Universal Display announces fourth quarter and full year 2017 financial results

Universal Display expects industry capacity growth to take a bit of a breather this year as panel makers build the framework for the next wave of high volume OLED production, which is expected to ramp next year

26 Feb 2018 | Editor

Universal Display Corp. has announced its results for the fourth quarter and year ended December 31 2017

For the full year 2017, Total revenue increased 69% to US$335.6 million in the full year, compared with US$198.9 million in the full year of 2016, driven by higher material sales as well as royalty and license fees. Revenue from material sales increased 102% to US$200.3 million in the full year, compared with US$99.3 million in the full year of 2016. Revenue from royalty and license fees increased 32% to US$126.5 million in the full year, compared with US$96.1 million in the full year of 2016. Operating income increased by US$77.8 million to US$146.2 million in the full year, compared with US$68.4 million in the full year of 2016. Net income increased by US$55.8 million to US$103.9 million or US$2.18 per diluted share in the full year, compared with US$48.1 million or US$1.02 per diluted share in the full year of 2016. Excluding the effects of the Tax Cuts and Jobs Act income tax expense of US$11.5 million, net income was US$115.4 million or US$2.43 per diluted share for the full year of 2017.

Universal Display reports financial results for Q4 2016 (US$ ,000)	2017 Full year	2016 Full year	2017 Q4	2016 Q4
Revenue - Materials	200,259	99,285	59,753	29,201
Revenue - Royalty and licences	126,503	96,132	53,798	43,563
Revenue - Contract research services	8,867	3,469	2,316	1,813
Revenue - Total	335,629	198,886	115,867	74,577
Operating expenses	134,684	104,185	41,051	30,724
Net (loss) Income	130,885	48,070	32,813	25,819
Net result per share - basic($)	2.18	1.02	0.69	0.55

"We are pleased to report stellar fourth quarter and full-year results"

"From record-high revenues, to a multitude of new agreements and new OLED consumer electronic products, to approximately doubling our production capabilities at PPG Industries, 2017 was filled with tremendous growth. The dynamic OLED market is growing, and as a key innovation partner to the world’s leading OLED display and lighting manufacturers, we believe that we are well-positioned to participate in the vast opportunities ahead."

"We are excited and confident of our upward trajectory in this multi-year OLED capex growth cycle. After an extraordinary year-and-a-half of new capacity installs, we expect industry capacity growth to take a bit of a breather this year as panel makers build the framework for the next wave of high volume OLED production, which is expected to ramp next year. 2019 is poised to be a meaningful year of growth. Based on current production timelines, we estimate the installed capacity base, as measured in square meters, will increase by approximately 50% over the next two years."

Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display

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 $350 million to $380 million for fiscal 2018.

About Universal Display Corp

Universal Display Corporation is a leader in developing and delivering state-of-the-art, organic light emitting diode (OLED) technologies, materials and services to the display and lighting industries. Founded in 1994, the Company currently owns or has exclusive, co-exclusive or sole license rights with respect to more than 3,000 issued and pending patents worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED phosphorescent OLED technology, that can enable the development of low power and eco-friendly displays and white lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training.

Based in Ewing, New Jersey, with international offices in Ireland, South Korea, Hong Kong, Japan and Taiwan, Universal Display works and partners with a network of world-class organizations, including Princeton University, the University of Southern California, the University of Michigan, and PPG Industries, Inc. The Company has also established relationships with companies such as AU Optronics Corporation, DuPont Displays, Inc., Innolux Corporation, Kaneka Corporation, Konica Minolta Technology Center, Inc., LG Display Co., Ltd., Lumiotec, Inc., Moser Baer Technologies Inc., Panasonic Idemitsu OLED Lighting Co., Pioneer Corporation, Samsung Display Co., Ltd., Sony Corporation, Showa Denko K.K., and Tohoku Pioneer Corporation.

Source: Universal Display Corp