OLED - Earnings call transcript Q1 2019 | Universal Display Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the Universal Display's First Quarter 2019 Earnings Conference Call. My name is Umer, 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] As a reminder, this conference is being recorded for replay purposes. to Investor call Relations. like Liu, to now of Director would turn over the Darice I Please proceed.

Darice Liu

Good Universal earnings Display's you. first Thank afternoon, quarter conference everyone. call. Welcome to

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

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

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

Steve Abramson

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

$XX.X We prior per report would per revenues $XX.X diluted $XXX.X $X.XX million, have $XX.X are and XXXX pleased million of to operating profit quarter income net under million, our XXX, ASC of of of XXX accounting revenues been XXXX and Under quarter ASC or net operating million first income the $XX.X $XX.X $X.XX of first standard, million or share. share. income million

momentum first look XXXX we solid As our we to results, with the guidance. revenue better OLED combined quarter the we and continue raising industry than in year, anticipated now are see to

our $XXX a Our to the just this Mobile new provide million XXXX Samsung Under range multiyear their show, range activity the week to hot broaden earnings a million. World the ASC continues details Driven smartphone, Barcelona makers phone inwardly, before being foldable to in of prototype foldable which million. smart the of Galaxy Huawei make turns revenue products, AMOLED in announced factor device kicked myriad is using into At and CapEx week. demonstrated Fold. X, at of discussion with new expected robust display Galaxy topic in lead are highlighted Less expected major band growth World showcased later be that display by which and foldable TCL pipeline Since Congress $XXX up under call, Congress, things a is cycle. both mix. a expected ASC that form folds to $XXX X.X-inch in of that further of unveiling foldable this the activity with to it's last Mate XXXX was to forecast the this from revenues theme. flexible approximately XXX a launch XXX, unveiled off electronic June. the million will Mobile the OLEDs shortly. Nubia Sid than is to $XXX of a OLED week, SXX path and in Alpha begins a new sell-through quarter, believe Samsung shipping we designs it's of strong that and first a consumer OEMs, panel applications. Earlier XX% OLED foldable revenue

the are Looking rebound smartphone of flagship in second plastic-based forward, including customers. companies year OLED portfolios, displays the half forecast OLED major multiple key the products demand designing to Samsung as by panel flexible into

increased for as demand products leverages Infinity Samsung’s Additionally, launching foldable as and the such it's segment. fingerprint ever, and and on rigid OLED tag, entered displays. Samsung $XXX see is into midrange Samsung XX.X-inch shipment expects the technologies. its notebooks thinnest It OLED And it tablet. is latest also SXe display IT and Display for of applications it panels, its week, began to company new OLED its last tablet price new display

Display OLED as During company its its its commitment business recent structure. OLED-focused a continues earnings a more to reiterated call, shift LG towards

year, X.X for over in this TV earnings Its its XXXX. panel his of from to TV that on its meet the operations fab year, help track million in will million call, is X TV company XX% During target. OLEDs China reported up LG which will XX% for OLED this total Guangzhou shipment new revenues account

customer when reports, in capacity OLED. hand, the completed. located installed LG expanding BOE for half planning Gen second OLED is $X fab, is billion, and is wallpaper applications automotive TV, investment XX,XXX And opportunities begin fourth this an of sound production Display close construction start to flexible According have LG as with Fuzhou, Additionally, With month fab, rollable year. to its such soon. BXX, this of integration to per in to OLED volume display expected plastic X on plates of expects to new application already sound OLED TV, Crystal orders into transparent of

recall in you for a OLED ago, only months As may BOE flexible plant, ceremony Chongqing. third groundbreaking X held its BXX,

and X XXX,XXX up fabs, Chengdu, is OLED X all monthly add to If have Fuzhou, capacity expected Gen Mianyang, Chongqing XXXX. you sheets of by production BOE

