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, 2016.
For the first quarter of 2016, the Company reported net income of $1.9
million, or $0.04 per diluted share, on revenues of $29.7 million,
compared to net income of $1.3 million, or $0.03 per diluted share, on
revenues of $31.2 million for the first quarter of 2015.
“In the first quarter, our commercial emitter revenues grew 8%
year-over-year, primarily driven by strong green emitter shipments.
Royalty and license fees increased by 22%. Host material sales, in line
with expectations, declined year-over-year,” said Sidney D. Rosenblatt,
Executive Vice President and Chief Financial Officer of Universal
Display.
Rosenblatt continued, “The OLED landscape continues to expand. New OLED
products are launching, capacity is building, equipment bookings are
increasing and the pipeline of OLED design activities is broadening.
With OLED display penetration at only about 10% of the total consumer
electronic display market, new applications like automotive, virtual
reality, augmented reality and signage emerging and OLED lighting
transitioning from development stage to commercial, we believe that our
long-term growth trajectory remains strong.”
Financial Highlights for the First Quarter of
2016
The Company reported revenues of $29.7 million, compared to revenues of
$31.2 million in the same quarter of 2015. Material sales were $24.3
million, down 9% compared to the first quarter of 2015, primarily due to
a $5.0 million decrease in host material sales. This decline was
partially offset by an increase of $2.5 million in emitter material
sales. Royalty and license fees were $5.3 million, up from $4.4 million
in the first quarter of 2015.
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
2016, the Company expects to recognize $75 million in SDC licensing
revenues for the full year.
The Company reported operating income of $2.5 million, up from $1.8
million for the first quarter of 2015. Operating expenses were $27.2
million, compared to $29.5 million in the same quarter of 2015. Cost of
materials was $5.1 million, compared to $8.6 million in the first
quarter of 2015, reflecting the decline in host material sales volume,
which have less favorable margins than the Company's emitter materials.
The Company’s balance sheet remained strong, with cash and cash
equivalents and investments of $395.7 million as of March 31, 2016.
2016 Guidance
The Company's 2016 guidance remains unchanged. With the OLED industry
still at an early state where many variables can have a material impact
on its growth, the Company continues to believe that its 2016 revenues
will increase 15% year-over-year, plus or minus 5%, as compared to 2015.
Conference Call Information
In conjunction with this release, Universal Display will host a
conference call on Thursday, May 5, 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 1-888-855-5428 (toll-free) or 1-719-457-2080, and
reference conference ID 9143101. 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
3,600 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 Display Co.,
Ltd., Lumiotec, Inc., OLEDWorks LLC., OSRAM, 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, 2015.
Universal Display Corporation disclaims any obligation to update any
forward-looking statement contained in this document.
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(OLED-C)
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|
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(UNAUDITED)
|
|
|
|
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
2016
|
|
2015
|
|
ASSETS
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
110,091
|
|
|
$
|
97,513
|
|
|
Short-term investments
|
|
269,498
|
|
|
297,981
|
|
|
Accounts receivable
|
|
20,866
|
|
|
24,729
|
|
|
Inventories
|
|
14,709
|
|
|
12,748
|
|
|
Deferred income taxes
|
|
12,548
|
|
|
12,326
|
|
|
Other current assets
|
|
4,683
|
|
|
2,387
|
|
|
Total current assets
|
|
432,395
|
|
|
447,684
|
|
|
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $28,799
and $27,897
|
|
22,362
|
|
|
22,407
|
|
|
ACQUIRED TECHNOLOGY, net of accumulated amortization of $57,587 and
$54,837
|
|
69,265
|
|
|
72,015
|
|
|
INVESTMENTS
|
|
16,092
|
|
|
2,187
|
|
|
DEFERRED INCOME TAXES
|
|
15,287
|
|
|
14,945
|
|
|
OTHER ASSETS
|
|
645
|
|
|
174
|
|
|
TOTAL ASSETS
|
|
$
|
556,046
|
|
|
$
|
559,412
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts payable
|
|
$
|
7,294
|
|
|
$
|
6,849
|
|
|
Accrued expenses
|
|
6,746
|
|
|
17,387
|
|
|
Deferred revenue
|
|
