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.
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/.