LED chipmaker Epistar has announced net profits of NT$5.77 billion (US$194.93 million) for 2010 with an EPS of NT$7.16. Revenues for the year totaled NT$19.76 billion with a 36% gross margin.

Utilization rate was affected by inventory adjustments in the fourth quarter of 2010, and Epistar's revenues were NT$4.81 billion with gross margin dropping to 27%. Net profit for the quarter totaled NT$1.17 billion with an EPS of NT$1.35.

Regarding the LED chip making joint venture with Delta Electronics in Guangzhou, China, the board of directors of Epistar has decided to invest no more than US$75 million, and the new plant is expected to be completed in 2012, and will install 30 sets of equipment initially.

Epistar indicated that utilization rates were low at around 70% in January-February due to seasonality, but orders for March-April have reach full capacity. Market sources expect Epistar's revenues for the first quarter of 2011 to drop by about 10% sequentially to around NT$4.3-4.4 billion.