Taiwan-based LED firm Genesis Photonics recently received orders from China-based customers for indoor lighting and commercial LED light tubes. Coupled with orders from Japan-based customers, Genesis is optimistic about revenues in the fourth quarter.

Genesis reported third quarter revenues of NT$1.22 billion (US$40 million), a 7.7% sequential drop due to low demand from TV firms and falling average selling prices (ASP) of products. Market expectations for the firm's October revenues were for more than NT$400 million. However, Genesis reported October revenues of NT$370 million, representing a 5.71% increase on month. The estimates are based on the assumption Genesis will perform better in the fourth quarter compared to the third quarter due to falling price of sapphire substrates. Gross margins in the fourth quarter are expected to increase slightly as well.

Lighting products currently account for 20-30% of total revenues, according to Genesis. Outdoor billboards account for 30% while light source of backlight modules (BLUs) account for 40-50%. As the China government has announced a timeline to phase out incandescent light bulbs, Genesis, with a solid customer base in China, is expected to have a strong performance in 2012.