EWING, N.J.--(BUSINESS WIRE)--
Universal
Display Corporation (Nasdaq: OLED), enabling energy-efficient
displays and lighting with its UniversalPHOLED® technology
and materials, today reported financial results for the third quarter
and nine months ended September 30, 2016.
For the third quarter of 2016, the Company reported a net loss of $1.5
million, or $0.03 per diluted share, on revenues of $30.2 million. 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.
“Our third quarter 2016 results were in line with our expectations for
the year. As we noted last quarter, while our revenue growth
expectations have been delayed until 2017, this year has continued to be
a meaningful year to build and prepare for that future growth. Leading
panel makers are building capacity for the next wave of high volume OLED
production to begin ramping next year, OEMs are building new OLED
product roadmaps, and we are building our infrastructure to meet the
growing needs of our expanding customer base,” said Sidney D.
Rosenblatt, Executive Vice President and Chief Financial Officer of
Universal Display.
Rosenblatt continued, “As we anticipate resuming our growth trajectory
in 2017, we continue to build up our core competencies. The display and
lighting industries are evolving, and we believe we are well positioned
to continue to play a pivotal role in the OLED market’s future. We have
expanded our global footprint, increased our headcount to approximately
200 employees, bolstered our IP portfolio to over 4,200 issued and
pending patents worldwide, and continue to broaden our rich portfolio of
proprietary OLED technologies and phosphorescent materials. These
investments, in addition to our other strategic initiatives, buttress
our committed path of continuous innovation and next-generation
solutions, our strong leadership position in the OLED ecosystem, and our
confidence in the long-term growth path of OLEDs.”
Financial Highlights for the Third Quarter of
2016
The Company reported revenues of $30.2 million, compared to revenues of
$39.4 million for the same quarter of 2015. Material sales were $23.5
million, compared to $34.1 million in the third quarter of 2015,
reflecting an $8.4 million decline in emitter sales, principally due to
increased customer production efficiencies and product mix, and a $2.3
million decline in host material sales. Royalty and license fees were
$5.2 million, unchanged from the third quarter of 2015. Technology
development and support revenues were $1.5 million, compared to $0.1
million in the third quarter of 2015. The increase was due to customer
sales from the recently acquired Adesis subsidiary.
The Company reported an operating loss of $3.0 million in the third
quarter of 2016, compared to operating income of $8.4 million for the
third quarter of 2015. Operating expenses were $33.2 million, compared
to $31.0 million in the third quarter of 2015, and cost of materials was
$6.5 million, compared to $7.2 million in the third quarter of 2015. The
increase in operating expenses was mainly due to an increase of $2.7
million in amortization charges associated with the acquisition of the
BASF OLED patents and the Adesis business acquisition.
The Company’s balance sheet remained strong, with cash and cash
equivalents and investments of $301.1 million as of September 30, 2016.
During the third quarter, the Company added $32.0 million in intangible
assets in the form of customer relationships, internally developed IP,
trade names and certain other assets with the Adesis business
acquisition. During the third quarter, the Company generated $4.1
million in operating cash flow.
Financial Highlights for the First Nine Months
of 2016
The Company reported revenues of $124.3 million during the nine months
ended September 30, 2016, compared to revenues of $128.7 million for the
same period of 2015. Material sales were $70.1 million, compared to
$85.3 million in the first nine months of 2015, primarily due to a $9.3
million decline in host sales. Royalty and license fees were $52.6
million, up from $43.3 million in the first nine months of 2015.
Technology development and support revenues were $1.7 million, compared
to $0.1 million for the first nine months of 2015, the increase
primarily due to customer sales from the recently acquired Adesis
subsidiary.
The Company reported operating income of $33.7 million for the first
nine months of 2016, compared to operating income of $5.3 million for
the first nine months of 2015. Excluding the inventory write-down of
$33.0 million taken in the second quarter of 2015, adjusted operating
income was $38.3 million for the first nine months of 2015. For the
first nine months of 2016, the Company reported net income of $22.3
million, or $0.47 per diluted share, compared to a net loss of $3.4
million, or $0.07 per diluted share, for the same period of 2015.
