Finance

Big order for BLU-use LEDs rockets AOT's June revenues

sarafan — Wed, 16 Jul 2008 06:19:18 +0000

Taiwan LED maker Advanced Optoelectronic Technology (AOT) posted June revenues of NT$693 million (US$23 million), a significant growth of 268.6% from NT$188 million in May and 235% growth on year, according to data from Taiwan Stock Exchange (TSE).

Genesis Photonics leads Taiwan`s LED industry for Q2, 2008

sarafan — Wed, 16 Jul 2008 05:47:52 +0000

According to company sources, the Taiwan-based Genesis Photonics Inc., a upstream supplier of epitaxial wafers for LED, scored EPS of NT$1.67 in the second quarter of 2008, with a gross profit rate of 45%, as No. 1 supplier of this kind on the island.

At the same time, Everlight Electronics Co., Ltd. came second in terms of EPS in the second quarter of this year. while I-Chiun Precision Industry Co., Ltd. saw its net profits shoot up 70% from the first quarter to NT$140 million in the second quarter of this year, ranking as No. 3 with EPS of NT$1.4.

Genesis noted that its sales revenue for the second quarter grew 30% from the first quarter, and is expected to continue hitting new highs in the third quarter. The firm now runs at full capacity of 40,000 units of epitaxial wafers per month. Compared with most Taiwanese LED makers that suffered sales declines in June due mainly to sluggish demand for mobile phones, Genesis, however, surprisingly saw its June revenue hit a new single-month record of NT$133 million. Genesis’ cutting-edge production capability of green LEDs and strong shipment of LED chips for outdoor LED displays make it comparatively impervious to recessions in the mobile phone market.

On the other hand, I-Chiun, having gradually raised quotations of its lead frames for visible LEDs since this April, effectively pushed up its gross profit rates by 3 percentage points to 22% for the second quarter from the first quarter, and posted net profits of NT$140 million, sharply up 70% from NT$82 million posted a quarter earlier.

LED company Youngtek's Q2 revenues reach NT$610.5 millions

sarafan — Tue, 15 Jul 2008 06:16:51 +0000

According to company sources, Youngtek Electronics (YTEC), Taiwan LED sorting and semiconductor testing company, reported record second quarter revenues of NT$610.5 millions, up 30.2% compared to the first quarter.

It's reported that Youngtek's accumulated revenues for the first half of the year were NT$1.1 billion, up 43% on year, of which 47.8% came from IC testing, 42% came from LED sorting and 11% came from equipment sales. Youngtek's June revenues were NT$178.5 million, up 48% on year, but down 24% from NT$235 million in May. Youngtek pointed out that due to a weak LED peak season in the second quarter, its LED OEM utilization rate was about 60% in the second quarter, compared to a utilization rate for its IC testing business of over 80%.

Youngtek indicated that its June sorting amount reached one billion units, up 149.4% on year, Youngtek's total LED shipment in the first half of the year were 6.2 billion units, up 138% on year.

Taiwan LED makers suffered declining sales revenue in June

sarafan — Mon, 14 Jul 2008 05:51:20 +0000

According to company sources, affected by seasonal impact, quite a few Taiwan`s LED (light-emitting diode) makers, including Unity Opto Technology Co., Ltd.,Harvatek Inc. andEpistar Corp. and Opto Tech Corporation, Everlight Electronics Co., Ltd., suffered declining sales revenue in June.

An upstream supplier of epitaxial wafers, Epistar, posted sales revenue of NT$845 million in June, up slightly 1.55% from last June and 16% from NT$1.012 billion posted in May, due partly to quarterly stocktaking and partly to sluggish demand for mobile phones in the month. However, Epistar noted that its sales of contract production services and high power LEDs have significantly grown this year, adding if demand for LEDs used in handsets rebounds in August and September, sales performance for the third quarter of the year is expected to hopefully live up to its expectation. Besides, despite a slight drop in June revenue, the company`s gross profit rate for the month grew, thanks to shipment of LED Christmas lights.

On the other hand, Unity Opto reported June revenue of NT$191 million, sharply dropping 23% from NT$248 million posted a month earlier and 32.8% from a year earlier. Unity Opto pointed out effects of postponed delivery and quarterly inventorying at the end of the month have caused the steep drop. In the third quarter, Unity Opto projects its shipment of small- and medium-sized LED backlights to gradually increase, and demand for models used in mobile phones and GPS (global positioning system) devices to probably grow.

At the same time, Harvatek saw its June revenue slipped 16% from May, or 14.37% from last June, to only NT$199 million, with revenue and shipment in the month both hitting single-month lows of this year, because of quarterly stocktaking and the bearish Chinese market for generic branded phones.

It’s reported that Opto Tech posted June revenue of NT$589 million, down 11% from a month earlier, while Everlight scored NT$905 million, slightly declining 5.7% from May but up 13.18% from last year. Both companies are most likely to see sales improve in the third quarter due mainly to shipment of new products.

Share price for LED driver IC design houses subject to downward pressure

sarafan — Tue, 08 Jul 2008 06:06:18 +0000

Some Taiwan LED driver IC design houses have seen their share price weaken recently because of concerns about a possible oversupply in the second half of 2008.