Display per reportedly OLED first the OLED has initial TCL's slated leader next event China scheduled to development unveiled later when of The will line folded will Expo, start company smartphone X.XX-inch TCL XXXX, year. the capacity majority in Information Visionox this electronic of early in Tokyo CEO technology Hebei. screen held and panels China In and XX,XXX supplying a the as completed, "Flexible we technology first technology" month is with X can accelerate an A plant, reported second reportedly his plant and a foldable world-class building wearable And company's shareholder in X speech addition, OLED flexible Japan "China OLED in automotive in an media installed light keynote we X for terms expected support these that be second sheets for early production evaluation The production is this month, mainstream XXX,XXX According XXXX. production to additional currently be to OLED China of Chairman Hefei, last OLED leading Wuhan phase of noted have believe quite a that, is China's temperatures, its company next goal cool year. will display years." the is lighting, as times a XX,XXX sheets Gen quarter. Gen per Star, the Tianma its month, per the OLED begin few automotive. with has XX,XXX Sharp begin fab benefits, in sustaining begin whom prototype. The panels China glare flexible to ramping capacity and and including progress to Star. become are that its start Visionox being announced line per its Wuhan. niche to ramping are consumer that company, XXXX. set is March, series in this production Tianma, believe line without commercial, a second multiyear and residential which form we best to With Technology XX.X-inch its combined cycle. Tianma plates recent late operations and OLED to respect markets, making Star capacity previewed is beautiful end We fiscal XX,XXX replicates At all the and to is in that solid-state agreement operating energy and factors, novel flexible a also for in also natural also production in Sharp of an been for expected also of with OLED innovative dashboards. it growth as first to efficiency, panel month leader. are phase expected continue is at soon including of compelling month supplying by XXXX. panels damage. sunlight, is that no its a of Gen at an CapEx

laptops, base expect of the installed proliferation TVs. and to We smart electronics tablets, XX% by OLEDs continue automotive year-end consumer to fueled by year-end XXXX. of cycle smartphones, AR/VR, This OLED growth capacity landscape, over increase square XXXX approximately the meter watches, is including across

continues opportunities. to competencies activity expand broaden grow, further we diligently to As market working core our are OLED our to

new and meet Our reds, brilliant map road product new new new engineers developing needs. to new continually application emissive including and materials customer, technicians are discovering and scientists, and technologies, teams of yellows and greens, hosts

On to excellent for make blue the commercial blue emissive we work our phosphorescent progress in system. development ongoing front, continue our

the of OLED organic novel OLED the ahead expanding side-by-side But our and believe for to advance let call that of me investment the consumer growing, area dry milestones as industry RGB our on to activity path broadening, for We continue turn also the our technological and We commercialization. work solvent-less, The us. we area panels. OVJP We're our are path making TV excited revolutionize is large mask-less, printing, manufacturing can note, growth that to Sid. product of jet progress process direct OLED about towards large OLED On manufacturing future momentum for printing over next bright. adoption panels. paper OLED at

Sid Rosenblatt

thank the and quarter QX million. you, $XX.X million joining quarter would first Revenues million. million, of revenues XXX $XX.X Thank from our Steve been quarter and Under This XXXX, fourth revenues QX XXXX for everyone of first were for quarter you, our million. today. ASC XXX, sequentially $XX.X XXXX fourth call have ASC again, under and XXXX million compares $XX.X $XX.X to XXXX up $XXX.X

quarter first fourth were sales million. of in XXXX. XXXX in and first of the and $XX.X XXXX. first in million quarter material first first of quarter quarter in sales of million and compared million of the the in material XXXX million include fourth emitter yellow-green quarter the the emitters emitter of were in Green $XX.X of million in XXXX sales in $X This fourth quarter $XX.X the total $XX.X million quarter million. to XXXX, which quarter first to our to million XXXX. Our $XX.X $XX.X the the of $XX.X Red compares were quarter XXXX compares This sales the in of $XX.X