Excluding the inventory write-down, and the associated $3.0 million
reduction of income tax expense, adjusted 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 2016 was $40.3 million,
compared to $80.6 million for the first nine months of 2015. Operating
cash flow for the first nine months of 2015 included an upfront $42.0
million license and royalty payment.
2016 Guidance
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
2016 revenues to be in the range of $190 million to $200 million.
Conference Call Information
In conjunction with this release, Universal Display will host a
conference call on Thursday, November 3, 2016 at 5:00 p.m. Eastern Time.
The live webcast of the conference call can be accessed under the events
portion of the Company's website. Those wishing to participate in the
live call should dial 1-877-852-6576 (toll-free) or 1-719-325-4823, and
reference conference ID 8357856. 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 license rights with respect to more than
4,200 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 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.
Based in Ewing, New Jersey, with international offices in Ireland, South
Korea, China, 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, BOE Technology, DuPont Displays, Inc., Innolux Corporation,
Kaneka Corporation, Konica Minolta Technology Center, 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, please visit http://www.oled.com.
Universal Display Corporation and the Universal Display 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 are not historical, such as
those relating to Universal Display Corporation’s technologies and
potential applications of those technologies, the Company’s expected
results 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 are 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 Commission, 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, 2015.
Universal Display Corporation disclaims any obligation to update any
forward-looking statement contained in this document.
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(OLED-C)
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
ASSETS
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
54,416
|
|
|
$
|
97,513
|
|
Short-term investments
|
|
|
231,452
|
|
|
|
297,981
|
|
Accounts receivable
|
|
|
22,476
|
|
|
|
24,729
|
|
Inventory
|
|
|
16,103
|
|
|
|
12,748
|
|
Deferred income taxes
|
|
|
10,084
|
|
|
|
12,326
|
|
Other current assets
|
|
|
7,499
|
|
|
|
2,387
|
|
Total current assets
|
|
|
342,030
|
|
|
|
447,684
|
|
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $30,899
and $27,897
|
|
|
25,768
|
|
|
|
22,407
|
|
ACQUIRED TECHNOLOGY, net of accumulated amortization of $65,565 and
$54,837
|
|
|
157,276
|
|
|
|
72,015
|
|
OTHER INTANGIBLE ASSETS, net of accumulated amortization of $311 and
none
|
|
|
16,139
|
|
|
|
—
|
|
GOODWILL
|
|
|
15,548
|
|
|
|
—
|
|
INVESTMENTS
|
|
|
15,217
|
|
|
|
2,187
|
|
DEFERRED INCOME TAXES
|
|
|
12,352
|
|
|
|
14,945
|
|
OTHER ASSETS
|
|
|
423
|
|
|
|
174
|
|
TOTAL ASSETS
|
|
$
|
584,753
|
|
|
$
|
559,412
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
5,544
|
|
|
$
|
6,849
|
|
Accrued expenses
|
|
|
13,190
|
|
|
|
17,387
|
|
Deferred revenue
|
|
|
10,211
|
|
|
|
10,107
|
|
Other current liabilities
|
|
|
1,672
|
|
|
|
167
|
|
Total current liabilities
|
|
|
30,617
|
|
|
|
34,510
|
|
DEFERRED REVENUE
|
|
|
33,454
|
|
|
|
35,543
|
|
RETIREMENT PLAN BENEFIT LIABILITY
|
|
|
24,865
|
|
|
|
22,594
|
|
Total liabilities
|
|
|
88,936
|
|
|
|
92,647
|
|
