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 first
quarter ended March 31, 2015.
For the first quarter of 2015, the Company reported net income of $1.3
million, or $0.03 per diluted share, on revenues of $31.2 million,
compared to net income of $4.0 million, or $0.09 per diluted share, on
revenues of $37.8 million for the first quarter of 2014.
"During the first quarter, we saw the introduction of new OLED displays,
including flagship products from our top customers, which led to higher
volumes of our red and green emitters sold, offset by volume pricing
discounts. The quarter also reflected the continued downward trend of
host sales, consistent with our expectations. As the year progresses, we
expect the continued proliferation of OLED adoption in the marketplace
to drive revenue growth in the second half of this year," said Sidney D.
Rosenblatt, Executive Vice President and Chief Financial Officer of
Universal Display. "The broadening of the OLED display product portfolio
from flexibles and wearables, including smartwatches, to high-end
smartphones, mid-end smartphones, high-end tablets, Full HD and 4K TVs,
exemplifies the growing breadth of the OLED display market opportunity.
On the lighting front, developmental activity continues to flourish as
efficacy rates and lifetimes increase. Broadly speaking, we believe that
OLED technology can provide the design freedom for display and lighting
makers to dramatically alter the consumer and illumination landscape,
and create differentiated, high-performing, energy-efficient, innovative
products."
Financial Highlights for the First Quarter of
2015
The Company reported revenues of $31.2 million, compared to revenues of
$37.8 million in the same quarter of 2014. Material sales were $26.8
million, down 5% sequentially and down 24% compared to the first quarter
of 2014, primarily due to a decrease in host material volume. Royalty
and license fees were $4.4 million, up from $1.8 million in the first
quarter of 2014.
No revenue was recognized under the Samsung Display Co., Ltd. (SDC)
licensing agreement in the first 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
revenues for the full year. Royalty revenue was also not recognized
under the new LG Display Co. (LGD) licensing and royalty agreement in
the first quarter of 2015, as these revenues are recognized one quarter
in arrears when the royalty amount is reported to us.
The Company reported operating income of $1.8 million, down from $6.6
million for the first quarter of 2014. Operating expenses were $29.5
million, compared to $31.2 million in the same quarter of 2014. Cost of
materials was $8.6 million, compared to $9.9 million in the first
quarter of 2014, reflecting the decline in host material sales volume.
The Company's balance sheet remained strong, with cash and cash
equivalents and short-term investments of $328.5 million as of March 31,
2015. During the first quarter, the Company generated $47.0 million in
operating cash flow, mainly stemming from the receipt of upfront license
fees, prepaid royalties and milestone payments. These resulted in
working capital increasing to $367.9 million at the end of the quarter.
2015 Guidance
The Company's 2015 guidance remains unchanged. 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, with a downside range of approximately 5%
and an upside potential of approximately 15%.
Conference Call Information
In conjunction with this release, Universal Display will host a
conference call on Thursday, May 7, 2015 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 1-800-946-0719 (toll-free) or 1-719-325-2197, and
reference conference ID 8263329. Please dial in 5-10 minutes prior to
the scheduled conference call time.
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
3,500 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 white 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, 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 Chem Ltd., LG
Display Co., Ltd., Lumiotec, Inc., OLEDWorks LLC., Philips Technologie
GmbH, Pioneer Corporation, Samsung Display Co., Ltd., Sumitomo Chemical
Company, Ltd. and Tohoku Pioneer Corporation. To learn more about
Universal Display, please visit www.udcoled.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, 2014.
Universal Display Corporation disclaims any obligation to update any
forward-looking statement contained in this document.
