Largan sees record-high revenue driven by Apple

APPLE A DAY::The surging demand for Apple Inc’s iPhone products have benefited the handset lens maker, which was also boosted by its rivals’ more defective products

By Helen Ku  /  Staff reporter

Tue, Nov 06, 2012 - Page 13

Largan Precision Co (大立光), the nation’s leading maker of handset lenses, yesterday reported record revenue for last month, amid rising demand for Apple Inc’s iPhone 5 products and 8-megapixel handset lenses.

Unconsolidated revenue reached NT$2.42 billion (US$82.8 million) last month, rising 34 percent from NT$1.8 billion in September and 72 percent from NT$1.54 billion in the same quarter last year, the Nantun (南屯), Greater Taichung-based company said in a filing to the Taiwan Stock Exchange after the local stock market closed.

Despite weak and uncertain global economic conditions, Largan’s consolidated revenue for the January-to-October period rose by 4 percent to NT$13.9 billion compared to the same period last year.

Due to the higher defect rate of its rivals’ products, 8-megapixel handset lenses accounted for between 30 percent and 40 percent of Largan’s total revenue for the third quarter.

For the fourth quarter, analysts forecast that 8-megapixel handset lenses might continue to drive Largan to achieve a record-high gross margin, with earnings per share of NT$10 for the fourth quarter and up to NT$30 for the year.

“It’s likely that Largan will report record-high revenue for this month, due to increasing demand for Apple Inc’s iPad Mini tablet ahead of the upcoming holdiay sales season,” Hua Nan Securities Investment Management assistant vice president Green Wu (吳積霖) said yesterday by telephone.

“However, Largan might not be able to sustain the momentum after the holiday season. Unless more smartphone models are rolled out in the first quarter of next year, Largan’s sales performance might remain flat or decline next month,” Wu said.

Largan’s shares fell by 2.54 percent to NT$615 yesterday before the company released its sales figures for last month. The stock has risen 8.66 percent so far this year.