Universal Display Corp. has announced its results for the fourth quarter and year ended December 31 2016
For the full year 2016, the Company reported revenue of US$198.9 million, up from US$191.0 million for 2015, primarily driven by higher royalty and license fees and contract research services revenue from our recently completed acquisition, partially offset by lower revenue from commercial material sales. The Company posted operating income of US$68.4 million for the year and net income of US$48.1 million. These results compare to operating income of US$32.3 million and net income of US$14.7 million for 2015. The 2015 net income figure includes a US$33.0 million write-down of inventory in the second quarter, primarily of an existing host material and associated work-in-process, resulting from a customer’s faster-than-expected reduction in demand for this material.
| Universal Display reports financial results for Q4 2016 (US$ ,000) |
2016 Full year |
2015 Full year |
2016 Q4 |
2015 Q4 |
|---|---|---|---|---|
| Revenue - Materials | 99,285 | 126,885 | 29,201 | 27,796 |
| Revenue - Royalty and licences | 96,132 | 77,773 | 43,563 | 34,441 |
| Revenue - Contract research services | 3,469 | 207 | 1,813 | 75 |
| Revenue - Total | 198,886 | 191,046 | 74,577 | 62,312 |
| Operating expenses | 104,185 | 95,773 | 30,724 | 27,607 |
| Net (loss) Income | 48,070 | 14,678 | 25,819 | 18,088 |
| Net result per share - basic($) | 1.02 | 0.31 | 0.55 | 0.39 |
Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display, said:
- In the fourth quarter, total emitter sales increased 25% sequentially, the adoption of next-generation emitters commenced, and with the robust activity for new UniversalPHOLED materials in the pipeline
- We embarked on our next expansion phase with PPG Industries to double our phosphorescent emitter production capacity
- Looking forward, we see extremely positive momentum in our business and believe that we are well positioned to capture the tremendous opportunities in front of us
- With our bustling customer pipeline, we have broadened and further increased the depth of our R&D team to respond to the exciting challenges and opportunities in the marketplace for today and tomorrow
- We have the innovation, commitment to operational excellence, agility and flexibility to drive the invention and development of the best OLED technologies and phosphorescent materials for our customers and partners worldwide
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 US$230 million to US$250 million for fiscal 2017.
Dividends
The Company also announced a cash dividend of $0.03 per share on the Company’s common stock. The dividend is payable on March 31, 2017, to all shareholders of record as of the close of business on March 15, 2017.