Largan Precision Co (大立光), a leading supplier of handset camera lens modules, yesterday reported its highest monthly revenue since January, although the figure remained lower than a year earlier, as component shortages led to fewer Android-based smartphone brands upgrading their cameras.
Consolidated revenue last month rose 5.49 percent month-on-month to NT$4.01 billion (US$144.7 million) from NT$3.8 billion, but was down 20.29 percent year-on-year from NT$5.03 billion, the company said in a statement posted on its Web site.
The results met the guidance the Taichung-based company offered at its annual general meeting on Aug. 25, when it told shareholders that revenue would be higher than the previous month.
Photo: CNA
Revenue for this month would also be higher than last month, Largan chief executive officer Adam Lin (林恩平) told shareholders.
He warned that camera component shortages would affect the smartphone specification upgrade cycle and affected the company’s gross margin.
Largan counts Apple Inc, Sony Corp, Samsung Electronics Inc and Huawei Technologies Co (華為) among its customers.
Last month, 8-megapixel lenses accounted for 10 percent of total shipments, 10 to 20-megapixel lenses made up 40 to 50 percent and lenses with a resolution of 20 megapixels or greater contributed 10 to 20 percent, Largan’s shipment breakdown showed.
In the first eight months of the year, Largan’s cumulative revenue totaled NT$29.74 billion, down 16.28 percent from NT$35.53 billion in the same period last year.
Good Security Investment Consultant Co (顧德投顧) analyst Huang Han-cheng (黃漢成) said that Largan’s quarterly revenue bottomed out in the second quarter at NT$10.11 billion, but the rebound in the third quarter appears slow, Chinese-language news site Cynes.com reported yesterday.
With rising competition from rivals and the slowdown in specification upgrades, Largan’s operations would still be under pressure in the near term, despite the much-anticipated launch of new iPhones in the third quarter, analysts said.
Largan shares closed 2.25 percent higher at NT$2,725 on Friday. They have dropped 14.71 percent so far this year.
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