LandMark Optoelectronics reported a challenging first quarter with a revenue of NT$323 million and an after-tax net loss of NT$47 million, translating to a loss per share of NT$0.44. This marks the company’s fifth consecutive quarter of losses, highlighting ongoing financial difficulties.
Chief Financial Officer Jerry Yang attributed the continued losses primarily to a significant NT$42 million hit due to price declines in silicon light products, despite achieving record shipments. The gross profit margin fell below expectations, exacerbating the financial strain. Yang has been flagging losses from price drops since mid-last year and anticipates that these challenges will persist until revenues see a substantial recovery over the next three to four months.
Looking ahead to the second quarter, Yang noted robust demand from U.S. data center customers. However, he cautioned that shipments are expected to slow during the transition from 800G to 1.6T technology in May and June. The shift is seen as critical, and while the third quarter is expected to show stronger shipments due to the new 1.6T products, the precise recovery timeline remains uncertain and heavily dependent on client readiness.
In the telecommunications sector, LandMark faced significant market contraction in China starting the second half of last year. While the first half of this year presents a slightly more optimistic outlook, a full recovery is still uncertain. Yang emphasized that overall revenue for the second quarter is projected to mirror the first quarter’s performance, reflecting the ongoing challenges and transition periods the company is navigating.
