LED Chipmakers Epistar and Genesis Photonics Both Reported Losses

LED chipmakers Epistar and Genesis Photonics both reported losses during the first quarter due to decreasing prices for LED chip products, particularly in backlights for TVs. Epistar reported that its gross profit margin dropped to 5.25% and had losses of NT$515 million (US$17.1 million) during the first quarter with Genesis reporting a drop of 11.42% in its gross profit margin. However, Epistar said there is increasing demand for LED lighting and that it predicts the company will see a turnaround provided LED TV products sell as well as they are expected to. Genesis also stated that while the first quarter was not a busy season for LED products, it is optimistic its revenues will increase in the second quarter as new LED TV lighting products make their way into the market. Edison Opto on the other hand saw its revenue increase to NT$606 million, a 3.4% improvement from the fourth quarter of 2011 along with a gross profit margin of 17.7%. Edison said the increases are largely due to its LDMS (lighting design manufacturing service) and estimates its revenue will increase 35-40% in the second quarter as the company continues to expand, particularly in China's market. Meanwhile, Epileds had a gross profit margin of 14.47%, down from the 38% for the same period last year. It also had an EPS of NT$1.8 and a net profit of NT$180 million (US$61.8 million). Source: www.digitimes.com