LED manufacturer Lextar released their fiscal first quarter 2014 financial report on May 12, 2014. The company reported revenue dropped 3 percent QoQ to NT $3.22 billion (US $106.7 million) but up 11.6 percent from 1Q13. Gross margin improved 2.3 percent QoQ to 12.5 percent. Net profit for 1Q14 reached NT $21 million with EPS of NT $0.05. 

Revenue in 1Q14 slid from the previous quarter, impacted by fewer working days and client inventory adjustments. LED backlight products surpassed LED lighting products, accounting for around 75 percent of total sales. Utilization rate increased over 90 percent after Lunar New Year. 

The company is optimistic about the rebounding LED industry this year and has already seen a rise in order demands from backlight and lighting clients. Lextar has increased the number of equipment in Taiwan and China’s Suzhou factories. The company plans to continue installing equipments and expand production capacity, which is anticipated to benefit 3Q14 revenue. 

Lextar started producing other backlight products aside from direct-lit backlight bars. In terms of LED lighting products, the new generation tube lighting development has been successful. Lextar will continue tube shipments from 2Q14 to 3Q14. The company anticipates significant cost improvements after moving its lighting component production line to China and entry in the Chinese supply chain. 

Lextar plans to continue launching LED lighting modules including LED White Chip (a type of LED die), flip chip, and COB products that can be used in lighting, backlighting, automotive, and other applications. The company intends to focus on direct-lit backlight bars, flip chip products, COB lighting components, and mobile device applications. Lextar will also expand their business by exploring other application fields and new client bases.