Universal Display Corporation (Nasdaq: OLED), enabling
energy-efficient displays and lighting with its UniversalPHOLED®
technology and materials, today reported financial results for the
third quarter ended September 30, 2024.
“With strong year-to-date results, we are on track to achieve
record revenues, earnings, and operating cash flow in 2024 as we
continue our growth trajectory. The rate of growth this year,
though, is expected to be more modest than previously projected.
With recent updates to customer order expectations for the fourth
quarter, we are lowering our 2024 revenue forecast range to $625
million to $645 million,” said Brian Millard, Vice President and
Chief Financial Officer of Universal Display Corporation. “We
believe that 2024 marks the start of a new OLED adoption cycle for
medium-sized displays, namely IT and automotive. With leading
tablet, notebook, monitor, as well as auto OEMs expected to broaden
their product roadmaps for OLEDs, significant investments in new
OLED facilities are being deployed for these nascent market
segments. As a leader in the OLED ecosystem, we are enabling and
supporting this long runway of growth. Our world-class technology
continues to set industry standards, our global partnerships
continue to expand and deepen, and we continue to leverage our
unparalleled expertise.”
Financial Highlights for the Third
Quarter of 2024
- Total revenue in the third quarter of 2024 was $161.6 million
as compared to $141.1 million in the third quarter of 2023.
- Revenue from material sales was $83.4 million in the third
quarter of 2024 as compared to $92.5 million in the third quarter
of 2023. The decrease in material sales was primarily due to
changes in customer mix as material volumes were relatively flat
between periods.
- Revenue from royalty and license fees was $74.6 million in the
third quarter of 2024 as compared to $45.9 million in the third
quarter of 2023. The increase in royalty and license fees was
primarily the result of changes in customer mix and a $6.8 million
increase in cumulative catch-up adjustment between periods.
- Cost of material sales was $33.2 million in the third quarter
of 2024 as compared to $31.6 million in the third quarter of 2023.
The increase in cost of material sales was primarily due to product
mix.
- Total gross margin was 78% in the third quarter of 2024 as
compared to 76% in the third quarter of 2023.
- Operating income was $67.0 million in the third quarter of 2024
as compared to $48.4 million in the third quarter of 2023.
- The effective income tax rate was 17.9% and 4.4% in the third
quarter of 2024 and 2023, respectively. The relatively low
effective income tax rate in the third quarter of 2023 was
primarily due to the change in IRS regulations, issued in July
2023, that permitted withholding taxes to be credited against U.S.
taxable income for the taxable years 2022 and 2023.
- Net income was $66.9 million or $1.40 per diluted share in the
third quarter of 2024 as compared to $51.5 million or $1.08 per
diluted share in the third quarter of 2023.
Revenue Comparison
($ in thousands)
Three Months Ended September
30,
2024
2023
Material sales
$
83,428
$
92,492
Royalty and license fees
74,590
45,915
Contract research services
3,609
2,670
Total revenue
$
161,627
$
141,077
Cost of Materials
Comparison
($ in thousands)
Three Months Ended September
30,
2024
2023
Material sales
$
83,428
$
92,492
Cost of material sales
33,172
31,639
Gross margin on material sales
50,256
60,853
Gross margin as a % of material sales
60
%
66
%
Financial Highlights for the First Nine
Months of 2024
- Total revenue in the first nine months of 2024 was $485.4
million as compared to $418.1 million in the first nine months of
2023.
- Revenue from material sales was $272.2 million in the first
nine months of 2024 as compared to $239.8 million in the first nine
months of 2023. The increase in material sales was primarily due to
strengthened demand for our emitter materials, partially offset by
changes in customer mix.
- Revenue from royalty and license fees was $202.4 million in the
first nine months of 2024 as compared to $165.5 million in the
first nine months of 2023. The increase in royalty and license fees
was primarily the result of higher unit material volume and changes
in customer mix during the third quarter of 2024.
- Cost of material sales was $102.8 million in the first nine
months of 2024 as compared to $89.7 million in the first nine
months of 2023 primarily due to an increase in materials sales
volume and product mix, partially offset by a $4.0 million decrease
in inventory reserve expense.
- Total gross margin was 77% in the first nine months of 2024 as
compared to 76% in the first nine months of 2023.
