OLED - Earnings call transcript Q3 2017 | Universal Display Corporation

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Operator

Good day ladies and gentlemen and welcome to Universal Display's third quarter 2017 earnings conference call. My name is David and I will be your conference moderator for today's call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

conference recorded this replay reminder, a is for being purposes. As the now Relations. to like would call to Investor I of turn over Director Darice Liu, proceed. Please

Darice Liu

Thank Display's to call. you everyone. quarter earnings conference and Universal afternoon, good third Welcome

me Chief Officer and and Chief Joining Abramson, Officer. Vice Rosenblatt, Executive the are and call Steve on President Executive Financial Sid President today

in is retransmission webcast prohibited. as include, to the those Steve are the in not the be period risks of Universal company's any SEC by securities. to should reports Universal a Universal of disclaims Display of differ discussed update obligation of Universal results Private date the filed property of expectations, begins, with forward-looking technologies, is Display's from any call a this the portion expressed in It future. of note making the cause are referenced this let Before as Corporation's without call and Display for accurate is OLED statements. Universal are within the to time company's These only any Any could subject intentions that of results growth XXXX, and XXXX. form This risks periodic Display's me being and uncertainties or in these conference actual not information redistribution, Display's on website. written today's important All technologies live market opportunities this of regarding historical Universal the will of Display limited or such statements statements be considering statements beliefs, relating and November of of and remind investments live in to but that available call those Securities Act to are webcast call, potential are call as regarding applications Further, market. X, you contains These any that is those that that of the is rebroadcast statements Litigation Reform any expected uncertainties of call that to Display. anyone company's made consent the meaning well as time-sensitive this and hopes projected. the these the Universal company's strictly

Now, the I to would Abramson. turn over call like Steve to

Steve Abramson

and Thanks everyone on Darice welcome call. today's to

outstanding We was quarter or profit of income million Revenues another of the results. net share. $XX.X and are $XX.X in to pleased third were solid report was $XX.X million, million XXXX quarter per $X.XX operating

IHS we in million Research to than that the cycle the recently XXXX. million are XX CapEx which see meters smartphones, continues including to the quadruple new approximately OLED meters world's the for flagship about OLED XX launch early industry, is expected the to panel XXXX forecasted square OLED adoption is The growth Market next more stages. to foldable the years in and and OLED expand of exciting of OLED plans continued multi-year we fueling in momentum quarter, to OLED first the in product. launch OLED in from five production During growing square display over demand TVs capacity

With XX% million the XX% $XXX than to to $XXX shortly. are reflecting OLED details guidance revenue expected provide industry's range momentum approximately raising our will this further to year, growth. XXXX accelerating million we Sid faster year-over-year

announcements the driving introduced is X screen the tested. ever highest diagnostics DisplayMate, DisplayMate Note performance X smartphone the queen notable the review its display has research lowest reflectance. resolution firm this us X. said to momentum. industry's for Note is brightness, that innovative highest and Samsung peak Galaxy According Galaxy of recent some the display let and Now high the and news most Note

Wouldn't believe just display only consumer the foldable Samsung layers Edge electronics the be use yet an it imagined. Also Note ability forum Display result, OLED Infinity but the grade. announced can making and thin foldable, include applications Many which first world's on an China. A+ could film smartphone XX, manufacture industry displays, value conformable, TVs ever recently rollable. foldable are a would OLED plastic, roll introduced awarded not landscape and a OLED and great to off OLED with We stated in your if benefits The form changing is be curved OEM way that of broaden to September the early continue the it into On new with you we tuck bendable Skyworth, in Galaxy smartphones be launch to Chinese LG innovative highest the the Leading offer OLEDs will DisplayMate's of to XXXX. September of roadmap. the OLED inherently these in Displays. in aiming next display Samsung more X in attended breakthrough in displays the that was TVs, a it hosted and As XX, its industry. OLED milestone the believe pocket? with factor edges product conformable the the OLED is Day Partners adopter

with largest Speaking showcased trade Europe, panels the show the around at OEMs XX TVs, consumer from beautiful, OLED LG of world thin in electronics TVs, bright, from Display. OLED IFA, all

