Universal Display Announces 2Q 2020 Financial Results

Universal Display Corporation reported financial results for the second quarter ended June 30, 2020.

“While COVID-19 uncertainties will likely continue to weigh on consumer demand in the near-term, we continue to invest and further strengthen our leadership position in the OLED ecosystem and expect to emerge a stronger partner to our customers and the OLED industry,” said Sidney D. Rosenblatt, EVP and CFO of Universal Display.

“The challenges of this pandemic continued to impact us in the second quarter as customer orders and shipments declined,” added Rosenblatt. “For the second half of the year, while there is cautious optimism in the industry, we believe significant uncertainties still loom over the consumer and macroeconomic environments. Long-term, we believe that the growth path of OLEDs remains robust.”

Total revenue in the second quarter of 2020 was $58 million as compared to $118.2 million in the second quarter of 2019. The decrease in revenue was mainly due to the weakened demand for emitter product from customers as a result of the COVID-19 pandemic, as well as the impact of the advanced purchases that were fulfilled in the prior quarter in anticipation of potential supply disruptions from the pandemic and inventory management efforts by our customers to minimize the effects of potentially heightened trade tensions between the governments of China and the US.

Revenue from material sales was $31.9 million in the second quarter of 2020 as compared to $76.3 million in the second quarter of 2019.
Revenue from royalty and license fees was $22.4 million in the second quarter of 2020 as compared to $38.9 million in the second quarter of 2019.

Cost of material sales was $10.3 million in the second quarter of 2020 as compared to $22.0 million in the second quarter of 2019. Included in cost of material sales for the second quarter of 2019 was an inventory reserve charge of $3.9 million.

Operating loss was $1.2 million in the second quarter of 2020 as compared to operating income of $48.7 million in the second quarter of 2019.

Total revenue in the first half of 2020 was $170.2 million as compared to $205.9 million in the first half of 2019. The decrease in revenue was mainly due to the weakened demand for emitter product from customers as a result of the COVID-19 pandemic.

Revenue from material sales was $98.5 million in the first half of 2020 as compared to $130.8 million in the first half of 2019. Revenue from royalty and license fees was $65.5 million in the first half of 2020 as compared to $69.2 million in the first half of 2019.

Cost of material sales was $30.5 million in the first half of 2020 as compared to $35.0 million in the first half of 2019.

Operating income was $43.3 million in the first half of 2020 as compared to $83 million in the first half of 2019.