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30 April 2018

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

© Semiconductor Today Magazine / Juno PublishiPicture: Disco’s DAL7440 KABRA laser saw.

For first-quarter 2018, South Korean LED maker Seoul Semiconductor Co Ltd has reported revenue growth to Korean won (KrW) 283bn (US$263m) - despite Q1 normally being seasonally low - driven by strong sales in general lighting (especially from the automotive lighting segment and strength across all application segments), and the IT division delivering high single-digit growth year-on-year.

Automotive lighting sales recorded double-digit growth year-on-year, due to the firm’s diversified portfolio of customers in China, the USA and the European Union (EU), despite difficulties that one local automotive customer faced during the quarter.

Operating margin was 6.1%, affected by multiple factors such as: the Korean won strengthening against the US dollar, resulting in the previous fourth-quarter 2017 forex rate of 1106 won per dollar falling to 1072 won; a seasonal decrease in utilization; and cost increases from the firm’s new manufacturing plant in Vietnam (typical when ramping up a new production site). In the upcoming quarters, the firm expects its US manufacturing plant to contribute to rising utilization rate and improved profits.

Earnings before interest, taxes, depreciation and amortization (EBITDA) margin was 16.3%, delivering 12-month trailing EBITDA of KrW208bn (18.3% margin), continuing to show excellent cash generation capabilities.

Chief financial officer Sang bum Kim says that the firm was able to achieve sales growth in this quarter despite lower seasonal demand, and this trend is expected to continue throughout the remainder of the year, as sales of differentiated products such as the SunLike, WICOP and Acrich Series devices lead to improved utilization, and the new Vietnam plant contributes to higher utilization once fully set up.

Seoul forecasts sales of KrW280-300bn for second-quarter 2018, on the way to record full-year sales for 2018.

See related items:

Seoul Semiconductor’s annual revenue hits record $1.04bn

Seoul Semiconductor’s quarterly revenue rises 14% to new record

Seoul Semiconductor’s Q2 revenue up 14.9% year-on-year, driven by general lighting applications

Seoul Semiconductor’s Q1 sales growth bucks normal seasonality, driven by lighting, automotive and IT segments

Tags: Seoul Semiconductor LEDs

Visit: www.SeoulSemicon.com

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