Seoul Semiconductor announced consolidated first quarter revenues of KRW 282 billion (US$ 242.52 million), down by 0.4% YoY compared to 1Q18 but within the range of company’s guided KRW 280 billion to KRW 300 billion.

The company reported KRW 17 billion (US$ 14.62 million) of operating profit, recording an on year decline of 0.8%. According to Seoul Semiconductor, the modest decline of profits was a result from lower utilization. Due to equipment relocation among factories, the utilization rate of the company in 1Q19 dropped to 60% from 74% from the same period last year.

Seoul Semiconductor adjusted its equipment to improve product mix and increase cost competitiveness in the long term. Once the relocation is completed, the Korean LED producer expects robust revenue growth driven by automotive lighting and display related product in the coming high seasons. The sales guidance for the second quarter is KRW 280 to 300 billion. Seoul Semiconductor sees that 2019 annual revenues and profits will exceed prior annual record sales and profits.

The company is expected to introduce many new products this year. In the second quarter, new improved UV LED products will start replacing lower priced mercury lamps. UV LEDs can be widely adopted for disinfection systems and healthy lightings with no mercury. In addition to these offerings, new VCSEL products are also scheduled to be launched in the second half of this year.

“Seoul has plans to apply new technologies in the mobile segment this year. 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,” said Sam Ryu, executive vice president of IT sales at Seoul.