SHAREHOLDERS’ EQUITY:
|
|
|
|
|
|
|
Preferred Stock, par value $0.01 per share, 5,000,000 shares
authorized, 200,000 shares of Series A Nonconvertible Preferred
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, 48,314,591 and 48,132,223 shares issued, and
46,956,728 and 46,774,360 shares outstanding at September 30, 2016
and December 31, 2015, respectively
|
|
|
483
|
|
|
|
482
|
|
Additional paid-in capital
|
|
|
596,453
|
|
|
|
589,885
|
|
Accumulated deficit
|
|
|
(51,376
|
)
|
|
|
(73,627
|
)
|
Accumulated other comprehensive loss
|
|
|
(9,587
|
)
|
|
|
(9,819
|
)
|
Treasury stock, at cost (1,357,863 shares at September 30, 2016 and
December 31, 2015)
|
|
|
(40,158
|
)
|
|
|
(40,158
|
)
|
Total shareholders’ equity
|
|
|
495,817
|
|
|
|
466,765
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
584,753
|
|
|
$
|
559,412
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(UNAUDITED)
|
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Material sales
|
|
$
|
23,465
|
|
|
$
|
34,128
|
|
|
$
|
70,084
|
|
|
$
|
85,270
|
|
Royalty and license fees
|
|
|
5,209
|
|
|
|
5,224
|
|
|
|
52,569
|
|
|
|
43,332
|
|
Technology development and support revenue
|
|
|
1,540
|
|
|
|
67
|
|
|
|
1,656
|
|
|
|
132
|
|
Total revenue
|
|
|
30,214
|
|
|
|
39,419
|
|
|
|
124,309
|
|
|
|
128,734
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of material sales
|
|
|
6,458
|
|
|
|
7,246
|
|
|
|
17,194
|
|
|
|
54,913
|
|
Research and development
|
|
|
10,118
|
|
|
|
11,434
|
|
|
|
31,562
|
|
|
|
32,000
|
|
Selling, general and administrative
|
|
|
8,465
|
|
|
|
7,224
|
|
|
|
22,728
|
|
|
|
20,487
|
|
Patent costs and amortization of acquired technology and other
intangible assets
|
|
|
7,361
|
|
|
|
4,032
|
|
|
|
15,515
|
|
|
|
12,461
|
|
Royalty and license expense
|
|
|
815
|
|
|
|
1,105
|
|
|
|
3,656
|
|
|
|
3,563
|
|
Total operating expenses
|
|
|
33,217
|
|
|
|
31,041
|
|
|
|
90,655
|
|
|
|
123,424
|
|
Operating (loss) income
|
|
|
(3,003
|
)
|
|
|
8,378
|
|
|
|
33,654
|
|
|
|
5,310
|
|
INTEREST INCOME
|
|
|
573
|
|
|
|
232
|
|
|
|
1,565
|
|
|
|
593
|
|
INTEREST EXPENSE
|
|
|
(5
|
)
|
|
|
(7
|
)
|
|
|
(21
|
)
|
|
|
(31
|
)
|
OTHER (EXPENSE) INCOME
|
|
|
(68
|
)
|
|
|
(16
|
)
|
|
|
(1,982
|
)
|
|
|
342
|
|
INCOME (LOSS) BEFORE INCOME TAXES
|
|
|
(2,503
|
)
|
|
|
8,587
|
|
|
|
33,216
|
|
|
|
6,214
|
|
INCOME TAX BENEFIT (EXPENSE)
|
|
|
1,003
|
|
|
|
(1,540
|
)
|
|
|
(10,965
|
)
|
|
|
(9,624
|
)
|
NET INCOME (LOSS)
|
|
$
|
(1,500
|
)
|
|
$
|
7,047
|
|
|
$
|
22,251
|
|
|
$
|
(3,410
|
)
|
NET INCOME (LOSS) PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
$
|
(0.03
|
)
|
|
$
|
0.15
|
|
|
$
|
0.47
|
|
|
$
|
(0.07
|
)
|
DILUTED
|
|
$
|
(0.03
|
)
|
|
$
|
0.15
|
|
|
$
|
0.47
|
|
|
$
|
(0.07
|
)
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME (LOSS) PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
46,947,621
|
|
|
|
46,542,556
|
|
|
|
46,889,913
|
|
|
|
46,241,578
|
|
DILUTED
|
|
|
46,947,621
|
|
|
|
46,723,373
|
|
|
|
47,015,262
|
|
|
|
46,241,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
(in thousands)
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2016
|
|
2015
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
22,251
|
|
|
$
|
(3,410
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
Amortization of deferred revenue
|
|
|
(5,281
|
)
|
|
|
(7,031
|
)
|
Depreciation
|
|
|
3,002
|
|
|
|
2,223
|
|
Amortization of intangibles
|
|
|
11,039
|
|
|
|
8,249
|
|
Inventory write-down
|
|
|
—
|
|
|
|
33,000
|
|
Amortization of premium and discount on investments, net
|
|
|
(1,316
|
)
|
|
|
(479
