11.09.15
Universal Display Corporation reported financial results for the third quarter ended Sept, 30, 2015.
For the third quarter of 2015, the company reported net income of $7.0 million, or $0.15 per diluted share, on revenues of $39.4 million, compared to net income of $4.3 million, or $0.09 per diluted share, on revenues of $32.9 million for the third quarter of 2014.
“We are pleased to report strong revenues, operating income and earnings in the third quarter as demand increased from customers, due to higher fab utilization rates and new capacity coming online,” said Sidney D. Rosenblatt, EVP and CFO of Universal Display. “Overall, we are encouraged by the robust global OLED pipeline, from leading panel manufacturers investing in additional OLED capacity to deliver bright, thin, beautiful, high resolution displays to consumers on a broader scale to OEMs around the world designing OLED panels into their new consumer electronic products. As OLED innovation progresses with new form factors such as flexible, transparent and rollable, and the commercialization of OLED technology continues in the marketplace with a deepening product roadmap, it is an exciting time to be part of this expansive growth journey called the ‘OLED Revolution.’”
Revenues for the third quarter of 2015 were $39.4 million, compared to revenues of $32.9 million for the same quarter of 2014. Material sales were $34.1 million, up 24% compared to the third quarter of 2014, primarily due to an $11.3 million increase in emitter material sales, partially offset by a $4.6 million decline in host material sales. Royalty and license fees were $5.2 million, compared to $5.4 million in the third quarter of 2014.
No revenue was recognized under the Samsung Display Co., Ltd. (SDC) licensing agreement in the third quarter, as SDC is obligated to make licensing payments in the second and fourth quarters of the year. For 2015, the company expects to recognize $60 million in SDC licensing revenue for the full year.
The company reported operating income of $8.4 million in the third quarter of 2015, up 38% compared to operating income of $6.1 million for the third quarter of 2014. The company’s balance sheet remained strong, with cash and cash equivalents and short-term investments of $361.5 million as of Sept. 30, 2015.
Revenues for the first nine months of 2015 were $128.7 million, compared to $134.9 million for the first nine months of 2014. Material sales were $85.3 million, down 14% from $98.7 million compared to the first nine months of 2014, primarily due to a $23.7 million decline in host material sales, partially offset by a $10.2 million increase in emitter material sales. Royalty and license fees were $43.3 million, up 23% from $35.2 million in the first nine months of 2014.
The company reported operating income of $5.7 million in the first nine months of 2015, compared to $41.5 million for the first nine months of 2014. The 2015 figures include a $33.0 million write-down of inventory taken in the second quarter. Excluding the write-down, non-GAAP operating income was $38.7 million. For the first nine months of 2015, the company reported a net loss of $3.4 million, or $0.07 per diluted share, compared to net income of $28.7 million, or $0.61 per diluted share, for the same period of 2014. Non-GAAP net income was $26.6 million, or $0.57 per diluted share for the first nine months of 2015.
Operating cash flow for the first nine months of 2015 was $80.6 million, an increase of 329% compared to $18.8 million for the first nine months of 2014.
With the OLED industry still at a stage where many variables can have a material impact on its growth, Universal Display continues to expect its 2015 revenues to be approximately $200 million, and is narrowing the upside and downside potential range to +/-3%.
For the third quarter of 2015, the company reported net income of $7.0 million, or $0.15 per diluted share, on revenues of $39.4 million, compared to net income of $4.3 million, or $0.09 per diluted share, on revenues of $32.9 million for the third quarter of 2014.
“We are pleased to report strong revenues, operating income and earnings in the third quarter as demand increased from customers, due to higher fab utilization rates and new capacity coming online,” said Sidney D. Rosenblatt, EVP and CFO of Universal Display. “Overall, we are encouraged by the robust global OLED pipeline, from leading panel manufacturers investing in additional OLED capacity to deliver bright, thin, beautiful, high resolution displays to consumers on a broader scale to OEMs around the world designing OLED panels into their new consumer electronic products. As OLED innovation progresses with new form factors such as flexible, transparent and rollable, and the commercialization of OLED technology continues in the marketplace with a deepening product roadmap, it is an exciting time to be part of this expansive growth journey called the ‘OLED Revolution.’”
Revenues for the third quarter of 2015 were $39.4 million, compared to revenues of $32.9 million for the same quarter of 2014. Material sales were $34.1 million, up 24% compared to the third quarter of 2014, primarily due to an $11.3 million increase in emitter material sales, partially offset by a $4.6 million decline in host material sales. Royalty and license fees were $5.2 million, compared to $5.4 million in the third quarter of 2014.
No revenue was recognized under the Samsung Display Co., Ltd. (SDC) licensing agreement in the third quarter, as SDC is obligated to make licensing payments in the second and fourth quarters of the year. For 2015, the company expects to recognize $60 million in SDC licensing revenue for the full year.
The company reported operating income of $8.4 million in the third quarter of 2015, up 38% compared to operating income of $6.1 million for the third quarter of 2014. The company’s balance sheet remained strong, with cash and cash equivalents and short-term investments of $361.5 million as of Sept. 30, 2015.
Revenues for the first nine months of 2015 were $128.7 million, compared to $134.9 million for the first nine months of 2014. Material sales were $85.3 million, down 14% from $98.7 million compared to the first nine months of 2014, primarily due to a $23.7 million decline in host material sales, partially offset by a $10.2 million increase in emitter material sales. Royalty and license fees were $43.3 million, up 23% from $35.2 million in the first nine months of 2014.
The company reported operating income of $5.7 million in the first nine months of 2015, compared to $41.5 million for the first nine months of 2014. The 2015 figures include a $33.0 million write-down of inventory taken in the second quarter. Excluding the write-down, non-GAAP operating income was $38.7 million. For the first nine months of 2015, the company reported a net loss of $3.4 million, or $0.07 per diluted share, compared to net income of $28.7 million, or $0.61 per diluted share, for the same period of 2014. Non-GAAP net income was $26.6 million, or $0.57 per diluted share for the first nine months of 2015.
Operating cash flow for the first nine months of 2015 was $80.6 million, an increase of 329% compared to $18.8 million for the first nine months of 2014.
With the OLED industry still at a stage where many variables can have a material impact on its growth, Universal Display continues to expect its 2015 revenues to be approximately $200 million, and is narrowing the upside and downside potential range to +/-3%.