08.06.19
Universal Display reported financial results for the second quarter ended June 30, 2019.
Total revenue in the second quarter of 2019 was $118.2 million as compared to $56.1 million in the second quarter of 2018. On the basis of ASC Topic 605 (the applicable accounting standard prior to the adoption of ASC Topic 606), total revenue in the second quarter of 2019 would have been $119.8 million, compared to $73.6 million in the second quarter of 2018.
Revenue from material sales was $76.3 million in the second quarter of 2019 as compared to $36.8 million in the second quarter of 2018. On an ASC Topic 605 basis, revenue from material sales in the second quarter of 2019 would have been $78.3 million, compared to $35.9 million in the second quarter of 2018.
Revenue from royalty and license fees was $38.9 million in the second quarter of 2019 as compared to $15.5 million in the second quarter of 2018. On an ASC Topic 605 basis, revenue from royalty and license fees in the second quarter of 2019 would have been $38.6 million as compared to $33.9 million in the second quarter of 2018.
“We are pleased to report strong second quarter results across the board,” said Sidney D. Rosenblatt, EVP and CFO of Universal Display. “As OLED demand continues to grow, revenues from our top customers were up quarter-over-quarter and year-over-year. Included in our second quarter results are approximately $15-$20 million of sales we estimate were pulled in from the second half of the year. These sales were from our Chinese customers due to what we believe were trade-related issues. Looking forward, we continue to see robust OLED momentum and as a result, we are raising our 2019 revenue guidance.”
Rosenblatt continued, “As a key player in the OLED ecosystem, we are continuing to develop new OLED technologies and next-generation red, green, yellow and blue phosphorescent emissive materials to stay ahead of the curve, and to leverage our first-mover leadership position. At SID Display Week in May, for the first-time, we showcased printed panels from our OVJP (organic vapor jet printing) pilot system. You were able to view up-close our green PHOLED printed test coupon, with lifetimes of over 50,000 hours (LT95) at 1,000 nits. For such early data, we believe that this is extraordinarily encouraging. Also, in May, we launched our corporate venture capital arm, UDC Ventures. We believe that these and our other strategic initiatives will strengthen and support our primary focus of enabling our customers’ success, and therefore, our success.”
Operating income was $48.7 million in the second quarter of 2019 compared to $10.9 million in the second quarter of 2018. On an ASC Topic 605 basis, operating income in the second quarter of 2019 would have been $50.3 million, compared to $28.4 million in the second quarter of 2018.
Net income was $43.4 million or $0.92 per diluted share in the second quarter of 2019 compared to $10.8 million or $0.23 per diluted share in the second quarter of 2018. On an ASC Topic 605 basis, net income in the second quarter of 2019 would have been $44.8 million or $0.95 per diluted share, compared to $25.1 million or $0.54 per diluted share in the second quarter of 2018.
Total revenue in the second quarter of 2019 was $118.2 million as compared to $56.1 million in the second quarter of 2018. On the basis of ASC Topic 605 (the applicable accounting standard prior to the adoption of ASC Topic 606), total revenue in the second quarter of 2019 would have been $119.8 million, compared to $73.6 million in the second quarter of 2018.
Revenue from material sales was $76.3 million in the second quarter of 2019 as compared to $36.8 million in the second quarter of 2018. On an ASC Topic 605 basis, revenue from material sales in the second quarter of 2019 would have been $78.3 million, compared to $35.9 million in the second quarter of 2018.
Revenue from royalty and license fees was $38.9 million in the second quarter of 2019 as compared to $15.5 million in the second quarter of 2018. On an ASC Topic 605 basis, revenue from royalty and license fees in the second quarter of 2019 would have been $38.6 million as compared to $33.9 million in the second quarter of 2018.
“We are pleased to report strong second quarter results across the board,” said Sidney D. Rosenblatt, EVP and CFO of Universal Display. “As OLED demand continues to grow, revenues from our top customers were up quarter-over-quarter and year-over-year. Included in our second quarter results are approximately $15-$20 million of sales we estimate were pulled in from the second half of the year. These sales were from our Chinese customers due to what we believe were trade-related issues. Looking forward, we continue to see robust OLED momentum and as a result, we are raising our 2019 revenue guidance.”
Rosenblatt continued, “As a key player in the OLED ecosystem, we are continuing to develop new OLED technologies and next-generation red, green, yellow and blue phosphorescent emissive materials to stay ahead of the curve, and to leverage our first-mover leadership position. At SID Display Week in May, for the first-time, we showcased printed panels from our OVJP (organic vapor jet printing) pilot system. You were able to view up-close our green PHOLED printed test coupon, with lifetimes of over 50,000 hours (LT95) at 1,000 nits. For such early data, we believe that this is extraordinarily encouraging. Also, in May, we launched our corporate venture capital arm, UDC Ventures. We believe that these and our other strategic initiatives will strengthen and support our primary focus of enabling our customers’ success, and therefore, our success.”
Operating income was $48.7 million in the second quarter of 2019 compared to $10.9 million in the second quarter of 2018. On an ASC Topic 605 basis, operating income in the second quarter of 2019 would have been $50.3 million, compared to $28.4 million in the second quarter of 2018.
Net income was $43.4 million or $0.92 per diluted share in the second quarter of 2019 compared to $10.8 million or $0.23 per diluted share in the second quarter of 2018. On an ASC Topic 605 basis, net income in the second quarter of 2019 would have been $44.8 million or $0.95 per diluted share, compared to $25.1 million or $0.54 per diluted share in the second quarter of 2018.