EVERLIGHT 3Q17 Revenue Down 9% in Face of Chinese Threats

Taiwanese LED package manufacturer EVERLIGHT reported a 9% QoQ slide in its 3Q17 revenue due to lukewarm sales of general lighting, backlights, and consumer electronics applications. Facing threats from Chinese rivals in those markets, the company would also experience decreased gross margin. Performance in Q4 is projected similar to that in Q3. Both its 2017 revenue and profit might decline. EVERLIGHT’s finance has experienced a continuous fall since 2015.

(Image: LEDinside)

EVERLIGHT’s revenue in September stood at NTD 2.35 billion (USD 77.68 million), down 8.3% YoY. The Q3 revenue amounted at NTD 6.91 billion (USD 228.3 million), dropping by 1.2% QoQ and 8.8% YoY. Consolidated revenue in 2017 so far totals at NTD 20.6 billion (USD 859.2 million), also experiencing a drop of around 4.9% YoY. Factors behind the slumps are competitions with Chinese contenders in spaces of general lighting, backlights, and consumer electronics applications. EVERLIGHT had to reduce product prices to stay competitive. In addition, it has been cautious about choosing OEM orders as clients were shifting the proportion of manufacture they intended to outsource.

Over the past two years, EVERLIGHT has shifted its focus to high-margin niche applications such as automotive, commercial, horticultural and specialty lighting while Chinese manufacturers dramatically boosted their supply of LED bulbs and tubes. It also launched infrared applications for mobile devices to support biometric verification and security control capabilities.

The company strategically adjusted its product mix by raising the supply of automotive lighting applications including signal lights, rear lamps, dashboard backlights, and interior lighting products; as well as LEDs for high-end fine pitch displays, and infrared LEDs. The proportion of headlamps remained unchanged and relatively low.  

Notably, EVERLIGHT’s overall capacity will increase by around 20% after its Tongluo plant starts running. The new capacity, focusing on the manufacturing of high-end applications such as automotive lighting, will help optimize the product portfolio. However, it might take some time for the new plant to enhance its capacity utilization rate. More opportunities show up in the fine pitch display market, but so does LED makers. Competitions in the mid- and low-range display market are especially severe. 

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.

XLamp® XP-L Photo Red S Line LEDs Deliver High Efficiency for Horticulture Applications Revolutionizing Horticulture Lighting with Cree LED Cree LED is committed to delivering innovative lighting solutions for horticulture and agriculture,... READ MORE

For most of history, humans used flames to generate light. Eventually, they discovered that a super-heated metal element in a light bulb could produce useful illumination, only for this technology to be superseded by the LED. One common featur... READ MORE