According to Everlight’s official, the company expects its revenue in the third quarter to fall by 10 percent from the previous quarter amid lower demand, while returning to stronger growth in the fourth quarter on the back of a better lighting and small-size backlight business.

The company’s financial data showed that consolidated revenue totaled NT$5.45 billion (US$187.79 million) in the second quarter, up 27.76 percent from the previous quarter, the company’s financial data showed.

In contrast, the company’s net profit dropped 7.41 percent from the previous quarter to NT$425.86 million, or NT$1.03 per share, in the April-to-June period, as its consumer electronics business — the sector with the highest gross margin — slowed on slackening demand.

Company spokesman Liu Pang-yen analysised “The weakening consumer electronics business led to a lower gross margin in the second quarter, further dragging down the company’s net profit.” The company’s gross margin stood at 24.8 percent in the second quarter, down from 25.9 percent in the January-to-March period, its data showed.

Liu expects Everlight Electronics’ third-quarter revenue to decline by 10 percent from the previous quarter on lower prices of products led by weakening market demand.

However, the company’s cost-cutting strategy may allow third-quarter gross margin to remain at the same level as in the second quarter, Liu said, adding that its takeover of Tekcore Co earlier this year would also help the company save costs through vertical integration.

However, Liu said small-size LED backlights — used mainly in smartphones and tablet PCs — and its LED lighting business may drive up the company’s revenue in the fourth quarter, because the company is seeing orders rebound.

At present, the lighting business which is fully focused on self-branded products has also contributed to its revenue. The company expected the sector’s revenue to account for 10 percent of total revenue by the end of the year, while further expanding to 15 percent by the end of next year.

The lighting business currently accounts for 8 percent of the -company’s overall revenue, while consumer electronics, backlights and invisible light products make up the other 51 percent, 17 percent and 24 percent respectively, Liu added.