Lextar, an LED subsidiary of AU Optronics (AUO), officially merged with Wellypower, another AUO LED subsidiary, on February 1, 2013. Market observers believe the merger will boost Lextar's revenues in the first quarter, and profits for the quarter are expected to reach NT$300 million (US$10 million).
The observers added that some orders will likely be transferred from Wellypower to Lextar and first-quarter revenues are likely to reach NT$3 billion.
According to Lextar, the first quarter is a traditional low season with fewer working days, and hence capacity utilization rate has been around 60-70% with order visibility clear for around one month.
Lextar is optimistic about the growth of LED backlight and lighting products in 2013 and in particular, the firm has added new customers in China for its backlighting products and will begin shipments in March. Furthermore, Japan-based Sony has begun to issue TV panel orders to AUO and this means Lextar may obtain LED packaging orders.
Lextar predicts the percentage of sales from parent company AUO will be lowered to 40% in 2013 due to increases in the number of new customers. The sales percentage of LED backlighting and lighting will be maintained at 65% and 35% respectively in 2013, said Lextar.
Market observers predict Lextar to see annual revenues up to NT$15.8 billion in 2013, representing an on-year growth of 50-60%, with a gross margin at around 12%.
