OLED Materials Specialist Universal Display Announces 3Q 2021 Financial Results

Universal Display reported financial results for the third quarter ended Sept. 30, 2021.

Total revenue in the third quarter of 2021 was $143.6 million as compared to $117.1 million in the third quarter of 2020. The increase in revenue was due to higher royalty and license fees, as well as higher material sales primarily due to stronger demand in the OLED display market.

Revenue from material sales was $75.6 million in the third quarter of 2021 as compared to $68.7 million in the third quarter of 2020. Revenue from royalty and license fees was $63.9 million in the third quarter of 2021 as compared to $44.6 million in the third quar-ter of 2020.

Operating income was $57.7 million in the third quarter of 2021 as compared to operat-ing income of $48.4 million in the third quarter of 2020.

“We are pleased to report solid third quarter results, including record revenue of $143.6 million,” said Sidney D. Rosenblatt, EVP and CFO of Universal Display. “As we look at the second half of the year, we see that the pandemic and component shortages are causing significant disruptions in the global supply chain. While these ongoing uncertainties are impacting the consumer electronics ecosystem, we are reaffirming our revenue guidance range of $530 million to $560 million. On the partnership front, we are pleased to an-nounce that we extended our long-term material and license agreements with leading Chinese panel maker Tianma.

“As we look to the OLED industry, we believe that we are still in the early innings of a long-term secular growth market,” Rosenblatt added. “As the next wave of OLED adoption for medium-and-large-area applications takes shape, we are fortifying our position as an OLED leader and innovator on multiple fronts. We are leveraging our 25-plus years of pi-oneering research, know-how and experience into new OLED materials and technologies. We are also expanding our global footprint, building our infrastructure that is designed to drive an effective cost structure and targeting new opportunities, including phosphores-cent blue and OVJP (organic vapor jet printing).”
      
Financial Highlights for the First Nine Months of 2021

Total revenue in the first nine months of 2021 was $407.3 million as compared to $287.3 million in the first nine months of 2020. The increase in revenue was due to higher royal-ty and license fees, as well as higher material sales primarily due to stronger demand in the OLED display market.

Revenue from material sales was $232.9 million in the first nine months of 2021 as com-pared to $167.2 million in the first nine months of 2020. Revenue from royalty and license fees was $163.0 million in the first nine months of 2021 as compared to $110.0 mil-lion in the first nine months of 2020.

Operating income was $171.2 million in the first nine months of 2021 as compared to $91.7 million in the first nine months of 2020.