Universal Display Announces 2Q 2017 Financial Results

Universal Display reported financial results for the second quarter ended June 30, 2017.
 
“We are pleased to report solid year-over-year growth across the board, leading to record revenues and earnings,” said Sidney D. Rosenblatt, EVP and CFO of Universal Display. “Our outstanding performance stems from over two decades of consistently investing in our pioneering technology, scaling our critical mass, and streamlining our operational flexibility from invention, to pilot, to mass production, in addition to a vibrant growing OLED market.
 
“With the OLED revolution gaining strength, our momentum is growing as well,” Rosenblatt continued. “With our tremendous experience, steadfast focus on execution, and expanding product portfolio of new OLED materials and technologies, we believe that we are well-positioned to leverage the vast opportunities in this flourishing market to drive profitable growth and deliver the most energy-efficient, high performance and cost-effective emissive layer solutions to our customers and partners.”
 
Total revenue increased 59% to $102.5 million in the second quarter, compared with $64.4 million in the second quarter of 2016, driven by higher material sales as well as royalty and license fees. Revenue from material sales increased 110% to $46.8 million in the second quarter, compared with $22.3 million in the second quarter of 2016, due to an increase in phosphorescent emitter sales.
 
Revenue from royalty and license fees increased 28% to $53.7 million in the second quarter, compared with $42.0 million in the second quarter of 2016. Operating income increased by $26.5 million to $60.5 million in the second quarter, compared with $34.0 million in the second quarter of 2016. Net income increased by $25.4 million to $47.2 million or $0.99 per diluted share in the second quarter, compared with $21.8 million or $0.46 per diluted share in the second quarter of 2016.
 
Total revenue increased 68% to $158.1 million in the first half, compared with $94.1 million in the first half of 2016, driven by higher material sales as well as royalty and license fees. Revenue from material sales increased 101% to $93.5 million in the first half, compared with $46.6 million in the first half of 2016, due to an increase in phosphorescent emitter sales. Revenue from royalty and license fees increased 28% to $60.7 million in the first half, compared with $47.4 million in the first half of 2016.
 
Operating income increased by $35.9 million to $72.6 million in the first half, compared with $36.7 million in the first half of 2016. Net income increased by $33.8 million to $57.6 million or $1.21 per diluted share in the first half, compared with $23.8 million or $0.51 per diluted share in the first half of 2016.