Universal Display Corporation Announces Second Quarter 2017 Financial Results | Business Wire

EWING, N.J.–()– (Nasdaq: OLED), enabling energy-efficient

displays and lighting with its UniversalPHOLED®

technology and materials, today reported financial results for the

second quarter ended June 30, 2017.

“we're pleased to report solid year-over-year growth across the board,

leading to record revenues and earnings,” said Sidney D. Rosenblatt,

Executive Vice President and Chief Financial Officer of Universal

Display. “Our outstanding performance stems from over two decades of

consistently investing in our pioneering technology, scaling our

critical mass. 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've

accumulated a robust wealth of knowledge and know-how, expanded our

extensive IP matrix. Built-up our R&D prowess to innovate, develop

and deliver leading-edge materials and technologies to our growing

customer base.”

Rosenblatt continued, “With the OLED revolution gaining strength, our

momentum is growing as well. With our tremendous experience, steadfast

focus on execution. Expanding product portfolio of new OLED

materials and technologies, we believe that we're 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.”

Financial Highlights for the Second Quarter of

2017

  • Total revenue increased 59% to $102.5 million in the second quarter,

    compared with $64.4 million in the second quarter of 2016, driven by

    higher material sales as well as royalty and licence fees.

  • Revenue from material sales increased 110% to $46.8 million in the

    second quarter, compared with $22.3 million in the second quarter of

    2016, due to an increase in phosphorescent emitter sales.

  • Revenue from royalty and licence fees increased 28% to $53.7 million

    in the second quarter, compared with $42.0 million in the second

    quarter of 2016.

  • Operating income increased by $26.5 million to $60.5 million in the

    second quarter, compared with $34.0 million in the second quarter of

    2016.

  • Net income increased by $25.4 million to $47.2 million or $0.99 per

    diluted share in the second quarter, compared with $21.8 million or

    $0.46 per diluted share in the second quarter of 2016.

Financial Highlights for the First Half of 2017

  • Total revenue increased 68% to $158.1 million in the first half,

    compared with $94.1 million in the first half of 2016, driven by

    higher material sales as well as royalty and licence fees.

  • Revenue from material sales increased 101% to $93.5 million in the

    first half, compared with $46.6 million in the first half of 2016, due

    to an increase in phosphorescent emitter sales.

  • Revenue from royalty and licence fees increased 28% to $60.7 million

    in the first half, compared with $47.4 million in the first half of

    2016.

  • Operating income increased by $35.9 million to $72.6 million in the

    first half, compared with $36.7 million in the first half of 2016.

  • Net income increased by $33.8 million to $57.6 million or $1.21 per

    diluted share in the first half, compared with $23.8 million or $0.51

    per diluted share in the first half 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. 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.

Conference Call Information

In conjunction with this release, Universal Display will host a

conference call on Thursday, August 3, 2017 at 5:00 p.m. Eastern Time.

The live webcast of the conference call can be accessed under the events

page of the Company’s Investor Relations website at ir.oled.com.

Those wishing to participate in the live call should dial 1-800-449-5865

(toll-free) or 1-719-457-2088. Reference conference ID 7036849.

Please dial in 5-10 minutes prior to the scheduled conference call time.

An online archive of the webcast will be available within two hours of

the conclusion of the call.

About Universal Display Corporation

Universal Display Corporation (Nasdaq: OLED) 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 licence rights with respect to more than

4,200 issued and pending patents worldwide. Universal Display licences

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 solid-state

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.

Headquartered in Ewing, New Jersey, with international offices in China,

Hong Kong, Ireland, Japan, South Korea. Taiwan. Wholly-owned

subsidiary Adesis, Inc. based in New Castle, Delaware, Universal Display

works and partners with a network of world-class organizations,

including Princeton University, the University of Southern California,

the University of Michigan. PPG Industries, Inc. The Company has

also established relationships with companies such as AU Optronics

Corporation, BOE Technology, DuPont Displays, Inc., Innolux Corporation,

Japan Display Inc., Kaneka Corporation, Konica Minolta Technology

Centre, Inc., LG Display Co., Ltd., Lumiotec, Inc., OLEDWorks LLC,

OSRAM, Pioneer Corporation, Samsung Display Co., Ltd., Sumitomo Chemical

Company, Ltd., Tianma Micro-electronics and Tohoku Pioneer Corporation.

