced revenues, and our annual restricted share units award granted to
employees at the end of September.&#160;&#160;Max will provide further details
later.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">In the
third quarter, we saw a significant shift in our revenue mix.&#160;&#160;Gross
(sp?) revenues from large panel applications declined, due primarily to
customers&#8217; reducing fab utilization and lasting (sp?) price pressure, we
achieved record revenues in our small and medium-sized applications and
nondriver business.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">During the
third quarter there was strong demand for our handset display drivers from both
the Chinese market and the worldwide brands.&#160;&#160;We continue to make
great progress penetrating the market of the world&#8217;s top tier cell phone
developers.&#160;&#160;Many of the recently launched, well known, high-end cell
phones have Himax display drivers inside.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Over the
past few months, over a dozen companies launched or showcased their
pico-projector products in accessory, embedded, and standalone formats based on
our LCOS solutions.&#160;&#160;One of those products won the Gold Award in the
Portable Electronics Category for Outstanding Innovation and Technology Products
at the recent 2008 Hong Kong Electronics Fair.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Another
notable example of our recent progress in LCOS product line is our recent
alliance with Wingtech, one of China&#8217;s largest cell phone solution
providers.&#160;&#160;China is one of the fastest growing markets for consumer
electronics and remains one of the few markets in the world where consumer
spending remains relatively robust.&#160;&#160;The China white brand handset
segment is well-known for its aggressive pursuit of new features and fast
time-to-market.&#160;&#160;We expect the China white brand handset market to be
one of the early adopters of our LCOS technology.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">During the
third quarter, we commenced volume shipment of our TV
controller.&#160;&#160;Commercial production of our monitor scaler is also
taking place in the fourth quarter.&#160;&#160;Since we formed the strategic
partnership with TPV, the world&#8217;s largest TFT-LCD monitor manufacturer and one
of the major TV ODMs, in the beginning of 2008, our TV controller and monitor
scaler have rapidly gone through various qualification and testing procedures
and entered into volume production.&#160;&#160;The system know-how we
accumulated from the unique working model with both TPV, the set manufacturer
and CMO, the panel maker, have paved the way for broader adoption of our
products in the quarters to come.&#160;&#160;We expect to launch our next
generation ICs in this segment in the first half of 2009.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Backed by
our strong balance sheet, we remain fully committed to our long-term goal of
being the world&#8217;s leading semiconductor solution provider in the flat panel
display industry.&#160;&#160;We have become a world leader in the display driver
market which is a major step toward achieving our goal.&#160;&#160;TV and
monitor controller and LCOS pico projector product lines will continue to be
essential areas for us to broaden our product portfolio.&#160;&#160;Following
years of R&amp;D, we have not only commenced commercial production in both
areas, we believe our product offerings are competitive and we are strongly
positioned in those markets.&#160;&#160;We anticipate that both product lines
will bring increasingly positive contributions to our top and bottom lines for
next year.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Looking
ahead, we anticipate another challenging quarter resulting from the tightening
credit and consumer spending weakness in the global
economy.&#160;&#160;Literally all of our customers have announced plans to
further reduce capacity utilization in the fourth quarter.&#160;&#160;This,
naturally, has negatively impacted our near-term revenue and profit
outlook.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Amid the
unprecedented, sudden industry downturn, we are taking measures to further
rationalize our operations and control our costs and
expenses.&#160;&#160;Concrete measures have been and will continue to be taken
to control both non-headcount and headcount related expenses.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Moving to
our fourth quarter guidance.&#160;&#160;We expect fourth quarter revenues to
decline by 23% to 28% sequentially, gross margin to decline by two to three
percentage points, and GAAP EPS to be in the range of $0.06 to
$0.08.&#160;&#160;Given the limited visibility we are facing, our actual fourth
quarter </font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">results
could depart from what we state today, with both upside and downside
risks.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Now let me
turn over to Max Chan, our CFO, for further details on our quarterly
financials.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Max Chan: </font>Thank you
Jordan.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">As Jordan
mentioned, we are encouraged to see our product diversification strategy bearing
fruit.&#160;&#160;Revenues from large panel application, small and medium-sized
panel applications and non-driver business accounted for 72.4%, 21.0%, and 6.6%
of our total revenues, respectively.&#160;&#160;Small and medium-sized panel
drivers and non-driver both achieved record revenues in the third quarter,
partially mitigating the revenue decline in large panel
applications.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">At the end
of September, we granted our annual restricted awards to employees, valued at
$23.8 million, a decrease of 9.8% as compared to the $26.4 million granted in
2007.&#160;&#160;The 2008 restricted awards consisted of Restricted Share Units,
