Electronics component maker Lite-On Technology Corp (光寶科技) yesterday said it expects sales to achieve double-digit percentage growth this year from NT$212.82 billion (US$7.09 billion) last year, after the company finishes consolidating its various subsidiaries.
On Dec. 16 last year, Lite-On submitted filings to the Taiwan Stock Exchange saying that it plans to bring its server power-supply, handset camera module, LED lighting, solid-state drive, automotive electronics and game console businesses under the company’s umbrella.
“Lite-On expects sales growth to be sustained through this year with increased capacity gained from the consolidation,” Lite-On chief executive officer Warren Chen (陳廣中) told reporters on the sidelines of a corporate event.
“We want to make Lite-On’s businesses sustainable and expand the company’s business scale to stay competitive in the market,” Lite-On chairman Raymond Soong (宋恭源) said.
“Facing increasing competitors from China, Lite-On needs to better control its corporate resources and operating efficiency to secure its global market share, and we think acquiring new companies is the best way to grow Lite-On’s capability,” he added.
Last quarter, Lite-On’s core businesses, including sales of server power supply units, handset camera modules, LED lighting products, solid-state drives, automotive electronics and game consoles, increased 40 percent year-on-year and accounted for more than 40 percent of the company’s total sales, Chen said.
On the back of strong demand for smartphones and tablets, sales of camera modules expanded 30 percent last year from a year ago, and those of LED lighting products and components also increased 30 percent, Chen said.
In terms of sales contribution, camera modules had grown and accounted for between 10 and 15 percent of Lite-On’s total sales last year, while LED lighting products and components increased accounted for 10 percent during the same period, he added.
With the PC market contracting, Lite-On needs to find out new sales drivers to offset losses from its existing businesses.
Chen said demand for servers is expected to continue growing and expected the server power supply unit business would become the company’s main sales driver, along with LED lighting products and components.