OVJP - Page 2

Universal Display reported its financial results for Q4 2018 - with revenues of $70.1 million and a net income of $19.2 million. UDC increased its quarterly dividend to $0.1 per share, and expects its 2019 revenues to be in the range of $325 to $350 million.

UDC recently adopted a new accounting standard (ASC 606) which lowers its revenue and income in the early stage of each royalty and material sales contact.

Universal Display reported its financial results for Q3 2018. Revenues increased 26% from last year, to reach $77.6 million (material sales increased 9% to $51.2 million). Net income was $22.8 million (up from $13.5 million in Q3 2017).

UDC lowered its 2018 revenue guidance to $240-250 million. Even though the market has picked up in the quarter for its major customers (SDC and LGD), UDC's revenues and guidance disappointed investors.

Universal Display reported its financial results for Q2 2018 - with revenues of $56.1 million and a net profit of $10.8 million (without the impact of UDC's new accounting system, the revenues would have been $73.6 million and the net income $25.1 million).

UDC says that the first quarter was the bottom for material shipments for 2018, in Q2 materials sales improved and the company believes that the second half of 2018 will see more growth as it anticipates new OLED smartphones from leading brands - including Apple, Google, Samsung and more. UDC estimates that for 2019, the install base of OLED capacity by meters will increase by around 50% compared to 2017.

Universal Display reported its financial results for Q4 2017. Revenues reached a record $115.9 million, up 55% from $74.6 million in Q4 2016. Revenues from material sales were $59.8 million (up 105% from $29.2 million in Q4 2016). Net income was $57.9 million (up from $23.1 million in Q4 2016).

UDC concluded a very successful 2017. Revenues were $335.6 million (up 68% from $198.9 in 2016) and net income was $103.9 million (up from $48.1 million in 2016). Net income included a onetime charge of $11.5 million from the Tax Cuts and Jobs Act. Net cash generated in 2017 was $133 million.

Universal Display reported its financial results for Q3 2017. Revenues in the quarter reached $61.7 million, up 104% from Q3 2016 ($30.2 million) driven by strong material sales and also increased royalty and license fees. Net income in the quarter was $13.5 million (up $15 million from a $1.5 million loss in Q2 2016).

UDC's material sales increased 100% from Q3 2016 to reach $12 million, while royalties and license fees increased 131% to reach $12 million. UDC increased its revenue guidance for the full year 2017 to $310 million to $320 million. Revenues in the first nine months were $219.8 million.

Universal Display recently announced that it is accelerating OVJP R&D, and the company is looking to commercialize this technology with partners. UDC expects it to take a few years before OVJP can really be deployed in production. The company published the video below that shows off the technology and explains the basic principles and advantages.

OVJP stands for Organic Vapor Jet Printing, and the basic idea is to use a gas-stream based process that resembles ink-jet printing but one that uses evaporation OLED materials which outperform soluble ones. In an OVJP process, the OLED materials are evaporated into a carrier gas that delivers them to a jet engine for direct printing of patterned OLED layers. OVJP is intended for large-area OLED displays and can be scaled up to 10-Gen substrates according to UDC.

Universal Display reported its financial results Q4 2016: revenues were $74.6, up 20% from Q4 2015. Material sales were $29.2 million (emitter sales increase 25% over Q3 2016) and Samsung's licensing revenues were $37.5 million. The net income in Q4 2016 was $25.8 million.

UDC's revenues in 2016 reached $198.9 million, up slightly from 2015 ($191 million) - mostly driven by higher royalty and license fees (commercial material sales revenues were lower than in 2015). Net income in 2016 was $48.1 million, and operating cash flow was $80.3 million.

Universal Display Corporation (UDC) is one of the most known OLED company, involved with OLED IP, OLED phopshorescent materials, innovations on flexible OLEDs, production processes and more. As the most prominent public OLED company, the company is interesting to many investors and analysts.

Last year UDC hired Darice Liu to handle communications and investor relations. Darice was kind enough to answer a few questions I had regarding UDC's technology and business. These are interesting times for UDC as the OLED market is growing quickly, OLED TVs and flexible OLEDs are finally appearing on the market, but on the other hand the company is being faced with patent litigation and criticism from some investors (whom I shall not name).

Universal Display reported their financial results for Q1 2013. Revenues were $15 million (up 19% compared to Q1 2012) - with a 40% increase in commercial material sales, mostly due to the fact that Samsung Display Corporation (SDC) adopted UDC's green PHOLED (host and emitter) in the 5" Full-HD Super AMOLED dipslay used in the GS4 smartphone (shipments of these new materials started in March). UDC reported a net loss of $4.8 million in the quarter.

Guidance and cash

UDC did not change their revenue guidance for 2013 - it will be in the range of $110 - $125 million (32% to 50% increase over 2012). This includes a $40 million license free from SDC. They assume that the OLED market will grow to over $10 billion in 2013 (they use DisplaySearch estimates). UDC has around $220 million in cash and they used $10.9 million in the first quarter.

Universal Display and Acuity Brands presented advances in their stripes white OLED architecture project. A stripes OLED is made from thin stripes of red, green and blue OLEDs. When you put a diffuser panel on top, it appears white. The stripes architectural results in efficient panels, that are also color tunable (2500-4000K).

UDC reports that the project is proceeding well - and in fact the pixel performance exceeds the project's goal. They fabricated the first 15x15 cm panel samples already and both companies are on target to deliver the actual luminaries in 2012 (which are based on the same design as the Kindred and the Revel - the lamps that use LG Chem's OLED panels). UDC is also working to further optimize the panel's performance.