Smartphone camera lens maker Largan Precision Co (大立光) yesterday reported that last quarter’s consolidated revenue fell 10.31 percent from the previous quarter and was also down 15.31 percent year-on-year to NT$8.19 billion (US$263 million).
The second-quarter figure represents the company’s lowest quarterly level since 2013, while its revenue in the first half of the year was NT$17.33 billion, down 12.51 percent from the same period last year, Largan data showed.
Taichung-based Largan is a global company that designs, produces and assembles high-end optical lenses.
Photo: CNA
The company’s customers include Apple Inc, Samsung Electronics Co and several Chinese brands, while its main competitors are Genius Electronic Optical Co (玉晶光) in Taiwan and Sunny Optical Technology Group Co (舜宇光學) in China.
High-margin 20-megapixel or more lenses for smartphone cameras accounted for 20 to 30 percent of the company’s total sales last month, Largan said in a statement.
The majority, or 50 to 60 percent, came from sales of 10-megapixel lenses, while 8-megapixel lenses contributed less than 10 percent, it said.
Handset vendors are still planning specification upgrades for high-end models, and Largan is also designing “G+P” (glass and plastic) lenses to meet client demand.
However, the company’s second-quarter and first-half sales reflect that the global demand for smartphones is still weak as vendors remain cautious about purchasing high-end lenses.
Nonetheless, there is a positive sign in the firm’s business climate as last month’s revenue rose 2.67 percent month-on-month, following a sequential decline of 8.53 percent in May.
At the company’s annual general meeting in Taichung earlier last month, Largan chief executive officer Adam Lin (林恩平) said the company’s sales last month would be higher and better than May, and sales this month would also be higher than last month.
As the second half of a year is traditionally the peak season for the smartphone industry, Lin told shareholders that he expected the company’s business to show improvement in the upcoming months.
However, sales growth in the second half would not be as strong as in the previous years, with vendors’ confidence in the market remaining weak and inventory adjustments in the supply chain continuing, he said.
Largan is to hold an investors’ conference on Thursday next week to share financial figures for last quarter and a business outlook for this quarter.
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