Universal Display Corp announced financial results for the first quarter ended March 31, 2017.
Total revenue increased 87% to US$55.6 million in the first quarter, compared with US$29.7 million in the first quarter of 2016 driven by higher material sales as well as royalty and license fees.
Revenue from material sales increased 92% to US$46.6 million in the first quarter, compared with US$24.3 million in the first quarter of 2016 and increased 60% sequentially from US$29.2 million in the fourth quarter of 2016, due to an increase in phosphorescent emitter sales.
Revenue from royalty and license fees increased 32% to US$7.0 million in the first quarter, compared with US$5.3 million in the first quarter of 2016.
Operating income increased by US$9.6 million to US$12.1 million in the first quarter, compared with US$2.5 million in the first quarter of 2016.
Net income increased by US$8.5 million to US$10.4 million or US$0.22 per diluted share in the first quarter, compared with US$1.9 million or US$0.04 per diluted share in the first quarter of 2016.
The Company's balance sheet remained strong, with cash and cash equivalents and investments of US$383 million as of March 31, 2017.
| Universal Display reports financial results for Q1 2017 (US$ ,000) |
2017 Q1 |
2016 Q1 |
|---|---|---|
| Revenue - Materials | 46,637 | 24,304 |
| Revenue - Royalty and licences | 7,025 | 5,324 |
| Revenue - Contract research services | 1,904 | 57 |
| Operating expenses | 30,521 | 22,105 |
| Net (loss) Income | 10,365 | 2,870 |
| Net result per share - basic($) | 0.22 | 0.04 |
2017 Guidance
The OLED industry is still at a stage where many factors can have a material impact on its growth. The Company now has sufficient visibility into its potential future financial performance for this year to estimate 2017 revenues to at least be US$260 million to US$280 million.
Dividend
The Company also announced a second quarter cash dividend of $0.03 per share on the Company’s common stock. The dividend is payable on June 30, 2017, to all shareholders of record as of the close of business on June 15, 2017.
Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display, said, "We are pleased to report excellent first quarter results across the board, including record emitter sales." Sidney added, "It is an exciting time for the OLED industry. We are encouraged by the momentum that we are seeing from our customers as well as from the supply chain that supports the OLED ecosystem. With customers’ mounting investments in new manufacturing capacity and the development of an array of new display and lighting products, we expect our growth trajectory to be positive for the foreseeable future."
Sidney, continued, "As we look forward, we believe that the OLED industry is poised to grow faster than earlier expectations this year. We are therefore raising our 2017 revenue guidance range to at least $260 million to $280 million, reflecting year-over-year growth of 30% to 40%. Additionally, we are pleased to announce that the Board of Directors approved a second quarter dividend of US$0.03 per share."