Seoul Semiconductor Reports Record Third Quarter 2020 Results and Expects Strong Fourth Quarter
Seoul also announced a KRW 20 billion share buyback to increase shareholder value for shareholders who have patiently waited for Seoul Viosyss March initial public offering for many years.
Seoul Semiconductor Co., Ltd. (“Seoul”) (KOSDAQ 046890), a leading global innovator of LED products and technology, announced KRW 331 billion of consolidated revenue for the third quarter and operating profit of KRW 25 billion. Seoul also announced a KRW 20 billion share buyback to increase shareholder value for shareholders who have patiently waited for Seoul Viosys’s March initial public offering for many years. Based on September 30th share price of Seoul Viosys, the IPO translates to KRW 196 billion gain in book value compared to its initial purchase price.
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The world’s first 2nd generation LED technologies of Seoul Semiconductor (Graphic: Business Wire)
The package-less WICOP, the world’s first technology to directly mount LED chips onto a substrate is a slim and thin solution widely used in automotive headlamps and LCD backlights and has expanded application to Mini and Micro LEDs. This WICOP was the main driver of the record breaking third quarter results.
During the third quarter, display backlights and automotive lightings revenues increased significantly supported by Seoul’s capability to offer stable supply to customers with patent protected LEDs from its four manufacturing sites across Korea, the USA, Vietnam and China. Many customers who were heavily dependent on Chinese competitors experienced supply disruptions. Customers' decision to diversify sourcing partners and the recent exit of smaller sized LED players who lack competitiveness have also led to Seoul’s better than expected revenues. Noticeable changes in the LED pricing are also positively affecting Seoul’s profits where patents are becoming more important as Seoul continues to win IP lawsuits against numerous competitors.
Considering macro and FX uncertainties, Seoul is conservatively guided for the fourth quarter revenues to be between KRW 300 billion and 320 billion, increasing 7% - 14% on a year-on-year basis.
About Seoul Semiconductor
Seoul Semiconductor is the world’s second-largest global LED manufacturer, a ranking excluding the captive market, and has more than 10,000 patents. Based on a differentiated product portfolio, Seoul offers a wide range of technologies, and mass produces innovative LED products for indoor and outdoor lighting, automotive, IT products, such as mobile phone, computer displays, and other applications, as well as the UV area. The company’s world’s first development and mass production products are becoming the LED industry standard and leading the global market with a package-free LED, WICOP; a high-voltage AC-driven LED, Acrich; an LED with 10X the output of a conventional LED, nPola; a cutting edge ultraviolet clean technology LED, Violeds; an all direction light emitting technology, filament LED; a natural spectrum LED, SunLike; and more. For more information, please visit www.seoulsemicon.com/en.
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