It's reported Taiwan-based LED chipmaker Arima Optoelectronics has stressed that its finances and operations remain healthy despite heavy losses in 1Q.

The company saw its June sales drop 59% on year to NT$104 million, with a net loss of NT$82 million for the month. It posted net losses of NT$124 million for the first quarter of 2008. It attributed the poor results to the spinning off its laser diode business last August, and fierce pricing amid weak demand.

The company expects orders for July and August to stay flat compared to June, and growth for the third quarter will not be as strong as the growth it had during the high season in the past, through restructuring and personnel downsizing, it expects to put losses under control in the second half of the year.