Taiwan-based LED firm Lextar reported first-quarter 2013 consolidated revenues of NT$2.888 billion (US$97 million), representing on-quarter growth of 22.5% and an on-year growth of 31.7%. In particular, the consolidated operating profit ratio was 6.8% in the first quarter while net profits reached NT$437 million.
Lextar also announced April consolidated revenues of NT$1.24 billion, up by 13% on month and 47% on year. Market observers believe the new Lextar (after the merger with Wellypower) will see 2013 revenues grow by 60-80% on year.
According to BY Chang, CFO and spokesperson of Lextar, the first quarter is a traditional low season for the LED industry and the firm has been adjusting the product mix at the initial stage after the merger with Wellypower, hence gross margin fell compared to the fourth quarter of 2012. However, the firm obtained profits through the merger. Inventory turnover days in the first quarter have been lowered to 63 compared to 74 days in the fourth quarter, said Chang.
Lextar reported 2012 total net profits of NT$290 million, which is lower than the net profits reported in the first quarter of 2013. This means the positive effect of the merger has begun to show.
Lextar believes demand in the backlighting and lighting markets will rebound in the second quarter and expects capacity utilization rate to increase. The firm is also optimistic about gross margin growth in the second quarter. Lextar noted that demand for backlighting in smartphones and tablets has been growing while demand of lighting components in China has been strong. The firm predicts the average capacity utilization rate in the second quarter to reach 70-80%.
