Backlight reflow + new product stimulation, Everlight Q4 revenue increases

Soso LED Network News: According to Taiwanese media reports, LED packaging major Everlight’s single-quarter revenue in the third quarter of this year was similar to the previous quarter due to weak backlight momentum and continued price declines in LEDs, and the peak season was not strong. However, due to the depreciation effect of the New Taiwan dollar, the initial estimate of single-quarter profit is still similar to the previous quarter. It is expected that performance in the fourth quarter will increase slightly, supported by stable lighting orders, returning TV backlight demand, and new product shipments.

Everlight's revenue has maintained growth over the past 10 years. However, in 2015, due to the overall economic correction and the adjustment of the display industry structure, fierce competition in lighting, and the continued price decline of LED packaging, the full-year revenue is expected to decline. Among them, the third quarter of this year was affected by weak demand for panel backlights and falling LED prices. The peak season was not prosperous. Single-quarter revenue was similar to the previous quarter. However, due to the depreciation effect of the New Taiwan dollar, which helped gross profit margins and industry foreign exchange gains, the initial profit estimate remained flat.

With the recent return of TV backlight orders, stable lighting shipments, and the continuous mass production of new products and investment in lighting companies to introduce new designs, it is expected that revenue in the fourth quarter will have a chance to increase slightly compared with the previous quarter.

As for the construction of the new factory, it is still proceeding according to the original plan. It is reported that Everlight's new factory in Tongluo Zhongxing Industrial Zone will be handed over and officially renovated in the fourth quarter of 2015. It will be completed in 2016.New SMD production lines are gradually introduced. In the initial stage, it will focus on high-end application products such as automotive lighting and infrared.

However, actual benefits still depend on new product certification and new customer promotion.

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