LED packaging house Edison Opto began to expand production capacity at its factory in Yangzhou, eastern China, by 40% in the first quarter of 2013, with the expansion to be completed by the end of June 2013, according to the company. Edison has reached full utilization rate and is expected to see a 30% sequential growth in second-quarter consolidated revenues.
According to Jason Wu, chairman of Edison Opto, the firm has been adding new LED lighting customers from China and expects 2013 performance to outshine 2012.
Market observers estimate that Edison Opto to be at full capacity in the second quarter. Edison Opto reported March consolidated revenues of NT$180 million (US$6 million) and market observers believe April revenues may reach NT$250 million. Market observers added that Edison Opto may see second-quarter revenues show a 30% sequential growth and the firm may return to profitability.
Edison Opto saw first-quarter consolidated revenues reach NT$454 million, flat compared to revenues reported in fourth-quarter 2012. Net loss was NT$40.87 million, slightly lower than the net loss of NT$42 million reported in the fourth quarter of 2012. According to the firm, the core business was profitable in the first quarter, but a one-time non-operating loss from investing in LED packaging house Lumenmax reached NT$20-30 million which caused the net loss in the first quarter.
Wu added that some China-based lighting firms have been eager to switch to the LED lighting business and one of its customers is likely to achieve monthly shipments of five million LED light bulbs in 2013.
Many traditional lighting firms hope to switch business to the LED lighting market and these firms have the advantage of distribution channels. As the global LED lighting market expands, Taiwan-based firms will benefit as China-based LED lighting firms that focus on international markets are likely to adopt LED components from Taiwan-based makers to maintain quality, stated Wu.