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

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

corresponding royalty that we will to remind of license and QX billings recognize we royalty you ASC want occur, we in shipments. XXX, and when OLED revenues discuss to license proportion Before irrespective material revenues, under

license and in this and were to royalty quarter XXXX the the $XX.X XXXX of quarter $XX.X million first First quarter million in of $XX.X fourth XXXX. fees compares million,

million, of to Adesis This first quarter the million XXXX this were $X.X revenues in $X of does the $X.X of and of the gross sales the of $X.X not quarter and the $XX.X in million and sales, include million to OLED for quarter margins which include First and the sales, quarter of million, of compares Cost fourth first were comparable Adesis gross Adesis of XXXX of XX.X%. translating $XX.X XXXX, $XX margins of cost sales compares Cost for year-over-year's in XXXX. cost quarter fourth in quarter to XX.X%. to XXXX quarter of material fourth million, material material the compares XX% XXXX which first materials million XXXX. into were quarters relate of only this

expect to continue material approximately margin we averaged XX%. year, XXXX the our For to gross

noted have material margins gross As we can vary quarter-to-quarter. the in past,

comparables quarter million, Operating cost up operating up million quarter's XXX quarter's year-over-year First year-over-year quarter XXXX the excluding income operating XXXX, the XXX, last million and year-over-year $XX.X of have ASC comparable compared been expense, was last was the million. $XX.X from first last sales quarter income $XX.X $XX.X quarter compares million. $X.X comparables million $XX.X year's to $XX million the under of quarter $XX.X $XX.X quarter's quarter from first This for million. to and Under and ASC would million.

First tax quarter our first XX%. rate rate quarter been have income Without would ASU tax XXXX XXXX-XX, was XX%. approximately XXXX

or of XXXX per $X.XX compares $X.XX to income or million, diluted per be income to $XX.X XXXX-XX, would and year, Under to ASU quarter's have or share. diluted million points. expect quarter comparable per been approximately net cash few a or per million or and share. cash million for quarter was $X.XX minus XX%, a tax This $XX.X we plus diluted diluted per compares or quarter's diluted comparable first $X.XX share $XX.X $XXX of share. quarter of absentee This $X.XX share. the effect ASC quarter the share diluted million $XX.X For or $X.XX share. $XX.X the over of last XXX, in our or rate equivalent, $X ASC the per million, million first XXX, our We Under per with ended in net year-over-year's percentage diluted $XX last year-over-year's quarter

along With to as the have to XXXX Under expect to of XXXX are of Board range now guidance. $XXX We the are million on we current dividend Directors close to of business million June under our on which approved as the of of be be discussions, to million. in our customer XXX, the ASC and XX, $XXX quarterly operating Steve. commitment reflects dividend, return shareholders. XXXX for mix continued increased, will revenues raising turn The product call revenues on that, to Based June to XX, $XXX our guidance. XXX And the we our capital our in I generation as a expected to XXXX variables, lastly, ASC positive expected $XXX to range flow major and other Moving million. of back $X.XX XXXX. paid cash year's levels, full expectations well stockholders record

Steve Abramson

Thanks, Sid.

the we founding, on to take moment the company's the approach I decades. past like XXth As to reflect two-and-a-half a anniversary would of

founded creating OLEDs. CRTs. are XXXX generation were with We of in TVs pioneering energy-efficient energy-efficient phosphorescent June next vision still was the when back That a displays, of technology

to world, to $XX deliver R&D be Today, and For investing our market. significant and OLED we rollable. materials technologies TVs, technology start market which conformable, is enable consumer is and the the product history, a customers our of that most in our proprietary OLED marketplace. up, OLED develop enabling found display be every are a choice display proliferation forecasted substrate the and around resources discover, innovative for solutions to smartphones approximately and the inherently of can this The bendable only in virtually continues OLEDs premium and and a year. is billion of

and I believe our to that automotive take to and their dedication OLED desire, OLED tremendous has and laptops momentum. Universal accomplishments tablets, industry Additionally, would mid-range segment advancements. heart emerging, opportunity this new like in applications of the broadening smartphone shaping thank for market each Display's into and the penetration drive, with employees elevating and we

that, for And operator, Q&A. committed are cutting-edge ecosystem, industry, technologies in long-term to being the and We shareholders. let's the the for for with leader a and materials our growth customers delivering and our start achieving OLED superior

Operator

be a first Evercore. you, from your Thank Abramson. question. At with proceed we'll [Operator Muse, this Instructions] conducting Mr. time comes C.J. question Our Please session. question-and-answer