(OLED-C)
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(UNAUDITED)
|
|
|
|
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
March 31,
2015
|
|
|
December 31,
2014
|
|
ASSETS
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
125,189
|
|
|
|
$
|
45,418
|
|
|
Short-term investments
|
|
|
|
203,339
|
|
|
|
|
243,088
|
|
|
Accounts receivable
|
|
|
|
18,164
|
|
|
|
|
22,075
|
|
|
Inventory
|
|
|
|
38,967
|
|
|
|
|
37,109
|
|
|
Deferred income taxes
|
|
|
|
18,028
|
|
|
|
|
18,459
|
|
|
Other current assets
|
|
|
|
3,653
|
|
|
|
|
4,356
|
|
|
Total current assets
|
|
|
|
407,340
|
|
|
|
|
370,505
|
|
|
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $25,515
and $24,813
|
|
|
|
20,485
|
|
|
|
|
19,922
|
|
|
ACQUIRED TECHNOLOGY, net of accumulated amortization of $46,588 and
$43,838
|
|
|
|
80,264
|
|
|
|
|
83,014
|
|
|
INVESTMENTS
|
|
|
|
4,034
|
|
|
|
|
3,047
|
|
|
DEFERRED INCOME TAXES
|
|
|
|
12,936
|
|
|
|
|
12,934
|
|
|
OTHER ASSETS
|
|
|
|
405
|
|
|
|
|
425
|
|
|
TOTAL ASSETS
|
|
|
$
|
525,464
|
|
|
|
$
|
489,847
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
6,184
|
|
|
|
$
|
9,260
|
|
|
Accrued expenses
|
|
|
|
7,525
|
|
|
|
|
14,986
|
|
|
Deferred revenue
|
|
|
|
25,626
|
|
|
|
|
2,466
|
|
|
Other current liabilities
|
|
|
|
56
|
|
|
|
|
111
|
|
|
Total current liabilities
|
|
|
|
39,391
|
|
|
|
|
26,823
|
|
|
DEFERRED REVENUE
|
|
|
|
25,411
|
|
|
|
|
3,366
|
|
|
RETIREMENT PLAN BENEFIT LIABILITY
|
|
|
|
11,265
|
|
|
|
|
10,916
|
|
|
Total liabilities
|
|
|
|
76,067
|
|
|
|
|
41,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 47,379,579 and 47,061,826 shares issued and outstanding
at March 31, 2015 and December 31, 2014, respectively
|
|
|
|
474
|
|
|
|
|
471
|
|
|
Additional paid-in capital
|
|
|
|
580,282
|
|
|
|
|
581,114
|
|
|
Accumulated deficit
|
|
|
|
(86,991
|
)
|
|
|
|
(88,305
|
)
|
|
Accumulated other comprehensive loss
|
|
|
|
(4,212
|
)
|
|
|
|
(4,382
|
)
|
|
Treasury stock, at cost (1,357,863 shares at March 31, 2015 and
December 31, 2014, respectively)
|
|
|
|
(40,158
|
)
|
|
|
|
(40,158
|
)
|
|
Total shareholders' equity
|
|
|
|
449,397
|
|
|
|
|
448,742
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
$
|
525,464
|
|
|
|
$
|
489,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
Material sales
|
|
|
$
|
26,818
|
|
|
|
$
|
35,327
|
|
|
Royalty and license fees
|
|
|
|
4,375
|
|
|
|
|
1,779
|
|
|
Technology development and support revenue
|
|
|
|
30
|
|
|
|
|
733
|
|
|
Total revenue
|
|
|
|
31,223
|
|
|
|
|
37,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of material sales
|
|
|
|
8,581
|
|
|
|
|
9,897
|
|
|
Research and development
|
|
|
|
9,919
|
|
|
|
|
10,156
|
|
|
Selling, general and administrative
|
|
|
|
6,200
|
|
|
|
|
6,430
|
|
|
Patent costs and amortization of acquired technology
|
|
|
|
3,967
|
|
|
|
|
3,972
|
|
|
Royalty and license expense
|
|
|
|
785
|
|
|
|
|
756
|
|
|
Total operating expenses
|
|
|
|
29,452
|
|
|
|
|
31,211
|
|
|
Operating income
|
|
|
|
1,771
|
|
|
|
|
6,628
