Unity Opto Revenues Drop in July, Plans to Repurchase Shares

Unity Opto’s consolidated revenue in July dropped 37.4% YoY to NT $500 million (US $15.79 million), according to a UDN report.

Compared to June, revenues in July were down 16.6%, the company stated.

Low LED bulb prices in the international market, and manufacturers low pricing strategies to clear out inventory had affected company revenues, said the company spokesman Jacky Weng. Market prices was also disrupted by these market strategies. Responding to these market trends, Unity Opto will continue to focus on high end products, while releasing low-priced bulbs to meet market demands. Market orders are expected to rebound after third quarter.

Following Philips promotion of low-priced LED bulbs of less than US $5 for two LED bulbs, the current LED bulb market retail price is situated between US $3 to $4, and ready to replace conventional Compound Fluorescent Lights (CFL). This is a positive development for boosting lighting market demand growth. Global LED bulb penetration rates reached 10% to 13% during first half of 2015. It is estimated LED lighting market penetration rates will double during second half of 2015, and create a demand for 1 billion to 1.2 billion bulbs within one year.

Additionally, Unity Opto’s board recently passed a decision to repurchase 8 million shares for NT $15 to NT$ 30 per share, according to a CN Yes.com report.

The company’s repurchase of these shares is capped at NT $2.94 billion, reported Yam News.com.

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