billion for was TVs its and XXX,XXX XXXX And Panasonic, and a commitment from Sony, with demand handful. has planned in double strong a On OLED Cook Skyworth, world LG Apple's also iPhone September the split expect in about the Sony, shipments Changhong, Philips, The Bang OLED day OLED Sony to in CapEx is XXXX, million XXXX it and and to X.X mobile X.X with busy dubbed which call, that was for unveiling an TV Olufsen week's makers panels regards Tim to According more Some $XX design level just objective TVs, its XXX,XXX decade. OLEDs, first the million exceed next Apple, plans strong & is to X.X XX-XX noted, efficiency flagship is panels a earnings with to screen Apple and reaffirmed reported the it quality, OLED conference for of technology this of TV path enjoying display. really they forecasting name that displays. smartphone between the mobile will XXXX. XX super than OLED its Toshiba, in last to for Display breakthrough year, to by retina XX. OLED OLED's quite to of X.X TV marked their It set the panels the million product, XXXX, in in responsiveness to panels. as is include

greenfield also delivered display its flexible begin produce Technology the At will including and GenX OPPO, new Huawei, more was OLED with Ever panels XX,XXX GenX fab. in than BOE XXXX. flexible its stated ceremony Moving production in customer is OLED XX it second fab. August, month held ramping vivo, agreement in a and GenX mass on Chengdu Ever its ceremony, to ramping $X fab expected slated that Last begin to OLED to Nubia. week, whom announced Display, progressing plates for Mianyang reconfirmed its BOE with China's per China. ZTE Display's first BOE we plant, billion to in is fab customers XXXX. Xiaomi, OLED

color, According it X.X Japan flexible Display to according XXXX. lighting. years. conformable with Royole that in and reports, producing of plans design to is phones smart month OLED a constructing in XX a lights be wearables and the small bendable Taiwan, brightness to to that Japan, market. cars OLED needs long-lasting Innolux gears that was flexible is start Pioneer factors is primarily has lifespan panels expected OLED in product lighting customized for production can And OLED reported meet Shenzhen. reports, automakers. of terms It OLED XXXX. other In for announced to of producing that developed Additionally, is are last Gen for in it displays bright, mass in facility Corporation ready Switching the OLED Pioneer's

automakers One and lighting of and form taillights factor main makes designs. is and novel OLED adoptee benefits BMW. the to S-Class with Mercedes-Benz Mercedes its to for unveiled adding to Cabriolet taillights. which Coupe create OLED list, ability automotive Audi The OLED This third of maker who the the adopt newest includes the is

As technology robust materials OLED our remain activity commitment OLED continues to in and flourish, we steadfast to leadership. advancing our

we commercializing reds, greens, materials we headway and respect our in technologies, yellows hosts. to development new phosphorescent making our With emissive materials ongoing new including On blue, front, for and system. work and the innovating commercial investing, excellent emissive believe are we are blue

of our OLED large to our We for printing also advance solvent-less, printing, process jet manufacturing mask-less, work in direct dry continue panels. organic vapor novel

capacities expanding OLED demand. investments emitter we could consumer that addition, significant products Ohio base and Earlier plant. up Barberton, completion double our innovation future line of growth announced investment increasing is programs a a week, customer OLED research to stepping expected phosphorescent for the $XX growing our materials electronic are requirement the new meet we capability. support for is to generate fast OLED this building our best the to at PPG's becoming world. production This million In around production

technologies let our Sid. of enabler OLEDs. unlocking the efficiency call materials key OLED and As and are a leading note, value the to in power that to ecosystem, the performance, over proprietary me On turn

Sid Rosenblatt

thank million. today. $XX.X were year-over-year again from up our you the million, quarter XXXX's Revenues Thank third everyone call for joining $XX.X XXXX and quarter third you of Steve XXX% for

and year-over-year from from sequentially in quarter, $XX.X material $XX quarter. doubling were total XXXX's Our million sales the last third million quarter flat the third

emitter total sequentially the from up from discussing year-over-year's think sales, million color, flat in were quarter, the X% emitter consists commercial, XXXX development material up $XX XX% provide $XX.X the material results. picture from third by up quarter Total quarter third the sales sales, million of from we and $XX.X total yellow-green $XX.X comparable and million $XX.X Total of sequentially green were the million. of red quarter, which comparable last $X.X include million. XXX% noted second the quarter's quarter's million, emitters overall year-over-year a our and our second As both better are which sales for quarter's

