[Alpha Biz= Reporter Kim Sangjin] Seoul Semiconductor, a leading company in optoelectronics, has successfully returned to profitability after eight consecutive quarters of losses. The company also expects a positive outlook for the third quarter, raising hopes that it might escape its deficit for the first time in three years.
On August 12, Seoul Semiconductor held an earnings announcement at the Korea Exchange in Yeouido, revealing provisional results for Q2 2024. The company reported sales of 283 billion won and an operating profit of 4 billion won for the second quarter.
The Q2 revenue represents an 11% increase compared to the same period last year. The operating profit marks a turnaround from seven consecutive quarters of losses following a third-quarter loss in 2022 of 9.2 billion won. The operating profit margin for Q2 2024 stood at 1.4%, a 2.2 percentage point increase from the previous year.
Seoul Semiconductor attributed the profitability to growth in its high-margin automotive sector and ongoing research and development (R&D) efforts.
Looking ahead, Seoul Semiconductor projects Q3 revenue to be between 290 billion and 310 billion won, reflecting a 6% year-on-year increase. This forecast has led to speculation about the company’s potential to achieve an annual profit for the first time in three years. In 2022 and 2023, Seoul Semiconductor reported operating losses of 33.4 billion won and 48.2 billion won, respectively.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
