Universal Display Corporation Announces First Quarter 2021 Financial Results

Rhea-AI Summary

Universal Display Corporation (NASDAQ: OLED) reported Q1 2021 financial results with total revenue of $134.0 million, up from $112.3 million in Q1 2020. Material sales increased to $79.8 million while royalty and license fees rose to $50.9 million. Net income was $51.7 million or $1.08 per diluted share, compared to $38.2 million or $0.80 per share last year. The company forecasts revenue between $530 million and $560 million for 2021. Additionally, a dividend of $0.20 per share was announced, payable on June 30, 2021.

Positive

• Q1 2021 total revenue increased to $134.0 million from $112.3 million in Q1 2020.
• Material sales rose to $79.8 million compared to $66.6 million in Q1 2020.
• Net income increased to $51.7 million or $1.08 per diluted share, up from $38.2 million or $0.80 per diluted share in Q1 2020.
• 2021 revenue guidance set between $530 million and $560 million.
• Declared a second quarter cash dividend of $0.20 per share.

Negative

• None.

Universal Display Corporation (Nasdaq: OLED), enabling energy-efficient displays and lighting with its UniversalPHOLED^® technology and materials, today reported financial results for the first quarter ended March 31, 2021.

“As OLED momentum continues across the consumer electronics market, we are advancing our robust OLED materials and technology leadership,” said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display. “Since our last earnings call, we announced new extended OLED Technology License and Material Purchase Agreements with LG Display and Visionox. We also announced that along with PPG, we are jointly establishing a new manufacturing site in Shannon, Ireland, for the production of our highly efficient, high-performing UniversalPHOLED materials. Additionally, Universal Display Corporation was named to Financial Times’ The Americas’ Fastest-Growing Companies 2021 list.”

Rosenblatt continued, “Last month, we celebrated our twenty-fifth year as a Nasdaq-listed company by virtually ringing the opening bell. It was an incredible milestone that we shared with our employees, customers, partners, and all of our stakeholders. Since our inception, Universal Display Corporation has stood for ‘Vision, Innovation and Reality’ and we have invested approximately $700 million in research and development to advance our company from a start-up to a leading player in the global OLED ecosystem. We continue to broaden and deepen the breadth of our first-mover advantage to further enable our customers and the OLED industry.”

Financial Highlights for the First Quarter of 2021

• Total revenue in the first quarter of 2021 was $134.0 million as compared to $112.3 million in the first quarter of 2020.
• Revenue from material sales was $79.8 million in the first quarter of 2021 as compared to $66.6 million in the first quarter of 2020.
• Revenue from royalty and license fees was $50.9 million in the first quarter of 2021 as compared to $43.1 million in the first quarter of 2020.
• Cost of materials was $21.0 million in the first quarter of 2021 as compared to $20.2 million in the first quarter of 2020.
• Operating income was $63.6 million in the first quarter of 2021 as compared to $44.5 million in the first quarter of 2020.
• Net income was $51.7 million or $1.08 per diluted share in the first quarter of 2021 as compared to $38.2 million or $0.80 per diluted share in the first quarter of 2020.

Revenue Comparison

($ in thousands)		Three Months Ended March 31,
		2021				2020
Material sales		$	79,808			$	66,575
Royalty and license fees			50,886				43,078
Contract research services			3,306				2,624
Total revenue		$	134,000			$	112,277

Cost of Materials Comparison

($ in thousands)		Three Months Ended March 31,
		2021				2020
Material sales		$	79,808			$	66,575
Cost of material sales			20,999				20,211
Gross margin on material sales			58,809				46,364
Gross margin as a % of material sales			74%				70%

2021 Guidance

The Company continues to believe that its 2021 revenue will be approximately in the range of $530 million to $560 million. The OLED industry remains at a stage where many variables can have a material impact on its growth, and the Company thus caveats its financial guidance accordingly.

Dividend

The Company also announced a second quarter cash dividend of $0.20 per share on the Company’s common stock. The dividend is payable on June 30, 2021 to all shareholders of record on June 15, 2021.

Conference Call Information

In conjunction with this release, Universal Display will host a conference call on May 6, 2021 at 5:00 p.m. Eastern Time. The live webcast of the conference call can be accessed under the events page of the Company's Investor Relations website at ir.oled.com. Those wishing to participate in the live call should dial 1-877-524-8416 (toll-free) or 1-412-902-1028. Please dial in 5-10 minutes prior to the scheduled conference call time. An online archive of the webcast will be available within two hours of the conclusion of the call.

About Universal Display Corporation

Universal Display Corporation (Nasdaq: OLED) is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. Founded in 1994 and with subsidiaries and offices around the world, the Company currently owns, exclusively licenses or has the sole right to sublicense more than 5,000 patents issued and pending worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED® phosphorescent OLED technology that can enable the development of energy-efficient and eco-friendly displays and solid-state lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training. To learn more about Universal Display Corporation, please visit https://oled.com/.

Universal Display Corporation and the Universal Display Corporation logo are trademarks or registered trademarks of Universal Display Corporation. All other company, brand or product names may be trademarks or registered trademarks.

All statements in this document that are not historical, such as those relating to the Company’s technologies and potential applications of those technologies, the Company’s expected results and future declaration of dividends, as well as the growth of the OLED market and the Company’s opportunities in that market, are forward-looking financial statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this document, as they reflect Universal Display Corporation’s current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties are discussed in greater detail in Universal Display Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including, in particular, the section entitled “Risk Factors” in Universal Display Corporation’s Annual Report on Form 10-K for the year ended December 31, 2020. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document.

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(OLED-C)

UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and per share data)
		March 31, 2021				December 31, 2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	726,279			$	630,012
Short-term investments			720				99,996
Accounts receivable			91,327				82,261
Inventory			101,422				91,591
Other current assets			39,587				20,746
Total current assets			959,335				924,606
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $76,756 and $72,493			107,815				102,113
ACQUIRED TECHNOLOGY, net of accumulated amortization of $158,197 and $153,050			65,106				70,253
OTHER INTANGIBLE ASSETS, net of accumulated amortization of $6,496 and $6,155			10,641				10,685
GOODWILL			15,535				15,535

FAQ

What are the financial results for Universal Display Corporation for Q1 2021?

Universal Display reported total revenue of $134.0 million for Q1 2021, up from $112.3 million in Q1 2020, with net income of $51.7 million.

What is the revenue guidance for Universal Display Corporation in 2021?

The company expects its revenue for 2021 to be approximately $530 million to $560 million.

When is the dividend payable for Universal Display Corporation shareholders?

The second quarter cash dividend of $0.20 per share is payable on June 30, 2021, to shareholders of record on June 15, 2021.

What was the net income per share for Universal Display Corporation in Q1 2021?

The net income per diluted share for Q1 2021 was $1.08, compared to $0.80 in Q1 2020.

How did Universal Display Corporation's material sales perform in Q1 2021?

Material sales in Q1 2021 were $79.8 million, an increase from $66.6 million in Q1 2020.