Despite increasing orders in the third quarter, gross margin among Taiwan-based LED makers has been falling significantly. LED packaging house Everlight has reportedly asked employees in managerial-level positions to take a mandatory three days of non-paid leave per month.
Everlight believes performance in the third quarter will be better than in the second quarter. In addition, the firm is also optimistic about fourth-quarter sales.
Price competition among LED lighting applications decreased Everlight's first-half 2012 average selling price (ASP) by 10% and average gross margin was around 22.01%, down from 25% in the same period in 2011. Nevertheless, according to sources, Everlight gave a pay raise averaging 10% to all employees in the first half of 2012.
Market observers believe Everlight's September revenues may be flat compared to August and third-quarter revenues may show an on-quarter growth of around 5-10%.
Everlight employees did not confirm the rumors of non-paid leave.
