LED Maker Lextar Scores Robust Sales in Q3

Taipei, Nov. 2, 2012 (CENS)--LED maker Lextar Electronics Corp. saw its consolidated revenue for the third quarter of the year rise 10.9% quarter on quarter and surge 14.9% year on year, to NT$2.8 billion (US$99.7 million at US$1:NT$29), and consolidated after-tax net income post at NT$105 million (US$3.6 million), or NT$0.25 per share.

Nevertheless, the company's consolidated gross margin for last quarter dipped 2.8 percentage points from a quarter earlier to 12.4%. Its consolidated operating gross profit was NT$360 million (US$12.4 million).

Lextar, mostly held by LCD maker AU Optronics Corp., is Taiwan's first LED manufacturer with integrated manufacturing capability, which allows it to make almost everything ranging from epi wafers and chips to packages and modules.

The company's executives ascribed the Q3 revenue increase mostly to increased shipments of LED backlights, high yield rate and tight control of stock inventory. Last quarter, the company's production ran at over 80% capacity and average inventory days reduced to 67 days from 79 days in second quarter.

Nonetheless, slipping market prices and product mix adjustments led to the gross margin contraction.

In the Jan.-Sept. period of this year, the company had total earnings of NT$0.55 per share.

The company realized seasonal surge last quarter thanks to normal boom cycle for backlight applications as monitors, TVs, laptops and smartphones. Besides, increased shipments of LED chips also helped drove up the company's revenue for last quarter.

Also, it landed increased orders for light engines and chip-on-board packages used in PAR lights and downlights from European buyers. Sales of its light tubes and panel lights were also strong in Japan and Europe.

The company's executives pointed out that integrated manufacturing capability allows the company to conveniently tune product mixes to keep cost down while boosting profit.

The company's chairman and president, David Su, pointed out that LED market will enter into low season this quarter as most of the customers already pulled in the products last quarter for the Christmas shopping season.