Taipei, June 9, 2008 (CENS)--Lite-On Technology Corp. has begun small-volume shipments of light-emitting diodes (LEDs) for notebook PC backlight units (BLUs) in May, while the firm`s many other related products would be launched steadily in the second half, according to company CEO Teng Kuang-chung, Lite-On Technology registered revenue of NT$2.73 billion (US$89.5 million at US$1: NT$30.5) for the first quarter, down 12% from the fourth quarter of 2007, yielding the position of Taiwan`s No. 1 LED packager to major rival Everlight Electronics Co., Ltd.

According to Teng, LED prices plummeted in the first quarter and the price tags of some products were only about half of they were in 2007. Though Lite-On Technology`s revenue declined in the first quarter, the CEO said, the company`s profitability was still the strongest among all counterparts. This year, Teng stressed, that his firm would still prioritize profitability.

For the second quarter, Teng pointed out that demand for traditional infrared (IR) AlGaInP LEDs are quite strong. Plus with the revenue generated by newly acquired IrDA business division from Avago Technologies, he added, Lite-On Technology`s second-quarter revenue performance is expected to recover to the similar level as in the fourth quarter of 2007.

Lite-On`s LED revenue was NT$10.7 billion (US$350.82 million) in 2007 and the figure is expected to grow by 20% to 40% this year due to the company`s capacity expansion at its plant in Tianjin of mainland China, helping it to increase shipments of LEDs for notebook BLUs.

Teng pointed out that thin film transistor-liquid crystal display (TFT-LCD) panel BLU application would be the major growth momentum for LED industry this year. For last year, he said, Lite-On Technology began supplying LED BLUs to low-priced notebook PC models, as well as working with customers to develop 10- to 14.6-inch notebook LED BLUs.

Lite-On Technology reportedly has tied up with major TFT-LCD panel makers in joint development, including AU Optronics Corp. (AUO) and Chi Mei Optoelectronics Corp. (CMO) of Taiwan, LG Display (formerly LG.Philips LCD Co., Ltd.) of South Korea, Toshiba Matsushita Display Technology Co., Ltd. (TMD) of Japan etc. Shipments to the major panel suppliers are expected to further boost Lite-On Technology`s revenue in the second half.

Due to the increasing number of LEDs produced for notebook BLUs, white-light LEDs are expected to account for over 50% of Lite-On Technology`s SMD (surface mount device) LED shipments, a clear growth from about 30% in 2007.

Compared with the notebook BLU application, Teng said, demands from medium-sized display applications such as digital photo frames and portable DVD players are not as strong as originally expected. Such development, the CEO said, might make less predictable the LED industry, where declining prices may occur if demands from medium-sized displays do not recover in the third quarter.