Radiant sees June revenues drop 10%

sarafan — Mon, 07 Jul 2008 05:53:57 +0000

Recently, Backlight unit (BLU) maker Radiant Opto-Electronics has reported a 10% sequential drop in consolidated revenues for June to NT$2.97 billion (US$97.75 million) as a result of delayed shipments for some higher-end applications.

LED revenues may not profit from netbooks in 3Q

sarafan — Thu, 03 Jul 2008 05:46:04 +0000

In 2008, Low-cost notebook (netbooks) are expected to become popular. However, LED players have pointed out that material costs have increased while ASPs continue to fall leading to lower-than-expected gross margins. industry players warn, orders from netbook backlight applications may contribute to LED revenues but not necessarily to profits in the third quarter.

BLU makers have estimated ASPs for LEDs will drop 8-10% sequentially in the third quarter, while on the other hand, LED packaging houses expect the drop to be only in the 3-5% range. In the first quarter, LEDs were down 15% due to the low season, and a weaker the usual peak season in the second quarter caused another 10% drop on quarter.

It’s reported that panel makers estimate netbook shipments may reach 10-15 million units this year, promoting optimism among some LED players that netbook application LEDs will be their main growth driver in the second half of the year. According to industry forecasts LED backlit notebooks may reach a market penetration of 30% in 2009.

Crackdown on China's white-box handset market said to be affecting LED packaging company Harvatek

sarafan — Fri, 27 Jun 2008 05:42:00 +0000

In China, A government crackdown on white-box handset shipments has affected LED shipments from LED packaging company Harvatek since the beginning of 2008, with the effect becoming increasingly worse, according to industry sources.

In the fourth quarter of 2007, revenues from China's white-box market accounted for 27% of Harvatek's revenues. In the first quarter of 2008, that proportion fell to 15% and will drop to 5-10% this quarter, the sources noted. For all of 2007, 25% of Harvatek's revenues came from China's white-box market.

LED industry players argue that although global demand for handsets has been slower than expected this year due to an economic slow-down, demand in China has been constrained due to non-economic reasons. Harvatek did admit that there was inventory buildup in Chin'a white-box handset market at the end of last year and that demand was slow early this year due to it being the low season. However, the company indicated that while demand rebounded in March and April, government restrictions on the white-box market has hampered shipments this quarter.

It’s said that industry players believe that the restrictions in China are due to the upcoming Beijing Olympic Games and that China may loosen its restrictions after the event is completed and demand will recover in the August-September time frame.

For Harvatek, its current struggles have been compounded by the fact that it shifted its focused from high-end products in the first quarter of 2008 to entry-level products this quarter, so its gross margins will drop to about 20% this quarter, down from more than 29% in the first quarter.

Taiwan Market: Ledtech receives LED light bar orders from 200 Taiwan convenience stores

sarafan — Fri, 27 Jun 2008 05:29:34 +0000

According to market sources, Taiwan LED packaging companyLedtech Electronics has received LED light bar orders for 200 Taiwan convenience stores.

Throughout the convenience store chain, over the next 3-4 years, a total of 2,880 refrigerator lighting units will be replace to LED light bars. Ledtech won the first round of orders, while rivals including Coretronic, Zenitron and Advanced Optoelectronic Technology (AOT) are competing to enter the supply stream.

In 2007, Ledtech's LED light bar shipments accounted for 11% of its total shipments. With orders from Coca Cola and Pepsi earlier this year, the company estimates its light bar product mix share will increase to 20% in the second quarter this year, according to market sources.

Taiwan LED chipmaker Tekcore to swing to profits in 2Q

sarafan — Tue, 24 Jun 2008 05:33:54 +0000

According to Digitimes, in the first quarter of 2008,While Taiwan LED chipmaker Tekcore lost NT$16 million (US$526,300), market watchers estimate Tekcore will swing to profits in the second quarter.

In the second half of 2007, Tekcore adjusted its product mix, shifting from green LED products to more blue LED applications. Tekcore brought in new equipment and this year its blue LED chip capacity has reached 28,000 units and that total should expand to 30,000 units in June. Currently, most of its blue LEDs have a brightness of 1,500-1,600mcd, though Tekcore introduced a few 1,800-1,900mcd brightness products in the first half of 2008. Tekcore also plans to increase the product brightness to 2,000mcd by year-end, in order to gain access to the notebook backlighting business, according to sources.

However, the transistion in product mix did not start affecting Tekcore's bottom line until March of this year. Tekcore had losses of NT$19 million through the first two months of this year, due to the transistion and the market being in the low season. Since then, Tekcore has swung to profits and the market observers estimate that Tekcore will see profits of NT$21 million this quarter, and its gross margins might increase to 29%.

Tekcore's May revenues reached NT$92 million, up 39% on year, according to information from the Taiwan Stock Exchange (TSE). So far this year, Tekcore's revenues are up 47% from the same period last year.

In related news, Tekcore had secured AlGaInP equipment and will set up a AlGaInP product line in the fourth quarter of this year to produce red LEDs, the sources indicated.