|
|
|
INTEREST INCOME
|
|
|
|
173
|
|
|
|
|
218
|
|
|
INTEREST EXPENSE
|
|
|
|
(12
|
)
|
|
|
|
(17
|
)
|
|
INCOME BEFORE INCOME TAXES
|
|
|
|
1,932
|
|
|
|
|
6,829
|
|
|
INCOME TAX EXPENSE
|
|
|
|
(618
|
)
|
|
|
|
(2,807
|
)
|
|
NET INCOME
|
|
|
$
|
1,314
|
|
|
|
$
|
4,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
$
|
0.03
|
|
|
|
$
|
0.09
|
|
|
DILUTED
|
|
|
$
|
0.03
|
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
|
45,785,725
|
|
|
|
|
46,177,661
|
|
|
DILUTED
|
|
|
|
46,214,247
|
|
|
|
|
46,651,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
1,314
|
|
|
|
$
|
4,022
|
|
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred revenue
|
|
|
|
(1,177
|
)
|
|
|
|
(1,127
|
)
|
|
Depreciation
|
|
|
|
702
|
|
|
|
|
501
|
|
|
Amortization of intangibles
|
|
|
|
2,750
|
|
|
|
|
2,750
|
|
|
Amortization of premium and discount on investments, net
|
|
|
|
(135
|
)
|
|
|
|
(136
|
)
|
|
Stock-based compensation to employees
|
|
|
|
1,715
|
|
|
|
|
1,899
|
|
|
Stock-based compensation to Board of Directors and Scientific
Advisory Board
|
|
|
|
366
|
|
|
|
|
203
|
|
|
Deferred income tax benefit
|
|
|
|
334
|
|
|
|
|
1,773
|
|
|
Retirement plan benefit expense
|
|
|
|
592
|
|
|
|
|
419
|
|
|
Decrease (increase) in assets:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
3,911
|
|
|
|
|
(8,851
|
)
|
|
Inventories
|
|
|
|
(1,858
|
)
|
|
|
|
(3,997
|
)
|
|
Other current assets
|
|
|
|
703
|
|
|
|
|
(4,887
|
)
|
|
Other assets
|
|
|
|
20
|
|
|
|
|
—
|
|
|
(Decrease) increase in liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
|
(8,584
|
)
|
|
|
|
(4,598
|
)
|
|
Other current liabilities
|
|
|
|
(55
|
)
|
|
|
|
1,017
|
|
|
Deferred revenue
|
|
|
|
46,382
|
|
|
|
|
3,692
|
|
|
Net cash provided by (used in) operating activities
|
|
|
|
46,980
|
|
|
|
|
(7,320
|
)
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
(1,950
|
)
|
|
|
|
(917
|
)
|
|
Purchases of investments
|
|
|
|
(51,957
|
)
|
|
|
|
(127,244
|
)
|
|
Proceeds from sale of investments
|
|
|
|
90,876
|
|
|
|
|
102,823
|
|
|
Net cash provided by (used in) investing activities
|
|
|
|
36,969
|
|
|
|
|
(25,338
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
|
90
|
|
|
|
|
86
|
|
|
Proceeds from the exercise of common stock options
|
|
|
|
702
|
|
|
|
|
616
|
|
|
Payment of withholding taxes related to stock-based employee
compensation
|
|
|
|
(4,970
|
)
|
|
|
|
(2,699
|
)
|
|
Net cash used in financing activities
|
|
|
|
(4,178
|
)
|
|
|
|
(1,997
|
)
|
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
|
79,771
|
|
|
|
|
(34,655
|
)
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
|
45,418
|
|
|
|
|
70,586
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
|
$
|
125,189
|
|
|
|
$
|
35,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations:
Universal Display Corporation
Darice
Liu
, 609-671-0980 x570
investor@udcoled.com
or
Media
Contact:
Kwittken
Jon Stone
, 646-747-7161
media@udcoled.com
Source: Universal Display Corporation
News Provided by Acquire Media