Universal Display has announced 2nd quarter 2017 financials results ended June 30, 2017.
Total revenue increased 59% to US$102.5 million in the second quarter, compared with US$64.4 million in the second quarter of 2016, driven by higher material sales as well as royalty and license fees.
Revenue from material sales increased 110% to US$46.8 million in the second quarter, compared with US$22.3 million in the second quarter of 2016, due to an increase in phosphorescent emitter sales.
Revenue from royalty and license fees increased 28% to US$53.7 million in the second quarter, compared with US$42.0 million in the second quarter of 2016.
Operating income increased by US$26.5 million to US$60.5 million in the second quarter, compared with US$34.0 million in the second quarter of 2016.
Net income increased by US$25.4 million to US$47.2 million or $0.99 per diluted share in the second quarter, compared with US$21.8 million or US$0.46 per diluted share in the second quarter of 2016.
2017 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 $285 million to $300 million for fiscal 2017.
Dividend
The Company also announced a third quarter cash dividend of $0.03 per share on the Company’s common stock. The dividend is payable on September 30, 2017, to all shareholders of record as of the close of business on September 15, 2017.
The Company's balance sheet remained strong, with cash and cash equivalents and short-term investments of US$368.0 million as of June 30, 2017.
| Universal Display reports financial results for Q2 2017 (US$ ,000) |
2017 Q2 |
2016 Q2 |
2017 H1 |
2016 H1 |
|---|---|---|---|---|
| Revenue - Materials | 46,828 | 22,315 | 93,465 | 46,619 |
| Revenue - Royalty and licences | 53,667 | 42,018 | 60,692 | 47,360 |
| Revenue - Contract research services | 2,018 | 59 | 3,922 | 116 |
| Operating expenses | 30.684 | 30,364 | 62,205 | 46,704 |
| Net (loss) Income | 47,187 | 21,802 | 57,552 | 23,751 |
| Net result per share - basic($) | 0.99 | 0.46 | 1.21 | 0.51 |
"We are pleased to report solid year-over-year growth across the board, leading to record revenues and earnings."
“Our outstanding performance stems from over two decades of consistently investing in our pioneering technology, scaling our critical mass, and streamlining our operational flexibility from invention, to pilot, to mass production, in addition to a vibrant growing OLED market. Through these twenty-plus years, we have accumulated a robust wealth of knowledge and know-how, expanded our extensive IP matrix, and built-up our R&D prowess to innovate, develop and deliver leading-edge materials and technologies to our growing customer base."
"With the OLED revolution gaining strength, our momentum is growing as well. With our tremendous experience, steadfast focus on execution, and expanding product portfolio of new OLED materials and technologies, we believe that we are well-positioned to leverage the vast opportunities in this flourishing market to drive profitable growth and deliver the most energy-efficient, high performance and cost-effective emissive layer solutions to our customers and partners."
Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display