Edison to kick off LED lighting DMS business in 2011 - ResearchInChina

Date:2011-03-07liaoyan  Text Size:

High-power LED chip packaging house Edison Opto has set 2011 as the beginning of its lighting design manufacturing service (LDMS) business and will aggressively bid for overseas orders. The company has won indoor and outdoor lighting projects from the Middle East market, and will begin small volume shipments in the first quarter and larger volume in the second quarter. With strong demand projected for the lighting market, 2011 revenues will rise at least 60-70%.

Edison has reported net profits of NT$491 million (US$17 million) on revenues of NT$3 billion for 2010. The earnings translated into a net EPS of NT$6.15, the highest annual level on record. Outdoor projects at the end of 2010 to the first quarter have been delayed due to climate issues. Fourth-quarter revenues fell 24.9% sequentially to NT$657 million, and EPS dipped to NT$0.64. Most projects will be back on schedule in the second quarter.

Edison will expand high-power LED chip capacity from 20 million units a month to 50 million units and up to 100 million units in 2012. PLCC packaging capacity will increase 120 million units from 60 million units, and LED lighting module capacity will climb to 250,000 units from 150,000 units.

The company indicated that the LED lighting sector will be a main growth driver for 2011, representing about 20% of its revenues versus about 10-15% in 2010.

Gross margin for 2011 will be around 24%, the same as the fourth quarter of 2010, according to Edison. Though developing the LED lighting business will put pressure on profit margin, LED chip packagers must position for the lighting market to maintain overall market share, the company said.

Taiwan and China constituted 40% of sales in 2010, and Europe and the US combined for 50%. With new major orders from the Middle East, the region will contribute 10-15% of 2011 revenues.

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