Lextar plans to pay dividend, bonuses to staff

POSITIVE OUTLOOK::Lewis Liu, an analyst with Fubon Securities Investment Services, has forecast that increased demand for LED products will bolster sales

By Helen Ku  /  Staff reporter

Tue, Mar 05, 2013 - Page 13

Lextar Electronics Corp (隆達電子), the LED manufacturing arm of AU Optronics Corp (友達光電), yesterday said it plans to distribute a NT$0.45 in cash dividend per common share this year on earnings made last year.

In addition to NT$225.52 million (US$7.59 million) of total cash dividends to be distributed to shareholders this year, Lextar board members yesterday also passed a resolution allowing the company to pay NT$34.09 million in cash bonuses to employees and NT$2.27 million in compensation to the companies’ management team this year, according to a filing submitted to the Taiwan Stock Exchange yesterday.

The Hsinchu City-based company said it plans to hold an annual shareholder meeting on June 11 to report to shareholders about the company’s business performance last year.

The meeting would also allow shareholders’ to re-elect board members, the company said.

Lextar’s shares closed up 3.44 percent at NT$28.55 in Taipei trading yesterday, outperforming the broader market, which fell 1.22 percent.

Based on the company’s share price yesterday, Lextar’s dividend yield amounted to 1.58 percent.

“Overall, Lextar’s earnings performance outperformed the LED industry last year, when other firms reported losses due to a drop in prices amid the economic downturn and other manufacturing factors, such as equipment depreciation,” Lewis Liu (劉立中), LED industry analyst at Taipei-based Fubon Securities Investment Services Co (富邦投顧), said by telephone yesterday.

In a separate filing submitted to the Taiwan Stock Exchange yesterday, Lextar said its full-year net income grew three-fold to NT$290.95 million last year from a net loss of NT$137.71 million a year ago, earnings per share of NT$0.69.

Lextar registered a net loss per share of NT$0.34 a year ago, which prompted board members to not pay a cash dividend last year.

“LED firms’ sales are expected to bottom out this quarter. Beginning next quarter, most LED firms’ revenues are likely to start improving because the second quarter of each year is traditionally the peak season for the LED industry,” Liu said.

“As the economy is recovering with increased demand for LED products, LED firms’ sales performance is forecast to achieve quarterly growth beginning next quarter,” he said.

However, for the whole year, Lextar’s annual sales may continue to be affected by economic uncertainties, he said.