Universal Display Corporation Announces First Quarter 2019 Financial Results

Posted by Universal Display Corporation

Universal Display Corporation, enabling energy-efficient displays and lighting with its UniversalPHOLED technology and materials, today reported financial results for the first quarter ended March 31, 2019.

“We are pleased to report solid first quarter 2019 results,” said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display. “Looking to the year, we continue to see strong momentum in the industry. As seen by leading OEM product launches, OLEDs are the display technology of choice for premium smartphones and TVs. Additionally, one of the major themes emerging in the consumer electronics market is form factor. Driven by a robust pipeline of activity, from both panel makers and end users, we believe that the flexible, foldable display path will lead to a myriad of new products, designs and applications.”

Rosenblatt continued, “2019 marks the 25th anniversary of Universal Display Corporation. In June 1994, we were founded on the mission to develop and commercialize key OLED technologies. Today, we are a leading player enabling the OLED ecosystem, and our proprietary technologies and materials can be found in virtually every consumer OLED product around the world. We believe that the tremendous value of our phosphorescent portfolio has solidified UDC as an integral partner in the commercialization of OLEDs into the marketplace.”

Financial Highlights for the First Quarter of 2019

Effective January 1, 2018, we adopted ASC Topic 606 using the “modified retrospective” approach, meaning the standard was applied only to the financial results commencing with the first quarter of 2018 with a cumulative adjustment to retained earnings. Under this transition method, we applied the standard only to contracts that were not complete at the initial adoption date. Material sales and cost of material sales referenced below relate solely to OLED activity and exclude activity from contract research services.

  • Total revenue in the first quarter of 2019 was $87.8 million as compared to $43.6 million in the first quarter of 2018. On the basis of ASC Topic 605 (the applicable accounting standard prior to the adoption of ASC Topic 606), total revenue in the first quarter of 2019 would have been $101.6 million, compared to $68.2 million in the first quarter of 2018. Under ASC Topic 606, license fee revenue is recognized on a per gram sales basis, whereas under ASC Topic 605, revenue was recognized for license payments upon receipt or on a straight-line basis over the term of the contract.
  • Revenue from material sales was $54.5 million in the first quarter of 2019 as compared to $25.3 million in the first quarter of 2018. On an ASC Topic 605 basis, revenue from material sales in the first quarter of 2019 would have been $57.3 million, compared to $28.7 million in the first quarter of 2018.
  • Revenue from royalty and license fees was $30.3 million in the first quarter of 2019 as compared to $15.9 million in the first quarter of 2018. On an ASC Topic 605 basis, revenue from royalty and license fees in the first quarter of 2019 would have been $41.3 million as compared to $37.1 million in the first quarter of 2018.
  • Cost of materials was $13.0 million in the first quarter of 2019, compared to $5.7 million in the first quarter of 2018.
  • Operating income was $34.4 million in the first quarter of 2019 compared to $4.5 million in the first quarter of 2018. On an ASC Topic 605 basis, operating income in the first quarter of 2019 would have been $48.2 million, compared to $29.2 million in the first quarter of 2018.
  • Net income was $31.5 million or $0.66 per diluted share in the first quarter of 2019 compared to $6.0 million or $0.13 per diluted share in the first quarter of 2018. On an ASC Topic 605 basis, net income in the first quarter of 2019 would have been $42.5 million or $0.90 per diluted share, compared to $25.9 million or $0.55 per diluted share in the first quarter of 2018.

2019 Revised 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 now believes that its 2019 revenue will be approximately in the range of $345 million to $365 million. The guidance was prepared to utilize accounting standard ASC Topic 606; under the prior accounting standard ASC Topic 605, the Company estimates that its 2019 revenues would be approximately $405 million to $425 million.

Dividend

The Company also announced a second quarter cash dividend of $0.10 per share on the Company’s common stock. The dividend is payable on June 28, 2019 to all shareholders of record on June 14, 2019.―TV Veopar Journal Bureau

Share this:

Leave a Reply

Stay Updated on TV Veopar Journal.
Receive our Daily Newsletter.