or RSUs, of $20.9 million and the restricted cash award of $2.9
million.&#160;&#160;Of the $20.9 million RSUs, $12.7 million was vested and
expensed immediately on the grant day and paid in cash. The remainder will be
paid in three equal installments of stocks over the next three
years.&#160;&#160;The maximum share dilution resulting from the 2008 RSU award
is around 1.5% of our total shares outstanding. The restricted cash award of
$2.9 million will be paid in three equal installments of cash over the next
three years.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">In the
third quarter, share-based compensation was $14.4 million and
acquisition-related changes were $0.4 million.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Excluding
share-based compensation and acquisition-related charges, our non-GAAP gross
margin was 24.6%, up from 22.6% a year ago and down from 25.6% a quarter
ago.&#160;&#160;Non-GAAP operating income was $30.6 million, down from $36.2
million in the same period last year and down from $37.8 million in the previous
quarter.&#160;&#160;Non-GAAP net income was $32.5 million, down from $37.4
million in the same period last year, and down from $39.8 million in the
previous quarter.&#160;&#160;Non-GAAP EPS was $0.17, down from $0.19 in the same
period last year and down from $0.21 in the previous quarter.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">We
recognized a net foreign currency exchange loss in earnings of about $1.1
million in the third quarter, primarily due to the recent NT dollar
depreciation.&#160;&#160;Virtually all of our sales and costs of goods sold are
priced in US dollars and the majority of our cash is in US dollars as well.
However, we do maintain a small portion of our net (sp?) in NT dollars for local
working capital purposes.&#160;&#160;In addition, there are tax-related assets
and liabilities on our balance sheet which are naturally NT dollar
denominated.&#160;&#160;The net foreign currency exchange loss in the third
quarter was primarily the result of the conversion of NT dollar denominated
deferred income tax assets into US dollars, which is our functional and
reporting currency; such gain or loss is not a cash item.&#160;&#160;&#160;We
continue to seek a neutral position on a US dollar basis, regardless of the NT
dollar movement, to reduce the foreign currency exchange impacts.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">As Jordan
mentioned earlier, we are adopting measures to further improve our operational
efficiency and control our costs and expenses to cope with the challenging
environment.&#160;&#160;Excluding share-based compensation and
amortization-related charges, the growth rate of our Non-GAAP operating expenses
has been declining quarter over quarter since the first quarter of
2008.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">We
generated a net operating cash flow of $34.2 million in the third
quarter.&#160;&#160;Capital expenditure for the third quarter was $2.8 million,
as compared to $3.0 million in the second quarter.&#160;&#160;This includes
primarily expenditure relating to the purchase of R&amp;D related equipments and
the relocation of our Taipei office.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Upon
reviewing our 2008 performance, a net tax benefit of $1.7 million was recognized
in the third quarter to reflect a change in estimates of our taxable income and
effective tax rate for the whole year of 2008.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">With no
debts, our balance sheet remains strong. Cash, cash equivalents, and marketable
securities available for sale were $132.1 million at the end of September, an
increase of $31.1 million from a quarter ago.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">The fourth
quarter 2008 guidance that Jordan provided earlier is based on 194 million
diluted weighted average shares.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Operator,
that concluded our prepared remarks.&#160;&#160;We can now take any
questions.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Operator: </font>Thank
you.&#160;&#160;Ladies and gentlemen, we will now be conducting a question and
answer session.&#160;&#160;If you&#8217;d like to ask a question please press star one
on your telephone key pad.&#160;&#160;A confirmation tone will indicate that
your line&#8217;s in the question queue.&#160;&#160;You may press star two if you
would like to remove your question from the queue.&#160;&#160;For those of you
using speaker equipment, it will be necessary to pick up your handset before
pressing the star keys.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Our first
question is from the line of Gary Mobley with Piper Jaffray.&#160;&#160;Please
go ahead.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Gary Mobley: </font>Hi
guys.&#160;&#160;What was the personnel count at the end of the quarter and
relating to op ex controls, could you talk about where the head count might go
and what some of the other lever points might be in terms of reining in the
operating expenses in light of where revenues are going.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Max Chan: </font>At the end of
September we have about slightly over 1,200 head counts on a consolidated basis,
including head counts on the majority owned subsidiaries of
Himax.&#160;&#160;And we are conducting measures to review the head counts, as
well as the IMB (sp?) project.&#160;&#160;And we are about to adopt measures to
control our head count expenses as well as head count-related
expenses.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu:</font>&#160;Most
specifically, at this moment, I think in this current quarter we reduced our
head count, net (sp?) head count by about a hundred.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Gary Mobley:
</font>Okay.&#160;&#160;And would you expect seasonality to be normal in the
first quarter?&#160;&#160;I know it seems like ten years from now, but any color
