Sunday, 22 Sep 2019

Universal Display announces financial results for first quarter 2015

Revenues down due to lower material sales down 5% sequentially and down 24% compared to the first quarter of 2014, due to a decrease in host material volume

9 May 2015 | Editor

Universal Display Corp announced financial results for the first quarter ended March 31, 2015. For the first quarter of 2015, the Company reported net income of US$1.3 million, on revenues of US$31.2 million, compared to net income of $4.0 million, on revenues of US$37.8 million for the first quarter of 2014.

Material sales were down 5% sequentially and down 24% compared to the first quarter of 2014, primarily due to a decrease in host material volume. Royalty and license fees were up from the first quarter of 2014.

No revenue was recognised under the Samsung Display (SDC) licensing agreement in the first quarter, as SDC is obligated to make licensing payments in the second and fourth quarters of the year. For 2015, the Company expects to recognise US$60 million in SDC licensing revenues for the full year.

Royalty revenue was also not recognised under the new LG Display (LGD) licensing and royalty agreement in the first quarter of 2015, as these revenues are recognised one quarter in arrears when the royalty amount is reported.

The Company's balance sheet remained strong, with cash and cash equivalents and short-term investments of US$328.5 million as of March 31, 2015. During the first quarter, the Company generated US$47.0 million in operating cash flow, mainly stemming from the receipt of upfront license fees, prepaid royalties and milestone payments. These resulted in working capital increasing to US$367.9 million at the end of the quarter.

Universal Display reports financial results
for Q1 2015 (US$ ,000)
Revenue - Materials 26,818 35,327
Revenue - Royalty and licences 4,375 1,779
Revenue - Technology dev 30 733
Operating expenses 29,452 31,211
Net (loss) Income 1,932 6,628
Net result per share - basic($) 0.03 0.09


The Company's 2015 guidance remains unchanged. With the OLED industry still at a stage where many variables can have a material impact on its growth, Universal Display continues to expect its 2015 revenues to be approximately US$200 million, with a downside range of approximately 5% and an upside potential of approximately 15%.

Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display, said, "During the first quarter, we saw the introduction of new OLED displays, including flagship products from our top customers, which led to higher volumes of our red and green emitters sold, offset by volume pricing discounts. The quarter also reflected the continued downward trend of host sales, consistent with our expectations. As the year progresses, we expect the continued proliferation of OLED adoption in the marketplace to drive revenue growth in the second half of this year."
Sidney added, "The broadening of the OLED display product portfolio from flexibles and wearables, including smartwatches, to high-end smartphones, mid-end smartphones, high-end tablets, Full HD and 4K TVs, exemplifies the growing breadth of the OLED display market opportunity. On the lighting front, developmental activity continues to flourish as efficacy rates and lifetimes increase. Broadly speaking, we believe that OLED technology can provide the design freedom for display and lighting makers to dramatically alter the consumer and illumination landscape, and create differentiated, high-performing, energy-efficient, innovative products."


About Universal Display Corp

Universal Display Corporation (Nasdaq: OLED) is a leader in developing and delivering state-of-the-art, organic light emitting diode (OLED) technologies, materials and services to the display and lighting industries. Founded in 1994, the Company currently owns or has exclusive, co-exclusive or sole license rights with respect to more than 3,500 issued and pending patents worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED phosphorescent OLED technology, that can enable the development of low power and eco-friendly displays and white lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training.

Based in Ewing, New Jersey, with international offices in Ireland, South Korea, Hong Kong, Japan and Taiwan, Universal Display works and partners with a network of world-class organizations, including Princeton University, the University of Southern California, the University of Michigan, and PPG Industries, Inc.

The Company has also established relationships with companies such as AU Optronics Corporation, BOE Technology, DuPont Displays, Inc., Innolux Corporation, Kaneka Corporation, Konica Minolta Technology Center, Inc., LG Chem Ltd., LG Display Co., Ltd., Lumiotec, Inc., OLEDWorks LLC., Philips Technologie GmbH, Pioneer Corporation, Samsung Display Co., Ltd., Sumitomo Chemical Company, Ltd. and Tohoku Pioneer Corporation.

Source: Universal Display Corp

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