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Monday, February 14, 2005
Taiwan optical lens maker Largan lowers financial forecast for first time

Largan Precision, one of the top three optical lens manufacturers in Taiwan, recently announced that it did not reach its 2004 financial projection.

A miscalculation in the company?s business strategy to develop lens modules for camera phones as well as large non-operating losses mainly accounted for the lower than expected financial performance last year, according to company chairman Scott Lin. Largan suffered a loss of NT$80 million from foreign exchange with the depreciation of the US dollar, NT$41 million from investments in its subsidiaries and 50 million in the value of unsold inventory, Lin indicated.

Cameraphone lenses are expected to be very important to Largan?s business this year, accounting for 65% of the company?s total revenues, up from 35% in 2004, Lin noted. Lin added that 60% of the camera phone lens shipments will be VGA and 40% will be 1.3-megapixel resolution.

In addition, Largan is performing trial production of 2-megapixel lenses for camera phones and/or digital still cameras, Lin said.

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