OLED - Earnings call transcript Q2 2020 | Universal Display Corporation

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Operator

Good day, ladies and gentlemen, and welcome to Universal Display's Second Quarter 2020 Earnings Conference Call. My name is Brock, 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 conference Relations. like Liu, to now of Director would turn over the Darice I Please proceed.

Darice Liu

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

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

made written you without let this of rebroadcast is being for of Universal consent portion is today's of X, August the webcast the webcast call redistribution, is call live property site. the and as strictly Steve begins, XXXX. Web period this on that Any or contains Before of in retransmission live will of form any be call date time expressed this only me information remind the that is Further, Display accurate available call, call of time-sensitive This Universal Display. a Universal Display's any of prohibited. of

forward-looking subject significant expectations. may the in securities. uncertainties current any statements are company's risks any we on discussed these with call, referenced and in by uncertainties Display and differ risks a this to results materially. and our These make During may based actual are reports the number Universal anyone statements These statements. the concerning filed obligation investments any to should and disclaims making SEC periodic update be of company's of

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

Steve Abramson

continuing are welcome Thanks, stay all you and to and Darice, to that healthy. call. everyone today's hope safe on We

our strategic employees, During operations advancing our partners programs. safeguarding this safety and business on the and wellbeing pandemic, focus customers, of our be our continues to and growth community,

customer $XX share. impact and income $XXX,XXX $X.X shipments of pandemic The million or the as were $X.XX declined. orders to revenues, in quarter of net diluted operating was in quarter continues million challenges this second per us and Second loss results

Long expect to uncertainties of the and near stronger strengthen emerge further we and COVID-XX growth position OLED and our to term, remains our industry. customers in leadership we on the OLED consumer in to partner term, believe to likely demand unchanged robust. invest ecosystem will weigh the OLED is While continue and a the path

For demand and a orders customers the At that expressed customer frankly, macroeconomic have increased and the in loom month seen we consumer pickup demand remains visibility we still And the half second environments have as of believe the in cautious time, of over same significant uncertainties near term year, the unclear. July. optimism.

visibility believe providing of XXXX the is result providing As these pandemic, we refrain prudent from to guidance. COVID-XX improves, a When related ongoing expect it we to continue to uncertainties resume guidance. to annual

Galaxy the OLED to Tab series, with rates, for XXX which unpacking Galaxy and screen hertz Yesterday, large calls both Samsung XXX with XX.X yet. industry, OLED are the AMOLED AMOLED which event, extra Note XX inch SX unveiled macroeconomic the vivid the Looking and broadening Galaxy with an a and rate. Plus, XX new hosted ever XX and Ultra term near fabs activity virtual screens pleased new we OLED OLED despite Note and and to Galaxy first see the Galaxy products. uncertainties, its some XG, Samsung their offers The Ultra time display Xx in first dynamic hertz Note Note display bright refresh best refresh has super the

mobile last also it inches earnings screen the and beyond cover OLED held market week ago in screen presence TV Galaxy to So Display’s demand. per ceremony announce phones a advanced foldable conference LG Display sheets month. its announced Galaxy to that in was is to X.X that prepare resurgence making X.X enhanced two refinements. almost to month. produce streaming anticipated Paju, Watch such definition the mass the OLED Fold XXX,XXX features can plant smartwatch the expand and in generation The inches, next IT call is that as LG has first XG X.X at Galaxy first Z has main a and than areas for OLED devices gen of at that second you capabilities Samsung OLED Korea, LG full them weeks both can the and in high commenced. OLED with TV take its X, gaming smartphone foldable China based substrate larger doubled health premium starts cloud phone. And advantage fab Guangzhou the production X, Guangzhou, planning XX,XXX now The Display’s per production enables. during

end be June available front, Vizio $X,XXX. TVs, Xk a at debute China, fall. its week Series TV in in Xiaomi later, OLED first MASTER approximately XX-inch OEM its announced and XX-inch a of XX-inch first model Less the TV for OLED that the will OLED the On models, than

