Osram’s Q1’23 Results, Anticipates Subdued Demand Trends and Seasonal Effects in Q2’23

Osram, the German electronics manufacturer, has reported that it will continue to invest significantly in the development and industrialization of its MicroLED technology, which features the smallest structure size in the industry. The company is committed to realizing high-volume manufacturing of this next-generation display technology in its new 8” wafer LED front-end fab in Malaysia. These efforts are expected to remain a key area of research and development spending and investment for the company.

Q1’23 (EUR millions)Q4’22 (EUR millions)QoQQ1’22 (EUR millions)YoYQ1’23 (USD millions)Q4’22 (USD millions)Q1’22 (USD millions)
Gross margin adj.1)29.30%28.50%#ERROR!33.10%-380 bps32.23%31.35%36.41%
Operating income 5086-42%126-60%$55$95$138
Operating margin5.40%7.30%-190 bps10.10%-470 bps5.94%8.03%11.11%
Net result 629-81%102-95%$7$32$112

Osram’s investment in the LED and display technology aspects of its business comes amid difficult market conditions, with demand for certain products remaining unfavorable due to macro-economic trends. Despite these challenges, the company remains optimistic about the future and is confident that its investments in the development of next-generation technologies will pay off in the long-term.