- Operating income was $186.3 million in the first nine months of
2024 as compared to $152.4 million in the first nine months of
2023.
- The effective income tax rate was 18.8% and 16.8% in the first
nine months of 2024 and 2023, respectively.
- Net income was $176.1 million or $3.69 per diluted share in the
first nine months of 2024 compared to $141.0 million or $2.95 per
diluted share in the first nine months of 2023.
Revenue Comparison
($ in thousands)
Nine Months Ended September
30,
2024
2023
Material sales
$
272,154
$
239,789
Royalty and license fees
202,409
165,524
Contract research services
10,828
12,796
Total revenue
$
485,391
$
418,109
Cost of Materials
Comparison
($ in thousands)
Nine Months Ended September
30,
2024
2023
Material sales
$
272,154
$
239,789
Cost of material sales
102,759
89,697
Gross margin on material sales
169,395
150,092
Gross margin as a % of material sales
62
%
63
%
2024 Revised Guidance
The Company now believes that its 2024 revenue will be in the
range of $625 million to $645 million. The OLED industry remains at
a stage where many variables can have a material impact on results,
and the Company thus caveats its financial guidance
accordingly.
Dividend
The Company also announced a fourth quarter cash dividend of
$0.40 per share on the Company’s common stock. The dividend is
payable on December 31, 2024 to all shareholders of record as of
the close of business on December 17, 2024.
Conference Call
Information
In conjunction with this release, Universal Display will host a
conference call on Wednesday, October 30, 2024 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 6,000 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 projected adoption, development and
advancement of the Company’s technologies, and the Company’s
expected results, 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, 2023. Universal Display
Corporation disclaims any obligation to update any forward-looking
statement contained in this document.
Follow Universal Display Corporation X Facebook
YouTube
(OLED-C)
UNIVERSAL DISPLAY CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(in thousands, except share and
per share data)
September 30, 2024
December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
79,559
$
91,985
Short-term investments
471,993
422,137
Accounts receivable
87,693
139,850
Inventory
175,958
175,795
Other current assets
126,643
87,365
Total current assets
941,846
917,132
PROPERTY AND EQUIPMENT, net of accumulated
depreciation of $158,992 and $143,908
191,195
175,150
ACQUIRED TECHNOLOGY, net of accumulated
amortization of $199,428 and $186,850
77,747
90,325
OTHER INTANGIBLE ASSETS, net of
accumulated amortization of $11,484 and $10,414
5,804
6,874
GOODWILL
15,535
15,535
INVESTMENTS
396,931
299,548
DEFERRED INCOME TAXES
72,138
59,108
OTHER ASSETS
109,686
105,289
TOTAL ASSETS
$
1,810,882
$
1,668,961
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
24,698
$
10,933
Accrued expenses
52,955
52,080
Deferred revenue
47,393
47,713
Other current liabilities
6,119
8,096
Total current liabilities
131,165
118,822
DEFERRED REVENUE
2,376
12,006
RETIREMENT PLAN BENEFIT LIABILITY
54,288
52,249
OTHER LIABILITIES
36,303
38,658
Total liabilities
224,132
221,735
SHAREHOLDERS’ EQUITY:
Preferred Stock, par value $0.01 per
share, 5,000,000 shares authorized, 200,000 shares of Series A
Nonconvertible Preferred Stock issued and outstanding (liquidation
value of $7.50 per share or $1,500)
2
2
Common Stock, par value $0.01 per share,
200,000,000 shares authorized, 48,826,922 and 48,731,026 shares
issued, and 47,461,274 and 47,365,378 shares outstanding, at
September 30, 2024 and December 31, 2023, respectively
488
487
Additional paid-in capital
717,190
699,554
Retained earnings
907,776
789,553
Accumulated other comprehensive income
(loss)
2,578
(1,086
)
Treasury stock, at cost (1,365,648 shares
at September 30, 2024 and December 31, 2023)
(41,284
)
(41,284
)
Total shareholders’ equity
1,586,750
1,447,226
