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.
UDC increased its quarterly dividend by 100% to $0.06 per share (an annual return of $11.3 million). UDC says it expects revenues in 2018 to be between $350 million and $380 million (a maximum growth of 13% of 2017), which was a disappointment for investors as analyst consensus was $397.3 million. This is likely due to the low utilization rates at SDC following Apple's lower-then-expected iPhone X shipments. UDC did say that it expects significant growth to resume in 2019, with OLED production area increasing by around 50% by the end of 2019 compared to the end of 2017.
Specifically remarking on a blue emitter, UDC believes that is is making excellent headway in its ongoing development work and is close to to a commercial phosphorescent blue emitter. UDC also says it is making "significant advances" with its new and next-generation red, green, yellow and blue emissive system and is also made "substantial progress" with its OVJP technology.
