Trade Resources Company News Tekcore Is Likely to See Continued Net Losses in 2012

Tekcore Is Likely to See Continued Net Losses in 2012

Tags: Tekcore, 2012, taiwan, LED

Taiwan-based LED epitaxial wafer and chip maker Tekcore,suffered a net loss in 2011 and is likely to see continued net losses in 2012 due to large depreciation costs for its 11 4-inch MOCVD sets,according to stock market analysts.

Tekcore acquired 11 4-inch MOCVD sets and two 2-inch ones in 2011,with the 11 4-inch sets still in the process of adjustment and having not yet attained steadily satisfactory yield rates.Therefore,Tekcore has been faced with a heavy burden of depreciation cost for the 11 MOCVD sets,the sources pointed out.Tekcore posted gross operating losses of NT$123 million(US$4.17 million)and net losses of NT$302 million mainly due to total depreciation cost of over NT$400 million for the first half of 2012,the sources indicated.

Although Tekcore is able to receive orders enough to reach full utilization of production capacity,the company has declined orders for products with relatively low yield rates,Tekcore pointed out.Tekcore has improved control of its inventory level,with the proportion of inventory volume for products subject to decreases in value due to price drops falling from 60%at the end of 2011 to 44-45%in the first half of 2012 and further to an expected level of below 40%in the third quarter,the company indicated.Tekcore has been making efforts to hike the proportion of LED chip output for those with brightness sufficient to meet clients'requirement,the company pointed out.

As Tekcore is expected to bear a total depreciation cost of nearly NT$900 million,the company may suffer net losses in 2012,stock market analysts pointed out.

Source: http://www.digitimes.com/news/a20120924PD225.html
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Tekcore May Suffer Continued Net Loss in 2012
Topics: Lighting