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Wednesday, 26 Apr 2017

Universal Display announces financial results for first quarter 2016

Commercial emitter revenues grew 8% year-over-year, driven by strong green emitter shipments, while host material sales, in line with expectations, declined year-over-year

5 May 2015 | Editor

Universal Display Corp announced financial results for the first quarter ended March 31, 2016. The Company reported revenues of US$29.7 million, compared to revenues of US$31.2 million in the same quarter of 2015.

Material sales were US$24.3 million, down 9% compared to the first quarter of 2015, primarily due to a US$5.0 million decrease in host material sales. This decline was partially offset by an increase of US$2.5 million in emitter material sales. Royalty and license fees were US$5.3 million, up from US$4.4 million in the first quarter of 2015.

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 2016, the Company expects to recognise US$75 million in SDC licensing revenues for the full year.

The Company reported operating income of US$2.5 million, up from US$1.8 million for the first quarter of 2015. Operating expenses were US$27.2 million, compared to US$29.5 million in the same quarter of 2015. Cost of materials was US$5.1 million, compared to US$8.6 million in the first quarter of 2015, reflecting the decline in host material sales volume, which have less favourable margins than the Company's emitter materials.

The Company's balance sheet remained strong, with cash and cash equivalents and investments of US$395.7 million as of March 31, 2016.

Universal Display reports financial results
for Q1 2016 (US$ ,000)
2016
Q1
2015
Q1
Revenue - Materials 24,304 26,818
Revenue - Royalty and licences 5,324 4,375
Revenue - Technology dev 57 30
Operating expenses 27,157 29,452
Net (loss) Income 2,870 1,932
Net result per share - basic($) 0.04 0.03

Guidance

The Company's 2016 guidance remains unchanged. With the OLED industry still at an early state where many variables can have a material impact on its growth, the Company continues to believe that its 2016 revenues will increase 15% year-over-year, plus or minus 5%, as compared to 2015.

Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display, said, "In the first quarter, our commercial emitter revenues grew 8% year-over-year, primarily driven by strong green emitter shipments. Royalty and license fees increased by 22%. Host material sales, in line with expectations, declined year-over-year."
Sidney added, "The OLED landscape continues to expand. New OLED products are launching, capacity is building, equipment bookings are increasing and the pipeline of OLED design activities is broadening. With OLED display penetration at only about 10% of the total consumer electronic display market, new applications like automotive, virtual reality, augmented reality and signage emerging and OLED lighting transitioning from development stage to commercial, we believe that our long-term growth trajectory remains strong."

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 3,600 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 Display Co., Ltd., Lumiotec, Inc., OLEDWorks LLC., OSRAM, Pioneer Corporation, Samsung Display Co., Ltd., Sumitomo Chemical Company, Ltd. and Tohoku Pioneer Corporation.

Source: Universal Display Corp


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