Seoul Viosys' Q3 revenue hits a record high, with UV LED revenue up by double digits year-on-year (YoY)

Seoul Viosys (KOSDAQ: 092190) recently announced its financial results for the third quarter of 2020, with consolidated revenue of KRW 120.7 billion (approximately RMB 711 million), a Year-on-year (YoY) increase of 33% and a quarter-on-quarter increase of 17%; operating profit was KRW 9.5 billion (approximately RMB 56 million).

Seoul Viosys stated that this quarter it achieved the highest quarterly revenue since its establishment.

By business segment, the proportion of high value-added products such as WICOP (a packaging-free LED technology) in visible light LEDs has gradually increased, resulting in double-digit growth both year-on-year and quarter-on-quarter. Currently, WICOP is used in automotive headlights and LCD backlights due to its lightweight, thin, and simple characteristics, but it will become a core technology for Mini and Micro LED in the future.

UV LED revenue increased by triple digits Year-on-year (YoY), continuing the growth trend. As global awareness of virus protection continues to rise and market demand for finding the best Solution to effectively protect people's daily lives in clean environments increases, Violeds' revenue is steadily growing.

In addition to revenue, profit margins also improved significantly. Through company-wide cost innovation initiatives and comprehensive management and control of various costs, selling and administrative expenses decreased by 19% Year-on-year (YoY) and 26% quarter-on-quarter. As a result, operating profit in the third quarter reached KRW 9.5 billion, an increase of 256% compared to the same period last year.

The financial performance in the third quarter also showed a steady improvement trend following the first and second quarters, with financial stability strengthening.

Meanwhile, considering external uncertainties, Seoul Viosys announced conservative revenue guidance for the fourth quarter at KRW 110 billion to KRW 120 billion, flat compared to the third quarter and representing a 20% to 31% year-on-year increase.

Seoul Viosys is a provider of comprehensive solutions for UV LED, VCSEL (Vertical-Cavity Surface-Emitting Laser), next-generation 3D sensors and laser light sources, as well as single-pixel RGB "micro clean pixels" for displays. Founded in 2002 as a subsidiary of Seoul Semiconductor, its flagship product is the Violeds UV LED technology.