LandMark Opto optimistic about business prospects for 2018

LandMark Optoelectronics, a maker of GaAs- and InP-based epitaxial wafers for production of laser diodes and other optical communication components, is confident that it will be able to achieve its sales target for 2018, buoyed by the growth momentum of consumer-use 3D sensing products, data centers and silicon photonic products.

In 2017, LandMark saw its revenues decline 3.38% on year to NT$2.04 billion (US$68.03 million) on reduced demand for related products for FTTH applications, the company said.

Net profits totaled NT$650 million in 2017, which translated into an EPS of NT$7.27 for the year, down from NT$9.64 a year earlier.

However, the firm noted that its capex for 2017 reached NT$177 million, increasing 65% from a year earlier. In 2018, LandMark plans to kick off construction of a new plant in the second quarter with completion slated for a year later.

The fiem noted that demand for 10G PON (passive optical network) epitaxial wafer products, including DFB (distributed feedback), EML (external modulation laser) and APD (avalanche photodiode) devices, has been strong since the beginning of 2018, adding that a number of firm’s products have been verified by clients, which will assure steady orders in the next two years.

The 10G PON products accounted for 10% of LandMark’s total revenues in the first quarter with the ratio likely to climb to 30% in the second quarter, the sources said.

Meanwhile, LandMark plans to deal out a cash dividend of NT$5 for 2017.