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© bdriver dreamstime.com Business | August 01, 2017

Seoul Semi with revenue increase

Seoul Semiconductor reported second quarter revenues of KRW 267 billion (EUR 202 million) and operating profit of KRW 24.1 billion (EUR 18.2 million) increase 14.9 percent and 144.9 percent YoY respectively.
For the lighting division, while the differentiated product such as Wicop and Acrich increased in great proportion, automotive exterior lamps, e.g. daytime running lights and headlights continued their fast-paced growth. Automotive lighting is an area of high entry barriers due to high technology requirements and intellectual properties. Seoul expects to gain further market share with its differentiated Wicop technology. For the IT division, current customers expanding their product line-ups and new customer acquisitions were the main drivers for the rising sales figures.

To improve share price stability and increase shareholder value, Seoul announced plans to almost double its future dividends, based on the fact that its current level of pay-out is half the industry average and an increase up to the industry average is necessary. In addition, the company has sufficient cash generation capabilities since it has booked above 20 percent gains in EBITDA, leaving sufficient funds available for future investments. This was part of Seoul’s last quarter’s announcement to execute a KRW 10 billion share buyback program, a fiscal announcement states.

Company outlook

The company has provided revenue guidance of KRW 260 to 280 billion (EUR 197 - 212 million) for the third quarter. The company plans to further strengthen its sales and marketing activities for its unique technologies including Acrich and Wicop and focus on acquiring more customers to reach new heights with respect to earnings.
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*KRW 1 = EUR 0.00076

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December 13 2017 10:15 PM V8.9.2-1