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Lextar Electronics Corp. (“Lextar” or the “Company) (TAIEX: 3698) announced its results for the third quarter of 2012. The Company reported consolidated revenue of NT$ 2,894 million, up 10.9% from the previous quarter and near 15% of YoY increase. Gross profit was NT$ 360 million with the gross margin of 12.4%. Lextar’s consolidated net profit for the third quarter of 2012 was NT$ 105 million, EPS NT$ 0.25.

3Q 2012 Result Highlights：

• 	Revenue was NT$ 2,894 million, a QoQ increase of 10.9% and YoY increase of 14.9%

• 	Net profit was NT$ 105 million

• 	Gross margin was 12.4%, a QoQ decrease of 2.8 percentage point
  	Basic EPS was NT$ 0.25

“Lextar has seen single-month and quarterly revenues steadily trend up since early this year, which were in line with the company’s guidance”, said B.Y. Chang, CFO and Vice President of Lextar. The company reported another revenue climb in Q3, fueled by the growing market in backlighting high utilization to above 80%. In addition, the company also exhibited its efficient management on asset optimization by shortening its days sales of inventory from 79 days in Q2 to 67 days in Q3. Gross margin was slightly down by 2.8 percentage point owing to the alternation of product portfolio along with the erosion of market price. EPS arrived in NT$ 0.55 for the past three quarters in 2012.

Thanks to the traditional peak season in Q3, the recovery in demand has sustained Lextar’s shipments in backlights used for monitors, TVs, notebooks and smart phones. As for LED chips, shipments of high-power chips remained in growth given the reinforced competitiveness by the accreditation of global brands from Korea and North America.

In the mean time, production lines of COB were busy with flowing orders from European incumbents which were applied widely on commercial lightings with high added value such as downlights and PAR lamps. The LM-80 accredited 3014 and 5630 packaging products were also steadily shipped to clients in Europe and China. Driven by strong demands in Japan in Q3, lighting application business such as light tubes continued its solid growth as well. Furthermore, the 600 x 600 ultra-slim panel lights registered increases this quarter and received positive feedbacks from European customers.

Despite challenges of price erosion, Lextar displayed a reasonable portfolio in all phases including chip, packaging, module and lighting products by utilizing its advantage of vertical integration, Besides, the firm also showed good results from reinforcement of product design and supply chain management.

LED business, as part of the upstream industries in backlights and lighting markets, has already seen customers restocking inventories of which corresponding sales were reflected this quarter, prior to the traditional demand surge in end products for the upcoming holiday seasons. Therefore, the company will expect its business to move at a moderate pace in Q4.”To embrace further challenges next year, our plan includes both the implementation to explore business and strengthen customer relationship, and internal reinforcement of core competence. Resources should thus focus on development of techniques and talents, cost management and quality accreditation in lighting products.”said Dr. David Su, the Chairman and President of Lextar.