C.J. Muse

in think Question, QX, end about looks Korea primarily as the it's you I guess first like upside materials. question,

at particular details those drivers if in you're there, curious, how key inventory provide two some you customers? seeing the so around more on could levels And

Sid Rosenblatt

great question, a C.J. That's

levels, customers see so – get lot are XX visibility with or suppliers, same our – we just lot the we don't we But we that. get So a don't a as inventory of we within ship orders, regarding we day hours. time in

past XXX, a customers drive opposed Clearly, sales, So their – because material lot had our XXX give material there's don't driven got – a not our in you more the by cash. it of when as us visibility it into the under lot under revenue of was to we was today, not sales inventory.

accounting cycle. it in to we you OLED how are the way not is quarter each that middle So multiyear know, a today the works. And believe out, it's of a different still little predictable. we And CapEx plays always

C.J. Muse

you Got the And proceed they about we non-Korean I follow-up, customers XXXX? the think right. as you. of as revenues linearity year? about into as of All Particularly, how the ramp second I the, as guess my should some half we think of through guess,

Sid Rosenblatt

is difficult difficult tracking we significant it's short are our but to still line is we which for with Again, guidance, guidance to really see expect times, QX quarter-to-quarter, see still but us. expect our raised in – why our lead quarter-to-quarter growth, predict, we with to

C.J. Muse

you. Thank Okay.

Sid Rosenblatt

C.J. Thanks,

Operator

Our next question. Please question comes proceed from Sachs. Brian Lee, Goldman with your

Brian Lee

taking Thanks for guys. Hey, questions. the

Just had bit as two. question. little of be a follow-up to prior May the a

cost people need to demand You given case, build the you shipping your kind point-blank short necessarily start general, do just over to time, that's on for doesn't industry I now. if it materials. have think, question maybe weak the know appreciate inventory like that customers feel smartphone and And year, most think just demand been actual utilization of lead in right the

be missing Any your much of thoughts trend be So or there be as better your seeing? specific else would appreciated. seems we something there is are some recipe the any than to that customers might growth to generally why

Sid Rosenblatt

by said, but it's as the to across up customer directly production revenues, sell-through board. our sometimes you and relate Well, doesn't really

So, customers up. our are all of

So, different, not and really sell-through are they're linear. production and always

last strong we had had lower year, of historically, a few our you report a if back to And in so, afterwards, QX guidance. quarter. top in days And look customers

there's that our things there's of our two those difficult revenue to bills, So put opposed to impacted inventory because demand for lots customers as together it's materials. by

Brian Lee

Okay.

enough, that. would like. that's tightly not fair we appreciate It's as all Now I historically as co-related been

pass it's the question, never to been red materials I'll bit. looking revenue this model, spikes red. this on, green the back And just green quite second it materials a quarter skewed to The are ratio of toward relative at

new is your maybe using Just green maybe Historically, any or been just that to new wondering recipes into Is of read it before? customers? some of haven't we're been almost this? customers anything there there red-only adoption

Steve Abramson

see it, customer mean, yellow, it we and the really It's it's really materials can figure and that's was you can but not that quarter, you disclose out quarter-over-quarter up but in really that. B number was customer don't – are I that green A B. our customer increased

Brian Lee

Okay. Fair enough, guys. Thanks.

Steve Abramson

Thanks, Brian.

Operator

comes question next SIG. from Mehdi question. your with Hosseini, please proceed Our

Mehdi Hosseini

Mehdi Thanks for and great from actually so quarter. a It's my much on question Hosseini SIG. taking congrats

Steve Abramson

Mehdi. Thanks

Mehdi Hosseini

in had of commentary blue really don't I material. a put you Last if didn't be things how constructive and have much, make hear perhaps I thinking the about want give in could quarter, you follow-up. the I to and big time, perspective emitter, on This blue deal, progress should we us a and the commercialization

Steve Abramson

enough, Okay. Fair Mehdi.

in commercialization emitter continue blue emissive system. or to of progress We excellent blue the make our

on get product elements we're of three more those point, elements. the As we're you those sometimes what focusing three into efficiency all a is to color that one commercial know, focusing there's of and is on. lifetime. object progress, and on The progress And

commercially progress, still We continuing Sometimes it predict be up progress will to to a but progress, significantly strong available. the we make in is cannot we'll incremental leap continue have be there. sometimes when

Mehdi Hosseini

talked I X.X you. not for quarter ASC the of Thank XXX? should we the you under how ratio material Fair about ratio between And royalty to modeling, about think if closer licensing last a mistaken. purpose think I'm and enough.

give us just be could an it you update, would If great.

