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, 2021.
“As OLED momentum continues across the consumer electronics
market, we are advancing our robust OLED materials and technology
leadership,” said Sidney D. Rosenblatt, Executive Vice President
and Chief Financial Officer of Universal Display. “Since our last
earnings call, we announced new extended OLED Technology License
and Material Purchase Agreements with LG Display and Visionox. We
also announced that along with PPG, we are jointly establishing a
new manufacturing site in Shannon, Ireland, for the production of
our highly efficient, high-performing UniversalPHOLED materials.
Additionally, Universal Display Corporation was named to Financial
Times’ The Americas’ Fastest-Growing Companies 2021 list.”
Rosenblatt continued, “Last month, we celebrated our
twenty-fifth year as a Nasdaq-listed company by virtually ringing
the opening bell. It was an incredible milestone that we shared
with our employees, customers, partners, and all of our
stakeholders. Since our inception, Universal Display Corporation
has stood for ‘Vision, Innovation and Reality’ and we have invested
approximately $700 million in research and development to advance
our company from a start-up to a leading player in the global OLED
ecosystem. We continue to broaden and deepen the breadth of our
first-mover advantage to further enable our customers and the OLED
industry.”
Financial Highlights for the First
Quarter of 2021
- Total revenue in the first quarter of 2021 was $134.0 million
as compared to $112.3 million in the first quarter of 2020.
- Revenue from material sales was $79.8 million in the first
quarter of 2021 as compared to $66.6 million in the first quarter
of 2020.
- Revenue from royalty and license fees was $50.9 million in the
first quarter of 2021 as compared to $43.1 million in the first
quarter of 2020.
- Cost of materials was $21.0 million in the first quarter of
2021 as compared to $20.2 million in the first quarter of
2020.
- Operating income was $63.6 million in the first quarter of 2021
as compared to $44.5 million in the first quarter of 2020.
- Net income was $51.7 million or $1.08 per diluted share in the
first quarter of 2021 as compared to $38.2 million or $0.80 per
diluted share in the first quarter of 2020.
Revenue Comparison
($ in thousands)
Three Months Ended March
31,
2021
2020
Material sales
$
79,808
$
66,575
Royalty and license fees
50,886
43,078
Contract research services
3,306
2,624
Total revenue
$
134,000
$
112,277
Cost of Materials
Comparison
($ in thousands)
Three Months Ended March
31,
2021
2020
Material sales
$
79,808
$
66,575
Cost of material sales
20,999
20,211
Gross margin on material sales
58,809
46,364
Gross margin as a % of material sales
74%
70%
2021 Guidance
The Company continues to believe that its 2021 revenue will be
approximately in the range of $530 million to $560 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.
Dividend
The Company also announced a second quarter cash dividend of
$0.20 per share on the Company’s common stock. The dividend is
payable on June 30, 2021 to all shareholders of record on June 15,
2021.
Conference Call
Information
In conjunction with this release, Universal Display will host a
conference call on May 6, 2021 at 5:00 p.m. Eastern Time. The live
webcast of the conference call can be accessed under the events
page of the Company's Investor Relations website at ir.oled.com.
Those wishing to participate in the live call should dial
1-877-524-8416 (toll-free) or 1-412-902-1028. Please dial in 5-10
minutes prior to the scheduled conference call time. An online
archive of the webcast will be available within two hours of the
conclusion of the call.
About Universal Display Corporation
Universal Display Corporation (Nasdaq: OLED) is a leader in the
research, development and commercialization of organic light
emitting diode (OLED) technologies and materials for use in display
and solid-state lighting applications. Founded in 1994 and with
subsidiaries and offices around the world, the Company currently
owns, exclusively licenses or has the sole right to sublicense more
than 5,000 patents issued and pending worldwide. Universal Display
licenses its proprietary technologies, including its breakthrough
high-efficiency UniversalPHOLED® phosphorescent OLED technology
that can enable the development of energy-efficient and
eco-friendly displays and solid-state 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. To learn more about Universal
Display Corporation, please visit https://oled.com/.
Universal Display Corporation and the Universal Display
Corporation 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 the Company’s technologies and potential
applications of those technologies, the Company’s expected results
and future declaration of dividends, 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, 2020.
Universal Display Corporation disclaims any obligation to update
any forward-looking statement contained in this document.
