Tekcore Expects Its Shipments of Backlighting Applicatiosn to Gain Momentum

LED chipmaker Tekcore expects its shipments of backlighting applicatiosn for direct- and edge-type LED-backlit TVs to clients in Korea to gain momentum starting the second quarter of 2012 and the pace of decline of ASPs for its LED products will slow to 1-5% in the quarter. Tekcore's revenues in 2011 reached NT$2.6 billion (US$88.9 million), with a yearly growth of about 10%. But after tax, the company lost NT$1.1 billion and had a negative EPS of NT$4. Everlight chairman Robert Yeh said Tekcore decided to expand in 2010, but in the second half of 2011 LED TV orders dropped. As a result, there was a miscalculation of orders and excess overstock, so there was a decline in value with the inventories. Yeh said that the LED industry will be in high demand in 2012 and that Tekcore will develop high quality products and strengthen its ability to control costs. Tekcore will be actively promoting its products to Taiwan's top customers and is looking to expand sales in China, added Yeh. Yeh further added that LED firms' average inventory is around 90 days but that Tekcore's below that number. He also said that Tekcore's goal for this year is to increase the quality of its chips and that the company saw 30.94% growth since February. Meanwhile, Tekcore general manager Weikai Wang said the company received LED TV backlighting orders from Korean manufacturers in the first quarter, and that its second quarter shipments will increase especially with edge-lit and direct-type backlit TV orders. He also said that ASP prices are becoming steadier with losses at 1-5%, but that may improve since backlighting chips are increasing as luminous efficiency is improving. Source: www.digitimes.com