Tue, Aug 14, 2012 - Page 13 News List

Lextar Electronics reports massive increase in second quarter earnings

LIGHTING THE WAY:The LED arm of AU Optronics Corp cited its product mix and inventory control for the major surge, which saw revenues reach NT$2.41 billion

Bby Kevin Chen  /  Staff reporter

Lextar Electronics Corp (隆達電子), an LED manufacturing arm of AU Optronics Corp (友達光電), said yesterday its second-quarter earnings surged 63-fold from the first quarter and rose 11.97 percent from a year earlier on better product mix, client portfolio and inventory control, as well as rising factory utilization.

Net income reached NT$125.69 million (US$4.19 million) in the second quarter, compared with NT$2 million in the previous quarter and NT$112.25 million in the same quarter last year, the company said in a statement.

Earnings per share was NT$0.3 in the second quarter, compared with zero in the first quarter and NT$0.3 the year before, company data showed.

Second-quarter revenue was NT$2.61 billion, up 19.06 percent from NT$2.19 billion in the prior quarter and 9.89 percent higher than the NT$2.38 billion seen in the previous year.

The company said second-quarter gross margin climbed to 15.1 percent from 11.9 percent in the first quarter, but that was still lower than the 17.4 percent seen a year earlier.

STRONG PERFORMANCE

“The company performed well during the first half of the year after breaking even in the first quarter and seeing both revenue and profit grow further in the second quarter,” chief financial officer and spokesperson Chang Bo-yi (張博儀) said in a statement issued by the firm.

In the first half of the year, the company reported a net income of NT$127.69 million, expanding 235.5 percent from NT$38.06 million of the same period last year. Earnings per share rose to NT$0.3 from NT$0.1 over the period, the company’s data showed.

Chang attributed the good results to strong demand for both LED backlight products and LED lighting items, which helped lift Lextar’s factory utilization rate to about 80 percent in the second quarter, from 70 percent in the first quarter.

Super-charged growth

‧ Lextar’s earnings surged 63-fold from the first quarter.

‧ The firm’s net income reached NT$125.69 million in the first quarter.


EPISTAR

Epistar Corp (晶元光電), the nation’s largest LED chipmaker, also released its second-quarter results yesterday, showing that it swung into a net profit of NT$377.13 million in the April-to-June quarter from a net loss of NT$515.2 million in the January-to-March quarter.

The company reported a net profit of NT$737.96 million a year earlier.

Based on the company's stock exchange filing issued late last night, earnings per share were NT$0.44 in the second quarter, compared with a net loss per share of NT$0.6 in the first quarter and earnings of NT$0.86 per share the year before. Gross margin also improved to 15.37 percent from minus 3.87 percent in the previous quarter.

In the first half, the company's revenue totaled NT$9.81 billion, down 21 percent from NT$12.42 billion in the previous year.

However, investment losses at Huga Optotech Inc (廣鎵光電) and Tekcore Co (泰谷光電) dragged down Epistar's first-half performance, posting a net loss of NT$138.06 million in this period, or a net loss of NT$0.16 per share, compared with a net profit of NT$1.09 billion, or earnings per share of NT$1.27, for the same period of last year, company data showed.

Both Lextar’s and Epistar's results came after LED chipmaker Epileds Technologies Inc (光鈜科技), which is 30 percent owned by metal-casing maker Catcher Technology Co (可成科技), reported earlier that its net income jumped 196 percent sequentially to NT$52.64 million in the second quarter and earnings per share rose 2.9 times to NT$0.52.

Shares in Lextar rose by the 7 percent daily limit to close at NT$27.15 and Epileds also increased by the limit to NT$26.25 yesterday, while Epistar rose 0.33 percent to NT$60.9.

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