Huga Optotech and Epileds Technologies Both Have Suffered Decline in Revenues for October

LED chipmakers Huga Optotech and Epileds Technologies both have suffered a decline in revenues for October due to off-peak season effects. Capacity utilization rates at chipmakers will continue to slide in the fourth quarter, and LED chip ASPs are expected to drop by 5-10% on average in the quarter, according to industry sources. Huga saw its revenues slip 13% on month and over 50% on year to NT$176 million (US$5.85 million) in October, due largely to slow demand and a change in product mix, explained the company. Huga also posted a negative gross margin in the third quarter caused by declined capacity utilization rates and losses in the value of inventory, said the company, noting that its utilization currently stands at 50%. Epileds posted revenues of NT$95 million for October, down 15.9% on month but up 3.7% on year. Combined revenues for the January-October period totaled NT$1.07 billion, increasing 40% from a year earlier. Epileds expects it revenues to stay flat in November and overall sales to bottom out in February 2012. Source: www.digitimes.com