E.Ink makes first profit for five years

it is the first time the company has made a profit in the last five years.

Gross margin went up from 31 – 36% thanks to more displays being used in higher-value e-reader applications.

“Demand for e-readers remained robust in the first half, bolstered by orders from our major clients. We expect annual growth from this segment,” says E.Ink chairman Frank Ko.

The improved profitability came from the phasing out of LCD production. E.ink closed down its Korean LCD manufacturing facility Hydis Technology. LCDs accounted for 10% of sales last year.

Ko says that new sales drivers, such as e-paper display applications, electronic shelf labels and electronic signages, should make up for the loss of the LCD panel business.

Electronic shelf labels accounted for 17% of total sales last year. “Electronic shelf labels is a very promising business,” says Ko. Sales of shelf labels are expected to be up 20% in H1 2017 compared to H1 2016.