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Universal Display Corporation (



Q4 2011 Earnings Call

February 28, 2012 5:00 PM ET


Joe Hassett – Gregory FCA, IR

Steve Abramson – President and CEO

Sid Rosenblatt – Executive Vice President and CFO


Darice Liu – Brigantine Advisors

John Bright – Avondale Partners

Jim Ricchiuti – Needham & Company

Jed Dorsheimer – Canaccord Genuity

Brian Lee – Goldman Sachs

Hendi Susanto – Gabelli & Company

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Andrew Abrams – Avian Securities

Jagadish Iyer – Piper Jaffray

Carter Shoop – KeyBanc



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Please standby, we are about to begin. Good day. And welcome to the Universal Display Corporation Fourth Quarter and 2011 Year End Earnings Call. Today’s conference is being recorded.

At this time, I would like to turn the conference over to Joe Hassett.

Joe Hassett

Thank you, and good afternoon, everyone. With us today are Steve Abramson, President and Chief Executive Officer; and Sid Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display Corporation.

Let me begin today by reminding you that this call is the property of Universal Display. Any redistribution, retransmission or rebroadcast of this call in any form without the expressed written consent of Universal Display is strictly prohibited.

Further, as this call is being webcast live and will be made available for a period of time on Universal Display’s website, this call contains time-sensitive information that is accurate only as of the date of the live webcast of this call, February 28, 2012.

All statements in this conference that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements regarding Universal Display’s beliefs, expectations, hopes or intentions regarding the future.

It is important to note that these statements are subject to risks and uncertainties that could cause Universal Display’s actual results to differ from those projected. These risks and uncertainties are discussed in the company’s periodic reports filed with the SEC. Universal Display disclaims any obligation to update any of these statements.

Now, I would like to turn the call over to Steve Abramson, President and CEO of Universal Display. Please go ahead, Steve.

Steve Abramson

Thank you, Joe. And welcome everyone listening on today’s call and webcast. We are profitable, after more than a decade and half of ground breaking research and development, building a worldwide network of business and research partnerships, and refining an innovative business model that leverages both tangible and intangible assets, we are profitable.

Our revenues doubled again for the third consecutive year. It’s a great time to be in the OLED industry and a great time to be UDC, based on our pioneer efforts we are participating in the extraordinary growth of this exciting industry.

Our business strategy is to sustain our industry leadership through a strong commitment to research and development. This will enable us to continue to provide the industry with new and innovative technology and material, which we believe will help both industry and our company grow, and let there be no mistake the industry is growing rapidly. According to display search, the AMOLED industry grew from $1.2 billion in 2010 to $3.4 billion in 2011, and it is forecasted to grow at $8.2 billion this year and $11.2 billion in 2013.

In the near-term, our current results have being driven primarily by the demand for small form factor displays primarily smartphones. These displays are getting larger. Samsung recently introduced the fabulous new product called the Galaxy Notes with features 5.3-inch AMOLED screen with extraordinary functionality.

As the acknowledged OLED industry leader Samsung has continued to build out its OLED production capacity. They sold over 20 million Galaxy S2 smartphones in 10 months and accumulated sales of Galaxy smartphone line now exceed $40 million.

During the last half of 2011 Samsung even pass Apple as a number one seller of smartphones and there have been reports that about 25% of South Koreans own a Galaxy phone. Smartphone sales should continue to grow rapidly as Samsung build new portable products containing ever larger, more power efficient AMOLED screen.

Then of course we have OLED television. At January Consumer Electronic Show 55-inch OLED TV sold the show. The industry anxious to find the next big thing that will reignite television sales as these manufactures are placing their bets on OLED technology.

We estimated there were over a 150,000 people at CES this year. I was one of them it took me an hour just to get a cab from the airport to the hotel. I wanted to see the 55-inch OLED TVs, judging from the crowd’s reaction I think everyone was there to see them as well. The crowd was so deep at Samsung and LG’s booth that it probably took some people an hour just to get a clear view.

LG’s OLED TV one of the best of show for CES, while Samsung OLED TV was equally gorgeous. Both LG and Samsung have announced initial production by the end of this year and we are continuing our strong technical support to both companies to help accelerate the widespread adoption of OLED TVs, because once you’ve seen an OLED television you’re going to want one.

AUO Optronics of Taiwan has also announced its plan to mass produce AMOLED panel for mobile phones early this year. In addition, they plan to unveil OLED TV panel samples by the end of this year. AUO demonstrated a beautiful 32-inch OLED TV prototype at the tradeshow in Japan in November. We’re working closely with AUO for number of years to support their OLED efforts.

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