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Taiwan Industry Updates / Electronics & Computers / Industry In-Focus

Wellypower Optronics Turns Profitable in 2009

2010/02/01 | By Ken Liu

Taipei, Feb. 1, 2010 (CENS)--Market recovery and product quality improvement helped Wellypower Optronics Corp., a backlight joint venture between China Electric Mfg. Co., Ltd. and AU Optronics Corp. of Taiwan, rake in sizable profits in the fourth quarter of 2009, thereby catapulting the company's annual revenue into profit zone from loss ground.

The lamp maker, which makes cold cathode fluorescent lamps (CCFLs), T5 light tubes, and light emitting diode (LED) modules, earned NT$274 million (US$8.5 million at US$1:NT$32), or NT$1.62 per share, in after-tax net income in the fourth quarter alone, soaring 72% from a quarter earlier and 369% year on year.

The hefty profit surge helped swell the company's 2009 pre-tax net profit to NT$218 million (US$6.8 million), or NT$1.76 per share, compared with the NT$4.04 million (US$126,375) it had throughout 2008.

Last quarter alone, the company scored consolidated revenue of NT$1.9 billion (US$62 million), consolidated gross operating income of NT$262 million (US$8.1 million) and consolidated net operating income of NT$295 million (US$9.2 million).

The fourth-quarter revenue helped float the company's 2009 revenue to NT$9 billion (US$221 million), increasing 22.48% from 2008.

On product mix basis, CCFL constituted NT$1.5 billion (US$48 million) of the company's Q4 2009 revenue, slipping 5% quarter on quarter; LED accounted for around NT$387 million (US$12 million), contracting 10% from a quarter earlier; and lighting products commanded NT$61 million (US$1.9 million), surging 41% quarter over quarter.

Wellypower's executives said the robust demands for backlights, mostly driven by a strong LCD TV market, has continued into 2010.

In addition to backlights, the company has retrofitted its lamps for lighting fixtures in a bid to increase revenue and earnings. For its lighting operation, the company plans to boost output of LED packages to 100 million units a month from current 40 million units and LED light bars to three million units a month.