To learn more about Universal Display Corporation, please visit http://www.oled.com.

Universal Display Corporation and the Universal Display Corporation logo

are trademarks or registered trademarks of Universal Display

Corporation. All other company, brand or product names may be trademarks

or registered trademarks.

All statements in this document that aren't historical, such as

those relating to Universal Display Corporation’s technologies and

potential applications of those technologies, the Company’s expected

results and future declaration of dividends, as well as the growth of

the OLED market and the Company’s opportunities in that market, are

forward-looking financial statements within the meaning of the Private

Securities Litigation Reform Act of 1995. You're cautioned not to place

undue reliance on any forward-looking statements in this document, as

they reflect Universal Display Corporation’s current views with respect

to future events and are subject to risks and uncertainties that could

cause actual results to differ materially from those contemplated. These

risks and uncertainties are discussed in greater detail in Universal

Display Corporation’s periodic reports on Form 10-K and Form 10-Q filed

with the Securities and Exchange Commision, including, in particular,

the section entitled “Risk Factors” in Universal Display Corporation’s

annual report on Form 10-K for the year ended December 31, 2016.

Universal Display Corporation disclaims any obligation to update any

forward-looking statement contained in this document.

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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

(Unaudited)

 

 

June 30, 2017

 

December 31, 2016

 

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

109,438

$

139,365

Short-term investments

256,117

188,644

Accounts receivable

39,702

24,994

Inventory

24,437

17,314

Deferred income taxes

8,661

Other current assets

 

7,191

 

 

6,392

 

Total current assets

436,885

385,370

PROPERTY AND EQUIPMENT, net of accumulated depreciation of $34,409

and $32,167

38,691

27,203

ACQUIRED TECHNOLOGY, net of accumulated amortisation of $81,013

and $70,714

141,828

152,127

OTHER INTANGIBLE ASSETS, net of accumulated amortisation of $1,303

and $615

15,537

16,225

GOODWILL

15,535

15,535

INVESTMENTS

14,775

14,960

DEFERRED INCOME TAXES

44,067

15,832

OTHER ASSETS

 

317

 

 

307

 

TOTAL ASSETS

$

707,635

 

$

627,559

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

17,772

$

8,112

Accrued expenses

12,442

19,845

Deferred revenue

10,061

10,282

Other current liabilities

 

1,146

 

 

1,967

 

Total current liabilities

41,421

40,206

DEFERRED REVENUE

27,174

31,322

RETIREMENT PLAN BENEFIT LIABILITY

 

31,228

 

 

27,563

 

Total liabilities

 

99,823

 

 

99,091

 

SHAREHOLDERS’ EQUITY:

Prefered Stock, par value $0.01 per share, 5,000,000 shares

authorized, 200,000 shares of Series A Nonconvertible Prefered

Stock issued and outstanding (liquidation value of $7.50 per share

or $1,500)

2

2

Common Stock, par value $0.01 per share, 100,000,000 shares

authorized, 48,444,492 and 48,270,990 shares issued. 47,086,629

and 46,913,127 shares outstanding, at June 30, 2017 and December 31,

2016, respectively

484

483

Additional paid-in capital

603,438

604,364

Retained earnings (accumulated deficit)

55,617

(25,557

)

Accumulated other comprehensive loss

(11,571

)

(10,666

)

Treasury stock, at cost (1,357,863 shares at June 30, 2017 and

December 31, 2016)

 

(40,158

)

 

(40,158

)

Total shareholders’ equity

 

607,812

 

 

528,468

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

707,635

 

$

627,559