there would be helpful.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu: </font>I think if you look
at the previous two years, first quarter was always roughly 15% down
sequentially from Q4 of last year.&#160;&#160;But this year it&#8217;s slightly
different and I&#8217;m sure you all I appreciate it&#8217;s much tougher to
predict.&#160;&#160;If we talk to customers, they will say, actually, throughout
the whole supply chain, including our distribution channel, in the TV segment,
in particular, the inventory level is actually extraordinarily
low.&#160;&#160;However, the problem now, as we all know, is the lack of
demand.&#160;&#160;So it&#8217;s a bit hard to say.&#160;&#160;The inventory is indeed
very, very, low, as low as you can get.&#160;&#160;So some people are
speculating that it may not be as bad as most people think.&#160;&#160;But then
it&#8217;s a matter of demand issue, which I think is probably everybody&#8217;s
guess.&#160;&#160;But I would say monitor (sp?) remains more sluggish compared
to TV.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Gary Mobley:
</font>Okay.&#160;&#160;And relating to the fourth quarter revenue guidance,
could you share with us what percent of the revenue decline is a function
of&#8212;unit (sp?) decline versus ASP declines.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu: </font>The ASP declines,
if you compare that with Q3, I think, it&#8217;s stabilized.&#160;&#160;Meaning the
pressure is not as high as we have gone through in the previous
quarter.&#160;&#160;I think that is primarily because the whole industry has
gone through, I think, relatively severe present declines in the third quarter
given the commencement of the downturn.&#160;&#160;And now I think it&#8217;s getting
to a point where both our sales &#8211; our suppliers and even our customers are
seeing the pressure for further cost reduction is getting more and more
limited.&#160;&#160;Now again it&#8217;s a matter of demand issue, I
think.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Gary Mobley:
</font>Okay.&#160;&#160;One last question for me.&#160;&#160;What is the days of
inventory held by your largest customer Chi Mei?&#160;&#160;In other words, what
does Chi Mei carry in terms of LCD driver IC days of inventory?</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu: </font>As a policy, we
don&#8217;t comment on our customers&#8217; activities.&#160;&#160;But I think as we have
said over and over again if you&#8217;re only talking about driver ICs I think that&#8217;s
easier to answer, it&#8217;s literally nothing.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Gary Mobley:
</font>Okay.&#160;&#160;Thank you, guys.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu: </font>It&#8217;s on
just-in-time basis.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Gary Mobley: </font>Thank
you.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu: </font>Thank you,
Gary.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Operator: </font>Thank
you.&#160;&#160;Our next question is from the line of Frank Wang with Morgan
Stanley.&#160;&#160;Please go ahead.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Frank Wang: </font>Hi, good
morning.&#160;&#160;A couple of questions from me.&#160;&#160;First, in 2009, do
you have an expectation for the large sized driver shipment, in terms of the
growth rate.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu: </font>It&#8217;s too early to
tell, Frank.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">&#160;I
think people are fear &#8211; in general people are not really very upbeat about
capacity utilization.&#160;&#160;I think at least for the first quarter or two I
would say, there are pretty mixed opinions if I talk to my customers, you know,
for say, August industry situation.&#160;&#160;But I would say nobody&#8217;s too
upbeat about the first half.&#160;&#160;That&#8217;s all I can say.&#160;&#160;Again,
it&#8217;s all a demand issue.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Frank
Wang:</font>&#160;Okay.&#160;&#160;I guess the question basically center around
it looks like in 2008 your shipment growth is actually lagging Chi Mei&#8217;s large
sized shipments.&#160;&#160;And then you also talk about you&#8217;ve been gaining
market share.&#160;&#160;You&#8217;re the largest driver IC maker and so in 2009, I
think most projection, you&#8217;re expecting the large sized panel to
grow.&#160;&#160;So shall we still expecting growth for Himax in the driver IC
for large size in 2009?</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu:</font>&#160;Again, I think
the big wild card is customer&#8217;s capacity utilization.&#160;&#160;But I think I
would also like to comment that I believe our market share with the Chi Mei with
our customers (inaudible), has not decreased.&#160;&#160;It&#8217;s stayed about the
same as the previous year.&#160;&#160;And I think the unit growth has declined
compared to Chi Mei&#8217;s volume growth.&#160;&#160;I suspect it&#8217;s probably a matter
of customers adopting higher channel ICs.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Frank
Wang:</font>&#160;Okay.&#160;&#160;And then for the panel makers, it looks like
they&#8217;ll be in losses.&#160;&#160;And as you mentioned in the first half 2009,
what shall we be expecting your margin to trough on this downturn?</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu:</font>&#160;If you look at
it for shift three indeed, the customers are having a difficult time in their
PNAO (sp?)&#160;&#160;We tend to, our gross margins tend to
decline.&#160;&#160;Certainly not as dramatic &#8211; the trend is not as dramatic as
our customers will experience.&#160;&#160;And likewise, when they are doing
well, we tend to do better as well, but again, not as
dramatically.&#160;&#160;So I don&#8217;t see any reason why we should expect anything
different this time around.&#160;&#160;However, what I also want to add is that
driver IC accounts for less and less of their total bill (sp?) of material (sp?)
