Taiwan-based LED optical lens maker, Ledlink Optics, saw its first-quarter gross margin fall to 43%. According to Telung Tang, CEO of Ledlink, performance in the second quarter is expected to show growth and mass production of LED omni-directional lighting shells will begin in May-June.
Compared to upstream LED peers, Ledlink continued to see profits in the first quarter of 2013. However, gross margin was lower than market expectations. Ledlink stated that the falling gross margin was due to the Lunar New Year holidays and net losses in February. The firm expects capacity utilization rate to return to 85-90% and gross margin to show an on-quarter increase in the second quarter. Market observers estimate Ledlink had a net profit margin of around 10% in the first quarter and this figure is likely to increase to 20% in the second quarter. Market observers added that Ledlink is likely to see second-quarter profits reach NT$60 million (US$2 million).
Tang noted that the global penetration rate of LED lighting is still below 15% while penetration rate in China is only around 7%. The LED lighting market is expected to continue to grow over the next 5-10 years. In 2014, Tang added, the US, Middle East, Turkey, and Poland are expected to experience significant demand growth for LED lighting.
Taiwan-based LED chipmaker Formosa Epitaxy reported first-quarter consolidated revenues of NT$930 million. Due to low capacity utilization rate in January-February and falling ASPs, consolidated gross margin in the first quarter was negative 15%. The firm stated that capacity utilization rate began to improve in March and expects second-quarter performance to show sequential growth.
Genesis Photonics saw first-quarter consolidated revenues reach NT$800 million with gross margin of negative 0.93%, representing an improvement compared to the gross margin of negative 8.84% in the first quarter of 2012. Tekcore announced consolidated revenues of NT$426 million and a net loss of NT$208 million for the first quarter of 2013.
