Revenues in the fourth quarter are likely to be flat, according to Warren Chen, CEO of Lite-On Technology. Chen added that orders from notebook firms have been decreasing slightly and the firm has yet to see significant effects of Windows 8. Nevertheless, Chen noted, the firm believes fourth-quarter gross margin and operating profit margin are likely to show on-quarter growth.
Chen pointed out that supply has been exceeding demand in China's LED market. In addition, China's LED lighting lacks standards causing the price gap to be significant between products, said Chen. Chen believes the LED industry will go through consolidation in 2013 and become a healthier market in 2014.
Despite the fact that various countries have been offering subsidies for LED lighting, the effects of such stimulation have been weakening, said Chen. This means quality and price is most important when consumers choose LED lighting products. Chen added that the lifespan for LED light bulbs is long, therefore, market growth for residential LED light bulbs is likely to be slow. The industry should focus on the market growth for commercial and public LED lighting products.
Revenues from camera modules and LED products are likely to account for more than 30% of total revenues in 2013, Chen stated.
Chen noted that Lite-On's 2012 capex is flat but 2013 capex will include new investments on cloud-computing products.
Lite-On reported global consolidated third-quarter revenues of NT$31.29 billion (US$1.06 billion), representing an on-quarter increase of 2%. Net profits were NT$1.98 billion, up by 5% on quarter. Accumulated net profits for the first three quarters of the year were NT$5.22 billion, said Lite-On.
