Largan Precision Co (大立光), a camera lens supplier for Apple Inc’s iPhone series, yesterday reported that its net profit last quarter plunged 44.36 percent sequentially to NT$2.96 billion (US$105.6 million) due to massive foreign-exchange losses.
Last quarter’s profit also fell 40.69 percent from a year earlier, marking its worst earnings in eight years.
Earnings per share plunged to NT$22.07 from NT$39.62 in the first quarter and NT$37.19 in the second quarter of last year.
Photo: Reuters
The company attributed the decline to foreign-exchange losses of NT$1.23 billion due to the local currency’s appreciation against the greenback.
Its gross margin dropped to 60.33 percent from 64.72 percent in the first quarter and 68.62 percent in the same period last year.
Second-quarter revenue was NT$10.11 billion, down 14 percent quarter-on-quarter and 20 percent year-on-year.
“July will be better than June, and August might be better than July,” Largan chairman Adam Lin (林恩平) said.
The company underperformed amid component shortages and market uncertainties, he said.
“When our customers have trouble obtaining components, that affects their demand for our products,” Lin said.
When asked by investors whether Largan should diversify as the handset camera lens market matures, Lin said the company has been working with an automotive customer that might need camera lenses for self-driving vehicles.
“Our largest automotive client has been growing rapidly,” Lin said. “We are making sure to support them as automotive camera lenses become increasingly sophisticated.”
Largan also plans to increase profitability by bundling its lenses with voice coil motor modules.
While the gross margin on the modules tend to be lower than that of lenses, by bundling them with lenses, Largan hopes to increase yield and provide customers with an attractive solution.
The company’s higher-end lenses with eight layers of plastic (also known as 8P) are gaining traction, as more than one customer adds them to their designs, Lin said.
He added that he expects more clients to adopt its high-end 7P lenses in the second half of the year, while it continues its research and development of 9P lenses.
Largan is continuing apace with the construction of a new plant, which is expected to commence production in 2023.
Hon Hai Precision Industry Co (鴻海精密) yesterday said that its research institute has launched its first advanced artificial intelligence (AI) large language model (LLM) using traditional Chinese, with technology assistance from Nvidia Corp. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), said the LLM, FoxBrain, is expected to improve its data analysis capabilities for smart manufacturing, and electric vehicle and smart city development. An LLM is a type of AI trained on vast amounts of text data and uses deep learning techniques, particularly neural networks, to process and generate language. They are essential for building and improving AI-powered servers. Nvidia provided assistance
DOMESTIC SUPPLY: The probe comes as Donald Trump has called for the repeal of the US$52.7 billion CHIPS and Science Act, which the US Congress passed in 2022 The Office of the US Trade Representative is to hold a hearing tomorrow into older Chinese-made “legacy” semiconductors that could heap more US tariffs on chips from China that power everyday goods from cars to washing machines to telecoms equipment. The probe, which began during former US president Joe Biden’s tenure in December last year, aims to protect US and other semiconductor producers from China’s massive state-driven buildup of domestic chip supply. A 50 percent US tariff on Chinese semiconductors began on Jan. 1. Legacy chips use older manufacturing processes introduced more than a decade ago and are often far simpler than
STILL HOPEFUL: Delayed payment of NT$5.35 billion from an Indian server client sent its earnings plunging last year, but the firm expects a gradual pickup ahead Asustek Computer Inc (華碩), the world’s No. 5 PC vendor, yesterday reported an 87 percent slump in net profit for last year, dragged by a massive overdue payment from an Indian cloud service provider. The Indian customer has delayed payment totaling NT$5.35 billion (US$162.7 million), Asustek chief financial officer Nick Wu (吳長榮) told an online earnings conference. Asustek shipped servers to India between April and June last year. The customer told Asustek that it is launching multiple fundraising projects and expected to repay the debt in the short term, Wu said. The Indian customer accounted for less than 10 percent to Asustek’s
Gasoline and diesel prices this week are to decrease NT$0.5 and NT$1 per liter respectively as international crude prices continued to fall last week, CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. Effective today, gasoline prices at CPC and Formosa stations are to decrease to NT$29.2, NT$30.7 and NT$32.7 per liter for 92, 95 and 98-octane unleaded gasoline respectively, while premium diesel is to cost NT$27.9 per liter at CPC stations and NT$27.7 at Formosa pumps, the companies said in separate statements. Global crude oil prices dropped last week after the eight OPEC+ members said they would
RSS