Seoul Semiconductor Achieves KRW 283.4 Billion in Revenues and KRW 12.0 Billion in Operating Profits for Third Quarter 2019

Seoul Semiconductor Co., Ltd. (KOSDAQ 046890) (“Seoul”), a leading global innovator of LED products and technology, announced consolidated third-quarter revenues of KRW 283.4 billion, operating profit of KRW 12.0 billion, and EBITDA of KRW 32.6 billion. The Company achieved its guided range of KRW 280 billion to KRW 300 billion of revenues for the quarter.

The sales of WICOP products increased by responding to the demand for larger and slimmer screen in the TV market helping offset overall sales decline for the company. However, the sales of general lighting declined year-on-year due to continued weakness in pricing induced by the industry’s high inventory levels carried over from the previous quarters.

The sales of automotive LEDs continued to grow while the overall automotive industry continued to contract. This is largely due to wider adoption of Seoul’s WICOP and nPola technology making inroads into new head-lamp applications. For the past several quarters, the company has actively promoted its package less WICOP for automotive headlamp applications and has gained further traction resulting in global automakers adopting the technology for cars scheduled to be mass produced in next year and in 2021.

The fourth-quarter is generally a slow season for the LED industry. Seoul is expected to deliver similar quarter-on-quarter sales. Seoul provided sales guidance of KRW 270 to 290 billion for the upcoming fourth-quarter suggesting -5%~2% QoQ growth.

“Seoul invests approximately 10% of its revenues in R&D each year, including investment of more than KRW 120 billion in the previous year to focus on technology migration into high-value-added products in order to promptly respond to market changes,” said Sam Ryu, executive vice president of IT sales at Seoul Semiconductor. “We will continue to create value for customers and shareholders by delivering growth as a leading global provider of innovative LED solutions.”

About Seoul Semiconductor

Seoul Semiconductor develops and commercializes LEDs for automotive, general illumination, specialty lighting, and backlighting markets. As the second-largest LED manufacturer globally excluding the captive market, Seoul holds more than 14,000 patents, offers a wide range of technologies, and mass produces innovative LED products such as SunLike – delivering the world’s best light quality in a next-generation LED enabling human-centric lighting optimized for circadian rhythms; WICOP – a simpler structured package-free LED which provides market leading color uniformity and cost savings at the fixture level, providing high lumen density and design flexibility; NanoDriver Series – the world’s smallest 24W DC LED drivers; Acrich, the world’s first high-voltage AC-driven LED technology developed in 2005, including all AC LED-related technologies from chip to module and circuit fabrication, and nPola, a new LED product based on GaN-substrate technology that achieves more than ten times the output of conventional LEDs. For more information, please visit www.seoulsemicon.com/en.

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