Leyard announced first quarter 2014 financial results on April 23, 2014. Operating revenue grew 28.43 percent YoY to NT$ 142 million (US$4.7 million). Net income attributed to shareholders was NT$10 million, up 29 percent YoY. EPS increased 16.67 percent YoY to NT$ 0.07.
The company contributed revenue growth to the following reasons:
1) Revenue proportion for small pitch TV displays increased in 1Q14, driving up consolidated profit margin. Operating revenue reached NT$56.6 million, growth of 67.67 percent YoY, making up 40.35 percent of the company’s entire revenue, an increase of 9.52 percent YoY. Profit margin grew 2.29 percent YoY to 37.38 percent. Small pitch TV display revenue ratio increased, driving up consolidated profit margin 1.86 percent YoY to 36.4 percent.
2) Order performance for small pitch TV displays was unaffected by the slack season. First quarter is typically LED industry low season where orders start to pick up only towards the end of April. However, starting in March orders soared, propelled by the small pitch TV display market. Orders reached NT$111 million in 1Q14, a staggering growth of 228.44 percent compared to the first quarter last year. Small pitch TV display orders made up 60.23 percent of all 1Q14 orders, up 41.49 percent YoY. Orders in 2013 were impacted by government policies in the military industry, where revenue dropped substantially compared to 2012. Military orders however boomed in March 2014. It is anticipated that revenue from the military industry will increase this year. Moreover, increase in 1Q14 bids and unsigned project contracts have laid a good foundation for 2014 revenue performance.
3) Other reasons included big improvements in small pitch TV displays developments as the company enters the high-end market; the global launch of naked-eye 3D TV; and completed acquisition of Kamtatlighting in 2Q14.
