Lextar’s Successful Transition Boosts Gross Margin in 3Q16

LED manufacturer Lextar third quarter financial results for 2016 recently showed positive developments.

The company’s consolidated revenue in third quarter of 2016 downed 1.5% Year-on-Year to NT $ 3.47 billion (US $110.1 million), quarterly revenue dropped 3.7%, while the company’s gross margin reached 12% up 4.4% compared to last quarter.

Net profits in third quarter reached NT $32 million, while consolidated revenue for the first three quarters of 2016 was down 1.5% YoY to NT $10.46 billion.

Lextar headquarters in Taiwan. (Lextar/LEDinside)

Summary of third quarter 2016 revenue results

  • Consolidated revenue dropped 3.7% to NT $3.47 billion.
  • Consolidated net loss reached NT $32 million.

An overview of third quarter shows positive growth in the backlight market, but there is still pricing pressure in the lighting market, said Lextar chief financial officer Chang Bo-yi. The LED company has been meticulously picking its orders, adjusting product and client portfolios to counter competition on the lighting market.

In third quarter of 2016, Lextar was able to improve its gross margin by 4.4% and rebound. LED backlight market in fourth quarter of 2016 is traditionally low season, however, Lextar’s backlight technology is targeting products with high entry levels to stabilize its revenues during low seasons.

The lighting market is still witnessing high volumes and low prices, and the impact from Lextar’s readjusted lighting product portfolio has started to surface. In the future, the company will increase its profitability by carefully reviewing its orders to increase its commercial lighting products. The company will also strengthen partnerships between U.S. and European luminaire manufacturers that are offering integrated optical, electrical and thermal solutions and services to maintain its product and technology market competitiveness.

Disclaimers of Warranties
1. The website does not warrant the following:
1.1 The services from the website meets your requirement;
1.2 The accuracy, completeness, or timeliness of the service;
1.3 The accuracy, reliability of conclusions drawn from using the service;
1.4 The accuracy, completeness, or timeliness, or security of any information that you download from the website
2. The services provided by the website is intended for your reference only. The website shall be not be responsible for investment decisions, damages, or other losses resulting from use of the website or the information contained therein<
Proprietary Rights
You may not reproduce, modify, create derivative works from, display, perform, publish, distribute, disseminate, broadcast or circulate to any third party, any materials contained on the services without the express prior written consent of the website or its legal owner.

TSLC Corporation, a subsidiary of SemiLEDs, launched sampling of its tri-color Mini LED series, targeted to provide LED display manufacturers with surface-mounting (SMT) compatible devices. The first product in the tri-color multi pixel series... READ MORE

The German chemistry giant BASF has revealed its development of dark automotive paint colors that are reflective to LiDAR for enhancing the detecting function of autonomous cars. LiDAR plays a critical role to the development of autonomous veh... READ MORE