discussed have in quarter-to-quarter. the As can material vary buying we past, patterns

demand mix, number production for ramp production loading efficiency for of can volume of include our customer the customers, variables factors these moving schedules, factors are material patterns product ordering to moving pricing us. Some Since rates, contractual contributing and are variables cycles, capacity consumer also a gains. product this they reductions,

difficult. result, quarter-to-quarter forecasting a remains As

and Moving to licensing. royalty

Cost of royalty quarter quarter quarter third in from of sales into third gross million quarter the in increase material include sales, to due million, gross fees to $XX.X quarter XXXX year-over-year. up were year-over-year sales, were of Adesis material of XXXX which sales, the XXX% of Adesis cost $X.X million, compared third of were materials XXXX. emitter third third and cost Our the to $X.X for is more relates $XX.X only from material million XX% of XXXX's include translating XXXX license OLED of The up of million. Cost XX%. sales, the $XX which doubling does margins than not margins quarter and

We expect for to our overall XX% range. the at the to material XXXX of gross be margins high-end XX%

year-over-year rate, up growth primarily excluding XXXX. to the sales, costs operating around quarter $XX.X accelerated up increase was QX's expenses, due the $XX.X associated million operating quarter-over-quarter from XX% XX% OpEx were to of cost to of quarter Third now million, quarter compensation and $XX.X incremental be amortization million $XX.X of we comparable third our and $X expect the compared expense. with million. year-over-year Due operating The income up from to loss quarter's is third increased XXXX's Adesis to excluding an of million Operating XXXX for for year-over-year.

share of of $XX.X per quarter For or for net the third income per a for million XXXX, of share quarter $X.XX net million to loss loss in $X.XX of same the reported XXXX. $X.X compared we a

income rate quarter tax quarter million expense third tax of was XX%. tax approximately rate our a would Third Without $X.X XX%. XXXX-XX, have approximately been XXXX ASU or XXXX

expect balance rate dividend the year, Shifting September or of absent investments For the ended sheet. $XXX points. we approximately XXXX-XX, of cash our XX%, minus cash, and few ASU the The a December We approved as short-term the that or be dividend a quarter to also Directors December the with percentage effect plus long-term tax in million shareholders $X to over the record of payable common XX, close $X.XX XX, on per today cash per announced share. Board on of the of is company company's all share XXXX of XXXX. to business of on stock. The

to variables, million on along other $XXX our and operating are well we guidance. as the XXXX major to revenues to range We will increased be for current Moving full-year's guidance. expectations now our call $XXX Based as raising discussions, mix product the With back Steve. have in levels, expect XXXX to I that, million. our turn customer of

Steve Abramson

Thanks Sid.

from including embrace we myriad billion smartphones, and consumer to $X.X wearables, of of We products yet are continually OLED pleased vast of company XXXX, to products a Since global creating advance art IP imagination know-how, growing our inception player OLEDs leading and innovating conceive. in Building our market's our have invested to global framework. experience in while a state the and our the a systems IT, by over OLED automotive, on emissive in the TVs ecosystem. startup the also has we are expanding

growth the recognize industry's stages XX to also expertise, and We your continued our story. to I shareholders ongoing our history innovation. for and thank leverage commitment would plus story with our exceptional we We employees still to capabilities early and are best partners performance their that in well and and work best for like I positioned scale support. would the believe growth commercial the of to of our customers, valued years deliver to OLED moment like and emissive excellence materials the our lifetime. and are take a OLED

continuing gain with growth long the proliferation runway momentum, operator, and Q&A. let's us. we is the that that for With start of industry OLED to and And the for believe the of robust

Operator

[Operator Thank Instructions]. you Mr. Abramson.

Lee from with is question first Brian Sachs. Our Goldman

Brian Lee

questions Thanks the quarter. Congrats guys. good taking for Hi the on

be this I full-year your, to guidance, obviously consistent coming especially take nit-picky, your revised and pretty assume, a but I know in, is guidance string throughout beats if too after QX. not the Just your we payment in Samsung of Sid, year,

it to trying a implies a more ex-Samsung to revenue am those in if You guidance ballpark million ex new just $XX I the If million, of and I Adesis high bridge materials million out, $XX did I in number your royalty does revenues couple somewhere bucks. your double-digit to guidance.

