E Ink Holdings reported a net loss of NT$787 million (about $26.5 million) for Q1 2012 (the company's first quarterly loss in 10 quarters). The company's revenues dropped 63% from Q4 2011, and gross margins were only 0.8% (down from 28.5% in the previous quarter).

The company says that sales of e-paper products dropped and they also experienced low capacity utilization.