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Friday, 28 Jul 2017

Universal Display announces fourth quarter and full year 2015 financial results

Fourth quarter results were less-than-anticipated, primarily due to year-end inventory management by customers and product mix weighing more to our lower priced emitters

25 Feb 2016 | Editor

Universal Display Corp. has announced its results for the fourth quarter and year ended December 31 2015

For the full year 2015, the Company reported revenues of US$191.0 million, essentially flat compared to the prior year. Operating income decreased to US$32.3 million for the year, down 45% from US$58.6 million for 2014. The Company reported net income of US$14.7 million, or US$0.31 per diluted share, for the full year 2015, compared to net income of US$41.9 million, or US$0.90 per diluted share, for 2014. The 2015 net income figure reflects a US$33.0 million write-down of inventory in the second quarter, primarily of an existing host material and associated work-in-process, resulting from a customer's faster than-expected reduction in demand for this material.

Universal Display reports financial results
for Q4 2015 (US$ ,000)
2015
Full year
2014
Full year
2015
Q4
2014
Q4
Revenue - Materials 113,066 126,885 27,796 28,139
Revenue - Royalty and licences 77,773 63,192 34,441 27,992
Revenue - Technology dev 207 954 75 42
Operating expenses 158,770 132,411 35,692 39,098
Net (loss) Income 14,678 41,854 18,088 13,126
Net result per share - basic($) 0.31 0.90 0.39 0.29

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

  • Our fourth quarter results were less-than-anticipated, which we believe was primarily due to year-end inventory management by our customers and product mix weighing more to our lower priced emitters
  • As we have noted in the past, short-term forecasting in this emerging OLED market environment is difficult, even though we are confident that this is a long-term growth market
  • While 2015 revenues were flat year-over-year, we are pleased to report that our commercial emitter sales increased 16% and our royalty and licensing revenues grew 23% year-over-year
  • We also generated $113.6 million of cash from operations, more than doubling 2014's operating cash flow of $47.3 million
  • We believe that 2016 is poised to be a year in which the OLED industry builds meaningful new capacity for the continued proliferation of OLEDs in the marketplace
  • This groundwork is paving the foundation for the next wave of expansion in OLED mass production, which we believe is set to commence in 2017
  • As noted by a number of companies in the ecosystem, the OLED design pipeline is growing robustly, and we anticipate that this will drive new capacity plans for 2017, 2018 and beyond
  • As a key enabler and partner in the OLED industry, we expect these capacity plans to result in new revenue opportunities, and overall, a positive growth trajectory for the industry

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 2016 revenues will increase 15% year-over-year, plus or minus 5%, as compared to 2015.

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 3,000 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, DuPont Displays, Inc., Innolux Corporation, Kaneka Corporation, Konica Minolta Technology Center, Inc., LG Display Co., Ltd., Lumiotec, Inc., Moser Baer Technologies Inc., Panasonic Idemitsu OLED Lighting Co., Pioneer Corporation, Samsung Display Co., Ltd., Sony Corporation, Showa Denko K.K., and Tohoku Pioneer Corporation.

Source: Universal Display Corp


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