Archive for Červenec, 2011

LED lighing revenues approach $2bn in 2017

Pátek, Červenec 29th, 2011

LED lighing revenues approach $2bn in 2017
LEDs will become the dominant lighting technology, claims market analyst Frost & Sullivan.

“The world LED market will expand strongly, driven largely by improvements in technology,” said analyst Neetha Jayanth. “Such advances will enable their wider application in illumination and will be further reinforced by measures adopted by authorities to support energy efficient lighting.”

The analysis by Frost’s building division finds that the market earned revenues of $491.1m in 2010 and estimates this will reach $1.89bn in 2017.

“From a mere 3% penetration in the lighting market, LEDs are set to grow into the most dominant lighting technologies in the future,” said the firm.

Drivers include legislation in Europe and North America which phases out incandescent lighting or imposes minimum efficiency.

“Simultaneously, suppliers across the globe are undertaking to improve the quality of LED lamps by enhancing their efficiency, quality of light output, colour rendition and thermal management,” said Jayanth. “Thus, LED lamps are set to become better equipped for use in functional lighting across all building sectors, even as public authorities reinforce the need to employ them.”

Although life-cycle cost may be low, it remains an expensive technology initially, and its efficiency is currently only just above that of fluorescent lighting.

According to Frost & Sullivan, price differences are anticipated to narrow over time, but they will still dampen more widespread adoption.

“Price reduction is difficult till economies of scale enter the market,” said Jayanth. “Instead, suppliers could focus on providing lamps with increased lumens per Watt at the prevailing prices, so that payback period on the investment is reduced and the product becomes competitive with other energy-efficient technologies.”

He adds that manufacturers and distributors will need to work together to increase consumer awareness about the benefits of using LEDs and the energy savings that could result in the long run from its adoption.

LEDs would give brighter future

Pátek, Červenec 29th, 2011

LEDs would give brighter future
It was interesting to read the article about Rose City Ford and Enwin Utilities announcing the energy savings from fluorescent lights.

Fluorescent lighting has been a standard lighting system utilized for decades in many buildings including industrial, commercial, institutional and educational.

As with the incandescent light bulb, they have served us well as a source of light, but over time we have discovered that there are serious health and environmental issues. Fluorescent lights are a hazardous material containing lead, mercury and recently, General Electric confirmed that they emit radiation.

One fluorescent tube will contaminate 22,700 litres of water.

In Canada, we dispose of between 80 to 100 million tubes a year, so it is not hard to understand why the incidents of cancer may be increasing.

The article also indicated that the energy savings was approximately 26 per cent per month and that they expect their investment to be paid back in one year.

However, there is never a real return on investment with fluorescent, metal halide or high-pressure sodium lights since the bulbs and ballasts burn out and continually need to be replaced.

Ongoing costs include maintenance, electricians and equipment for replacement, along with the cost of disposal.

There is a solution to the numerous challenges associated with fluorescent, metal halide and high-pressure sodium lighting systems.

It is the state-of-the-art lighting technology known as light emitting diode (LED).

LEDs are completely recyclable and contain no hazardous materials.

Rose City Ford, by installing LED, would have a product that can be totally recyclable at end of life and can be expected to last many years without any maintenance requirements.

The return on investment with LED lighting would have been actual, since the LED lighting system would have provided at least a 70-per-cent energy reduction.

With energy costs increasing by another 45 per cent over the next couple of years, the return on investment and monthly energy savings would continually increase.

By using LEDs, their electricity bill would have gone from $11,000 per month down to about $3,300 which is more than double their current savings.

Fluorescent lights produce about 85 BTUs of heat, whereas LEDs produce about 3.4 BTUs of heat, which would have a profound impact on reducing the energy required to run air conditioning to cool their building.

It is commendable that Enwin Utilities is providing a valuable program to encourage energy consumers to reduce their demand and save money in the process.

The best way to save on energy is to reduce its use through conservation.

LEDs are leading the way to a brighter, cleaner and healthier world for today and tomorrow.

Rebound Stock Pick for the Second Half of 2011

Úterý, Červenec 19th, 2011

Rebound Stock Pick for the Second Half of 2011
Companies in the high-technology industry must innovate constantly in order to stay competitive. Right now, a predictable turn of events is unfolding: an industry pioneer has posted very impressive growth. Heavy competition ensued, crimping growth and profit margins, forcing the company to refocus its game plan to remain on the leading edge. And now that things are turning around, it spells real opportunity for investors.

This is precisely what’s happening with Cree Research (Nasdaq: CREE). Cree grew hordes of fans when sales of its light-emitting diode (LED) lighting products began to surge in mid 2007, but the company is now saddled with many detractors, which has negatively affected growth and profit in recent quarters. The good news is clear catalysts are in place to win back the hearts of currently dubious investors.

An impressive stretch of sales growth has come to an end

Cree has poured massive sums into research and development (R&D) efforts to establish a leading position in LED lighting, which is more energy-efficient than standard forms of lighting. These lights used to be too dim for many industrial applications, but with recent technology, they can now be used in virtually any industry.

Cree also focuses its R&D efforts on durability. Its lights can last for several decades without wearing out, something the competition (mostly Chinese) hasn’t delivered. In fact, these competitors have been selling LEDs that burn out far sooner than promised. The Chinese government, which has been an active consumer of LEDs, has even started to replace many of the low-cost, short-life LEDs that had been installed in street lights with Cree LEDs.

Still, even shoddy competitive goods can take market share and pressure pricing. So even as Cree is expected to keep boosting sales at a solid clip in fiscal 2011 and 2012, per-share profits will barely budge as gross margins slump. This is why Cree’s per-share profits are expected to be flat in fiscal 2011 (results will be released Aug. 9), even with a projected 13% hike in sales. Few analysts expect profits to do any better in the fiscal year that just began either.