Universal Display Corp., enabling energy-efficient displays and lighting with its UniversalPHOLED® technology and materials, reported its financial results today for the quarter and nine-month period, ended September 30, 2013.
For the third quarter of 2013, the Company reported net income of US$ 5.5 million, or US$ 0.12 per diluted share, on revenues of US$ 32.8 million. For the third quarter of 2012, the Company reported a net loss of US$ 5.5 million, or US$ (0.12) per diluted share, on revenues of US$12.5 million.
Workers working in Universal Display Corp. labratory. (LEDinside/ Universal Display Corp.)
“Universal Display delivered outstanding third quarter results that were directly attributable to the commercial adoption of its red emitter, green emitter and green host materials. The use of these industry leading materials in a number of new products resulted in record material sales in the quarter,” said Sidney Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display. “Looking forward, we believe the OLED industry is poised for robust growth as product roadmaps are further developed, new manufacturing capacity ramps and new display and lighting manufacturers enter the market. The strength of our phosphorescent OLED core competency, coupled with an expanding IP and materials technology portfolio, leaves us well-positioned to continue to offer industry leading material and technology solutions for this evolving and growing market.”
Third Quarter Results
Revenues for the third quarter of 2013 were US$ 32.8 million compared to revenues of US$ 12.5 million in the same quarter of 2012. Growth in third quarter revenues was led by a 176% increase in material sales, which rose to US$ 30.3 million, up from US$ 11.0 million in the third quarter of 2012, reflecting strong volume growth in sales of green emitter and host materials. Royalty and license fees were US$ 1.5 million in the third quarter of 2013 compared to US$ 0.4 million in the same quarter of 2012. Technology development and support revenue was US$ 1.1 million for both the third quarter of 2013 and 2012.
No revenue was recognized under the Samsung Display Co., Ltd. (SDC) licensing agreement in the third quarter, as SDC is obligated to make licensing payments in the second and fourth quarters of the year. For 2013, the Company recognized US$ 20 million in SDC licensing revenue in the second quarter and expects to recognize another US$ 20 million in the fourth quarter, for a total of US$ 40 million in SDC licensing revenues for the year.
Operating expenses for the third quarter of 2013 were US$ 28.6 million compared to US$ 18.6 million in the same quarter of 2012. Cost of materials for the third quarter were US$ 9.8 million compared to US$ 1.1 million in the third quarter of 2012, reflecting an increase in the quantity of material shipped and changes in product mix.
The Company reported operating income of US$ 4.2 million for the third quarter of 2013, compared to operating loss of US$ 6.1 million for the third quarter of 2012.
The Company’s balance sheet remained strong, with cash and cash equivalents and short-term investments of US$ 248.3 million as of September 30, 2013.
First Nine Months Results
Revenues for the first nine months of 2013 were US$ 97.2 million, a 76% increase from the US$ 55.1 million generated in the first nine months of 2012. Material sales in the first nine months of the year were US$ 70.2 million, a 104% increase compared to material sales of US$ 34.4 million in the first nine months of 2012. Operating income in the first nine months of 2013 was US$ 18.8 million, more than tripling the US$ 5.3 million of operating income in the first nine months of 2012. For the first nine months of 2013, the Company reported net income of US$ 16.2 million, or US$ 0.35 per diluted share, compared to US$ 4.3 million, or US$ 0.09 per diluted share, in the same period in 2012. In the first nine months of the year, the Company generated US$ 22.6 million in operating cash flow, a 214% increase from the US$ 7.2 million of operating cash flow in the first nine of months of 2012.
