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.
UDC believes that 2019 will see return to growth in the OLED industry as new capacity comes on line and new OLED products are launched. For its R&D efforts, UDC is focused on blue material development and its OVJP production technology.
Regarding OVJP, UDC says it has installed the first two chambers of its prototype deposition system and expects to install the last chamber in the coming month. It is evaluating potential revenue and partnership opportunities - and the company believes that the commercial launch of OVJP is 3 to 5 years away.
Regarding blue, UDC says its confidence in developing a commercial phosphorescent blue continues to grow and it has made significant R&D progress. UDC is closer to initial commercial specs - but is not yet able to provide a time frame.
During the conference call, UDC was also asked regarding LGD's revenue. In 2018 LGD increased its OLED TV production capacity by around 50%, but UDC's revenues from LGD remained flat. The company says that LG has made significant efforts in manufacturing efficiency which results in better material utilization.
