Now moving on to our financial results, on page seven – page three, revenue in the first quarter was KRW6.6 trillion down 6% quarter-on-quarter. The demand was strong compared to traditional seasonality, however, delay in the differentiated products and new model development schedule resulted in manufacturing capacity decline. This resulted in 4% shipment decline compared to the previous quarter.
After panel prices dropped slightly in the all the months, it remained stable throughout the quarter. Operating loss increased to KRW178 billion and operating margin to minus 3%, while EBITDA margin remained stable at 13%. Net income was minus KRW129 billion.
Moving on to slide four looking at our financial position and ratios. Cash and cash equivalents rose by KRW60 billion to KRW2.4 trillion. Inventory was maintained at its highest level at KRW2.2 trillion. Debt level rose slightly, recording a net debt to equity ratio of 29%.
Moving on to slide five, looking at our cash flow, cash at the beginning of the quarter was KRW2.3 trillion. Cash flow from operating activities resulted in cash inflow of KRW656 billion. Cash flow from investing activities resulted in an outflow of KRW1.3 trillion. And cash flow from financing activities resulted in an inflow of KRW677 billion. As a result, the net change in cash was inflow of KRW60 billion.Moving on to our shipment and ASP on slide six. Looking at our shipments, it decreased by 4% quarter-on-quarter, recording 8.1 million square meters. This is due to the temporary capacity allocation for the development of differentiated products and new developments. ASP based on LCD module price remained flat at a slight decline all in the quarter. And it recorded $669 in first quarter, a 2% quarter-on-quarter decrease. Moving onto our product mix on slide seven. In first quarter, TV product mix is 47%, Monitor 21%, Notebook 15%, Tablet 5%, Mobile 12%. New tablet PC shipments in the first quarters suffered a temporarily delay in production, which reduced the revenue portion in first quarter. However, as the normal shipping is to begin in the second quarter, the revenue percentage is expected to rise back to the previous level. Read the rest of this transcript for free on seekingalpha.com