Ledtech LED revenues lowed 10% at beginning of 3Q, but had opportunity to pick up in 4Q

At the beginning of 3Q 2010,LED packaging house Ledtech Electronics thought its low temperature light bars revenues had lowed 10% sequentially because of drop orders. But revenues for 4Q 2010 were planed to pick up as clients prepared for the demand during the summer of 2011.

Ledtech's low temperature light bars were mainly used in products such as freezers or showcases. Coca-Cola, Pepsi and freezer product company, IR were the company's major clients. The three clients together contributed NT$100 million (US$3.2 million) in 2Q with low temperature light bars accounting for 40%. Combined sales from the three clients in the first half were NT$200 million.

In the first eight months of 2010, Ledtech's average gross margin for product assembly business from was about 36% .The company expected the average gross margin in 2010 to remain at 30% despite lower LED lighting business margins. Also, the company planed to the percentage of product assembly business accounting for its combined revenues in 4Q could jump to around 60% from 54% now, with the annual average to be around 50-60%, up from 53% in 2009. The remaining revenues contribution was from the company's component business.

The company already raised its SMD LED capacity from 40 million units in early 2010 to 60 million units currently and was planning to expand its LED light bar capacity to 100,000 units by year-end.

Recently, Ledtech expected to have a chance of landing more orders by the end of 2010. It had sent low temperature light bar samples to Taiwan's retail stores and received LED orders from Taiwan's Railways Administration for supplying 400 LED lamps to Taoyuan train station. At the same time, the company had started shipping a small volume of orders to Japan. But in Europe market only had limited opportunity.

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