|
)
|
Stock-based compensation to employees
|
|
|
8,231
|
|
|
|
6,759
|
|
Stock-based compensation to Board of Directors and Scientific
Advisory Board
|
|
|
1,273
|
|
|
|
818
|
|
Deferred income tax benefit
|
|
|
4,726
|
|
|
|
4,291
|
|
Retirement plan benefit expense
|
|
|
3,004
|
|
|
|
2,433
|
|
Decrease (increase) in assets, net of effect of acquisition:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
3,723
|
|
|
|
(6,275
|
)
|
Inventory
|
|
|
(3,249
|
)
|
|
|
(9,579
|
)
|
Other current assets
|
|
|
(4,977
|
)
|
|
|
(167
|
)
|
Other assets
|
|
|
(249
|
)
|
|
|
193
|
|
Increase (decrease) in liabilities, net of effect of acquisition:
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
(5,134
|
)
|
|
|
1,192
|
|
Other current liabilities
|
|
|
(5
|
)
|
|
|
(7
|
)
|
Deferred revenue
|
|
|
3,296
|
|
|
|
48,411
|
|
Net cash provided by operating activities
|
|
|
40,334
|
|
|
|
80,621
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(4,361
|
)
|
|
|
(4,650
|
)
|
Purchase of intangibles
|
|
|
(95,989
|
)
|
|
|
—
|
|
Purchase of business, net of cash acquired
|
|
|
(33,163
|
)
|
|
|
—
|
|
Purchases of investments
|
|
|
(380,260
|
)
|
|
|
(453,672
|
)
|
Proceeds from sale of investments
|
|
|
434,683
|
|
|
|
425,660
|
|
Net cash used in investing activities
|
|
|
(79,090
|
)
|
|
|
(32,662
|
)
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
317
|
|
|
|
263
|
|
Proceeds from the exercise of common stock options
|
|
|
182
|
|
|
|
1,629
|
|
Payment of withholding taxes related to stock-based compensation to
employees
|
|
|
(4,840
|
)
|
|
|
(5,313
|
)
|
Net cash used in financing activities
|
|
|
(4,341
|
)
|
|
|
(3,421
|
)
|
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(43,097
|
)
|
|
|
44,538
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
97,513
|
|
|
|
45,418
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
54,416
|
|
|
$
|
89,956
|
|
The following non-cash activities occurred:
|
|
|
|
|
|
|
Unrealized loss on available-for-sale securities
|
|
$
|
256
|
|
|
$
|
9
|
|
Common stock issued to Board of Directors and Scientific Advisory
Board that was earned and accrued for in a previous period
|
|
|
300
|
|
|
|
300
|
|
Common stock issued to employees that was earned and accrued for
in a previous period
|
|
|
1,105
|
|
|
|
967
|
|
Net change in accounts payable and accrued expenses related to
purchases of property and equipment
|
|
|
133
|
|
|
|
(858
|
)
|
Earnout liability recorded for Adesis acquisition
|
|
|
1,510
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Measures
|
|
The following table details the Company’s reconciliation of non-GAAP
measures to the most directly comparable GAAP measures:
|
|
|
|
|
|
(unaudited, in thousands, except share and per share data)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Cost of commercial material sales reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of commercial material sales
|
|
$
|
4,097
|
|
|
$
|
6,989
|
|
|
$
|
12,276
|
|
|
$
|
54,502
|
|
Cost of commercial material sales adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory write-down
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
33,000
|
|
Adjusted cost of commercial material sales
|
|
$
|
4,097
|
|
|
$
|
6,989
|
|
|
$
|
12,276
|
|
|
$
|
21,502
|
|
Cost of commercial material sales as a % of commercial material sales
|
|
|
21
|
%
|
|
|
23
|
%
|
|
|
20
|
%
|
|
|
70
|
%
|
Adjusted cost of commercial material sales as a % of commercial
material sales
|
|
|
21
|
%
|
|
|
23
|
%
|
|
|
20
|
%
|
|
|
28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
