I-Chiun Precision Industry Reported January-September Revenues of NT$3.744 Billion

I-Chiun Precision Industry, a maker of LED SMD lead frames, reported January-September revenues of NT$3.744 billion (US$125 million), a 21.7% on-year decrease. Gross margin was reported to be around 7%, and net loss was NT$278 million. I-Chiun indicated the loss occurred due to losses from investments. Third-quarter revenues were NT$1.194 billion. I-Chiun indicated monthly capacity was around 200 billion units, but due to a price increase for silver, gross margins have been falling. According to I-Chiun, losses incurred in the third quarter were mainly due to investments. Short-term investments caused losses of NT$160 million. I-Chiun stated that main investments were in the LED industry which has seen unstable pricing. Overall order visibility is still unclear, hence I-Chiun expects fourth-quarter performance to be flat. Nevertheless, the price of materials has been falling, which could mean fourth quarter performance beats expectations, added I-Chiun. The penetration of LED TV and LED lighting applications should increase in 2012, said I-Chiun, which will be reflected in improved 2012 performance. Source: www.digitimes.com