Lextar Electronics Corp (隆達電子) on Wednesday reported a sales decline of 27.71 percent to NT$880.98 million (US$29.11 million) last month from January due to decreased shipments of LED backlight products. On an annual basis, sales last month achieved growth of 6.4 percent.
Cumulative sales during the first two months of the year expanded 17.99 percent to NT$2.09 billion from a year ago, the company said in a filing to the Taiwan Stock Exchange.
Lextar manufactures layered crystalline wafers and chips used in LED products. Based in Hsinchu, the company also supplies LED backlight modules and provides packaging services to clients.
Last year, LED backlight products accounted for about 65 percent of the company’s total shipments, while LED lighting products accounted for the remaining 35 percent.
Lextar aims to adjust the product category split into 60-40 for this year, with more shipments of LED lighting products next quarter, the company said.
Primasia Securities Co (犇亞證券) analyst Filia Lin said Lextar’s major sales drivers for this year include the company’s flip-chip products that are used in LED tubes, as well as backlight modules in LCD TVs.
The company said it is increasing shipments of the backlight modules that are used in ultra-high-definition 4K2K LCD TVs in the Chinese market.
“Lextar is likely to benefit from the new 4K2K TV market because that is a new battlefield to panel maker AU Optronics Corp (友達光電), which is Lextar’s parent company,” Lin said.
However, whether the market demand for 4K2K TVs will increase in the long term remains a question, given the product’s high selling prices, Lin said.
Backlight modules used in LCD TVs accounted for about 35 percent of the firm’s total shipments last year, while the rest were used in smartphones, tablets and other devices, he said.