What does "Muted Guidance" entail? Is it bad news?

Just wondering if it is a bad sign or a neutral sign.This just a little piece on a company HIMX I hold that announces it's earnings this thursday and earnings are supposed to be wonderful. I've been kind of iffy on whether to sell or hold, Im up quite a bit and have read some pieces on the potential doubling or tripling from here bc of demand in China along with the new agreement with Google in regards to supplying parts for google glass, immediately after which it had a huge run up after google announced the 6% stake in the company 2 weeks ago, but then it came back down after the big run up which was odd to me but could of course just be profit taking

Anyways this was the exact quote about earnings this week

quote:

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While Q2 will likely be strong, Srivatsa is looking for muted Q3 guidance. "Recent checks suggest that TV and handset sales are expected to grow in September ahead of the October holidays in China. However, during July and early August, channel inventories of 3G smartphones in China appears to have increased as a result of the termination of the subsidies for small panel low cost smartphones. There also appears to be memory and other component shortages that have suppressed sales in the early part of Q3:13. This suggests to us that order activity in July and August could be muted."

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This is the whole piece

LINK