Or wrong? where secondarily, could So seasonal be, is I materials? could be? math Or my drop-off where anticipating would be for are guess, first just you the bridge question that there a that maybe sharp Thanks.

Sid Rosenblatt

quarter the at, guidance But the looking be bit. distorts some our royalty this not sales together, quarter for kind I may seen. we there third Well, were assumptions the we historically think a license, And the which are have of had is you we sure this as million for can which non-Samsung $XX we just that seasonality robust. put and that than quarter be run fourth when anticipated rate are higher little

look best So our is like. what going this is for guestimate to the years

Brian Lee

first doing revenues. this segue we were the other expected. payments like enough. royalty It royalty and more sets revenue like be particular purchases Was than you into in customers of quarter TVs sound royalties? there amongst mix quarter? it shift contribution they than in the may good LG's where big Fair Okay. the this was larger from other the seems know higher they But a any drove materials get have licensing mix where It were LG? strength price better was the number been there and drivers $XX quarter that to outside OLED in million Or TVs,

Steve Abramson

which specifically it's say from. to difficult it's customer Well,

was We and are are we going it one, from when But And multiple licensing they are was. revenue. fees contributing have multiple each really our not historically but customers talk now about specific LG from now. customers growing said our the to licensing there to coming are bulk

So multiple in customers quarter. in it is there this

Brian Lee

time And for but then dollar first revenue was the China the Again, milestones, you. double that a guys number on for keep hitting you just digit million revenues. new

ramp nearing on thoughts driver Just with tipping in that? hear opportunity securing is BOE Thank long-term timing would thoughts which you or another here the China? your the big think your you. I a be and Just of curious a on your commitment to whether any think relationship, on point

Steve Abramson

BOE we and of production becoming number customers expect and other lot to a grow. activity continue to we are and and a facilities China customers and seeing, OLED larger of larger building is obviously in There that fully

Brian Lee

it enough. Fair will Okay. pass Thanks guys. I on.

Steve Abramson

Thanks Brian.

Operator

next Ricchiuti Jim & question from with Our is Company. Needham

Jim Ricchiuti

a your China, am Hi. wondering customers? that does is afternoon. from going trend And major A customer the spread a I prior good just of a bit out a customers. across forward? we like there? exclude board just number And in talk among like China. question of growth question, little other follow-up the what one it Good with if Or can you are concentrated customers couple the looks is about, you If to fairly look it showing about

Sid Rosenblatt

a we of said, have Well, we customers do number as China. in

However, that, their BOE is the customer largest said, on as OLED turns fab. Steve flexible

are and have with. they they smaller. of a we we continue But number with we China years. with clearly that they been others But working them So number work been them a the in are point. There longest are we of the got are at this for working great and have relationship the working with a ones to leader have but

Jim Ricchiuti

Sid, could have can or And environment characterize of bit price you comment Can Okay. on pricing say as materials course? about you extend would normally breaks the volume how to talk little in that? you a all about any terms impact matter you that at of a you anything about

Sid Rosenblatt

Yes.

in past, about when As variables you we different that number and in. But of volume are aware, the kick really don't breaks we do as impact stated provide talk price they we it. a

much materials that we do do are cycle, discounts But cumulative see continue beyond and it. kick go through adopted you there So in about when that that to our really are can't volume pricing. talk that,

Jim Ricchiuti

you on OpEx emphasis potentially the going more and moving some projects forward, side? the put R&D we on And of levels higher should assume as development these

Sid Rosenblatt

on OpEx. expenses, employee this year-end had it's will increased do XX% have we is, call we growth to the I I on mean XX% increased year. think we and guidance our expenses what will give you

you give year-end will do we guidance But year. this up gone have call. when costs our those we So

Jim Ricchiuti

you. Okay. Thank

Sid Rosenblatt

Thank you.

