Universal Display Corporation (UDC) - Page 8

Researchers from the University of Southern California (USC) led by Mark E. Thompson (who was the first to report on efficient phosphorescent OLEDs, later commercialized at UDC) developed a new copper-based phosphorescent OLED emitter compound, that could have several advantages to the currently-used iridium compounds.

The researchers say that copper-based emitters could be cheaper (as iridium is an expensive and rare element) - but more importantly could be the key to develop an efficient and long-lasting blue OLED emitter.

Universal Display announced an OLED evaluation agreement with China-based OLED Microdisplay producer Seeya Information Technology. UDC will supply Seeya with its phosphorescent OLED materials for display applications. The two companies did not disclose any more details.

In September 2017 Seeya announced plans to build an OLED microdisplay production line in Hefei, China. Seeya's fab will have a yearly capacity of 20 million displays, and will require an investment of almost $300 million USD.

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.

China-based OLED producer Visionox signed a long-term licensing and material purchase agreements with Universal Display. UDC will supply its phosphorescent OLED materials to Visionox. UDC did not disclose the details or financial terms of these agreements. This follows the evaluation agreement signed by UDC and Visionox in February 2018.

Visionox is producing PMOLEDs, AMOLEDs and flexible AMOLEDs, and the company demonstrated some very impressive displays at SID Displayweek last month. Last month Visionox announced that it has started to produce flexible OLEDs at its new 6-Gen fab in Hebei.

Universal Display reported its financial results for Q1 2018. Revenues were $43.6 million, and net income was $6 million. These results were lower than the company expected, due to a slowdown in the premium smartphone market, the company's new accounting standard and the inventory pre-purchase the company reported in Q4 2017.

UDC is revising its 2018 guidance lower, to $280 million to $310 million. UDC expects the OLED market to remain week in the second quarter, but sees a pickup in OLED demand in the second half of 2018. In 2019, UDC expects significant growth to resume.

DSCC lowered its OLED material revenue forecasts, saying that the market is expected to grow at a 25% CAGR from $773 million in 2017 to $2.35 billion in 2022 (down from its previous estimates of $2.56 billion in 2022). The fastest growing (51% CAGR) OLED application will be OLED lighting, which will grow from $12 million in 2017 to $95 million in 2022.

DSCC also published the material stack for Samsung's latest OLEDs (used in the Galaxy S9), which you can see above.

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.

Display Supply Chain Consultants (DSCC) says that OLED material revenues grew 43% to reach $869 million in 2017. DSCC expects the OLED material market to grow at a 24% CAGR until 2022, when the market will reach $2.56 billion.

The small/medium display market accounts to about 59% of the total OLED material market, and this will continue until 2022. For the TV market, DSCC expects ink-jet printing to enable producers to make lower the material costs of OLED TV production, and OLED TV materials will grow at a rate of 23%, from $344 in 2017 to $963 million in 2022.

Universal Display announced that it has signed long-term OLED material supply and license agreements with Samsung Display. UDC will continue to supply its PHOLED phosphorescent OLED materials and technology to Samsung Display for use in its OLED displays. The agreements are scheduled to run through December 31, 2022, and may be extended for an additional two-year period.

UDC did not disclose the financial terms of these new agreements, but we do know that Samsung will pay a license fee throughout the agreement period. The previous UDC-SDC agreement ended on December 31st 2017, but for the past month and a half the two companies still conducted business of course as SDC's OLED production was not halted.