Seoul Viosys Co., Ltd. (“Seoul”) (KOSDAQ:092190), a leading global innovator of short wavelength LED products and technology, today announced KRW 87 billion for consolidated revenue for the first quarter and operating profit of KRW 2.7 billion.
The first quarter revenue increased by 10% year-on-year (YoY). The favorable demand of Violeds products for water, air, and surface sterilization increased with the global awareness change of ‘Clean Technologies’ due to outbreaks of viruses, although the sales for visible LEDs have slightly slowed. Consequently, Seoul’s overall sales have been growing in double-digit numbers for the past consecutive quarters.
For first quarter revenue, manufacturers for LED chips in other countries have been expected to decline due to both seasonal slowdown and the COVID-19 impact. However, Seoul turns this global crisis into an opportunity and responds to change of market demands because it has a full wavelength LED portfolio including short wavelength ‘Violeds’ products, the world’s first innovative technology, which offers the lifetime to more than 50,000 hours.
EBITDA margin was 17 billion of 19.2% increased by 7%P YoY and it maintains a stable margin range of 20%.
Seoul’s R&D spending and selling and administrative expenses (SG & A) were also significantly reduced by 32% and 15% YoY respectively, driven by continuous cost reduction. The company will continue to reasonably reduce the ratio of R&D spending to improve margins since it has the second-generation LED patented technologies that can lead the LED industry for the next 10 years or more.
Seoul’s financial condition in the first quarter also showed a good trend of improvement. Seoul announced that the company’s net debt ratio recorded 84.5%, which fell down by 66.4%P YoY and current ratio increased by 10%P YoY reached 54.5%, showing improved financial indicators compared to the past.
Seoul expects the increased demand in Europe and US for Violeds, a technology owned by Seoul Viosys and SETi (Sensor Electronic Technology, Inc.) proven to sterilize 99.9% of COVID-19 within 30 seconds, will continue to drive sales growth even after the second quarter. Meanwhile, Violeds technology has been used by the US National Aeronautics and Space Administration (NASA) for the International Space Station (ISS), which provides a healthy, germ-free environment for astronauts.
About Seoul Viosys
Seoul Viosys is a full-line solution provider for UV LED, VCSEL (Vertical Cavity Surface Emitting Laser), the next-generation light source for 3D sensor and laser, and a single-pixel RGB “Micro Clean Pixel” for displays. Established in 2002 as a subsidiary of Seoul Semiconductor, it captured No. 1 market share in the UV LED industry (LEDinside, 2018). Seoul Viosys has an extensive UV LED portfolio with all wavelengths range (200nm to 1600nm) including ultraviolet rays (UV), visible rays and infrared rays. It holds more than 4,000 patents related to UV LED technology. Violeds, its flagship UV LED technology, provides a wide range of industries with optimal solutions for strong sterilization and disinfection (UVC), skin regeneration (UVB), water/air purification and effective cultivation for horticulture. In 2018, Seoul Viosys acquired RayCan, a leading optoelectronic specialist, to add the advanced VCSEL technology which supports smartphone facial recognition and autonomous driving, and has started its mass production. In January 2020, it introduced a disruptive “Micro Clean Pixel” that has the potential to be a game-changer in the display market. To learn more, visit http://www.seoulviosys.com/en/.