of our customers.&#160;&#160;Which is certainly good news and bad
news.&#160;&#160;The bad news is our market size, total size as a whole is
perhaps not growing as fast as load (sp?) for the panel, however the pricing
pressure on display driver vendors strictly speaking, is arguably less than
before because customers are now focusing more on newer technology or innovation
and your (unintelligible) when it comes to urgent delivery.&#160;&#160;And I
think we are very good at those.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Frank Wang:</font>&#160;So the
question I have is as you simply improve your margin in the up
cycle.&#160;&#160;So are you expecting that maybe the margin (inaudible)
downturn and the magnitude of falling &#8212; maybe similar to the past cycle but on
an absolute basis it would be better in the last half, last
downturn</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu:</font>&#160;Sorry, I
didn&#8217;t get your point.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Frank Wang:</font>&#160;In layman&#8217;s
terms, last time your margins fell in 17.4% but in this up cycle your margins
also improved to about 75.5% which is higher than in the last up
cycle.&#160;&#160;So the question is that if your margin were to fall going into
first half 2009, so are you expecting the absolute level should be higher than
the level we saw before, maybe let&#8217;s say 20% of something?</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu:</font>&#160;Again, it&#8217;s
hard to tell.&#160;&#160;I think we are &#8211; as a general comment I think across
the whole panel industry, I think, again, the big wild card is capacity
utilization.&#160;&#160;And even when we are sort of already towards the middle
of the quarter, already in Q4, I would have to admit the visibility is still not
very, very high, certainly much lower than usual.&#160;&#160;Because our
customers are, you know, they are &#8211; again it&#8217;s a demand issue and customers
sometimes have to set very quick orders and they have to just check whether it&#8217;s
a good deal from their P&amp;L (sp?) perspective and to decide where they should
take the deal.&#160;&#160;(Unintelligible) they rush to dissect (sp?) us and
demand a quick delivery of the IC.&#160;&#160;So in this situation I think the
visibility for everybody across the supply chain is relatively low.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">And again,
I mentioned earlier that, notwithstanding all this various situation, but the
only good news is the channel, the in-channel inventory remains very low, much
lower than usual.&#160;&#160;And that also explains why people are giving (sp?)
