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Thursday, 23 Nov 2017

Universal Display announces third quarter 2017 financial results

During the quarter, momentum in the OLED industry continued to grow, from the launch of new flagship OLED smartphones, to increasing demand for OLED TVs, to announced launch plans for the world’s first foldable OLED display product


6 Nov 2017 | Editor

Universal Display Corp. has reported financial results for the third quarter ended September 30, 2017.

"We are pleased to report another outstanding quarter of solid results,” said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display. “During the quarter, momentum in the OLED industry continued to grow, from the launch of new flagship OLED smartphones, to increasing demand for OLED TVs, to announced launch plans for the world’s first foldable OLED display product. It is exciting to see the consumer market’s broadening embrace of OLEDs in a myriad of products, including wearables, smartphones, IT, automotive, TVs, as well as the emergence of OLED lighting."


"We believe that OLEDs are fast becoming a requirement for the best consumer display products around the world. As a leading enabler in the ecosystem, we believe that our proprietary phosphorescent materials and technologies are key to unlocking the performance, value, and power efficiency of OLEDs."


Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display

Universal Display reports financial results
for Q3 2017 (US$ ,000)
2017
Q3
2016
Q3
2017
9M
2016
9M
Revenue - Materials 47,041 23,465 140,506 70,084
Revenue - Royalty and licences 12,013 5,209 72,705 52,569
Revenue - Technology dev and support 2,629 1,540 6,551 1,656
Revenue - Total 61,683 30,214 219,762 124,309
Total operating expenses 32,428 26,759 93,633 73,461
Net (loss) Income 16,657 (2,503) 90,688 33.216
Net result per share - basic($) 0.28 (0.03) 1.50 0.47

Selected Highlights

Financial Highlights for the Third Quarter of 2017

  • Total revenue increased 104% to $61.7 million in the third quarter, compared with $30.2 million in the third quarter of 2016, driven by higher material sales as well as royalty and license fees.
  • Revenue from material sales increased 100% to $47.0 million in the third quarter, compared with $23.5 million in the third quarter of 2016, due to an increase in phosphorescent emitter sales. *Revenue from royalty and license fees increased 131% to $12.0 million in the third quarter, compared with $5.2 million in the third quarter of 2016.
  • Operating income increased by $18.8 million to $15.8 million in the third quarter, compared with an operating loss of $3.0 million in the third quarter of 2016.
  • Net income increased by $15.0 million to $13.5 million or $0.28 per diluted share in the third quarter, compared with a net loss of $1.5 million or $0.03 per diluted share in the third quarter of 2016.

Financial Highlights for the First Nine Months of 2017

  • Total revenue increased 77% to $219.8 million in the first nine months, compared with $124.3 million in the first nine months of 2016, driven by higher material sales as well as royalty and license fees.
  • Revenue from material sales increased 100% to $140.5 million in the first nine months, compared with $70.1 million in the first nine months of 2016, due to an increase in phosphorescent emitter sales.
  • Revenue from royalty and license fees increased 38% to $72.7 million in the first nine months, compared with $52.6 million in the first nine months of 2016.
  • Operating income increased by $54.7 million to $88.4 million in the first nine months, compared with $33.7 million in the first nine months of 2016.
  • Net income increased by $48.8 million to $71.1 million or $1.49 per diluted share in the first nine months, compared with $22.3 million or $0.47 per diluted share in the first nine months of 2016.

2017 Guidance

Although the OLED industry is still at an early state where many variables can have a material impact on its growth, and the Company thus caveats its financial guidance accordingly, the Company believes that its revenues will be in the range of $310 million to $320 million for fiscal 2017.

Dividend

The Company also announced a fourth quarter cash dividend of $0.03 per share on the Company’s common stock. The dividend is payable on December 29, 2017, to all shareholders of record as of the close of business on December 15, 2017.

www.udcoled.com   


About Universal Display Corp

Universal Display Corporation 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 4,200 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 solid-state 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, China, 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 Display Co., Ltd., Lumiotec, Inc., OLEDWorks LLC, OSRAM, Pioneer Corporation, Samsung Display Co., Ltd., Sumitomo Chemical Company, Ltd., Tianma Micro-electronics and Tohoku Pioneer Corporation.

Source: Universal Display Corp


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