Taiwanese LED chip manufacturer Genesis Photonics Inc. (GPI) has released their fiscal 2013 financial report. Revenue in 4Q13 benefited from introduction of flip-chips into street lights, lifting the company out of eight consecutive quarters of losses. In addition, improvements to product portfolio have drove up profit margin. 

More and more countries around the world are moving towards replacing current street light fixtures with LEDs.

GPI consolidated revenue in 2013 increased 7.92 percent YoY to NT $3.92 billion (US $128.6 million) and consolidated profit margin rose 2.2 percent to 5 percent. Consolidated operational loss margin however dipped to 10.9 percent compared to 15.8 percent from the previous year. Net loss in 2013 reached NT $450 million, a deficit 37.09 percent lower than in 2012. Annual EPS was NT $-1.63. Net profit for 4Q13 was NT $17.52 million with EPS of NT $0.07. 

Flip-chip products were the key to turning loss to profit in 4Q13 for GPI. The company had invested heavily in flip-chip technology, even created a flip-chip production line in 2013. Single month production capacity is currently at 3KK-4KK. Flip-chip technology is already introduced into the Chinese street light market, said GPI. Revenue proportion of flip-chip components reached 5-10 percent in 4Q13. Moreover, new products showed good profit performance which drove up the entire profit margin to 19.98 percent in 4Q13, allowing GPI to turn loss into profit in the fourth quarter.