08.04.23
Universal Display reported financial results for the second quarter ended June 30, 2023.
“We are pleased with our solid performance and results in the second quarter. Our full year revenue projections are aligning closely to prior expectations, and we have narrowed our guidance accordingly,” said Brian Millard, VP and CFO of Universal Display.
“The OLED industry continues to lay the groundwork for promising growth in 2024 and beyond as the OLED IT adoption wave is poised to commence,” Millard added. “As a key enabler in the ecosystem, we continue to support the market's growth by leveraging our nearly three decades of innovation and know-how, investing in new and next-generation OLED solutions, and delivering increasing value to our customers.”
Total revenue in the second quarter of 2023 was $146.6 million as compared to $136.6 million in the second quarter of 2022. Revenue from material sales was $77.1 million in the second quarter of 2023 as compared to $71.9 million in the second quarter of 2022. This increase was primarily due to greater sales volumes of emitter material.
Revenue from royalty and license fees was $64.4 million in the second quarter of 2023 as compared to $60.3 million in the second quarter of 2022. This increase was primarily the result of higher sales volume of material.
Total gross margin was 78% in the second quarter of 2023 as compared to 80% in the second quarter of 2022. Shannon facility costs of $3.9 million during the second quarter of 2023 contributed to a 2% decrease in total gross margin between periods. Operating income was $58.6 million in the second quarter of 2023 as compared to $53.3 million in the second quarter of 2022.
Net income was $49.7 million or $1.04 per diluted share in the second quarter of 2023 as compared to $41.5 million or $0.87 per diluted share in the second quarter of 2022.
Total revenue in the first half of 2023 was $277 million as compared to $287 million in the first half of 2022, reflective of lower revenue in the first quarter of the year.
Revenue from material sales was $147.3 million in the first half of 2023 as compared to $158.6 million in the first half of 2022. The decline in material sales revenue was primarily due to reduced sales volumes of material sold during the first quarter of the year. Revenue from royalty and license fees was $119.6 million in the first half of 2023 as compared to $120.1 million in the first half of 2022.
Total gross margin was 76% in the first half of 2023 as compared to 79% in the first half of 2022. Shannon facility costs of $8.6 million and the inventory provision of $4.1 million in 2023 contributed to the 3% decrease in total gross margin between periods.
Operating income was $104 million in the first half of 2023 as compared to $115.6 million in the first half of 2022. Net income was $89.5 million or $1.87 per diluted share in the first half of 2023 compared to $91.5 million or $1.92 per diluted share in the first half of 2022.
“We are pleased with our solid performance and results in the second quarter. Our full year revenue projections are aligning closely to prior expectations, and we have narrowed our guidance accordingly,” said Brian Millard, VP and CFO of Universal Display.
“The OLED industry continues to lay the groundwork for promising growth in 2024 and beyond as the OLED IT adoption wave is poised to commence,” Millard added. “As a key enabler in the ecosystem, we continue to support the market's growth by leveraging our nearly three decades of innovation and know-how, investing in new and next-generation OLED solutions, and delivering increasing value to our customers.”
Total revenue in the second quarter of 2023 was $146.6 million as compared to $136.6 million in the second quarter of 2022. Revenue from material sales was $77.1 million in the second quarter of 2023 as compared to $71.9 million in the second quarter of 2022. This increase was primarily due to greater sales volumes of emitter material.
Revenue from royalty and license fees was $64.4 million in the second quarter of 2023 as compared to $60.3 million in the second quarter of 2022. This increase was primarily the result of higher sales volume of material.
Total gross margin was 78% in the second quarter of 2023 as compared to 80% in the second quarter of 2022. Shannon facility costs of $3.9 million during the second quarter of 2023 contributed to a 2% decrease in total gross margin between periods. Operating income was $58.6 million in the second quarter of 2023 as compared to $53.3 million in the second quarter of 2022.
Net income was $49.7 million or $1.04 per diluted share in the second quarter of 2023 as compared to $41.5 million or $0.87 per diluted share in the second quarter of 2022.
Total revenue in the first half of 2023 was $277 million as compared to $287 million in the first half of 2022, reflective of lower revenue in the first quarter of the year.
Revenue from material sales was $147.3 million in the first half of 2023 as compared to $158.6 million in the first half of 2022. The decline in material sales revenue was primarily due to reduced sales volumes of material sold during the first quarter of the year. Revenue from royalty and license fees was $119.6 million in the first half of 2023 as compared to $120.1 million in the first half of 2022.
Total gross margin was 76% in the first half of 2023 as compared to 79% in the first half of 2022. Shannon facility costs of $8.6 million and the inventory provision of $4.1 million in 2023 contributed to the 3% decrease in total gross margin between periods.
Operating income was $104 million in the first half of 2023 as compared to $115.6 million in the first half of 2022. Net income was $89.5 million or $1.87 per diluted share in the first half of 2023 compared to $91.5 million or $1.92 per diluted share in the first half of 2022.