Largan Precision Co (大立光), a camera lens supplier for Apple Inc’s iPhone models, yesterday said this quarter’s sales would be higher than last quarter’s as demand from major clients continues to grow.
“This month’s sales are to be flat from last month’s NT$5.1 billion [US$162.9 million], and next month is to be better than this month,” Largan chief executive officer Adam Lin (林恩平) told a teleconference.
The Taichung-based company’s performance would grow quarter-by-quarter in the second half of the year, driven by the growing demand for higher-margin products featuring 10-megapixel lenses and above, Lin said.
Since lens that are 10-megapixel and above require more complicated technologies, they would help raise Largan’s average selling prices, he said.
“Shipments of products featuring 10 megapixels and above contributed between 20 percent and 30 percent of the firm’s total shipments last quarter,” he said.
“Largan expects the shipment contribution from the segment to continue to grow in upcoming quarters,” he said.
FIGURING IT OUT
Largan reported a net income of NT$4.82 billion for the second quarter, up 29.3 percent from last year’s NT$3.72 billion and a 9.54 percent increase from the previous quarter’s NT$4.4 billion.
Earnings per share were NT$35.96, compared with NT$32.86 in the first quarter and NT$27.76 in the second quarter of last year.
For the first half of the year, Largan’s net profit totaled NT$9.23 billion, a significant improvement from the NT$6.72 billion made in the same period last year.
Revenue in the first six months of the year rose 45 percent to NT$23.34 billion from NT$16.83 billion a year earlier, with analysts attributing the increase to more lenses being used in new iPhones and Chinese smartphone brands, as well as higher prices.
DUAL CAMERA LENSES
Commenting on the company’s progress on dual camera lenses used in smartphones, Lin said Largan had no problems making dual-camera lenses for fast automatic focus, or to be used as a supplementary lighting source.
“However, there are still some technical issues to be solved if dual-camera lenses are used for the zoom function,” he said.
To meet clients’ rising demands before Largan starts to build a new plant in 2017, the company plans to rent another plant next year, Lin said.
The company rented two plants earlier this year, which are scheduled to become operational in the final quarter of the year.
Yuanta Securities Investment Consulting Co (元大投顧) forecast Largan to grow revenue this quarter by 25 percent to NT$17.29 billion from last quarter, fueled by orders for Apple’s next-generation iPhone models.
Largan shares grew 3.53 percent to NT$3,520 in Taipei trading yesterday, outperforming the TAIEX, which lost 0.13 percent.
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