Seoul Semiconductor’s Q1 revenue falls slightly year-on-year, but improved UV LEDs and VCSEL launches to drive record full-year revenue

For first-quarter 2018, South Korean LED maker Seoul Semiconductor Co Ltd has reported revenue of 282bn Korean won (KRW), down slightly on KRW283bn a year ago.

Operating profit was KRW17bn, down from KRW17.2bn a year ago due to utilization falling from 74% to 60% during the relocation of equipment between factories (in order to further improve product mix and increase cost competitiveness in the long term). When equipment is stabilized and as high seasonality begins in second-half 2019 (fueled in particular by robust revenue from fast-growing automotive lighting and display-related products), the firm expects full-year 2019 revenue and profit to exceed prior annual record sales and profit.

For second-quarter 2019, Seoul forecasts revenue of KRW280-300bn.

Seoul Semiconductor plans to launch many new products in 2019. In Q2/2019, improved UV LED products will begin replacing lower-priced mercury lamps, says the fiirm. UV LEDs are expected to be widely adopted for disinfection systems and healthy lighting (with no mercury). In addition, new vertical-cavity surface-emitting laser (VCSEL) products are scheduled to be launched in second-half 2019.

“Seoul has plans to apply new technologies in the mobile segment this year,” says Sam Ryu, executive vice president of IT sales. “These efforts - together with the new Vietnam plant contributing to higher utilization once fully set up - will help deliver superior revenue and profit growth once again exceeding prior annual sales and profits,” he adds.

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Seoul Semiconductor’s Q1 revenue rises to $263m, driven by double-digit growth in automotive lighting and high single-digit growth in IT division

Tags: Seoul Semiconductor LEDs

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