Financial reports for first half of 2013 released by several Taiwanese LED manufacturers recently showed Epistar rebounded from losses as subsidy Huga Optotech reached break-even point (BEP) in June. For the first half of 2013, Epistar’s EPS was NT$0.11. Spurred by rising backlight demands, Everlight’s 2Q financial results showed continual profit growths with EPS from 1H13 reaching NT$1.45 (US$0.05). Vertically integrated manufacturer Lextar also showed stable profit performance with an EPS of NT$1.49.
Oversupply still limits LED industry’s profits. However, current financial reports showed 2Q13 backlighting and lighting has led LED manufacturers to increase production capacity utilization, which in turn improved gross profits. Upstream LED chip manufacturers especially, have fully utilized production capacity during 2Q. Epistar’s financial reports also showed gross profits were up from 6.26% in 1Q to 15.89% in 2Q, and that overall profit performances improved as a result. Companies that have not released financial results for 1H13, including Forepi and Genesis Photonics, expect gross profit performances to improve in 2Q compared to 1Q.
Epistar rebounded from losses with 2Q EPS at NT$0.38, and for the first half of 2013 EPS was NT$ 0.11. In addition to increased orders, full production capacity utilization, another factor contributing to Epistar’s profits was subsidiary Huga Optotech adjustments in production line and yield rates. The adjustments helped Huga Optotech reach BEP in June, and the company can further turn losses into profits if backlight and lighting demands continue to rise in 3Q. Therefore, Epistar still has a good chance to extend profit performances in 2Q, according to sources.
In comparison, downstream package manufacturers outshone chip manufacturers. Increases in production capacity utilization also led package manufacturer Everlight’s gross profits to increase from 22.49% in 1Q to 26.37% in 2Q. Everlight’s EPS from 1Q reached NT$ 0.53, while 2Q EPS was NT$0.92. EPS from first half of 2013 reached NT$1.45, nearly doubled of that from the same period in 2012.
Vertically integrated manufacturer Lextar’s 2Q financial results benefited from raised production capacity utilization during high season. Gross profits also increased by 10.6% to 17.4% during 2Q compared to 1Q. EPS performances during 2Q were stable at NT$0.59, while EPS during first half of 2013 reached NT$1.49.
