TAIPEI, Taiwan - According to a Taiwan's Photonics Industry and Technology Development Association (PIDA) report, due to market saturation in the smart phone market, a 25% decline in revenue for Taiwan's leading optical lens company, Largan Precision Co., Ltd., and the overall low output value of Taiwan's precision optical components, in the first half of 2016 Taiwan's precision optical components industry only reached an output value of NT$39.4 billion, which is an 18% reduction for 1H.
PIDA stated that in the first half of 2016 the top ten Taiwanese optical components companies experienced a 17% decline in total revenue, and net profits fell from NT$7.97 billion to NT$6.52 billion. Furthermore, capital expenditures declined 8% to NT$2.75 billion.
Industry leader Largan Precision's revenue fell 25% during the first half of 2016 which impacted the output value of Taiwan's precision optics. Meanwhile, with a 28% increase in revenue, Glorytek showed the best performance. Likewise, Calin Technology benefited from crossing over into vehicle and other non-camera related fields, and they therefore experienced revenue growth and declining losses.
PIDA commented that in the first half of 2016, there was an 18% decline in output for Taiwan's precision optical components, which was mainly due to a 25% decline in Largan Precision's revenue. However, Largan Precision's net capital expenditures remained relatively strong. In the coming second half of the year their performance should recover.
Despite a slight 4% decline, Asia Optical's net profits have increased dramatically, and Calin Technology has experienced a 7% growth in revenue and a significant reduction in loses. It is apparent that the companies are experiencing the initial positive results of switching to niche products in non-digital camera related domains, such as vehicles.
(TR/ Phil Sweeney)
