Taiwan LED makers suffered declining sales revenue in June

According to company sources, affected by seasonal impact, quite a few Taiwan`s LED (light-emitting diode) makers, including Unity Opto Technology Co., Ltd.,Harvatek Inc. andEpistar Corp. and Opto Tech Corporation, Everlight Electronics Co., Ltd., suffered declining sales revenue in June.

An upstream supplier of epitaxial wafers, Epistar, posted sales revenue of NT$845 million in June, up slightly 1.55% from last June and 16% from NT$1.012 billion posted in May, due partly to quarterly stocktaking and partly to sluggish demand for mobile phones in the month. However, Epistar noted that its sales of contract production services and high power LEDs have significantly grown this year, adding if demand for LEDs used in handsets rebounds in August and September, sales performance for the third quarter of the year is expected to hopefully live up to its expectation. Besides, despite a slight drop in June revenue, the company`s gross profit rate for the month grew, thanks to shipment of LED Christmas lights.

p>On the other hand, Unity Opto reported June revenue of NT$191 million, sharply dropping 23% from NT$248 million posted a month earlier and 32.8% from a year earlier. Unity Opto pointed out effects of postponed delivery and quarterly inventorying at the end of the month have caused the steep drop. In the third quarter, Unity Opto projects its shipment of small- and medium-sized LED backlights to gradually increase, and demand for models used in mobile phones and GPS (global positioning system) devices to probably grow.

At the same time, Harvatek saw its June revenue slipped 16% from May, or 14.37% from last June, to only NT$199 million, with revenue and shipment in the month both hitting single-month lows of this year, because of quarterly stocktaking and the bearish Chinese market for generic branded phones.

It’s reported that Opto Tech posted June revenue of NT$589 million, down 11% from a month earlier, while Everlight scored NT$905 million, slightly declining 5.7% from May but up 13.18% from last year. Both companies are most likely to see sales improve in the third quarter due mainly to shipment of new products.