2Q Gross Margin 28.7% 2010 First-half EPS NT$2.02
Lextar Electronics ("Lextar" or the "Company") (TAIEX: 3698) today announced its unaudited results for the second quarter of 2010. For the second quarter ended June 30, 2010, Lextar posted consolidated revenue of NT$2,381 million, up 81.8% from the previous quarter. Gross profit improved 149.6% quarter-over-quarter to NT$684 million, with gross margin of 28.7%. Operation profit NT$518 million, up 210.7% from the previous quarter. Net profit was NT$460 million, an 201.4% QoQ increase. The basic EPS is NT$1.42 per common share for the second quarter.
For the first half of 2010, Lextar reported revenues of NT$3,691 million, with net income of NT$613 million or basic EPS of NT$2.02 per common share. The projected ROE for year 2010 reaches 25.4%.
2Q2010 Result Highlights
Lextar reported the following unaudited highlighted results for the second quarter of 2010:
l Revenue of NT$2,381 million, up 81.8% quarter-over-quarter
l Net profit of NT$460 million
l Basic EPS of NT$1.42 per common share
l Gross margin of 28.7%
l Operating margin of 21.8%
‘Thanks to strong demand for LED backlight for large-sized LCD panels, our capacity was nearly fully loaded and led to an outstanding revenue performance in the second quarter,” said Mr. B.Y. Chang, Chief Financial Officer of Lextar Electronics. “Although faced with rising costs of sapphires and other raw materials, the addition of our new equipments have contributed to the in-house chip production. In addition, by utilizing a vertical integrated production model from upstream epitaxy and midstream chip manufacturing to downstream packaging, as well as considering the numerous benefits from the synergy resulting from Lextar’s merger with LightHouse Technology in March earlier this year, the production costs were effectively decreased and gross margins of second quarter increased to 28.7%.”
The company currently has over 50 MOCVD equipments and estimates the number will increase to approximately 80 equipments by year end. The 6 inch equipments are also planned for installation by year end as well. In the future, Lextar will continue to adjust product portfolio, actively expand in LED lighting market, research and develop new product for lighting applications, and provide total solution services to increase value-added products. Besides, Lextar will raise the percentage of in-house LED chips to 70% and introduce new equipment for higher productivity. In terms of plans for new production sites, the new site in Chunan, Taiwan is designated to be the lighting application production base, with production lines to include SMT (surface-mount technology) and LED light module assembly. This will be Lextar’s fourth production base and is estimated to begin mass production in 4Q this year. Additionally, a production base currently under construction in Suzhou, China is scheduled to be outfitted with equipment early next year and begin production in 1Q/2011. In response to the establishment of the new production bases, Lextar expects to hire an additional 1800 new employees by the end of this year.