Operator

Sidney question Our Bank. is Deutsche Ho from next with

Sidney Ho

Congrats and much. guidance. very solid raising your you a on Thank full-year quarter Great.

biggest Is it QX, from? came you think in of emitters? upside the discounts? do of the pricing the at China? Volume it kind look where all surprise revenue? royalty you If above? Is Or

Sid Rosenblatt

impact of and clearly a Third of it the think are about has one things higher We quarter continuing customers, up. anticipated grown that's We year-to-date. it that LG. of we number just is other scaling result analysts There that momentum talked other about a number were OLED you shares a are folks to grow I of got than and talked the that BOE. know and

quarter. lot impacted have you in this in got that our a So the this revenues of increases quarter

Sidney Ho

Okay.

ask preliminary XXXX end-market? my As to on year? terms are will you growth not but I thoughts market a year in of maybe your next trying follow-up, what am headwind yet, next guidance ASP for think Do for by be

Sid Rosenblatt

we Capacity impact is efficiencies Well, together trajectory that now. a give information give call. full things are number online, is it that things in and in our are slope multiyear as see we And right we still determined. guidance we for And of online, The you bull-market it's coming and those there to revenues, consideration our be OLEDs. are year's include a number things. you factors take in of us, the will for which we February February when of and and pricing will other when difficult comes more all our guidance put we a of into aware

Sidney Ho

Great. And for last then question me. maybe one

tough them the extension. how the should the this year, about licensing revenue working are no there too it, Understanding guys end of this You In not period? for contract. some talk we much think is you with agreement in, didn't you call that Samsung about event on the by it still

Sid Rosenblatt

to with in have working XX Samsung we they for long been did relationship we are to expect as and get agreement. Well, diligently out. an with Samsung. lag, we time work working had But negotiations XXXX, something year a XXXX, a If we

Sidney Ho

Thank much. very right. All you

Sid Rosenblatt

Thank you.

Operator

from Jagadish from Our Iyer next Partners. is Summit Redstone question

Jagadish Iyer

Sid Steve. Thanks taking Yes. question. Congrats and my for

So two questions.

am the filings customer I based do if Or if I of flattish looking be OLED you looks math the your it to understand mediations. kind one, absolute have was on, is could TV that number or could improve quarter-to-quarter that this $XX is like this you and flattish some customer, customer particular it B some with I the and of penetration looks for I slight at B around on things on like million of I I wrong the quarter, total it correct from had three XX-Q, if First look the imagine in past at kind there your revenue and this say if revenues so. the me But here? am wondering for doing quarters? the this customer But why continues wrong

Sid Rosenblatt

B, one customer, which not are Well, lag. we that Korean A on side, the obviously is and a the you quarter are customer about, is and customer a royalty talking

reported that the are royalties. royalties the QX So were

on So ramp, lag their production there is pretty year. they and quarter been when report their this a steady royalties. the And have schedule

flattish. it is probably So

Jagadish Iyer

on for Fair Okay. the other revenues you. it is year? alone How a that, ballpark Thank like you enough. do your contribution guidance this looks the next, And doubling it figure much the the this front. be from you might is your in question material think have you year, TVs the materials revenues that based actually on for given of

Sid Rosenblatt

there customer only Well, TVs. that is makes one

out. we it OLED the clearly mean, the break year. that capacity reason there is don't is all only up And place put I of in sales is new significantly a material this the TVs. So is that's supplier LG But

for few been and lot turned to it of a fabs has a We this year on about delivered compared have year. years, but there that's talked have last been been equipment

Jagadish Iyer

Thank you.

Sid Rosenblatt

you. Thank

Operator

Hosseini Our next International from Susquehanna with is question Group. Mehdi

Mehdi Hosseini

me that Thank recognized another you of you question. It couple Yes. around and for to we follow-ups. of that material. these commercialization blue $XXX,XXX a And of your continuation should emitter that's that's seems taking correct, work are stages my your blue early host if of assume the product? in A

Sid Rosenblatt

and small foreseeable be for expect very the are They them to future. materials. to small we continue host are These No.

some these are host existing So materials.

Mehdi Hosseini

agree we -- should But Sure. that TV the

Sid Rosenblatt

was than can I $XXX,XXX. check. we it's that. think it don't double But lower I thought

Mehdi Hosseini

if output two enable by on new just at increase does know then aggregate I but have you customer that you Yes. imply of or your your reflect that may production details output a I production capacity your reference at road but your the of rate increase coming And correlation customers four only growth capacity to down are may the would PPG? to times, capacity the PPG side, share the made to there think at not you increasing the online times. by that

Sid Rosenblatt

Yes.

