Fri, Dec 08, 2017 - Page 12 News List

Genius expects operations to stabilize

CONTINUED EFFORTS:Optimistic about leaving dramatic swings in the past, chairman Jones Chen said Genius has improved management, training, products and yield rates

By Lauly Li  /  Staff reporter

The earnings performance of Genius Electronic Optical Co (玉晶光), a supplier of smartphone camera lenses for Apple Inc’s iPhones, is expected to stabilize in the near term due to the company’s continued efforts to improve efficiency and yield rates, chairman Jones Chen (陳天慶) said yesterday.

“It is estimated that our operation will not dramatically fluctuate like in the past,” Chen told a teleconference.

Genius reported net income of NT$312.92 million (US$10.42 million) for last quarter, the company’s fifth consecutive profitable quarter.

In the first three quarters of this year, cumulative net income reached NT$468.98 million, or earnings per share of NT$4.7, company data showed.

The results represented a dramatic improvement over the same period last year, when Genius reported net losses of NT$471.55 million, or loss per share of NT$4.73.

Prior to this year, Genius had reported four straight years of net losses, company data showed.

The firm’s earnings performance over the past five quarters benefited from efforts to enhance management capability, employee training, the product portfolio and yield rates, Chen said.

The company reported revenue of NT$2.37 billion in the July-to-September quarter, with 61 percent of total revenue coming from lenses of 8 megapixels or more and 35 percent from lenses of less than 8 megapixels.

During the conference, several analysts expressed concern about the firm’s business outlook for this month and next quarter.

Chen declined to offer specifics, but said that the firm’s orders forecast with its major client remained unchanged.

Analyst concern came as Largan Precision Co (大立光), a larger rival of Genius, on Tuesday forecast that its revenue this month might be lower than last month’s, due to weaker shipping momentum to “some” clients.

It is widely believed that Largan supplies the back and front camera lenses for the iPhone, while Genius also landed orders to supply front camera lenses.

Chen said Genius has started to ship camera lenses made of six layers of plastic and is working hard to improve the yield rate to meet the client’s expectations.

Genius also began to develop camera lenses constructed with seven layers of plastic and glass, as requested by the client, but has not started shipping them, Chen said.

“Our production capacity for the camera lenses with the seven layers is ready,” Chen said, adding that “we can start manufacturing them as soon as the client sends in the order.”

Chen said its products are all developed by the company, stressing that it does not pay royalties for its peer’s patents.

“We continue to build our own patent library and are working very hard to avoid infringing on our peers’ patents when developing new products,” he said.

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