Taiwan-based LED epitaxial wafer and chip maker Tekcore saw first-quarter 2011 revenues of NT$744 million (US$25 million), a growth of 28% sequentially and 53% on year. However, Tekcore suffered a gross loss of NT$7.2 million, with a net operating loss of NT$98 million and a net loss of NT$88 million. The losses were mainly because of decreased shipments and low yields for LED chips used in TV BLUs.
After the announcements of disappointing financial performances by Huga Optotech and Lextar Electronics, Tekcore also reported gross loss higher than market expectations. Despite on-year revenue growth of 53%, the quarterly gross margin turned to negative 0.97%. Earnings per share (EPS) was negative NT$0.32, the worst among peers.
Taiwan-based LED packaging house, Ledtech Electronics, also reported financial performance for first-quarter 2011 recently with quarterly gross margin of 20% and EPS of NT$0.15. Ledtech stated optimistic view for April revenues as orders have begun to return. Everlight, the leader of LED packaging houses in Taiwan, reported EPS of NT$1.05 and gross margin returned to 25% for first-quarter 2011, the best among peers.
Across the supply chain, the upstream firms performed worse than the downstream firms.
According to Tekcore, the shipments and yields are both expected to increase for the second quarter. In addition, the average selling price (ASP) for components has been stable, which hopefully will help to improve second quarter's performance.
Recently the buzz of the industry has been on reelections of the boards of directors for Tekcore, Epistar and Everlight. Tekcore stated the election will not be held in the shareholders meeting slated for June 28, but an extraordinary shareholders meeting will be held later - July at the earliest - to reelect its board.
Article translated by Jackie Chang