Steve quadruple going As I square are through doubling believe PPG, to meters the that HIS, market XXXX, you said, And by projections are based we said. capacity. said we our upon at

We analyze plan have done will that and to monthly we expect add on utilize new customer basis. our in needs next it will we to capacity, this believe fully do and the past it. our for we of the to a production We months we as literally in and need we three, have that six, when we do advance nine

Mehdi Hosseini

Okay.

Sid Rosenblatt

And as not was just did, big It's it $XX a CapEx. number. million we

Mehdi Hosseini

Sure.

doubling does were account capacity to other the for words, additional become the that is So requirement blue does material production capacity, up material? material this In forecast? baked any if blue into

Sid Rosenblatt

expansion meet the And look everything. that believe have production demand we will think at to that. we marketplace, Without in blue have answering into built initial we any enough we we when our for

Mehdi Hosseini

Does emitting that stack of material? the include complete

Sid Rosenblatt

green, all material at of emissive our we our includes it PPG. Yes, red, make yellow, that

Mehdi Hosseini

Right.

Okay.

I a one more? in follow-up. questions. May asked I I have already think I squeeze But three have

Sid Rosenblatt

Sure.

Mehdi Hosseini

Okay.

learning yield Just are And is versus about understand enable the capacity? to do up to have I lot And be procurement? going should back up China, what step that learning learning the I going and process a bit to coming am in initial step the trying to the your of ready go just point online. to understand to curve? curve not would they at think I How with buy or them just production, there material little curve, capacity they materials

Sid Rosenblatt

and any and going we be ensure is have you about capacity make some their that make our But these we and they sure for can't first to us there time, to going to spent making yield always of anyone effort that our can can successful. they material. have of talk long always we sure time there do out, working And is are. and starts Obviously, we we to are you a who do lot and But utilization. everything startup for customers customers them can that speak can't been are a

Mehdi Hosseini

Okay. up Thank Maybe I more offline will detail. for you. follow

Sid Rosenblatt

Thank you.

Operator

question & from next Hendi Company. is Susanto with Gabelli Our

Hendi Susanto

sales and analyze excluding new payment, Sid, QX $XX.X and A in we QX. if smartphone million I the customer is adoptions in know flagship license million that were QX they $XX.X in there

am sales that decline to wondering yet? may Was we have not there in should I how there? Or any any decide So where sequential Samsung? variable seen surge we pricing big

Sid Rosenblatt

pricing, past Well, state steady there of I in is been always have for that always efficiencies at they fairly think a is and of couple the there material. quarters terms the

some end So if another the get I the one the order into does impact think an can of anything read that it. there you quarter quarter-by-quarter, have at don't is on decline because you versus beginning of one, it

Hendi Susanto

high-end gross margin pricing? many by of driven early in at and XX% second initial are Is drove that outlook then to And XX% the partially materials your still of be range? to question, Okay. that early functions what adopters

Sid Rosenblatt

results and I when we we think it look is really the first months look are. at where at nine it

upper of the end upper so end at we be think had, it I and the at do I of think going profile the that the talked we margin XX%. the about we said so XX% for QX similar that is see should we have can to are range to that what to You be range.

Hendi Susanto

then Okay. question. one And more

are multiple about How seasonality and forward? think customers going to royalty we mentioned You and timing should that license. contributing

Sid Rosenblatt

continue will it mean grow. I to

that may OLED are more non-Samsung to get customers I we displays, that more going at are that's and grow. line times also it As be but do lumpy manufacturing think see you that

Hendi Susanto

Got you. it. Thank

Sid Rosenblatt

Thank you.