Sid Rosenblatt

is that's I it ratio and different. a between little average this is and came And X:X is. X.X:X Yes. middle. the Each in quarter, think this where year, it We believe for customer's the

Mehdi Hosseini

you. thank Great,

Steve Abramson

Mehdi. Thanks,

Operator

next question Malik question. Atif Our from with Please Citi. comes with proceed your

Atif Malik

and quarter. questions my on the taking for thanks Hi job good

the sense the that these the should of million $XX expect how with us we the Chinese maker provide think, Chinese quite think Can panel a news progressing you March better And Chinese by, growth are of quarter with Your have I sales been you just these about with makers? panel yields in makers? the where on at increased -- or nicely panel There so. trajectory are the Chinese projects. in yields the some

Sid Rosenblatt

customers the capacity. that's with got includes investing all Yes. Visionox, made We're very Tianma, number China which And Star, manufacturers. China, happy OLED in in BOE, being by Chinese progress a of we've

happy, we're and So very as a said, when you amount capacity, have XXXX. Steve torque mean. I of going are they look significant capacity that, to think XXXX BOE's in to We at

So working we're they're with we're what closely doing them. with pleased very and

Atif Malik

to in your Great. the And phone been have foldable the terms then what it fair outlook? panel the launches impact year there is and very delays from of in of Is not. small on units phones, foldable because some to full bending that of the phones assume

Sid Rosenblatt

expect about a heard, but as impact, of Yes. move really be the market. foldable they game-changer -- It foldable future phones the this this has launch, but as Samsung we to talked delayed forward. we are small And output about excited we whole a product the very you and and

Atif Malik

thanks. Great,

Sid Rosenblatt

you. Thank

Operator

[Operator Please from Cross, Cross with Instructions] proceed Shannon Our question. question next comes your Research.

Shannon Cross

could the aware taking start or break of saw, year that ago, Thank really given and as think, much point something Samsung ramp two to of we their the you material curious standpoint the we some terms volume contracts I'm be in customers very should strength of my your question. sales of volumes? a I for from

Sid Rosenblatt

discounts all a our We and volume it contracts -- is you when as said, we've value have cumulative there. terminal of reach

XXX, purchases a -- from -- the had the Samsung and it to price taxable) is when the selling And year it's quarter difference low. very compare So, life of prices. over the versus obviously, last contract XXX. them it's it you between Under average the when strong were in XXX XXX we just

Shannon Cross

that mean guidance it's you or I then I sense, back I January gave the in what when but saw changed? is dramatically time. guess, I the you didn't in for up -- make you beyond guess, think Okay. numbers which to know -- we quarter sold that upside this the you take about more, trying figure early February, And the I'm out really what's

of, your given maybe -- to just might lead thought you them your raise what upside? have I'm with lead you that trying to as you the raise specifically sort not behavior saw So, typically numbers, understand, your and conservative, customers one as I'm much but to

Sid Rosenblatt

Sure.

you're this asking we're said, you yes. as answer -- then bit If a being the cautious is

our that Given the the in is industry dynamic is we the and consumer has where impact nature range OLED panel and history forecast year, on the are early which electronics the of makers, forecast. that prudent new we a believe

Shannon Cross

though to but Okay. me. you more? year, for but manufacturing PPG just sure is translating that have point of for you on you make it The I capacity. has to last sure last you Thank think And investment you need what had space the given I'm I that made correct? question it much, plenty at is incremental realize raised add

Sid Rosenblatt

one. when capacity, finish at through That believe XXXX. is to we need XXXX of project where are are adding are for as soon as the correct. we may today next discuss we we in great shape And as looking as one we I But we add think we

Shannon Cross

very great. much. you Okay, Thank

Sid Rosenblatt

Thank you, Shannon.

