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Universal Display Corporation Announces Second Quarter 2013 Financial Results

Stocks in this article: OLED

Universal Display Corporation (NASDAQ: OLED), enabling energy-efficient displays and lighting with its UniversalPHOLED ® technology and materials, today announced its results for the second quarter of 2013.

For the second quarter of 2013, the Company reported net income of $15.4 million, or $0.33 per diluted share, increases of 40% and 43%, respectively, from second quarter 2012 net income of $11.0 million, or $0.23 per diluted share. Revenues in the second quarter of 2013 were $49.4 million, up 65% from revenues of $30.0 million in the second quarter of 2012.

“We are pleased to report strong second quarter growth, leading to record quarterly revenues and earnings,” said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display. “Given the rate at which the market is adopting our energy efficient, high-performance UniversalPHOLED materials and technology, we believe the market has achieved a level of sustainable commercial technology adoption that can drive strong top line growth. With our proprietary materials and technology generating attractive margins, and a continued focus on lean and efficient operations, we are leveraging the success we are achieving with our products in the market into strong earnings growth for our shareholders.”

Second Quarter Results

Growth in second quarter revenues was led by a 111% increase in material sales, which rose to $27.1 million, up from $12.8 million in the second quarter of 2012, reflecting strong volume growth. Royalty and license fees were $21.2 million in the second quarter of 2013, up 37% compared to $15.4 million in the same quarter of 2012. The Company recognizes revenue under its licensing agreement with Samsung Display Corporation (SDC) only in the quarters in which SDC makes payment, which are the second and fourth quarters. In the second quarter of 2013, the Company recognized $20.0 million under this agreement compared to $15.0 million in the second quarter of 2012. Operating expenses for the second quarter of 2013 were $27.6 million compared to $17.1 million in the same quarter of 2012. Within operating expenses for the quarter, cost of materials accounted for $6.7 million of the increase, reflecting an increase in the quantity of material shipped and changes in product mix. The increase in operating expenses also reflects a substantial increase in patent and amortization of acquired technology expenses, primarily due to higher amortization associated with the FUJIFILM Corporation OLED patent portfolio acquired during the third quarter of 2012.

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