Strategically Blogging

Integrated vs. Non-Integrated Luminaires

Shonika Vijay 10/30/2014

As time goes on, it is becoming more and more apparent that LED lighting will soon take over. With the current ban of 40W through 100W incandescent light bulbs and the dropping prices of LED lighting, it is no surprise that LED lighting is the lighting of the present and will be lighting of the future. However, LED lighting was first, or in some cases still is, introduced into the market to replicate the incumbent technology so that consumers don’t get scared away by a lighting system that they can’t associate with their old one. What I mean here is that having a fixture where the consumer can physically take out the lamp and replace it if it burns out. Today, there seems to be plenty of interest in fixtures/luminaires where the lamp could be replaced.

When Will OLEDs be the Next Big Thing in Lighting?

Stephanie Pruitt 10/08/2014

OLEDs have been gaining in popularity lately, mainly in displays, but also more recently in general lighting. They offer many benefits over traditional and LED lighting, including being a surface emitting light source (as opposed to point emitting), being extremely thin, and having the capability to be flexible and even transparent. OLEDs open the doors to really innovative and creative light forms that were previously not possible with traditional lighting. However, they still have a ways to go in efficacy, lumen output, and price compared to their less expensive inorganic counterparts that are still struggling to really penetrate into the market.

Shonika Vijay

High-End Lighting Markets for Solid State Lighting

Shonika Vijay 09/30/2014

Lighting has always been seen as a commodity market. In fact, most people buy their light bulbs from the same place they buy their milk. It is a price war out there with slim profit margins on lighting products; meanwhile, the market keeps demanding higher quality. The general indoor lighting market mostly consists of the following form factors: downlights, troffers, suspended pendants, track lights, and high bay lights (a detailed market report of general lighting luminaires with these form factors along with all technologies will be released this November). Downlights and troffers make up the majority of the installed luminaire base for all regions. In order to compete for penetration in these installed luminaire bases, LED lighting has had to slash its prices while making sure it can sustain the light output levels of halogens, incandescent, and fluorescent technologies.

Fiber Laser Market Continues to Evolve

Allen Nogee 09/05/2014

I’ve always been a person who has been very interested in the latest technology, and sometimes it’s hard for me to believe how much technology has changed over the years.

Everything from flat screen TVs, DVRs, audio equipment, cables and wiring, computers, tablets, smartphones, and so many others have evolved over the years, and in most ways, the new technology is quicker, smaller, cheaper, and more energy efficient. Today we take all these things for granted, but it wasn’t that long ago that a flat screen TV or a smartphone was a novelty. Today we just can’t even imagine living without these things.

Martin Shih

A Win-Win Situation: Cree Announces Investment in Lextar through Private Placement

Martin Shih 09/05/2014

Cree recently announced plans to invest US $83M in Lextar Electronics, one of Taiwan’s major LED manufacturers, in order to acquire 13% of Lextar shares and to enter a supply/royalty agreement. Cree will become Lextar’s second largest shareholder (AUO, Lextar’s parent company, is the biggest shareholder) and obtain one member of BOD. This deal is expected to be done at the end of 2014 and the lock-up period is 3 years, which means Lextar will reserve its capacity for Cree for 3 years.

More on the fiscal year effect

By Tom Hausken
I got several questions about my chart a couple weeks ago that showed two different curves for the laser market depending on when you count your fiscal year. I'm taking some space here to explain it a little better.  The chart is below, and shows the quarterly results of representative laser suppliers aggregated over two different 12-months cycles: January to December and the same data for July to June.



The first question is: why does it matter? For one thing, if your company reports revenues on a year from--say--July 1 to June 30, your results will look very different than your competitor that reports from January 1 to December 31. Every company I know of reports their quarterly numbers quarter-over-quarter and year-over-year, of course. For what that's worth, that quarterly information becomes a common denominator. But the quarterly nuances are lost in the annual reports.

For example, TRUMPF had a rousing year ending June 30 , with about 50% growth measured in both dollars or euros. That's fantastic, but keep in mind that TRUMPF doesn't report quarterly numbers. It doesn't have to report numbers at all, since it's a private company. The very good fiscal year followed two years of declines. Most companies reporting on calendar years only had one down year: 2009. So, TRUMPF looked like it was doing worse than everybody for two years, and now it looks like it outperformed. In fact, it's about the same--it just reports on different calendar.

The other question is: how can it make that much difference? In this recession, the four worst quarters all fell in 2009. So any company reporting on the calendar year saw a really bad 2009 and only upward results after that. TRUMPF simply split the bad quarters, spreading the bad quarters over two fiscal years.

There is one more nuance to this. People are most familiar and emotional about the metrics that they know best, not necessarily the ones that I have to use. For example, salespeople often speak of orders and pricing for sales that haven't happened yet, since that is where they are working with their customers. But those orders and pricing may be unrepresentative of orders earlier this year.

Another example is that people rejoice over recent good news and panic over recent bad news--even if it is stripped of its context. Part of my job is to put the context back.

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