EWING, N.J., May 01, 2025--(BUSINESS WIRE)--Universal Display Corporation (Nasdaq: OLED), enabling energy-efficient displays and lighting with its UniversalPHOLED® technology and materials, today reported financial results for the first quarter ended March 31, 2025.
"We began 2025 on a solid financial note and continue to remain confident in the long-term growth trajectory of the OLED market. At the same time, we recognize the increasing complexity and uncertainty of the global landscape. In this environment, we are committed to our long-term strategy of advancing our leadership through the continuous invention, development and delivery of state-of-the-art OLED technologies and materials. With a powerful innovation engine, strong balance sheet, resilient supply chain, and operational agility, we are well-positioned to adapt to change, respond swiftly and continue supporting our customers and partners," said Brian Millard, Vice President and Chief Financial Officer of Universal Display Corporation.
Financial Highlights for the First Quarter of 2025
Total revenue in the first quarter of 2025 was $166.3 million as compared to $165.3 million in the first quarter of 2024.
Revenue from material sales was $86.2 million in the first quarter of 2025 as compared to $93.3 million in the first quarter of 2024. The decrease in material sales was primarily due to lower unit material volume for our emitter materials, partially offset by changes in customer mix.
Revenue from royalty and license fees was $73.6 million in the first quarter of 2025 as compared to $68.3 million in the first quarter of 2024. The increase in royalty and license fees was primarily the result of changes in customer mix, partially offset by lower unit material volume.
Cost of material sales was $33.9 million in the first quarter of 2025 as compared to $34.1 million in the first quarter of 2024 due to lower unit material volume, partially offset by changes in product mix.
Total gross margin was 77% in the first quarter of 2025 as compared to 78% in the first quarter of 2024.
Operating income was $69.7 million in the first quarter of 2025 as compared to $62.9 million in the first quarter of 2024.
The effective income tax rate was 19.6% in the first quarter of 2025 as compared to 19.4% in the first quarter of 2024.
Net income was $64.4 million or $1.35 per diluted share in the first quarter of 2025 as compared to $56.9 million or $1.19 per diluted share in the first quarter of 2024.
Revenue Comparison
($ in thousands)
Three Months Ended March 31,
2025
2024
Material sales
$
86,155
$
93,284
Royalty and license fees
73,569
68,268
Contract research services
6,553
3,707
Total revenue
$
166,277
$
165,259
Cost of Materials Comparison
($ in thousands)
Three Months Ended March 31,
2025
2024
Material sales
$
86,155
$
93,284
Cost of material sales
33,949
34,096
Gross margin on material sales
52,206
59,188
Gross margin as a % of material sales
61
%
63
%
2025 Guidance
While the evolving macroeconomic environment this year creates greater uncertainty, the Company affirms its previous revenue guidance and believes that 2025 revenue will be the range of $640 million to $700 million.
Dividend
The Company also announced a second quarter cash dividend of $0.45 per share on the Company’s common stock. The dividend is payable on June 30, 2025 to all shareholders of record as of the close of business on June 16, 2025.
Conference Call Information
In conjunction with this release, Universal Display will host a conference call on Thursday, May 1, 2025 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 6,500 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, 2024. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document.
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $168,110 and $169,877
196,263
195,239
ACQUIRED TECHNOLOGY, net of accumulated amortization of $207,814 and $203,621
69,361
73,554
OTHER INTANGIBLE ASSETS, net of accumulated amortization of $12,194 and $11,842
5,094
5,446
GOODWILL
15,535
15,535
INVESTMENTS
369,027
457,593
DEFERRED INCOME TAXES
81,410
78,320
OTHER ASSETS
109,383
106,815
TOTAL ASSETS
$
1,864,487
$
1,832,333
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
28,294
$
36,590
Accrued expenses
35,089
46,026
Deferred revenue
22,772
33,074
Other current liabilities
26,944
9,720
Total current liabilities
113,099
125,410
DEFERRED REVENUE
2,348
537
RETIREMENT PLAN BENEFIT LIABILITY
54,867
54,450
OTHER LIABILITIES
34,841
35,411
Total liabilities
205,155
215,808
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, 48,937,424 and 48,834,541 shares issued, and 47,571,776 and 47,468,893 shares outstanding, at March 31, 2025 and December 31, 2024, respectively
489
488
Additional paid-in capital
722,275
723,719
Retained earnings
977,556
934,655
Accumulated other comprehensive income (loss)
294
(1,055
)
Treasury stock, at cost (1,365,648 shares at March 31, 2025 and December 31, 2024)
(41,284
)
(41,284
)
Total shareholders’ equity
1,659,332
1,616,525
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
1,864,487
$
1,832,333
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in thousands, except share and per share data)
Three Months Ended March 31,
2025
2024
REVENUE:
Material sales
$
86,155
$
93,284
Royalty and license fees
73,569
68,268
Contract research services
6,553
3,707
Total revenue
166,277
165,259
COST OF SALES
38,134
36,969
Gross margin
128,143
128,290
OPERATING EXPENSES:
Research and development
34,900
37,985
Selling, general and administrative
17,014
19,252
Amortization of acquired technology and other intangible assets
4,545
4,548
Patent costs
1,906
1,982
Royalty and license expense
114
1,651
Total operating expenses
58,479
65,418
OPERATING INCOME
69,664
62,872
Interest income, net
10,074
9,568
Other income (loss), net
378
(1,943
)
Interest and other income (loss), net
10,452
7,625
INCOME BEFORE INCOME TAXES
80,116
70,497
INCOME TAX EXPENSE
(15,672
)
(13,644
)
NET INCOME
$
64,444
$
56,853
NET INCOME PER COMMON SHARE:
BASIC
$
1.35
$
1.19
DILUTED
$
1.35
$
1.19
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE:
BASIC
47,567,295
47,557,959
DILUTED
47,689,657
47,628,492
CASH DIVIDENDS DECLARED PER COMMON SHARE
$
0.45
$
0.40
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Three Months Ended March 31,
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
64,444
$
56,853
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
6,548
6,616
Amortization of intangibles
4,545
4,548
Amortization of premium and discount on investments, net
(1,471
)
(2,236
)
Stock-based compensation
7,076
9,174
Deferred income tax benefit
(3,091
)
(3,936
)
Retirement plan expense, net of benefit payments
423
330
Decrease (increase) in assets:
Accounts receivable
(25,915
)
20,266
Inventory
(14,460
)
2,890
Other current assets
400
(2,113
)
Other assets
(2,568
)
2,907
Increase (decrease) in liabilities:
Accounts payable and accrued expenses
(13,408
)
(7,977
)
Other current liabilities
16,867
12,786
Deferred revenue
(8,491
)
(27,270
)
Other liabilities
(337
)
(682
)
Net cash provided by operating activities
30,562
72,156
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(13,059
)
(7,206
)
Purchases of investments
(38,772
)
(99,947
)
Proceeds from sale and maturity of investments
110,000
42,970
Net cash provided by (used in) investing activities
58,169
(64,183
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock
579
639
Payment of withholding taxes related to stock-based compensation to employees
(9,398
)
(7,058
)
Cash dividends paid
(21,419
)
(19,527
)
Net cash used in financing activities
(30,238
)
(25,946
)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
58,493
(17,973
)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
98,980
91,985
CASH AND CASH EQUIVALENTS, END OF PERIOD
$
157,473
$
74,012
SUPPLEMENTAL DISCLOSURES:
Unrealized gain (loss) on available-for-sale securities
$
1,320
$
(2,666
)
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