Operator

Jim Our proceed your next question. & Company. question from Needham with Please comes Ricchiuti,

Unidentified Analyst

Hi Jim on [Indiscernible] Ricchiuti. Mike guys. is This

in blue? we're better mindful should guys get the there dynamic going a Just be are rest investing we especially out you understanding guys as of of the year, have that wanted across on. of R&D the to Is you looking as anything

Sid Rosenblatt

of on. and we're mean focusing clearly that growing areas R&D R&D the blue our year-over-year. I is about talked We've one

is that's OVJP, it's forward. to one our that, going In products another which major of addition R&D

XX terms to necessary months. emitters, addition focus R&D on our In of ongoing green really business next do emitters, think red emitters, over that's what our yellow and we with we what XX is so we the to in

to it expect XX% do go up about XX%. we So, to

Unidentified Analyst

Thank you gone decline understand earlier, margin? that. the year-on-year the I missed we're can seeing have you might me that in then it. help you materials gross But And may have for through this

Sid Rosenblatt

much significant into just our expect -- our go actually it that more effort is about XX%. me we to R&D amount up This because blue -- up putting and of XX% we going year to are Let historically, into OVJP. the

like more to this year last over So, year. XX% for it's XX%

Unidentified Analyst

XX%, okay. you. to XX% Thank

Sid Rosenblatt

of around quarter-over-quarter margins whether for it And seen it to and or the higher costs, go have there's But depending gross new things lots XX% our it's quarter-to-quarter, change expect and on materials year. impact up the product margin gross some be that historically, down we mix. you've materials

Operator

from Susanto, question. Gabelli comes with Hendi next & Please proceed Company. your Our question

Hendi Susanto

Good ask thank I yield two how questions. for transferable may phones, for materials foldable displays? and you to manufacturing evening and First, how are transferred high taking with can the my and regard If be questions? similar implemented accessing foldable

Sid Rosenblatt

and no there and for X Samsung is X, us, mean a difference in making plastics I phones been Foldable glass plastic making number years, substrate. between plastic. substrate been we've it's -- has of

standpoint, not substrate there from the So much very is different.

us, So whether for it's pretty much same, the it's glass plastic. or

Hendi Susanto

read I Sid, products your and or fund synergistic can ventures? information company. will more it. UDC may technologies then share that about Steve be it And that Got to you

it your think how I are I that define to synergistic somewhat First, display invest? that off what synergistic limited areas would OLED you has my capital And much are interest area investing? by second nature. enquire, in Can to and

Sid Rosenblatt

you I'm the said what part? in sorry, you repeat first can

Hendi Susanto

will that interest area synergistic be the ventures? of About UDC for

Sid Rosenblatt

opportunities at as either and Well, OLED said our that we we looking to development. we've are round are different and always in or that always we've enhance purchased looked for Adesis, out opportunities areas

are we've do, said, to at think there lot that what it. as keep as one we And of a to opportunities synergistic making two, are always, on that were we if we we we hand, a will you licensing look then have company need investment. So cash an

Hendi Susanto

materials it Sid side? more on So the nature, by is

Sid Rosenblatt

variety at wide at opportunistically. looking a we're always things We’ve opportunities, of and been looking

Hendi Susanto

whether much invest? that you second my was then question capital And it to share how has can like

Sid Rosenblatt

about invest talk this time. have in opportunities much don't how Operator available different We at we to

Hendi Susanto

you. Thank yeah. Okay,

Sid Rosenblatt

Thanks.

