15 Aug 2012
Boost in licensing revenue and near doubling of material sales reflect growth of UDC’s OLED technology.Universal Display Corporation, Ewing, NJ, US, this week announced its results for the second quarter and first half of 2012. For the latest quarter, the company reported net income of $11.0 million, or $0.23 per diluted share, on revenues of $30.0 million. (The respective figures for Q2 2011 were a net income of $3.3 million, or a loss of $0.03 per diluted share, on revenues of $11.3 million).
In Q2 2012, the company recognized $15.0 million in revenue under a licensing agreement with Samsung Display Corporation (SDC, and formerly Samsung Mobile Display) under which SDC is obligated to make payments to Universal Display of $15.0 million in each of the second and fourth quarters of this year.
“We are pleased to report the best quarterly financial results in our Company’s history,” said Sidney Rosenblatt, Executive VP and CFO. “The significant increase in licensing revenue and a near doubling of material sales in the quarter reflect the growth of our OLED technology."
”Looking at the first half of the year, we generated over $9.2 million in operating cash flow, while improving operating income by over $15.0 million on a $21.8 million increase in revenues compared to the first half of fiscal 2011.”
Q2 2012 performance
Revenues for the second quarter of 2012 were $30.0 million, a 166 percent increase compared to revenues of $11.3 million in the same quarter of 2011. Material sales were $12.8 million in the quarter, up 92 percent from $6.7 million in the second quarter of 2011, as a result of expanded marketplace adoption of UDC's technology and materials. Royalty and license fees were $15.4 million in the second quarter of 2012, up 479 percent compared to $2.7 million in the same quarter of 2011.
Royalty and license revenue in the second quarter of 2012 included the recognition of a $15.0 million semi-annual license payment from SDC compared to $1.8 million of SDC royalty revenue in last year’s second quarter. The company also reported operating income of $12.9 million for the second quarter of 2012, an improvement of $14.0 million compared to an operating loss of $1.1 million for the second quarter of 2011.
The company’s balance sheet remains strong, with cash and cash equivalents and short-term investments of $350.0 million as of June 30, 2012. Subsequent to the end of the quarter, the company used $4.0 million to fund an investment in Plextronics, and $105.0 million to purchase approximately 1,255 OLED patents and patent applications from Fujifilm Corp.
First half 2012 results
Revenues for the first six months of 2012 were $42.6 million, a 104 percent increase from the first half of 2011. Material sales in the first half of the year were $23.4 million, an increase of 108 percent compared to material sales of $11.2 million in the first half of 2011.
Rosenblatt concluded, “We believe that the widespread adoption of OLED technology is creating growth opportunities for our innovative technologies and materials. We are investing strategically to add new capabilities in our existing, adjacent and developing OLED markets in a manner designed to build effectively on our materials and technologies where we have a leading industry position.
"We formed a strategic alliance to accelerate the development and commercialization of solution-based OLED material systems incorporating our PHOLED materials with our partners’ hole injection and hole transport materials. And, we most recently purchased approximately 1,255 OLED patents and patent applications. We believe that these actions clearly demonstrate our commitment to enhancing our portfolio of intellectual property and materials to extend our industry leadership and help accelerate the growth of the OLED market.”
About the Author
Matthew Peach is a contributing editor to optics.org