Thu, Apr 14, 2016 - Page 13 News List

Lextar forecasts revenue growth

TOUGH COMPETITION:The LED maker’s chairman said that order outlook for backlight units is not bad and the firm expects the segment to maintain its revenue scale

By Lauly Li  /  Staff reporter

Lextar Corp’s (隆達) revenue this year is expected to expand from last year, driven by its LED lighting applications and sales contribution from new businesses, chairman David Su (蘇峰正) said yesterday.

“We expect Lextar’s LED lighting business to grow, while the backlight units are likely to be flattish from last year,” Su told reporters on the sidelines of the Taiwan International Lighting Show at Nangang Exhibition Hall in Taipei.

Su refused to give an exact annual growth estimate for the company’s revenue this year.

Lextar, an LED manufacturing arm of AU Optronics Corp (友達光電), has expanded its business through vertical integration in the industry. Its businesses include LED chipmaking, chip packaging services and lighting applications.

Su said Lextar’s LED lighting applications would continue to be the company’s main growth driver this year.

However, due to a low average selling price of LED lighting products on the market, the scale of revenue growth from this segment would be smaller than the size of its shipment growth, he said.

The company foresees revenue contribution from the LED lighting segment to reach between 40 percent and 45 percent this year from last year’s sales contribution of 40 percent, Su said.

As for backlight units, Su said the company’s strategy is to offer more price-competitive and higher-performance products to clients to gain a bigger market share amid a flattish global LED backlight market.

“The competition is tough, but the order outlook for backlight units for us this year is not bad,” Su said.

The company’s goal for the backlight segment, which accounted for 50 percent of the firm’s total revenue, is to maintain the revenue scale this year from last year, Su said.

To raise Lextar’s competitiveness in the industry, the company has been investing in high-end automotive LED lighting and high-end infrared applications for industrial and surveillance use in the past two years, Su said, adding that some Chinese clients have started to test Lextar’s newly designed LED headlight products used in high-speed trains and automobiles.

If the testing goes smoothly, Lextar is to start taking orders later this year to manufacture the new automotive headlights for clients in China and other Asian nations, he said.

Su said Lextar would begin to see a small scale revenue contribution from the new businesses this year, and the firm expects the segment to account for double-digit percentage sales contribution by 2019.

Lextar shares yesterday climbed 0.95 percent to close at NT$15.9 in Tiapei trading, underperforming the TAIEX, which gained 1.42 percent.

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