Operator

with and Company. Our Rob Cowen question next is from Stone

Rob Stone

ask to you believe or next. tool In prototype the about maybe proving are of I wanted the the past, getting I process in proving had working efficiency the early this guys. have with Hi you sort deposition year equipment out and a to the on some question. further two around about existing out progress on you part similar more talked OVJP, and

And then lab? on just that the question in you So being with mentioned if equipment going is, partners. have what's discussions the us in second potential could you part to update also on

any that Thanks. be commentary helpful. So about would

Steve Abramson

Sure Rob. be Well, both to of your continue accurate. statements

making continuing and alternatives in lot research of commercialize of how beginning we this the a want tool. to believe off large designed And the that here, in should progress In that continuing next that. to explore process tool of OVJP working technology. we are are best start which televisions. We may level year end next to we year of lab this advantages and or building We will with area making have in our the on of has OLED be are

are this we about excited very opportunity. So

Rob Stone

tool, you new life say before once the early and in your results? So get in long some get you testing prototypes build accelerated you to do how confident would need about more year, next that

Steve Abramson

Well, is whole project. know a Rob, you this

need scale We generation. are few a years looking continually because next at to you to up the

and improving are the we research very stage in on up functions. timing. and now predict basic the functions to we at development are scale this the it's So working But difficult

Rob Stone

get on, long I that full-size would to somebody I let's it design to se. you I What machine. and new tool, lifetime? meant per when the right. results say, how commercialization, know about got All for time you speaking to get meaningful has test wasn't take build was,

Steve Abramson

going Well, the invented to you are excited new are to They have our tool really really hard. But any kinks. it. you about through guys have work that with work

difficult a project. that's process So to

Rob Stone

FOLEDs. switch then to wanted Okay. blue I the And over to

how to aspects Thanks. share working you or continuing you progress. are on are the incremental time? other might you mentioned versus last make what it's Any on tidbits You

Steve Abramson

people have object appropriate the on get Well, in and project. and colors the to we efficiencies, of a this molecule lifetime is working lot the

to continue We progress. make

we commercial to provide continuing But are initial yet specs. cannot a closer timeframe. the get to We

Rob Stone

then question And housekeeping one for more Okay. Sid.

grow one-off or with episodic anything research Was higher Adesis the nicely. continues QX? contract to number So for there in

Sid Rosenblatt

No.

is. expected grow we I They the think their have it's what it's a way do their good pretty there. year. for down business really target I on line a do down are do they year the job there. They our expectations during and in and job much with with we mean business, good things the

Rob Stone

you. Thank

Sid Rosenblatt

You are welcome, Rob.

Operator

[Operator Instructions].

Sachs. Lee Goldman Brian from question up follow a have with We

Brian Lee

up. follow guys. Hi taking the Thanks for

green term longer the scenario do a purchase your construct a the top material have what just and you at picture minimum blue But here. commercialize, would existing But impact requirements to know supply bigger licensing there the red on of blue? maybe and you the to still what-if on is Do time? include question. it if contractual agreements place? future? Just And amend take for that I of the have there customers required? Just a part of amendments you material's salable in blue already sense place embedded as would trying sequence in ultimately to access once now? get be are Or they would have have to would a licensing events the Thanks. in then agreements the IP separately, what instant

Steve Abramson

talk customers a Sure. too to it now. specific Once early probably we all our The about want likely three then we blue. will system. will It's be color those we with issues get and customers work phosphorescent customer all blue, on as phosphorescent right want know, anything the specific. of But a our

customers. it selling be to to expect the fully all we So

Brian Lee

guys. Thanks Okay.

Sid Rosenblatt

Brian. Thanks

Operator

Gabelli question next Susanto with is Our & follow-up Company. from a Hendi

Hendi Susanto

currently Hi in encouraging. again, Japan? has you how in your to are Would and QX you Sid. many Sales and major going able be activities customers that mention had Japan Steve in been

Sid Rosenblatt

ones. don't don't smaller and customers C of names the the A, of We specifically that are and list in do them the numbers the break of revenues. as not B the multiple But but the the you We customer see have Japan customers but at bottom list, down are bulk can specifically bottom break our of the out. out we

Hendi Susanto

mentioned -- And you

Sid Rosenblatt

have Japan. But multiple customers in we do

Hendi Susanto

That's looking. you the I Okay. answer Sid. Thank am that

Sid Rosenblatt

you. Thank

Operator

like you. Thank Rosenblatt session. additional would the or question-and-answer This to turn any remarks. Sid back closing I the for program to concludes

Sid Rosenblatt

and your Thank everyone good interest have a you you. support appreciate and your night. We Thank your for today. time

Steve Abramson

Thank you.

Operator

today's conference call. This concludes

now may You disconnect.

Universal Display (OLED) 2 Nov 172017 Q3 Earnings call transcript