Due to the increasing demand of customers, utilization of Ledtech Electronics in the second quarter further enhanced, the growth in utilization is good for the continuous improvement in gross margins, so that the revenue in the second quarter increases by 20 percent and profit is expected to increase sharply.
Its legal person stated that the utilization in the second quarter of Ledtech Electronics will increase from 70% in the first quarter to 75% as the demand continued to improve. The improvement in utilization is favorable to the continued upturn in the gross margins, but it needs to pay attention to that the salary in the mainland began to increase in May approximately 30%, which will take negative impact on the follow-up margin, it is expected that the revenue in Q2 will increase 20 percent, and the profit growth rate quarterly is expected to exceed 90 percent.
Ledtech Electronics is a niche LED manufacturer, it operates under a sound business model, although it has suffered a great loss in 2011 and 2012 due to the poor market conditions and the shift in investment to Epitaxial factory, EPS still are 0.4 and 0.29 NTD. It has achieved significant improvement in operation in this year, it actively improves the production process and control cost, its gross margin in the first quarter rose to 30% for the first time over the past ten quarters. The EPS in a quarter is 0.24 NTD.
