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Lextar Electronics Corp (“Lextar” or the “Company”) (TAIEX: 3698) today reported consolidated revenue for the second quarter of 2015 of NT$ 3.6 billion, up 2.8% from previous quarter and a 5.1% YoY drop. Consolidated gross margin for second quarter was 10.7%, with a 4.6% QoQ decline. Net profit for 2Q 2015 was NT$ 41 million; a basic EPS for 2Q was NT$ 0.07. The company also reports July sales of NT$ 1.1 billion, an MoM decline of 8.4%.

Consolidated revenue for the first half of 2015 reports NT$7.1 billion, up 1.2% from previous year. Basic EPS for the first half of 2015 was 0.33.

2Q 2015 consolidated result highlights：

• 	Revenues were NT$ 3,600 million, up 2.8% QoQ

• 	Net profits were NT$ 41 million

• 	Basic EPS were NT$ 0.07

According to B.Y. Chang, the CFO of Lextar, although traditionally the second quarter is the peak season for LEDs, due to elements such as the overall weak economy and declined consuming capacity in Europe this year etc., the need for LED in the LCD panel application market declined; the performance for the second quarter was not as good as the forecast. However, even when faced with the pressure of the market price, Lextar was still able to maintain positive growth in revenue for the second quarter. In terms of LCD panel applications, although the need for IT panels such as monitors and notebook computers etc., has decreased, the direct-lit LED backlight was continually implemented for TV application panels, and the White Chip (Chip Scale Package) technology was continually adopted; new products and technologies stimulated the need in the panel market for the first two quarters. In terms of the lighting market, the permeability of LED lighting continued to increase in the first two quarters, but due to the low-priced bulb strategy resorted in the North America market recently, companies in the LED industry started launching new product designs and cost revolutions for the supply chain in response to this, which caused the recent need for bulbs to hold. Lextar, on the one hand, released new generation high cost performance value lighting packages for the bulb market; and on the other, raised commercial lighting products such as commercial tubes and luminaires, to lower the effects caused by low-priced bulbs in the consumer market.

Lextar indicated they estimate that the recovery of IT backlight applications will still be weak in the third quarter, but the TV backlight market can still support the panel market. Lextar will strive to implement new products and technologies, and developing niche products such as White Chip (Chip Scale Package with its in-house flip chip) technology and also flashlight for mobile phone applications. In terms of the lighting application market, it is estimated that the low-priced bulb strategy of large brand manufacturers will continue to affect the market and stimulate consumer needs, so new cost structure bulbs will gradually become available. Lextar will continue to promote new generation high cost performance lighting packages for consumer lighting market, while accelerating the development of new LED tubes with various added functions and values, and also panel light and linear lighting products that comply with U.S. and European regulations. In addition, in order to meet the small and diverse LED lighting application at local markets in different locations, Lextar developed an AC direct-in DOB (Driver on Board) that uses Lextar’s HV LED, providing light engine solutions with electrical and optical design in one module.