Universal Display Announces 1Q 2019 Financial Results

Universal Display reported financial results for the first quarter ended March 31, 2019.
 
Total revenue in the first quarter of 2019 was $87.8 million as compared to $43.6 million in the first quarter of 2018.
 
“We are pleased to report solid first quarter 2019 results,” said Sidney D. Rosenblatt, EVP and CFO of Universal Display. “Looking to the year, we continue to see strong momentum in the industry. As seen by leading OEM product launches, OLEDs are the display technology of choice for premium smartphones and TVs. Additionally, one of the major themes emerging in the consumer electronics market is form factor. Driven by a robust pipeline of activity, from both panel makers and end users, we believe that the flexible, foldable display path will lead to a myriad of new products, designs and applications.”
 
“2019 marks the 25th anniversary of Universal Display Corporation,” Rosenblatt continued. “In June 1994, we were founded on the mission to develop and commercialize key OLED technologies. Today, we are a leading player enabling the OLED ecosystem, and our proprietary technologies and materials can be found in virtually every consumer OLED product around the world. We believe that the tremendous value of our phosphorescent portfolio has solidified UDC as an integral partner in the commercialization of OLEDs into the marketplace.”
 
On the basis of ASC Topic 605 (the applicable accounting standard prior to the adoption of ASC Topic 606), total revenue in the first quarter of 2019 would have been $101.6 million, compared to $68.2 million in the first quarter of 2018. Under ASC Topic 606, license fee revenue is recognized on a per gram sales basis, whereas under ASC Topic 605, revenue was recognized for license payments upon receipt or on a straight-line basis over the term of the contract.
 
Revenue from material sales was $54.5 million in the first quarter of 2019 as compared to $25.3 million in the first quarter of 2018. On an ASC Topic 605 basis, revenue from material sales in the first quarter of 2019 would have been $57.3 million, compared to $28.7 million in the first quarter of 2018.
 
Revenue from royalty and license fees was $30.3 million in the first quarter of 2019 as compared to $15.9 million in the first quarter of 2018. On an ASC Topic 605 basis, revenue from royalty and license fees in the first quarter of 2019 would have been $41.3 million as compared to $37.1 million in the first quarter of 2018.
 
Operating income was $34.4 million in the first quarter of 2019 compared to $4.5 million in the first quarter of 2018. On an ASC Topic 605 basis, operating income in the first quarter of 2019 would have been $48.2 million, compared to $29.2 million in the first quarter of 2018.
 
Net income was $31.5 million or $0.66 per diluted share in the first quarter of 2019 compared to $6.0 million or $0.13 per diluted share in the first quarter of 2018. On an ASC Topic 605 basis, net income in the first quarter of 2019 would have been $42.5 million or $0.90 per diluted share, compared to $25.9 million or $0.55 per diluted share in the first quarter of 2018.