and receiving very short orders.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">So again
it&#8217;s a very, very, difficult question to make a prediction upon at the
moment.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Frank Wang:</font>&#160;Okay, thank
you.&#160;&#160;And then do you have a free cash flow some kind of expectation
for 2009?</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu:</font>&#160;There is no
reason to believe why we would not be able to generate free cash flow, positive
free cash flow but then I think for the whole year it&#8217;s a bit too early to
predict.&#160;&#160;But I don&#8217;t see any reason why it should be substantially
different from our bottom line.&#160;&#160;Given the fact that, you know, our
customers&#8217; payment terms has been stabilized for quite a while.&#160;&#160;And I
would then say it&#8217;s a very sort of short payment terms.&#160;&#160;So the
potential for it to become much longer I think the possibility&#8217;s quite
small.&#160;&#160;And there will be limited cap ex, so again, I don&#8217;t see any
reason why it should be substantially different from the bottom
line.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Frank Wang:</font>&#160;And then, in
terms of cash dividend payout ratio, in 2009, would you expect that to be any
different compared to 2008?</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu:</font>&#160;It really
depends on other P&amp;L (sp?).&#160;&#160;We are a young company, we are an
excited company, so we don&#8217;t really want to commit to a fixed sort of payout
ratio or a fixed level of dividends.&#160;&#160;Having said that, our balance
sheet remains quite healthy as it is.&#160;&#160;So if everything goes well, I
don&#8217;t think why people should expect a very different dividend policy from the
past.&#160;&#160;But then, next year is, I think, given the economic situation,
I think it&#8217;s a bit hard to predict.&#160;&#160;So again, I emphasize there&#8217;s a
great deal of (inaudible) on the upside and on the downside.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Frank Wang:</font>&#160;Okay, thank
you.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu:</font>&#160;Thank you,
Frank.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Operator:</font>&#160;Once again,
ladies and gentlemen, if you&#8217;d like to ask a question please press star one on
your telephone key pad.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Our next
question is a follow-up from Gary Mobley with Piper Jaffray.&#160;&#160;Please
go ahead.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Gary Mobley:</font>&#160;&#160;Hi
guys.&#160;&#160;I had more of a strategic question.&#160;&#160;It seems as
though given the current state of the industry, the glass panel market
participants might be in a position to consolidate or might even need to
consolidate.&#160;&#160;So I&#8217;m wondering if you agree with that assessment and
two, how are you trying to manage your business to defend against that or
position yourself if, in fact, it does happen.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu:</font>&#160;I think &#8211; I
believe you are referring to large panel primarily, Gary.&#160;&#160;And I think
we know we have remained the world number one in terms of market share, for
quite a number of quarters already.&#160;&#160;And our customer penetration is I
think as good as one can get &#8211; more or less as good as one can
get.&#160;&#160;And will there be industry customization or customer size given
the low capacity utilization at the moment and given the difficult capital
markets at the moment, I think certainly that&#8217;s a possibility.&#160;&#160;But we
just have to wait and see how it goes.&#160;&#160;In fact, I think there&#8217;s a
good chance when that does happen &#8211; if that should happen, both sides of the
consolidation may be our customers, end up to be our
customers.&#160;&#160;Certainly if it is our strong customers taking over our
weaker customers, it&#8217;s beneficial to us.&#160;&#160;But certainly at this stage
it&#8217;s all way too early to speculate.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Gary
Mobley:</font>&#160;Okay.&#160;&#160;And last question for me.&#160;&#160;Are
there situations where you&#8217;ve been supplying a vertically integrated glass panel
manufacturer that may have been buying drivers from you guys to supplement
internal capacity.&#160;&#160;And with the downturn are they trying to bump up
their IC driver utilization rates and decreasing their demand with
you?</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu:</font>&#160;In theory,
certainly that&#8217;s possible.&#160;&#160;However if you look at &#8211; now one of our
major customers in Korea, which has a very big in-house supplier, but during
this current downturn our &#8211; well let me put it this way, our supply to them,
compared to our overall shipment is relatively strong, in fact I would say much
stronger than the average.&#160;&#160;Certainly that is partially because I
think the customer remains relatively robust in terms of their
shipment.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">So I
think, again, I think, again, I&#8217;m referring primarily to large channel, we are
seeing Japanese vendors getting less and less shares in this current Yen
appreciation, you know, it doesn&#8217;t happen very much in terms of their
competitiveness either.&#160;&#160;So I think there&#8217;s a good chance guys like us
can continue to grow our market share and secondly, I think when the industry is
suffering from a severe downturn people are after the winners because, as I say,
we have the most comprehensive product road map and portfolio and we have the
scale.&#160;&#160;That means, we tend to be able to get the best out of our
suppliers and in terms of support (sp?), in terms of commercial terms, in terms
of our flexibility for delivery.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">So I think
for this reason and one other thing I would also add is our financial
strength.&#160;&#160;Very interestingly, recently there was some small panel end
customers coming to this part of the world and talking to various vendors and
one of their key questions in their questionnaire being your financial
strength.&#160;&#160;It&#8217;s the kind of question which I would never ask
before.&#160;&#160;But I think the more customers are inquiring about such
questions, I think the better off we are.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Gary Mobley:</font>&#160;Thanks
guys.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu:</font>&#160;Thank you,
Gary.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Operator:</font>&#160;We have no
further questions in the queue at this time.&#160;&#160;I&#8217;d like to turn the
floor back over to Management for any closing comments.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Jordan Wu:</font> Thank you everyone
for taking time to join this call and we look forward to talking to you again at
our next Earnings&#8217; Call in February next year.&#160;&#160;Thank you,
good-bye.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Operator:</font>&#160;Ladies and
gentlemen, this concludes today&#8217;s teleconference.&#160;&#160;You may disconnect
your lines at this time.&#160;&#160;Thank you for your
participation.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
  </div></body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
