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Friday, 21 Sep 2018

Universal Display announces second quarter 2018 financial results

UDC believe 2019 is poised to be a pivotal year for the OLED industry, with the multi-year OLED capex growth cycle of new production lines, and the long-awaited introduction of the world's first foldable OLED


3 Aug 2018 | Editor

Universal Display has announced 2nd quarter 2018 financials results ended June 30, 2018.

Total revenue decreased 37% to US$99.7 million in the first half of 2018, compared with US$158.1 million in the first half of 2017. Total revenue would have been US$141.8 million in the 2018 period, or US$42.1 million higher, without the impact of ASC Topic 606.

Revenue from material sales decreased 34% to US$62.1 million in the first half of 2018, compared with US$93.5 million in the first half of 2017. The Company believes that the decline in material sales was due to weak OLED panel demand resulting from the softness in the premium smartphone market, and material inventory pre-purchases that occurred in 2017.

Revenue from royalty and license fees decreased 48% to US$31.4 million in the first half of 2018, compared with US$60.7 million in the first half of 2017. Revenue from royalty and license fees would have been US$71.0 million in the 2018 period, or US$39.6 million higher without the impact of ASC Topic 606.

Operating income decreased by US$57.2 million to US$15.4 million in the first half of 2018, compared with US$72.6 million in the first half of 2017.

Cost of materials decreased 32% to US$15.0 million in the first half of 2018, compared with US$22.0 million in the first half of 2017.

Net income decreased by US$40.8 million to US$16.8 million or US$0.35 per diluted share in the first half of 2018, compared with US$57.6 million or US$1.21 per diluted share in the first half of 2017.

2018 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 continues to expect that its 2018 revenues will be in the range of US$280 million to US$310 million. The guidance was prepared utilising accounting standard ASC Topic 606; under the prior accounting standard ASC Topic 605, the Company estimates that its 2018 revenues would be approximately 10% to 15% higher than the revenue guidance range.

Dividend

The Company also announced a third quarter cash dividend of US$0.06 per share on the Company’s common stock. The dividend is payable on September 28, 2018 to all shareholders of record on September 15, 2018.

Universal Display reports financial results
for Q2 2018 (US$ ,000)
2018
Q2
2017
Q2
2018
H1
2017
H1
Revenue - Materials 36,833 46,828 62,083 93,465
Revenue - Royalty and licences 15,523 53,667 31,434 60,692
Revenue - Contract research services 3,793 2,018 6,204 3,922
Total Revenue 56,149 102,513 99,721 158,079
Operating expenses 33,603 30.684 65,198 62,205
Net (loss) Income 10,814 47,187 16,773 57,552
Net result per share - basic($) 0.23 0.99 0.35 1.21

"In the second quarter, we saw material sales improving off what we believed to be a first quarter 'bottom' for material shipments."

"With anticipated new OLED product launches from leading OEMs around the world, we continue to expect an additional pick-up in orders and revenues in the second half of the year. As we look to 2019, we continue to anticipate it to be a meaningful year of growth."

"We believe that 2019 is poised to be a pivotal year for the OLED industry. With the multi-year OLED capex growth cycle of new production lines, the landscape of OLED capacity is expected to significantly widen. This, we believe, will drive broader adoption of OLEDs across the consumer electronics market, and fuel substantial growth in the OLED industry. Additionally, we expect the long-awaited introduction of the world’s first foldable OLED product next year to pave the cutting-edge and innovative form factor path. From conformable, to foldable, to rollable, the disruptive and exciting force of OLEDs promises to enlarge the industry with new applications and new markets the imagination has yet to devise."


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

www.oled.com   


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 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.

Headquartered in Ewing, New Jersey, with international offices in China, Hong Kong, Ireland, Japan, South Korea, and Taiwan, and wholly-owned subsidiary Adesis, Inc. based in New Castle, Delaware, 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, Japan Display Inc., 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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