Universal Display Corp. has reported financial results for the third quarter ended September 30, 2017.
"We are pleased to report another outstanding quarter of solid results,” said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display. “During the quarter, momentum in the OLED industry continued to grow, from the launch of new flagship OLED smartphones, to increasing demand for OLED TVs, to announced launch plans for the world’s first foldable OLED display product. It is exciting to see the consumer market’s broadening embrace of OLEDs in a myriad of products, including wearables, smartphones, IT, automotive, TVs, as well as the emergence of OLED lighting."
"We believe that OLEDs are fast becoming a requirement for the best consumer display products around the world. As a leading enabler in the ecosystem, we believe that our proprietary phosphorescent materials and technologies are key to unlocking the performance, value, and power efficiency of OLEDs."
Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display
| Universal Display reports financial results for Q3 2017 (US$ ,000) |
2017 Q3 |
2016 Q3 |
2017 9M |
2016 9M |
|---|---|---|---|---|
| Revenue - Materials | 47,041 | 23,465 | 140,506 | 70,084 |
| Revenue - Royalty and licences | 12,013 | 5,209 | 72,705 | 52,569 |
| Revenue - Technology dev and support | 2,629 | 1,540 | 6,551 | 1,656 |
| Revenue - Total | 61,683 | 30,214 | 219,762 | 124,309 |
| Total operating expenses | 32,428 | 26,759 | 93,633 | 73,461 |
| Net (loss) Income | 16,657 | (2,503) | 90,688 | 33.216 |
| Net result per share - basic($) | 0.28 | (0.03) | 1.50 | 0.47 |
Selected Highlights
Financial Highlights for the Third Quarter of 2017
- Total revenue increased 104% to $61.7 million in the third quarter, compared with $30.2 million in the third quarter of 2016, driven by higher material sales as well as royalty and license fees.
- Revenue from material sales increased 100% to $47.0 million in the third quarter, compared with $23.5 million in the third quarter of 2016, due to an increase in phosphorescent emitter sales. *Revenue from royalty and license fees increased 131% to $12.0 million in the third quarter, compared with $5.2 million in the third quarter of 2016.
- Operating income increased by $18.8 million to $15.8 million in the third quarter, compared with an operating loss of $3.0 million in the third quarter of 2016.
- Net income increased by $15.0 million to $13.5 million or $0.28 per diluted share in the third quarter, compared with a net loss of $1.5 million or $0.03 per diluted share in the third quarter of 2016.
Financial Highlights for the First Nine Months of 2017
- Total revenue increased 77% to $219.8 million in the first nine months, compared with $124.3 million in the first nine months of 2016, driven by higher material sales as well as royalty and license fees.
- Revenue from material sales increased 100% to $140.5 million in the first nine months, compared with $70.1 million in the first nine months of 2016, due to an increase in phosphorescent emitter sales.
- Revenue from royalty and license fees increased 38% to $72.7 million in the first nine months, compared with $52.6 million in the first nine months of 2016.
- Operating income increased by $54.7 million to $88.4 million in the first nine months, compared with $33.7 million in the first nine months of 2016.
- Net income increased by $48.8 million to $71.1 million or $1.49 per diluted share in the first nine months, compared with $22.3 million or $0.47 per diluted share in the first nine months 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 $310 million to $320 million for fiscal 2017.
Dividend
The Company also announced a fourth quarter cash dividend of $0.03 per share on the Company’s common stock. The dividend is payable on December 29, 2017, to all shareholders of record as of the close of business on December 15, 2017.