| Philips delivers 6% sales growth, implements cost-reduction strategy
Third-quarter 2011 financial results for Royal Philips Electronics of the Netherlands (NYSE:PHG, AEX:PHI) showed a 6 percent overall growth, led by 8 percent growth in its lighting division and 32 percent growth in LEDs, together with 7 percent growth in healthcare. Investments in R&D and selling expenses required for new product launches negatively affected margins in the quarter.
In the lighting division, the company reported a decline in earnings due to investments in selling and R&D, higher raw material costs, and adverse performance from Lumileds and the consumer luminaire sectors. Overall earning before income tax, depreciation and amortization (EBITA) declined from 11.8 percent in Q3 2010 to 6.8 percent in Q3 2011.
The company is implementing a program, Accelerate!, to invest in growth while addressing structural change, focusing on execution, reducing overhead costs and adopting a new company culture. The program includes a cost-savings component, which will result in the loss of 4,500 jobs, 1,200 of which will be in the Netherlands.
“Our cost reduction plan of EUR 800 million has now been detailed, and we are in the process of deploying it across the organization as we optimize all overhead and support costs not directly involved in the operational customer value chain,” said Frans van Houten, CEO of Royal Philips Electronics. “The cost savings program will lead to the loss of approximately 4,500 jobs, which is a regrettable but inevitable step to improve our operating model to become more agile, lean and competitive.”
For more information, view the full press release.
Dominant Opto Technologies holds grand opening ceremony for plant in Laos
Dominant Opto Technologies, an LED manufacturer based in Malaysia, held a grand opening ceremony for Dominant Semiconductors Lao, the company’s first manufacturing plant outside of Malaysia and reportedly the first semiconductor manufacturing plant in Laos.
The ceremony was attended by Deputy Prime Minister Somsavat Lengsavad and senior officials from related ministries and the company.
Dominant Semiconductors Lao will produce LED products including Model 3528 white LEDs, which are used for T8 tube luminaires and downlights, as well as Model 5630 LEDs for medium-power lighting and TV backlighting applications.
The plant is expected to be fully staffed with about 1000 workers by next year.
For more information, view the full press release.
Labsphere signs cooperative agreement with UL Verification Services
An agreement between light metrology equipment maker Labsphere, based in North Sutton, NH, and UL Verification Services of Northbrook, IL, will allow Labsphere to promote and sell UL’s Type C goniophotometers, while UL will promote and sell Labsphere’s integrating-sphere systems. The combination allows customers worldwide access to equip their laboratories with best-in-class metrology products from either provider.
UL Verification Services Inc. acquired Lighting Sciences Inc. (LSI) of Scottsdale, Arizona in March 2011. The UL LSI moving-mirror goniophotometer Series 6400T was awarded the Illuminating Engineering Society Progress Report honor for 2010, calling it a “unique and significant advancement to the art and science of lighting.” The 6400T test equipment will form the cornerstone of the complete LM-79 laboratory solution from Labsphere and UL. For more information, view the full press release.
Nichia files two lawsuits against Everlight's white LED products
Nichia Corporation, based in Tokushima Prefecture, Japan, has filed two patent infringement lawsuits in Tokyo District Court to enjoin Tachibana Eletech Co., Ltd., importer and seller of LED products from Everlight, from infringing Nichia's patent number 4530094, a patent regarding the density of the phosphor inside white LED products.
Nichia is also claiming damages for the infringement with regard to white LED products GT 3528 series and 61-238 series manufactured by Everlight Electronics Co. Ltd., an LED assembly manufacturer based in Taipei County, Taiwan.
In August of this year, Nichia has filed a lawsuit against a company that sold white LED products by Everlight. The defendant acknowledged that the white LED products fell within the scope of the claim of Nichia's patent and terminated sale of the products.
For more information, view the full press release.
Epistar adopts KLA-Tencor's Candela inspection system
LED manufacturer Epistar of Hsinchu, Taiwan, has installed the Candela substrate and epitaxy wafer inspection system from KLA-Tencor Corporation (Nasdaq:KLAC), a yield-management provider based in Milpitas, California.
Epistar adopted this technology in order to automate inspection methods for sapphire substrates, ensuring vendor quality and providing visibility into the GaN epitaxy process to help detect root-cause defectivity and allow early detection of process excursions. The inspection system is designed to provide wafer-level defect detection and classification at production-grade throughputs.
For more information, view the full press release.
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