• Increased proportion of high value-added products such as Violeds, an optimal solution for virus protection, profit margins continue to rise through cost innovation
• Thin and small WICOP, a core technology for Mini and Micro LED to further expand into automotive and LED backlight business
• Seoul Viosys leading the 2nd generation LED technology, its World’s first products settled as the industry standard

Seoul Viosys Co., Ltd. (“Seoul”) (KOSDAQ 092190), a leading compound semiconductor solution provider, today announced financial results for the third quarter of 2020 with revenue of KRW 120.7 billion and operating profit of KRW 9.5 billion on a consolidated basis. It recorded the highest quarterly revenue since its establishment alongside its parent company, Seoul Semiconductor in this quarter.

The revenue increased 33 year-on-year and 17 quarter-on-quarter. In the visible LEDs, proportion of high-value-added products such as WICOP, an LED technology that does not require a package, gradually increased, resulting in a double-digit growth YoY and QoQ. WICOP is a technology that will be the core of Mini and Micro LEDs in the future, although it is currently used in automobile headlamps and LCD backlights with its light, thin and simple features.

UV LED revenue increased by triple digits YoY, continuing the growth trend. Violeds revenue is continuously increasing as the global awareness of virus protection increased and market demand searching for optimal solutions to effectively protect people’s daily life in clean environment is increasing.

Not only revenue but also profit margins improved remarkably. Through company-wide cost innovation activities and thorough management and control of each cost category, SG&A expenses decreased by 19 YoY and 26 QoQ. Accordingly, the operating profit for the third quarter reached KRW 9.5 billion, a 256 increase from the same period last year.

The financial situation in Q3 also showed a solid improvement trend following Q1 and Q2, and financial soundness is strengthening. Net debt ratio fell 30 percentage points (P) to 84.1 YoY due to the increase in cash and cash equivalents, and the current ratio also rose 15.4 percentage points YoY to 58, showing an improved financial status compared to the past.

Meanwhile, Seoul Viosys presented a conservative Q4 revenue guidance of KRW 120 billion to KRW 110 billion, which is the same as in the third quarter, considering external uncertainties. This is an increase of 20 to 31 compared to the same period last year.