Seasonal effect resulted in a low performance for LED industry at the first quarter, including Epistar, Everlight Electronics, and Formosa Epitaxy’s profit after tax at the first quarter has declined compare to the previous quarter.

However, the applications for products expanded and the market is recovering gradually, revenues for the second quarter are expected to grow 10-15% compared to the first quarter, the industry players noted.

LED chipmakers Epistar’s revenues for April of NT$1.06 billion were an historical high, and its order volume for May has surpassed NT$1.1 billion. Market observers estimates that the company’s second quarter revenues will approach NT$3.2 billion, with gross profit margins perhaps rebounding to 25%, up from 21% in the first quarter.

Formosa Epitaxy’s revenues for April reached NT$161.9 million, and the company has added two new equipment units to expand its capacity in the second quarter. The company expects to grow its revenues for May and June, while gross profit margins are expects to surpass 30%, up from 28% in the first quarter.

Formosa also plans to increase its MOVCD equipment from 18 machines to 35 machines, and its overall monthly capacity will increase from the current 25,000 epitaxial wafers and 330 million chips to 48,000 epitaxial wafers and 700 million chips.

LED packaging company Ledtech’s April revenues were up 42.3% sequentially to NT$100 million and its profit before tax hit NT$15 million for the month. The company’s shipment proportion coming from its LED business has increased, and new orders from Pepsi will commence this quarter, which should help the company’s second quarter revenues continue growing.

The Chinese-language Commercial Times previously reported that Ledtech had received orders for LED light bars from Pepsi.