DigitalOptic Accelerates Co-Growth of Existing and New Businesses... "Confident to Escape Management Status This Year"

[Asia Economy Reporter Yoo Hyun-seok] Digital Optic announced on the 25th that it is expected to surpass last year's performance in the first quarter, driven by the strong performance of its new bio business related to transport kits. This has turned on a green light for the company to exit the management status this year.

Digital Optic signed an exclusive global distribution contract with its largest shareholder, Noble Bio, guaranteeing sales of over 720 billion KRW and confirmed operating profit of 72 billion KRW over three years for COVID-19 specimen transport kits, achieving sales of 8 billion KRW in January alone. Including its core business, total sales reached 10 billion KRW.

Additionally, to fully enter the U.S. market, Digital Optic signed a strategic business agreement (MOU) with the U.S.-based Livingston Group and plans to expand manufacturing facilities and obtain approvals related to COVID-19 specimen transport kits to supply across the United States. This is expected to further expand sales related to the new bio business.

Due to the impact of COVID-19 last year and the overall stagnation in the mobile phone industry, Digital Optic's sales decreased by about half compared to 2019. The company explained that by accelerating the high sales and profitability bio new business recently, first-quarter sales this year are expected to exceed last year's total sales.

A company official stated, "Although there are concerns about being designated as a management item due to capital erosion and deficits, the existing lens business is expected to maintain last year's level, and sales of 240 billion KRW and operating profit of 20 billion KRW are assured in the bio new business," adding, "Based on this, we expect to surpass last year's performance in the first quarter, taking a step closer to exiting the management status."

He continued, "Furthermore, with the capital increase funds from the new largest shareholder, Noble Bio, issues related to capital erosion will be completely resolved," and added, "We plan to continuously and actively communicate with the market to dispel concerns about designation as a management item in the future."