Lextar Electronics Corp (隆達電子), which manufactures upstream LED chips and provides downstream packaging services, yesterday said it expects revenues to grow moderately this quarter following its strong earnings performance last quarter.
The mild growth momentum of Lextar’s backlight unit segment is expected to extend from last quarter to this quarter, thanks to the firm’s latest technology, flip-chip solution for chip-scale packaging, the firm said.
“The latest technology drove the application demand for large-display TVs, which should benefit the backlight unit segment this quarter,” a Lextar public relations official who declined to be named said.
The company expects its LED lighting segment to grow from last quarter on increasing orders from LED downstream manufacturers because of smooth inventory digestion, the spokesperson said by telephone.
Lextar also sees steady demand for its LED fluorescent tube and ultra-thin flat lighting from European clients for this quarter, the person said.
The company plans to expand its reach to the US market by introducing a series of certified LED bulbs there, Lextar said.
In August last year, Lextar agreed to sell a 13 percent share to US-based Cree Inc for US$83 million in an effort to build a partnership in the LED lighting market.
Yuanta Securities Investment Consulting Co (元大投顧) yesterday said Lextar is counting on orders from Cree to generate meaningful sales contribution from this quarter.
The company may also see increasing orders for backlight units from its parent company, AU Optronics Corp (AUO, 友達光電) this quarter, analyst Andrew Chen (陳治宇) said in a note.
“While we think the company’s guidance appears a bit aggressive, it should be read positively by the market,” Chen said, adding that he expects Lextar’s revenues this quarter to grow by between 10 percent and 13 percent from last quarter’s NT$3.5 billion.
Lextar posted a net profit of NT$160 million (US$5.19 million), or NT$0.26 per share, last quarter, surging from NT$21.06 million in the same period last year, when it was hit hard by falling average selling prices for LED products.
Earnings were also up 31.2 percent from the previous quarter’s NT$121.95 million.
Lextar chief financial officer Chang Bo-yi (張博儀) said the strong earnings results were driven by robust demand for its LED lighting products.
“Thanks to our clients’ smooth inventory digestion at the end of last year, we received growing orders for LED lighting components and products last quarter,” Chang said in a statement.
Lextar shares closed up 0.19 percent at NT$26.65 in Taipei trading yesterday, underperforming the TAIEX, which gained 0.45 percent.
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