Camera lens maker reports 38% loss

Largan Precision Co (大立光), the nation's leading manufacturer of camera lenses, yesterday reported profits for the third quarter fell by 38.52 percent from a year ago, citing sliding average selling prices.

The figure, however, is a jump of 83.24 percent from the previous quarter, showing the company on the road to recovery.

Net income was NT$656 million (US$20.14 million), or NT$5.58 per share, in the quarter ending last month, down from NT$1.07 billion, or NT$8.79 per share, from the same period last year.

"We are positive about sales in the fourth quarter," company president Chen Hsi-ching (陳世卿) told investors yesterday. "Backed by strong demand for handsets, orders in the fourth quarter are expected to grow by a double-digit from the third quarter."

Handset camera lenses are still the major contributor to the firm, accounting for 77 percent of total sales in the third quarter.

While 2-megapixel lenses are still the mainstream in the market, shipments of 3-megapixels lenses are gradually increasing, Chen said.

Gross margin for the third quarter was 54.83 percent, up from 53.92 percent in the second quarter -- and will continue to improve in the fourth quarter, he said.

For the first three quarters, Largan posted earnings of NT$1.71 billion, or NT$13.57 per share, on sales of NT$4 billion, compared with earnings of NT$2.68 billion, or NT$22.12 per share, a year ago.