10,353
|
|
|
10,107
|
|
|
Other current liabilities
|
|
757
|
|
|
167
|
|
|
Total current liabilities
|
|
25,150
|
|
|
34,510
|
|
|
DEFERRED REVENUE
|
|
35,515
|
|
|
35,543
|
|
|
RETIREMENT PLAN BENEFIT LIABILITY
|
|
24,485
|
|
|
22,594
|
|
|
Total liabilities
|
|
85,150
|
|
|
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, 48,147,715 and 48,132,223 shares issued and outstanding
at March 31, 2016 and December 31, 2015, respectively
|
|
483
|
|
|
482
|
|
|
Additional paid-in capital
|
|
592,769
|
|
|
589,885
|
|
|
Accumulated deficit
|
|
(71,678
|
)
|
|
(73,627
|
)
|
|
Accumulated other comprehensive loss
|
|
(10,522
|
)
|
|
(9,819
|
)
|
|
Treasury stock, at cost (1,357,863 shares at March 31, 2016 and
December 31, 2015)
|
|
(40,158
|
)
|
|
(40,158
|
)
|
|
Total shareholders’ equity
|
|
470,896
|
|
|
466,765
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
556,046
|
|
|
$
|
559,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(UNAUDITED)
|
|
|
|
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2016
|
|
2015
|
|
REVENUE:
|
|
|
|
|
|
Material sales
|
|
$
|
24,304
|
|
|
$
|
26,818
|
|
|
Royalty and license fees
|
|
5,342
|
|
|
4,375
|
|
|
Technology development and support revenue
|
|
57
|
|
|
30
|
|
|
Total revenue
|
|
29,703
|
|
|
31,223
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
Cost of material sales
|
|
5,052
|
|
|
8,581
|
|
|
Research and development
|
|
10,476
|
|
|
9,919
|
|
|
Selling, general and administrative
|
|
6,660
|
|
|
6,200
|
|
|
Patent costs and amortization of acquired technology
|
|
4,094
|
|
|
3,967
|
|
|
Royalty and license expense
|
|
875
|
|
|
785
|
|
|
Total operating expenses
|
|
27,157
|
|
|
29,452
|
|
|
Operating income
|
|
2,546
|
|
|
1,771
|
|
|
INTEREST INCOME
|
|
332
|
|
|
173
|
|
|
INTEREST EXPENSE
|
|
(8
|
)
|
|
(12
|
)
|
|
INCOME BEFORE INCOME TAXES
|
|
2,870
|
|
|
1,932
|
|
|
INCOME TAX EXPENSE
|
|
(921
|
)
|
|
(618
|
)
|
|
NET INCOME
|
|
$
|
1,949
|
|
|
$
|
1,314
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON SHARE:
|
|
|
|
|
|
BASIC
|
|
$
|
0.04
|
|
|
$
|
0.03
|
|
|
DILUTED
|
|
$
|
0.04
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON
SHARE:
|
|
|
|
|
|
BASIC
|
|
46,774,360
|
|
|
45,785,725
|
|
|
DILUTED
|
|
46,907,558
|
|
|
46,214,247
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(UNAUDITED)
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2016
|
|
2015
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income
|
|
$
|
1,949
|
|
|
$
|
1,314
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Amortization of deferred revenue
|
|
(2,032
|
)
|
|
(1,177
|
)
|
|
Depreciation
|
|
902
|
|
|
702
|
|
|
Amortization of intangibles
|
|
2,750
|
|
|
2,750
|
|
|
Amortization of premium and discount on investments, net
|
|
(297
|
)
|
|
(135
|
)
|
|
Stock-based compensation to employees
|
|
2,830
|
|
|
1,715
|
|
|
Stock-based compensation to Board of Directors and Scientific
Advisory Board
|
|
408
|
|
|
366
|
|
|
Deferred income tax benefit
|
|
(169
|
)
|
|
334
|
|
|
Retirement plan benefit expense
|
|
1,029
|
|
|
592
|
|
|
Decrease (increase) in assets:
|
|
|
|
|
|
Accounts receivable
|
|
3,863
|
|
|
3,911
|
|
|
Inventories
|
|
(1,961
|
)
|
|
(1,858
|
)
|
|
Other current assets
|
|
(2,296
|
)
|
|
703
|
|
|
Other assets
|
|
(472
|
)
|
|
20
|
|
|
(Decrease) increase in liabilities:
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
(9,134
|
)
|
|
(8,584
|
)
|
|
Other current liabilities
|
|
590
|
|
|
(55
|
)
|
|
Deferred revenue
|
|
2,250
|
|
|
46,382
|
|
|
Net cash provided by operating activities
|
|
210
|
|
|
46,980
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Purchases of property and equipment
|
|
(516
|
)
|
|
(1,950
|
)
|
|
Purchases of investments
|
|
(193,929
|
)
|
|
(51,957
|
)
|
|
Proceeds from sale of investments
|
|
208,571
|
|
|
90,876
|
|
|
Net cash provided by investing activities
|
|
14,126
|
|
|
36,969
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
99
|
|
|
90
|
|
|
Proceeds from the exercise of common stock options
|
|
151
|
|
|
702
|
|
|
Payment of withholding taxes related to stock-based employee
compensation
|
|
(2,008
|
)
|
|
(4,970
|
)
|
|
Net cash used in financing activities
|
|
(1,758
|
)
|
|
(4,178
|
)
|
|
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
12,578
|
|
|
79,771
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
97,513
|
|
|
45,418
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
110,091
|
|
|
$
|
125,189
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160505006582/en/
Source: Universal Display Corporation