Universal Display Reports First Yearly Profit
EWING, N.J., March 5, 2012 — Universal Display Corp., an organic LED (OLED) technologies, materials and service provider, announced its results for the fourth quarter and year ending Dec. 31, 2011, reporting its first ever full-year profit.
The company reported an operating income of $3.6 million and net income of $5.7 million for the fourth quarter 2011 on revenues of $18.7 million, which was up 73 percent over fourth quarter 2010. For fourth quarter 2010, Universal Display reported an operating loss of $210,000 and a net loss of $5.3 million on revenues of $10.8 million.
“Strong demand for both our proprietary materials and technology sustained the momentum in our business, led to another quarter of top and bottom line growth, and lifted the company to its first ever full-year profit,” said Sidney D. Rosenblatt, executive vice president and chief financial officer of Universal Display. “Results continue to reflect increased penetration of our OLED materials and technology into the commercial display market, as well as growth in research and development efforts from a broad cross section of manufacturers developing new applications for our OLED materials technology.”
Rosenblatt also said that the OLEDs have eclipsed the inflection point, now generating positive cash flow for the company, which he credits as strengthening the overall finances of the company.
“With manufacturers announcing plans to expand OLED productive capacity, to introduce a host of new products featuring OLED displays, and to develop OLED white lighting products, we believe the company is in a strong position to benefit from a market with significant growth opportunities,” he said.
Material sales were $10.8 million for the quarter, up 47 percent compared with $7.4 million for the fourth quarter of 2010, primarily due to increased material sales under commercial agreements. Royalty and license fees were $5.4 million for the quarter, up 207 percent compared with $1.8 million for the fourth quarter of 2010, due to $5 million in license payments from a large customer during the quarter. Revenue categories were revised to better reflect the primary sources of the company’s revenue, it said.
“The results achieved over this past year show that there is growing consumer demand for products featuring bright, beautiful AMOLED displays,” Rosenblatt said. “The company’s recent growth validates our business strategy and provides an indication of the pace and magnitude at which our proprietary PHOLED materials and technology are being adopted by the market.”
For more information, visit: www.universaldisplay.com
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