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Largan sales dip in February to 2-year low, forecast to rally in March

2021-03-08  English News
圖說 : Largan sales dip in February to 2-year low, forecast to rally in March_1
圖說 :

Taipei, March 6 (CNA) Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., saw its sales fall in February to the lowest in two years but said it expects a rebound in March.

In a statement Friday, Largan said it posted consolidates sales of NT$3.21 billion (US$113 million) in February, the lowest monthly figure since the same month in 2019, when it recorded NT$2.53 billion.

The February sales were 30 percent lower than the previous month, mainly because of a reduced number of working days due to the 7-day Lunar New Year holiday, the company said.

Largan also recorded a 12 percent annual drop in February, which market analysts attributed to weaker demand for high-end smartphones amid COVID-19 and the United States' sanctions against Huawei Technologies Co. of China, one of Largan's major clients.

In its statement, Largan said its sales are expected to recover in March, with the return to the regular number of working days.

In the first two months of the year, Largan said, it generated sales of NT$7.82 billion, up 1 percent from a year earlier.

Lenses of 20 megapixels and over, which have a higher profit margin, accounted for 20-30 percent of Largan's total sales in February, little changed from January, according to the statement.

Meanwhile, 10-20 megapixel lenses made up 40-50 percent of the company's sales, and 8-10 megapixel lenses made up 10 percent, it said.

Earlier Friday, Largan announced it has signed a settlement agreement with Taiwanese rival Ability Opto-Electronics Technology Co., ending a trade secret and copyrights dispute that had lasted a decade.

Under the agreement, Largan said, it has withdrawn its lawsuits that had been filed in 2013 and 2012, but it declined to disclose the details of the settlement.

Largan said the main purpose of the litigation was to raise awareness in the industrial sector of the importance of intellectual property rights, not to hamper Ability Opto-Electronics' operations.

Late last month, Largan proposed a cash dividend per share of NT$91.5 on its net income of NT$182.9 per share in 2020, saying its board of directors had suggested the record dividend because the company was sitting on more than NT$100 billion in cash as of the end of last year.

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