Universal Display announces ‘improved’ Q2 financials

11 Aug 2021

OLED company is “on track for 30% sales growth and record high for annual revenue," states CFO.

Universal Display (UD), which develops energy-efficient displays and lighting with its Universal PHOLED technology and materials, has reported “improved” financial results for the second quarter, which ended June 30, 2021.

“Looking to the year, we are on track to achieve approximately 30% year-over-year sales growth, translating into a new record high for annual revenue for the Company,” commentedd Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display.

“As we anticipate ongoing momentum in the OLED industry to increase in 2021 and beyond, we are excited about the long and vast runway of forecasted growth for the market. Given this expected growth, we are continuing to expand our global infrastructure, and invest in our people to further enable our customers and the OLED ecosystem.”

Rosenblatt continued, “With efficiencies that are up to four times higher than conventional OLED materials, UDC’s patented and award-winning phosphorescent OLED technology and UniversalPHOLED materials are proven to be integral in enabling high-performance, low-power consumption and energy-efficiency in OLED displays and lighting.

“Our energy-efficiency initiatives are expanding as we continue to invent and develop new OLED materials and technologies, including progress toward delivery of an all-phosphorescent red, green and blue emissive system, that can enable a sustainable and low-carbon future.”

Financial highlights of Q2, 2021

• Total revenue in the second quarter of 2021 was $129.7M ($58.0M in Q2, 2020). The increase in revenue was due to strengthened demand for OLED products utilizing UD’s emitter material, as well as the recovery in sales that were adversely affected by the impact of the Covid-19 pandemic during the three months ended June 30, 2020. The company stated, “We believe we have experienced the worst effects of the pandemic, we remain uncertain as to the possibility of its re-emergence and any corresponding negative impact on OLED market demand.”
• Revenue from material sales was $77.4M in Q2, 2021 as compared to $31.9M in Q2, 2020.
• Revenue from royalty and license fees was $48.2M in Q2, 2021 as compared to $22.4M in Q2, 2020.
• Cost of material sales was $25.3M in Q2, 2021 as compared to $10.3M in Q2, 2020.
• Operating income was $49.9M in Q2, 2021 as compared to operating loss of $1.2M in Q2, 2020.
• Net income was $40.5M in Q2, 2021 as compared to $815,000 in Q2, 2020.