Lextar Electronics Corp. (“Lextar” or the “Company) reported consolidated revenue for the fourth quarter of 2013 of NT$ 3.32 billion (US$ 110 million) Consolidated gross margin was 10.1 percent, net profit for 4Q 2013 was NT$ 33 million. Consolidated revenue for full-year 2013 was NT$ 13.75 billion on year. Consolidated gross margin was 12.7 percent. Full-year net profit was NT$ 948 million. Earnings per share were NT$ 1.25.

2013 Full Year Result Highlights:

• NT$ 13.75 billion on year, up 36.8% YoY
• Net profits were NT$ 948 million  
• Basic EPS were NT$ 1.91

The company has seen recovery in the LED industry in 2013, noted Allen Huang, President of Lextar. Yet fierce competition dragged down price thus LED makers are losing significant profits through margin erosion. Back in early 2013, the company merged Wellypower Optronics and broke through the complexity of overall integration covering all aspects including production lines, products, customers and systems in the use of its extraordinary strategy of vertical integration. This strategy was also implemented in Suzhou China where the company duplicated a vertically-integrated operation in Lextar Taiwan to accommodate demands in Chinese market. Lextar presented a full-year result last year that showed continued moderate improvement in both backlighting and lighting applications. This was contributed by the combination of continued innovation on technology and products, synergy benefits from vertically- integrated operation, strengthened clientele and product portfolio plus strict control on expenses and capital expenditure.  

Lextar has been striving to retain the most lifetime value of our customers on both backlighting and lighting applications, noted Dr. David Su, Chairman and CEO of Lextar. The synergistic effect with Wellpower emerged as expected to increase our clientele and optimize the capacity utilization. As lighting industry is expected to see 20% LED penetration by 2014, the Company is well prepared in full gear to accommodate the surging demands. Lighting business in Lextar currently accounted for 30% of its overall revenue, the company is positive to see it trend up to 40% this year. In addition to its ODM businesses with global brands for its cutting-edge products and technologies, lighting component sales in Chinese market are also boosting thanks to its locally-made services by Lextar Suzhou. Backlighting business in Lextar, on the other hand, will keep in moderate growth this year with new packaging technologies and new products used on either direct-lit TVs, 4K2K TVs, or smart devices and flash lights. Looking forward, Lextar will expect to drive the business further by aggressively developing in the Chinese market through the advantage of Lextar Suzhou, while at the same time to secure our leading position in the industry by new technologies and new applications.