Samsung Electronics has reported its first-quarter financial results. The company made an operating profit of 6.7 trillion Korean won ($5.9 billion) on revenue of 49.8 trillion won ($43.7 billion). Operating profit was up 12% over the same time a year ago, and revenue increased 5.7%. The company slightly beat its own guidance of 49 trillion KRW in revenue and 6.6 trillion KRW in profit.
The company said its Galaxy S7 and S7 Edge smartphones led its earnings growth, thanks to an early launch and strong sales of those products. Samsung also said its IT and Mobile Communications Division improved its cost efficiency by simplifying its lower-end smartphone product lineup.
Samsung claimed that its semiconductor business made up for a soft seasonal demand for memory products by moving more "high value-added products" and lowering costs by migrating to new technologies for its production of DRAM and NAND chips.
The company's display panel business saw a drop in earnings, thanks to what Samsung describes as "a sharp decline in LCD panel earnings." The success of the Galaxy S7 smartphones helped the company move more OLED panels, though. Samsung says its LCD production experienced "temporary yield issues while adopting new process technology," and its earnings also weren't helped by a reported TV panel price decline.
Samsung says it expects a rosy second quarter spearheaded by continued strength in its mobile device and semiconductor businesses, along with improvements in the results of its consumer electronics and display panel businesses.