LG Innotek posts record Q1 revenue on strong camera module sales

LG Innotek CI

LG Innotek Co. delivered record first-quarter revenue despite a seasonal slowdown.

The company announced in a regulatory filing on Monday that its revenue reached 5.54 trillion won ($3.75 billion) in the first quarter, up 11.1 percent from a year ago. Its operating profit stood at 295.3 billion won, up 136 percent during the same period.

Typically, LG Innotek’s first-quarter performance tends to be weaker than other quarters because its largest revenue contributor – the camera module business – usually slows during the smartphone off-season.

However, this year, solid performance in the camera module segment helped the company deliver strong results even in the first quarter. Revenue from this segment reached 4.6 trillion won, up 11.4 percent on year.

The company’s fast-growing package solution business also saw significant growth, recording revenue of 437.1 billion won, up 16 percent from a year earlier.

Demand for high-value semiconductor substrates for communications remained firm despite the seasonal lull, while shipments of advanced substrates such as flip-chip ball grid array (FC-BGA), used in high-performance memory, continued to increase.

The company said that FC-BGA sales are increasing mainly in PC-related products, while it is also pushing to supply high-end products for artificial intelligence (AI) and servers in line with market demand.

“We are expanding semiconductor substrate production capacity to meet rapidly growing demand amid the semiconductor boom,” said Kyung Eun-kuk, chief financial officer of LG Innotek.