Universal Display Announces 4Q, Full Year 2019 Financial Results

Universal Display reported financial results for the fourth quarter and full-year ended Dec. 31, 2019.

“2019 was a year of record results for our company, during which we continued to build on our leadership position and foundation for growth,” said Sidney D. Rosenblatt, EVP and CFO of Universal Display. “During the year, we announced new partnership agreements, constructed new state-of-the-art phosphorescent OLED application labs and offices in Korea and Hong Kong, established UDC Ventures and achieved a number of internal R&D milestones. In addition, the OLED industry grew robustly as new OLED capacity was installed, new OLED OEMs and products were introduced and revolutionary form factor products like the Samsung Galaxy Fold, LG’s rollable TV and Lenovo’s foldable PC were announced. We believe that all of this drove the continued proliferation of OLEDs in smartphones, TVs and wearables as well as early commercial headway into the IT and automotive markets.

“For 2020, we expect the OLED industry and our revenues to continue to grow,” Rosenblatt continued. “At the same time, after a year of significant new OLED capacity additions, we also expect capacity digestion and the evolving uncertainties related to the novel coronavirus (2019-nCoV) to impact our material orders. Long-term, we believe OLED in-vestment momentum remains strong and we continue to estimate that installed capacity at the end of 2021 will grow by approximately 50% over the installed capacity at the end of 2019, as measured in square meters.”

Total revenue in the fourth quarter of 2019 was $101.7 million as compared to $70.1 million in the fourth quarter of 2018. Revenue from material sales was $60.8 million in the fourth quarter of 2019 as compared to $39.9 million in the fourth quarter of 2018.

Revenue from royalty and license fees was $37.8 million in the fourth quarter of 2019 as compared to $25.9 million in the fourth quarter of 2018.

Operating income was $34.5 million in the fourth quarter of 2019 as compared to $15.3 million in the fourth quarter of 2018. Net income was $26.4 million or $0.56 per diluted share in the fourth quarter of 2019 as compared to $19.2 million or $0.40 per diluted share in the fourth quarter of 2018.
           
Total revenue in the full year of 2019 was $405.2 million as compared to $247.4 million in the full year of 2018. Revenue from material sales was $243.4 million for the full year of 2019 as compared to $153.2 million for the full year ended 2018.

Revenue from royalty and license fees was $150 million for the full year of 2019 as compared to $80.6 million for the full year of 2018.

Operating income was $158.3 million for the full year of 2019 as compared to $56.7 million for the full year of 2018. Net income was $138.3 million or $2.92 per diluted share for the full year of 2019 as compared to $58.8 million or $1.24 per diluted share for the full year of 2018.

The company believes that its 2020 revenue will be approximately in the range of $430 million to $470 million. The OLED industry remains at a stage where many variables can have a material impact on its growth, and the company thus caveats its financial guidance accordingly.