(Image: Seoul Semiconductor)

Seoul Semiconductor on April 30 announced consolidated first-quarter revenues of Korean won (KrW) 283.0 billion (USD 263 million). The rise in consolidated revenue came from strong sales in general lighting, especially from the automotive lighting segment and strength across all application segments, with the IT division delivering high single digit growth YoY. The results fall within the company’s guided KrW 270 billion and KrW 290 billion for the quarter.

During the first quarter, automotive lighting sales recorded double digit YoY growth, thanks to company’s diversified portfolio of customers in China, the US and in the EU, despite difficulties that one local automotive customer faced during the quarter.

The recorded operating profit was 6.1%, affected by multiple factors such as the KrW strengthening against the dollar, resulting in the previous fourth quarter forex rate of 1,106 won per dollar falling to 1,072 won, a seasonal decrease in utilization, and opportunity cost increases from company’s new manufacturing plant in Vietnam (typical when ramping up a new production site). In the upcoming quarters, the company expects its US manufacturing plant to contribute to rising utilization rate and improved profits. Seoul recorded 16.3% EBITDA margin for the first-quarter, delivering twelve-month trailing EBITDA of KrW 208 billion or 18.3%, continuing to show excellent cash generation capabilities. Seoul has provided sales guidance of KrW 280 to 300 billion for the upcoming second quarter.

Sang bum Kim, the company’s chief financial officer, has stated that the company 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 the company 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, once again challenging last year’s record sales.