Lextar Electronics Corp. (“Lextar” or the “Company) (TAIEX: 3698) announced its results for the second quarter of 2012. The Company reported consolidated revenue of NT$ 2,611 million, up 19% from the previous quarter and near 10% of YoY increase. Gross profit was NT$ 650 million with the gross margin of 15.1%, a 3.2 percentage point QoQ growth. Lextar’s consolidated net profit for the second quarter of 2012 was NT$ 126 million, EPS NT$ 0.3. For the first half of 2012 Lextar’s consolidated revenue reported NT$ 4,805 million with an EPS of NT$ 0.3.
2Q2012 Result Highlights:
l Revenue was NT$ 2,611 million, a QoQ increase of 19% and YoY increase of 9.9%
l Net profit was NT$ 126 million,
l Gross margin was 15.1%, a QoQ increase of 3.2 percentage point
l Basic EPS was NT$ 0.3
“Lextar has seen positive financial results for the first half of 2012 that came from the break-even Q1 and a magnification of sales and profits in Q2”, said B.Y. Chang, CFO and Vice President of Lextar. “The improvements were attributed to the combination of first, the adequate leverage of product and customer portfolios in backlighting business and lighting business, and second, the raise in utilization, and then the good management of inventory.” Despite challenges of price erosion accompanied by the severe market competition, the firm generated results that were in line with its guidance mainly by utilizing its advantages of vertical integration, reflecting a reasonable portfolio in all phases including chip, packaging, module and lighting products. Besides, Lextar has also shown cost reduction result from reinforcement of product design and supply chain management. The company reported a utilization rate of over 80% on the second quarter and shortened its days sales of inventory to 79 days, which shows its efficient management on asset optimization.
In the first two quarters of 2012, Lextar showed growth momentum from its backlighting and lighting business units. With the broadened range of high-end products and the extended customer base from Korea, Japan and China, Lextar has effectively sustained its profitability in backlighting business. As for module business in lighting, the company has long been recognized by its packages, COB (Chip on Board), light bars and light boards, making itself a reliable partner to European and Chinese incumbents thus has continued climb in sales. Lighting application business, which received orders from the first-tier brands in Europe and the US for its new generation of LED light tubes following the shipments of panel lights to the global brands, will keep growing its value of product portfolio by increasing the emphasis on LED lighting fixture.
Dr. David Su, the Chairman and President of Lextar, stated that cost management, customer portfolio strengthening, and quality accreditations will be the main approaches for the next half of the year to remain our competitiveness.
About Lextar Electronics
Lextar Electronics Corporation (TAIEX 3698), founded on May 23, 2008, is a subsidiary of AU Optronics. It specializes in manufacturing high-brightness LED epi wafers, chips and packages, as well as energy-saving and smart lighting products. The range of applications includes LCD backlighting, professional lighting source, consumer lighting source and various lighting products. Lextar officially acquired LightHouse Technology Inc. in March 2010. The company now houses more than 2,400 employees and its headquarters is in the Hsinchu Science Park, Taiwan. Its manufacturing plants are located in the Hsinchu Science Park, Hukou Industrial Park and Chunan Science Park in Taiwan, and a assembly plant in Suzhou, China. Lextar’s turnover in 2011: USD 309 million.