Tue, Jun 19, 2012 - Page 13 News List

Largan expects third-quarter pickup

By George Liao  /  Staff reporter

Largan Precision Co (大立光), the nation’s leading handset lens supplier, expects sales to increase in the third quarter amid stronger demand, CEO Adam Lin (林恩平) said yesterday.

The company also adjusted its second-quarter sales forecast from a sequential decline of more than 10 percent to a single-digit drop because of improved revenues in April and last month, Lin told shareholders.

Judging from clients’ estimate of higher demand for the third quarter, Largan will have a good chance to see gross margins rebound and achieve record sales in the third quarter, he said.

Shipments of 8-megapixel handset lenses as a percentage of total shipments are expected to rise sequentially in the third quarter, he said. That means revenues derived from the more advanced lenses would increase from those in the second quarter, he said.

Shipment of lenses below 1.3 megapixels would also increase if the trend to replace the VGA standard with high definition (HD) video continued, Lin added.

Besides US clients, the development of handset manufacturers in China and South Korea is also benefiting Largan. China’s handset makers accounted for 10 percent of Largan’s first-quarter revenues, and their contribution appears to be trending up in the second quarter, Lin said.

South Korean handset makers have also increasingly turned to sourcing lenses from other countries, creating more opportunities for Largan, he said.

Largan posted record-high consolidated revenues of NT$15.98 billion (US$542 million) last year and a net profit of NT$5.198 billion, or earnings per share (EPS) of NT$38.76.

Shareholders approved a proposal to distribute a record cash dividend of NT$17 per share.

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