Demand has plummeted, Japanese company Sanken announced to withdraw from CCFL

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Sanken Electric, a Japanese manufacturer of liquid crystal panel cold cathode lamps (CCFL), announced on the 25th that CCTV demand continues to decline due to the continued evolution of LCD TV backlights, and its reduction has further expanded this year, resulting in revenue from this business. The sudden decline, so the resolution will withdraw from the CCFL business.

Sanken entered the CCFL market in 1997 and was once the leader of the global CCFL. Sanken's 2012 CCFL business revenue is only 880 million yen, accounting for only 0.7% of the total revenue; in the first three quarters of this year (April-December 2013), its revenue was only 128 million yen, accounting for only 0.1% of the total.

Sanken pointed out that CCFL products are expected to be discontinued in 2014 (before the end of March 2015), and CCFL production equipment will be abandoned after the shutdown (Sanken has deducted all CCFL production equipment in 2009); in addition, regarding CCFL Inventories, except for some lighting stocks, will be scrapped. Sanken said that CCFL demand for lighting will remain in the future, so it is estimated that it will not stop selling CCFL products until 2015.

Sanken also pointed out that after withdrawing from the CCFL business, it will recognize a special loss of 2 billion yen, but this year's (April 2013-March 2014) financial forecast will temporarily maintain the original published estimate unchanged. Sanken estimates that this year's combined revenue will increase by 15.7% year-on-year to 146.2 billion yen, and the combined benefit will increase by 85.9% to 8.6 billion yen. The combined net profit will surge by 194.8% to 6.7 billion yen.

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