Seoul Viosys Co., Ltd. (“Seoul”) (KOSDAQ:092190), a leading compound semiconductor solution provider, today announced KRW 103 billion for revenue and operating profit of KRW 6 billion for the second quarter. This is the first time that the company has achieved revenue of over KRW 100 billion in the second quarter since its establishment.
Total revenue in the second quarter increased by 15% year on year and 19% quarter on quarter. Revenue from visible LEDs increased by double digit quarter on quarter. UV LED revenue showed triple-digit quarter on quarter growth as the market demand for Violeds technology dramatically increased after it has proved to be the world’s first UV LED technology to sterilize new coronaviruses and the company has started to ship Violeds products to global top-tier customers.
There is a meaningful change in profitability. The proportion of high value-added products such as UV LEDs gradually increased, and profits of SETi, the US subsidiary and the Vietnam subsidiary improved. Additionally, the stable LED market price across the industry served as a positive factor. Operating margin increased by 124% quarter on quarter to KRW 6 Billion, and EBITDA margin, which represents the ability to generate cash through operating activities, also increased 20% quarter on quarter to KRW 20.8 Billion. As a result, it is expected that CAPEX resources can be stably prepared to respond to increasing market demand in the second half.
Continuous efforts to reduce R&D costs is also remarkable. The ratio of the second quarter R&D investment to sales recorded 9%, finally entering a single digit. Seoul Viosys has secured the second-generation LED patent technologies that will lead the industry for the coming decade, and has over 4,000 patents, including more than 1,000 application patents. The company is gradually reducing the proportion of R&D costs and improving margins via efficient investment decision.
The financial indicators in the second quarter also show steady improvement. The net borrowing rate is 87.8%, down 33.5 percentage points (%P) year on year, and the liquidity ratio is 56%, increasing 15.8 percentage points year on year.
An official from Seoul Viosys said, “Violeds technology is being evaluated as a new optical technology in the bio-industry, as its germicidal ability against various viruses and bacteria that threaten human life has been proven. Seoul Viosys has achieved 50,000 hours of reliability with differentiated technology, and now Violeds technology is becoming a requirement rather than an option.”
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/.