[Public Notice+] Digital Optics Reports 4.9 Billion KRW Operating Profit Last Year... "Resolution of Management Item Cause"

[Asia Economy Reporter Hyunseok Yoo] Digital Optics announced on the 20th through a public disclosure that its separate annual sales and operating profit for last year were tentatively estimated at 64.6 billion KRW and 4.9 billion KRW, respectively. Sales increased by 10.1% compared to the previous year, and operating profit turned positive. Additionally, the loss from continuing operations before income tax expense on a consolidated basis decreased to about 20.4% of equity, meeting the requirements for removal from the management watchlist.

Digital Optics' removal from the management watchlist will be executed immediately once the auditor's audit report is approved. This comes about one year after being designated as a management watchlist company in February last year. The company explained that this was the result of focusing on improving profitability through yield enhancement and an increase in average selling price (ASP) driven by the expansion of high value-added product sales.

Digital Optics CEO Kwak Yunsik stated, “According to the tentative performance results last year, the reasons for the management watchlist designation have been resolved,” and added, “Having succeeded in securing a long-term profitability base through structural improvement, we will strive to maintain a positive earnings trend this year as well.”

Digital Optics is also optimistic about this year’s performance. Various new smartphone devices incorporating foldable phones and 5G (5th generation mobile communication) are scheduled to be launched within the year, and the global smartphone market is expected to exit its stagnation phase and enter a growth phase. Furthermore, the company anticipates benefits from the projector lens business related to the upcoming “32nd Tokyo Olympics” scheduled for July, as well as from the automotive lens business due to the expected growth of the AVM (Around View Monitoring) market.

Digital Optics’ affiliate, Future Robot, has completed the development of a security robot equipped with vision-based autonomous driving technology and cloud-based remote control and guidance functions, and has delivered units to Yeosu City Hall and Ulju County Office. The company plans to further enhance these functions this year and expand its client base.

CEO Kwak said, “This year, along with external favorable factors, we will further strengthen profitability and also focus on stabilizing our financial condition,” adding, “We are currently in the process of restructuring underperforming subsidiaries.”

This content was produced with the assistance of AI translation services.