the industry is still focused on LED-backlit

Citibank forecasted revenues for both Epistar and Everlight. Citibank held a positive outlook for Taiwan’s leading downstream LED package manufacturer Everlight, as it expected the company’s led flood light operations will benefit from lighting and white box mobile phone demands. Especially, as the company’s street lamp biddings enter the approval stage in 1H13. Everlight’s 3Q13 lighting revenue is expected to grow 60-70% compared to the previous quarter, and although LED-backlit TV demands eased, Everlight will still be able to generate revenue from white box smartphones and infrared (IR) LED to support its sales performance. Citibank estimates Everlight’s 3Q13 revenue growth will increase 10% compared to 2Q13.
The financial institute also forecasted Epistar’s 3Q13 revenue. According to Citibank’s estimates, Epistar’s 3Q13 LED-backlight TV will be impacted by adjustments in manufacturers’ inventory levels. LED-backlit TV revenues are likely to drop 20% in 3Q13 compared to 2Q13, and 3Q13 LED-backlit TV will also be down from 25-30% in 2Q13 to 20-25%. In comparison, the company’s overall lighting revenue will increase to about 35% from 2Q13 25-30%. From the company’s overall operations, 3Q13 revenues are estimated to decrease by 5% QoQ.

Although, lighting demands were able to partially compensate LED-backlit TV waning demands, the industry is still focused on LED-backlit TV demand trends in 2H13. While adjustments have been made in led high bay light module and component stockups, LED-backlit products 2013 inventory levels were much lower than 2012, according to Citibank’s report. Moreover, chances of sharp declines of LED manufacturers’ 4Q13 orders are expected to be limited, as lighting demands rises.

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