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.