Operator

with question. from next your Our question SCMR. Andrew comes Please proceed Abrams,

Andrew Abrams

sampling than those other And a any that congratulations or to last give And material of on Hi, if soluble bit the on be information type the you lot of guys. of the was just quarter. better panel materials wondering I of could might And to some producers? research. little a quarter, providing your you us

Sidney Ho

about number number where Yeah. technology. relationship a piece printing which would for years, relate a on with We've OLED Epson had years printing. a ago of Corporation to of talked We

our and for displays using answer the really focusing believe we to you're printing are is on of piece deposition spent efforts materials process dry OVJP. the And We us, today have essentially principal one proven is because is which print believe on area for back materials. OVJP, this a If focus that, being need folks and we we because able them. are is printed that technology, that lot not That OLED we large a OLED, time. a

Andrew Abrams

guys regard you And or a OVJP, point, an for where type least the that are selecting the manufacturer device in got of you into R&D with device? have at

Sid Rosenblatt

a expect third IT. chamber of We

the going design we in are sure basic is. couple a to of not start at that of doing where today. the And we to lot it So are make we is science a next at months we're a point what think manufacturer looking

work still We lot have do a to we need internally. that of

Andrew Abrams

very Got much. it, thanks

Operator

Arete with question Nam from comes Kim, Research. your question. Please proceed next Our

Nam Kim

Congratulations, Hi, great quarter. thank you for taking my time.

another call. stated business, about of You And utilization. OLED doing but terms They quarter of customers the Samsung QX in guided lower tough correlate production. in utilization in are case terms during said, earning your with your

half second panel sequentially line fix This how quarter. quarter don’t much difference don't last ramp soon. Display seem and know in production picking in up TV before LG I to anytime

and your guidance avoid inventory not necessarily yeah, some concern increase just growth. I customer. a situation next you. given quarter. next connection either mean are I growth revenue Thank and this maybe inventory So, lot cautious customers' revenue this quarter mean tried your you utilization I to materially material between to fairly

Sid Rosenblatt

and are where is sell-through I have our and guidance but, need. inventory based But aren't And mean there and believe we a across that the one strong that's inventory our obviously, we Board, always customers shipped some. revenues production reasons different, any upon significant linear. of what we it why be the there quarter And don't build, could is is. the

is cautious very the still because in We are year. still it early

Nam Kim

Okay. you. Thank

Sid Rosenblatt

you. Thank

Operator

Please with Our your next Sidney Bank. from Deutsche Ho, question question. comes proceed

Sidney Ho

Thanks question. have for taking my few. a I

by there revenue is largest raise than the I $XX Is at should less $XX primarily your million think is is think to that. you about? upside The that the full-year your up XXX outlook, -- million, the that first or one, but ASC factors other customer ASC only looking because it's from we XXX

Sid Rosenblatt

to due mix. product customer really it's While and

Sidney Ho

guidance, expecting Staying any that cautious question that based comes cells, revenue or forecast seen I largest a but of you upside on and past, little versus how more a high maybe changed customer what your answer And of preproduction higher smartphone early on much your bit level outside with on the side, Okay. for maybe appreciate the today? from in are have today? foldable TVs meaningful your TV the maybe you phones we've from you

Sid Rosenblatt

supplier the I LG your of is largest TVs. -- questions answer to backward

the only they So makes are one that TVs today. OLED

capacity new There and this also we the of are that's second anybody mobile where So devices BOE see half year have TVs, on coming in into coming this for don't Though LG. is market in would making on I from capacity be terms year. OLED. coming new that's for the LG of

So increases across Board. we the see

Sidney Ho

Last Okay. being built customer you outside quarters, if new there I full at from revenue that BOE. in yet. believe C, of of to, three grow tested outside look the me, relative I understand stable But are relatively and China, is capacity lot of business when which the I your It’s more maybe in that's question been to still in and BOE meaningfully? of production expect not do a part past

Sid Rosenblatt

small are facilities. still talked remarks Steve the There's that -- ones specifically in his capacity about

still really BOE of substrates early XXXX. talk this I XX,XXX big year. and starts. for outside grab in a XXXX, But think they ramp so, I production is like don't see I it's there about And think the in

Sidney Ho

you. Thank Okay.

Sid Rosenblatt

Sidney. you, Thank

Operator

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

Sid Rosenblatt

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

Operator

This call. conference concludes today's

may disconnect. now You

Universal Display (OLED) 3 May 192019 Q1 Earnings call transcript