Operating Profit of 4 Billion Won in Q2
Seoul Semiconductor, the world's third-largest LED company, has succeeded in turning a profit after eight quarters. Earlier this year, the company expressed confidence that the lawsuit filed in Europe against Amazon, the world's largest retailer, regarding the prohibition of sales and claims for damages due to smart lighting technology patent infringement, will be resolved well.
On the 12th, Lee Jung-hoon, CEO of Seoul Semiconductor, said at a press conference held at the Korea Exchange in Yeouido, Seoul, "Amazon has stated that they respect Seoul Semiconductor's patents and will conduct an internal review," expressing this position.
The patents Seoul Semiconductor filed a lawsuit over at the Unified Patent Court (UPC) in Europe include solution technologies for setting LED lighting brightness and color according to time, and heat-dissipating LED package technology. The UPC's decision is effective in 17 European countries, including Germany, France, and Italy.
On the same day, Seoul Semiconductor announced that it recorded an operating profit of 4 billion KRW in the second quarter. This is the first profit in eight quarters since the third quarter of 2022 (operating loss of 9.2 billion KRW). Sales increased by 10.9% during the same period to 283 billion KRW. The operating profit margin rose by 2.2 percentage points to 1.4%.
A Seoul Semiconductor official said, "Despite global economic uncertainties and domestic market stagnation, growth in high-profit automotive sector sales and efforts to reduce costs through focused research and development (R&D) have been effective in achieving a turnaround to profitability."
The EBITDA margin, a cash generation indicator, rose by 1.9 percentage points from the previous quarter to about 10%. The company explained that this means it has established a structure for generating substantial profits.
A Seoul Semiconductor official said, "The expected sales for the third quarter are 290 to 310 billion KRW, an increase of 6% compared to the same period last year," adding, "We will continue to strive for profit generation."
Seoul Viosys, a company specializing in optoelectronic devices, also announced its second-quarter results on the same day. Seoul Viosys's consolidated operating profit for the second quarter was 6.3 billion KRW, an increase of 144.2% compared to the same period last year. Sales amounted to 188.3 billion KRW, up 56.5% during the same period.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