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UNIVERSAL DISPLAY CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(in thousands, except share and
per share data)
March 31, 2021
December 31, 2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
726,279
$
630,012
Short-term investments
720
99,996
Accounts receivable
91,327
82,261
Inventory
101,422
91,591
Other current assets
39,587
20,746
Total current assets
959,335
924,606
PROPERTY AND EQUIPMENT, net of accumulated
depreciation of $76,756 and $72,493
107,815
102,113
ACQUIRED TECHNOLOGY, net of accumulated
amortization of $158,197 and $153,050
65,106
70,253
OTHER INTANGIBLE ASSETS, net of
accumulated amortization of $6,496 and $6,155
10,641
10,685
GOODWILL
15,535
15,535
INVESTMENTS
8,500
5,000
DEFERRED INCOME TAXES
36,864
37,695
OTHER ASSETS
106,704
103,341
TOTAL ASSETS
$
1,310,500
$
1,269,228
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
14,741
$
13,801
Accrued expenses
19,171
41,404
Deferred revenue
128,546
105,215
Other current liabilities
3,874
4,540
Total current liabilities
166,332
164,960
DEFERRED REVENUE
49,578
57,086
RETIREMENT PLAN BENEFIT LIABILITY
79,246
78,527
OTHER LIABILITIES
62,876
55,941
Total liabilities
358,032
356,514
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,
200,000,000 shares authorized, 49,050,776
and 49,013,476 shares issued, and
47,685,128 and 47,647,828 shares outstanding, at
March 31, 2021 and December 31, 2020,
respectively
491
490
Additional paid-in capital
632,138
635,595
Retained earnings
396,130
353,930
Accumulated other comprehensive loss
(35,009
)
(36,019
)
Treasury stock, at cost (1,365,648 shares
at March 31, 2021 and December 31, 2020)
(41,284
)
(41,284
)
Total shareholders’ equity
952,468
912,714
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
1,310,500
$
1,269,228
UNIVERSAL DISPLAY CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
INCOME
(UNAUDITED)
(in thousands, except share and
per share data)
Three Months Ended March
31,
2021
2020
REVENUE:
Material sales
$
79,808
$
66,575
Royalty and license fees
50,886
43,078
Contract research services
3,306
2,624
Total revenue
134,000
112,277
COST OF SALES
23,298
22,459
Gross margin
110,702
89,818
OPERATING EXPENSES:
Research and development
23,305
19,497
Selling, general and administrative
16,404
15,403
Amortization of acquired technology and
other intangible assets
5,488
5,490
Patent costs
1,835
1,638
Royalty and license expense
112
3,284
Total operating expenses
47,144
45,312
OPERATING INCOME
63,558
44,506
Interest income, net
133
2,147
Other income, net
59
202
Interest and other income, net
192
2,349
INCOME BEFORE INCOME TAXES
63,750
46,855
INCOME TAX EXPENSE
(12,063
)
(8,700
)
NET INCOME
$
51,687
$
38,155
NET INCOME PER COMMON SHARE:
BASIC
$
1.09
$
0.80
DILUTED
$
1.08
$
0.80
WEIGHTED AVERAGE SHARES USED IN COMPUTING
NET
INCOME PER COMMON SHARE:
BASIC
47,267,921
47,093,033
DILUTED
47,329,704
47,122,829
CASH DIVIDENDS DECLARED PER COMMON
SHARE
$
0.20
$
0.15
UNIVERSAL DISPLAY CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(UNAUDITED)
(in thousands)
Three Months Ended March
31,
2021
2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
51,687
$
38,155
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization of deferred revenue and
recognition of unbilled receivables
(57,648
)
(40,511
)
Depreciation
4,263
3,615
Amortization of intangibles
5,488
5,490
Change in excess inventory reserve
667
611
Amortization of premium and discount on
investments, net
(70
)
(2,005
)
Stock-based compensation to employees
5,200
5,735
Stock-based compensation to Board of
Directors and Scientific Advisory Board
330
254
Deferred income tax expense
515
940
Retirement plan expense
2,228
1,414
Decrease (increase) in assets:
Accounts receivable
(9,066
)
(22,140
)
Inventory
(10,498
)
(10,726
)
Other current assets
5,400
7,706
Other assets
(7,133
)
(3,245
)
Increase (decrease) in liabilities:
Accounts payable and accrued expenses
(21,136
)
(29,340
)
Other current liabilities
(666
)
3,114
Deferred revenue
53,000
43,685
Other liabilities
6,935
2,994
Net cash provided by operating
activities
29,496
5,746
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(9,938
)
(4,782
)
Purchases of intangibles
(298
)
—
Purchases of investments
(4,220
)
(148,592
)
Proceeds from sale and maturity of
investments
100,000
250,400
Net cash provided by investing
activities
85,544
97,026
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock
348
259
Payment of withholding taxes related to
stock-based compensation to employees
(9,634
)
(4,816
)
Cash dividends paid
(9,487
)
(7,098
)
Net cash used in financing activities
(18,773
)
(11,655
)
INCREASE IN CASH AND CASH EQUIVALENTS
96,267
91,117
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD
630,012
131,627
CASH AND CASH EQUIVALENTS, END OF
PERIOD
$
726,279
$
222,744
The following non-cash activities
occurred:
Unrealized (loss) gain on
available-for-sale securities
$
(66
)
$
2,380
Common stock issued to Board of Directors
and Scientific Advisory Board that was
earned and accrued for in a previous
period
300
300
Net change in accounts payable and accrued
expenses related to purchases of property
and equipment
(27
)
689
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210506006178/en/
Universal Display: Darice Liu investor@oled.com
media@oled.com +1 609-964-5123
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