Universal Display Q3 2020 Earnings Report
Key Takeaways
Universal Display Corporation reported a revenue of $117.1 million for the third quarter of 2020, compared to $97.5 million in the third quarter of 2019. The increase in revenue was due to higher material sales as a result of stronger demand in the OLED display market. Net income was $40.5 million, or $0.85 per diluted share, compared to $37.0 million, or $0.78 per diluted share, in the third quarter of 2019.
Total revenue increased to $117.1 million, up from $97.5 million in Q3 2019.
Material sales revenue rose to $68.7 million, compared to $51.8 million in Q3 2019.
Royalty and license fees revenue increased to $44.6 million, up from $43.0 million in Q3 2019.
Operating income increased to $48.4 million, compared to $40.8 million in Q3 2019.
Universal Display
Universal Display
Universal Display Revenue by Segment
Forward Guidance
The Company believes that its 2020 revenue will be approximately in the range of $385 million to $400 million.
Positive Outlook
- OLED panel momentum will continue in the fourth quarter.
- Meaningful growth to resume in 2021 as new OLED production comes online.
- New OLED consumer electronic models are launched.
- Customers continue to advance their OLED commercialization plans.
- Flexibility and versatility of OLEDs continue to broaden the imagination and transform the definition of what a consumer product can be.
Challenges Ahead
- Ongoing uncertainties related to the COVID-19 pandemic persist.
- The full extent of the impact of the on-going COVID-19 pandemic on our operational performance remains uncertain.
- The timing of the pandemic.
- The extent and duration of the pandemic.
- The development and availability of effective treatments and vaccines, and the impact on the global economy and demand for OLED consumer products.
Revenue & Expenses
Visualization of income flow from segment revenue to net income