Seoul Semiconductor Post 1Q20 Financial Results and Expects Revenue Growth with UV LEDs

Seoul Semiconductor updated its business performance of the first quarter of 2020 with a consolidated revenue of KRW 243 billion (US$199.75 million) and operating profit of KRW 6 billion (US$4.93 million). Despite abruption to production facilities for most global manufacturers due to COVID-19, Seoul achieved its guided range of KRW 240 billion to KRW 260 billion in revenues for the quarter.

To mitigate manufacturing risks, Seoul has built manufacturing sites in various locations such as Korea, China, Vietnam and in the US. This has helped the company to quickly respond to customer needs and demands in various market situations. During the recent abruptions brought on by the trade war between the US and China and the natural disaster COVID-19, Seoul has been very effective in meeting customers’ demand. Customers who would normally procure OEM LEDs at the cheapest available price regardless of intellectual properties, have begun to search for new sourcing partners outside China to secure stable supply, and inquiries for Seoul’s patent protected products has been on a rapid rise. Such demand is expected to have a long-term positive effect on Seoul’s future revenue.

The sales from the general lighting segment have declined compared to last year due to customers production halts at the fixture level. However, the sales of WICOP LEDs which have begun to penetrate into automotive customers head lamps, grew double digit YoY to offset overall sales decline. WICOP LED is a differentiated patented technology which offers package-less solutions for slimmer display and has been growing in double-digit numbers for the past consecutive quarters.

Seoul provided a sales guidance range of KRW 250 to 270 billion for the upcoming second-quarter suggesting a 3-11% QoQ growth. Seoul expects the increased demand for Violeds, a technology owned by Seoul Viosys proven to sterilize 99.9% of COVID-19 within 30 seconds will also have a positive impact on Seoul Semiconductors revenues. Seoul Viosys is a subsidiary of Seoul Semiconductor and Seoul reports its financials on a consolidated basis.

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