Largan sees income fall to lowest in 36 months
By Chen Cheng-hui / Staff Reporter
Smartphone camera lens maker Largan Precision Co (大立光) said on Saturday that last month’s revenue fell to a 36-month low due to a slow first-quarter season and the number reduced by working days during Lunar New Year holidays.
Consolidated revenue fell 30.05% month-on-month to NT$2.61 billion ($92.8 million), the lowest since February 2019, when revenue fell to 2, NT$53 billion, according to company data.
Last month’s figure was 18.7% lower than the NT$3.21 billion posted a year earlier, the data showed.
Photo: David Chang, EPA-EFE
Revenue is largely in line with the Taichung-based company’s forecast.
On January 13, Largan told an investor conference that he expected January sales to be lower than December and that February numbers could be even lower as supply limitation of some components is still unresolved.
Major handset brands have also reduced purchases of high-performance lenses as component shortages, price inflation and uncertainty due to COVID-19 are expected to continue to weigh on the smartphone market in the first half of the year. year, according to Boston-based research firm Strategy Analytics said in a Jan. 27 note.
Global smartphone sales fell 1.7% year-on-year to 379.46 million units in the fourth quarter of last year, Stamford, Connecticut-based Gartner Inc said in a published report. Wednesday, citing component shortages and supply chain issues.
Largan counts Apple Inc, Sony Corp, Samsung Electronics Inc and Huawei Technologies Co (華為) among its customers.
High-margin lenses for 20-megapixel or larger smartphone cameras contributed 10-20% to Largan sales last month, the company said Saturday.
Lenses for 10-megapixel or larger products contributed 50-60% of its sales, while lenses for eight-megapixel products contributed 10% and lenses for lower-resolution products contributed 10-60%. 20%, he said.
As a leading manufacturer of optical lens modules, Largan also produces voice coil motors, contact lenses and sleep monitors.
Aiming to expand into the automotive sector, the company established Largan Industrial Optics Co (大根光學) last year to focus on producing vehicle camera lenses.
However, automotive lens products have contributed little to the company’s revenue so far.
In the first two months of the year, Largan’s cumulative revenue totaled NT$6.35 billion, down 18.75% from NT$7.81 billion in the same period last year. last.
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