LED manufacturer Lextar third quarter financial results for 2016 recently showed positive developments.

The company’s consolidated revenue in third quarter of 2016 downed 1.5% Year-on-Year to NT $ 3.47 billion (US $110.1 million), quarterly revenue dropped 3.7%, while the company’s gross margin reached 12% up 4.4% compared to last quarter.

Net profits in third quarter reached NT $32 million, while consolidated revenue for the first three quarters of 2016 was down 1.5% YoY to NT $10.46 billion.

Lextar headquarters in Taiwan. (Lextar/LEDinside)

Summary of third quarter 2016 revenue results

• Consolidated revenue dropped 3.7% to NT $3.47 billion.
• Consolidated net loss reached NT $32 million.

An overview of third quarter shows positive growth in the backlight market, but there is still pricing pressure in the lighting market, said Lextar chief financial officer Chang Bo-yi. The LED company has been meticulously picking its orders, adjusting product and client portfolios to counter competition on the lighting market.

In third quarter of 2016, Lextar was able to improve its gross margin by 4.4% and rebound. LED backlight market in fourth quarter of 2016 is traditionally low season, however, Lextar’s backlight technology is targeting products with high entry levels to stabilize its revenues during low seasons.

The lighting market is still witnessing high volumes and low prices, and the impact from Lextar’s readjusted lighting product portfolio has started to surface. In the future, the company will increase its profitability by carefully reviewing its orders to increase its commercial lighting products. The company will also strengthen partnerships between U.S. and European luminaire manufacturers that are offering integrated optical, electrical and thermal solutions and services to maintain its product and technology market competitiveness.