Fri, Jul 06, 2012 - Page 14 News List

Revenue hits 23-month low, but Largan optimistic

By Kevin Chen  /  Staff reporter

Largan Precision Co (大立光), the nation’s leading maker of handset lenses, yesterday reported that its consolidated revenue hit a 23-month low of NT$978 million (US$32.72 million) last month, down 17.12 percent month-on-month and 28.39 percent year-on-year.

Last month’s sales were the lowest since July 2010, when it posted NT$1.05 billion in sales, as market demand remained weak because of continuing inventory adjustments by major customers.

Second-quarter revenue was NT$3.34 billion, down 8.3 percent from the previous quarter and down 17.93 percent compared with the previous year, company data showed.

The sequential decline of 8.3 percent was in line with a company forecast made last month.

During the company’s annual general meeting on June 18, Largan chief executive Adam Lin (林恩平) adjusted the firm’s second-quarter sales forecast from a sequential decline of more than 10 percent to a single-digit drop because of improved revenues.

Largan yesterday reiterated its optimistic outlook for the third quarter on the launch of new products. Lin told shareholders last month that the company would likely see gross margins rebound and that it would achieve record sales in the third quarter.

Accumulated revenue in the first six months totaled NT$6.98 billion, down 7.89 percent from the previous year.

Largan shares fell 0.66 percent to NT$602 yesterday. The share price has risen 6.36 percent so far this year, compared with a 4.46 percent increase on the TAIEX over the same period.

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