$
|
(3,003
|
)
|
|
$
|
8,378
|
|
|
$
|
33,654
|
|
|
$
|
5,310
|
|
Operating income (loss) adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory write-down
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
33,000
|
|
Adjusted operating income
|
|
$
|
(3,003
|
)
|
|
$
|
8,378
|
|
|
$
|
33,654
|
|
|
$
|
38,310
|
|
Operating income (loss) as a % of total revenue
|
|
|
(10
|
)%
|
|
|
21
|
%
|
|
|
27
|
%
|
|
|
4
|
%
|
Adjusted operating income as a % of total revenue
|
|
|
(10
|
)%
|
|
|
21
|
%
|
|
|
27
|
%
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(1,500
|
)
|
|
$
|
7,047
|
|
|
$
|
22,251
|
|
|
$
|
(3,410
|
)
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.03
|
)
|
|
$
|
0.15
|
|
|
$
|
0.47
|
|
|
$
|
(0.07
|
)
|
Diluted
|
|
$
|
(0.03
|
)
|
|
$
|
0.15
|
|
|
$
|
0.47
|
|
|
$
|
(0.07
|
)
|
Net income (loss) adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory write-down
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
33,000
|
|
Income tax effect of inventory write-down*
|
|
|
—
|
|
|
|
(1,104
|
)
|
|
|
—
|
|
|
|
(2,964
|
)
|
Adjusted net income
|
|
$
|
(1,500
|
)
|
|
$
|
5,943
|
|
|
$
|
22,251
|
|
|
$
|
26,626
|
|
Net income (loss) as a % of total revenue
|
|
|
(5
|
)%
|
|
|
18
|
%
|
|
|
18
|
%
|
|
|
(3
|
)%
|
Adjusted net income as a % of total revenue
|
|
|
(5
|
)%
|
|
|
15
|
%
|
|
|
18
|
%
|
|
|
21
|
%
|
Adjusted net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic **
|
|
$
|
(0.03
|
)
|
|
$
|
0.13
|
|
|
$
|
0.47
|
|
|
$
|
0.58
|
|
Diluted ***
|
|
$
|
(0.03
|
)
|
|
$
|
0.13
|
|
|
$
|
0.47
|
|
|
$
|
0.57
|
|
Weighted average shares used in computing net income (loss) per
share and adjusted net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
46,947,621
|
|
|
|
46,542,556
|
|
|
|
46,889,913
|
|
|
|
46,241,578
|
|
Diluted
|
|
|
46,947,621
|
|
|
|
46,723,373
|
|
|
|
47,015,262
|
|
|
|
46,241,578
|
|
|
|
|
*
|
|
Adjusted net income assumes an effective tax rate of 30.8% and 32.1%
for the three months and nine months ended September 30, 2015 based
on excluding the impact of the inventory write down.
|
**
|
|
Adjusted net income per common share, basic, is derived from
dividing adjusted net income by the number of weighted average
shares used in computing basic net income per common share.
|
***
|
|
Adjusted net income per common share, diluted, for the nine months
ended September 30, 2015 is derived from dividing non-GAAP adjusted
net income by the weighted average shares of 46,870,998.
|
|
|
|
Non-GAAP Measures
To supplement the Company’s selected financial data presented in
accordance with U.S. generally accepted accounting principles (GAAP),
the Company uses certain non-GAAP measures. These non-GAAP measures
include adjusted operating income, adjusted cost of commercial material
sales, adjusted net income, adjusted net income per common share, basic
and adjusted net income per common share, diluted.
Each of these non-GAAP measures excludes the effect of the 2015
write-down of primarily existing host materials that were not included
in its customer’s new products. The Company has provided these non-GAAP
measures, which the Company believes more accurately reflect the
operating performance of its ongoing business, to enhance investors'
overall understanding of the Company’s current financial performance and
period-to-period comparisons. The presentation of non-GAAP measures is
not intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with GAAP.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161103006684/en/
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