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
1,810,882
$
1,668,961
UNIVERSAL DISPLAY CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
INCOME
(UNAUDITED)
(in thousands, except share and
per share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
REVENUE:
Material sales
$
83,428
$
92,492
$
272,154
$
239,789
Royalty and license fees
74,590
45,915
202,409
165,524
Contract research services
3,609
2,670
10,828
12,796
Total revenue
161,627
141,077
485,391
418,109
COST OF SALES
35,812
34,248
111,109
99,357
Gross margin
125,815
106,829
374,282
318,752
OPERATING EXPENSES:
Research and development
36,089
33,099
110,900
96,840
Selling, general and administrative
15,664
18,084
54,757
50,557
Amortization of acquired technology and
other intangible assets
4,551
4,557
13,648
11,442
Patent costs
2,352
2,572
6,735
7,056
Royalty and license expense
154
81
1,928
414
Total operating expenses
58,810
58,393
187,968
166,309
OPERATING INCOME
67,005
48,436
186,314
152,443
Interest income, net
10,592
7,136
30,073
20,301
Other income (loss), net
3,819
(1,693
)
416
(3,180
)
Interest and other income, net
14,411
5,443
30,489
17,121
INCOME BEFORE INCOME TAXES
81,416
53,879
216,803
169,564
INCOME TAX EXPENSE
(14,546
)
(2,363
)
(40,743
)
(28,531
)
NET INCOME
$
66,870
$
51,516
$
176,060
$
141,033
NET INCOME PER COMMON SHARE:
BASIC
$
1.40
$
1.08
$
3.69
$
2.95
DILUTED
$
1.40
$
1.08
$
3.69
$
2.95
WEIGHTED AVERAGE SHARES USED IN COMPUTING
NET INCOME PER COMMON SHARE:
BASIC
47,542,114
47,570,099
47,549,976
47,555,734
DILUTED
47,669,439
47,632,431
47,644,026
47,609,692
CASH DIVIDENDS DECLARED PER COMMON
SHARE
$
0.40
$
0.35
$
1.20
$
1.05
UNIVERSAL DISPLAY CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(UNAUDITED)
(in thousands)
Nine Months Ended September
30,
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
176,060
$
141,033
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
19,488
20,128
Amortization of intangibles
13,648
11,442
Amortization of premium and discount on
investments, net
(5,930
)
(9,436
)
Stock-based compensation
23,812
18,623
Deferred income tax (benefit) expense
(12,878
)
7,556
Retirement plan expense, net of benefit
payments
1,385
2,347
Decrease (increase) in assets:
Accounts receivable
52,157
(29,528
)
Inventory
(163
)
1,814
Other current assets
(39,278
)
(37,653
)
Other assets
(4,397
)
8,292
Increase (decrease) in liabilities:
Accounts payable and accrued expenses
9,405
(32
)
Other current liabilities
(1,977
)
(24,186
)
Deferred revenue
(9,950
)
11,809
Other liabilities
(2,355
)
(4,502
)
Net cash provided by operating
activities
219,027
117,707
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(29,960
)
(52,208
)
Purchases of intangibles
—
(66,563
)
Purchases of investments
(337,949
)
(303,004
)
Proceeds from sale and maturity of
investments
200,768
346,407
Net cash used in investing activities
(167,141
)
(75,368
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock
1,776
1,532
Payment of withholding taxes related to
stock-based compensation to employees
(8,251
)
(7,895
)
Cash dividends paid
(57,837
)
(50,083
)
Net cash used in financing activities
(64,312
)
(56,446
)
DECREASE IN CASH AND CASH EQUIVALENTS
(12,426
)
(14,107
)
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD
91,985
93,430
CASH AND CASH EQUIVALENTS, END OF
PERIOD
$
79,559
$
79,323
SUPPLEMENTAL DISCLOSURES:
Unrealized gain on available-for-sale
securities
$
4,117
$
3,304
Common stock issued to Board of Directors
and Scientific Advisory Board that was earned and accrued for in a
previous period
300
300
Net change in accounts payable and accrued
expenses related to purchases of property and equipment
(5,573
)
887
Cash paid for income taxes, net of
refunds
60,772
81,132
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030918292/en/
Universal Display Contact: Darice Liu investor@oled.com
media@oled.com +1 609-964-5123
Universal Display (NASDAQ:OLED)
Historical Stock Chart
Von Nov 2024 bis Dez 2024
Universal Display (NASDAQ:OLED)
Historical Stock Chart
Von Dez 2023 bis Dez 2024