Seoul Semiconductor Co., Ltd. based in Ansan, South Korea, reported consolidated second-quarter revenues of 290 billion KRW (about USD $260 million) meeting its guided range of 280 ~ 300 billion KRW (about USD $250 to $270 million). During the second-quarter, TV division sales rose significantly compared to the same period last year, and the company expects to maintain the growth in the third-quarter.
Seoul expects mobile division sales to rise significantly in the upcoming third and fourth quarters leading to continued growth of sales for its IT division, which has maintained its high growth rate since 2017. The company also posted strong growth in Automotive lighting sales across all regions. Seoul also reported that foreign car makers adopted its WICOP technology for automotive headlamp applications for cars scheduled to be mass produced in next year and in 2021.
The company expects to ramp up production from its new manufacturing plant in Vietnam to gain increased stability leading to higher production capacity utilization rate in the third-quarter to meet high seasonal demand and lead to enhanced profitability.
Seoul provided sales guidance of 300 to 320 billion KRW for the upcoming third-quarter ($270 million to $280 million) maintaining its growth compared to the same quarter last year and the total growth for the first three quarters compared to the first three quarters of the previous year.
Sangbum Kim, Chief Financial Officer, stated that the company was able to achieve sales growth in this quarter despite of low seasonality and Seoul expects to continue to grow in sales throughout the remainder of the year as sales of its differentiated products such as the SunLike, Wicop and Acrich lead to improved utilization. Also, Seoul anticipates that its new Vietnam plant will contribute to higher utilization once fully set up, thereby giving the company the opportunity to beat last year’s record sales.