an expected been mid-May, the Technology with and slated held XX,XXX This crossover of its this first Chongqing expected and of be construction smartphone next at portfolio in medium Lyriq for expected starts to to OLED Xiamen. China, flexible fab to to is ultrawide Exhibition. to have new Tianma Mercedes open per display its the foldable curved China completed continues which have and reported groundbreaking sedan, an OLED LG. a Forum early time ceremony OLED per And is Cadillac broaden in infotainment installed $X.X showcased OLED Class year. a Luxury facility with billion reported to display. its substrate Moving in following next a curved to billion, OLED it’s BOE In the is unveiled starts Innovation small month applications new sized S fab flexible equipped has the upcoming XXXX Gen-X XX,XXX and OLED supplied It Display fab and up In XXXX and a to is $X.X produce XX-inch year. XX-inch bezel open September, OLED BOE will narrow also be a production last month is been XX-inch capacity display of recently month. OLED system panels. electric an notebook investment slated that Benz substrate be to by display of for that widescreen expected third OLED With Escalade, Gen-X our

lightning unveiled the optional SQX homogeneity the addition of the feature According contrast, of minimal segments. tail OLED OLED front, are and Audi, On to June, lights. that perfect digital its SUV higher gap of benefits in models will to Audi the at between level a end

a the to all further technology precision is variability. with development. Looking sorts degree future, technology offers of of extensive personalized opportunities design perfect This OLED executing for a light and high for

competencies strengthen the On UDC and core our to expand our market research we continue to further front, development opportunities.

customer, R&D continue applications inventing and our and to greens, gamut, continually brilliant new efficiency emissive innovating and to new reds, broaden, yellows teams lifetime needs. product are roadmap As product specs meet color, of new materials new hosts, including and and new technologies,

issued On system. focus printing the phosphorescent scale panel. we continue Last process commercial our based where a dry working month, the OLED for the about R&D New owned of blue the XK of make solventless, exciting equipment led for Jeff and we focus This panels. former Valley large advance the blue we wholly are OLED be color Dynamics. of excellent front, maskless, of direct commercialization commercialization and in to emissive team to on manufacturing OVJP formation and Hawthorne, novel up. work initial announcement development progress ongoing an OVJP, area our will his continue Jersey Corporation will OVJP on will full on by Photon currently Jeff OVJP in subsidiary phosphorescence Silicon of CEO with Ewing, printing

using named and well-deserved her outstanding recognition Karl innovative growth, evolved electronics for a incredible technology. blue marketplace. deep Dr. of XXXX at Dr. will for Fellow Dr. Week, exclusive achievements Also Display year expertise emitting and well our Technical for Weaver, a contribution the acknowledged organic Mike OLED extraordinary in of quarter, with titled, and SID practice. diodes, technical and material the PHOLED we the Dr. these prestigious now Samsung manufacturer Fellow. was been Braun value mainstream The has to exceptional realizing let virtually in week phosphorescent Senior emission phosphorescent Prize was contributions an solutions paper Julie President Through performed held Karl of and partnership from by being a drive to was a material Ferdinand phosphorescent Julie emitters. the transfer our industry. knowhow. year, contributions his their SID Mike PPG our awarded Universal continue and presented as technology successful note, OLED Brown which by commercial to to Display for Vice of Officer, Braun our celebrated President Vice We manufacturing was significant UDC Display development Chief partnership the and and Prize and this awards player to Society of over to me our and OLEDs the the a Display XX SID is awarded which Brown, And work decades market, that Information this phosphorescent PPG, the turn Display idea Sid. XXXX relationship R&D customers have to We display Weaver blue the universal commercialization PHOLED Ferdinand believe call light During and a phosphorescent on proprietary Corporation. provided successful collaboration, wealth Mike close consumer Week, as experimental congratulate On blue to for named as the and that display that built two

Sid Rosenblatt

QX, down $XX again, you everyone rates, conference for in respect And quarter XXXX indicated have to utilization for COVID-XX impacted today. second to orders, which quarter pre-purchases customer May OLED million on factory with sequentially that XXXX's quarter related resulted our million. were thank softness $XXX second and With occurred would the demand and $XXX Revenues in results, first Steve. joining electronics quarter of you, the our million, quarter first our the addition sluggish in in Thank spending XXXX's call second we call. from inline likely consumer soft the

a XXXX COVID-XX due and related revenue estimated to first the recognition of from stock of Our of trade revenues included to due advanced $XX Chinese $XX in million who customer purchased uncertainties. customer were XXXX million concerns safety an that QX quarter purchases

six XXXX revenues million our months, of million $XXX revenues first at the were compared in half $XXX of first Looking half XXXX. to

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

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

factors Some our customer mix, moving contributing patterns, are variables these of product customer we've the COVID-XX recipes, ordering levels inventory as ramp and number cycles, been moving for for include also production production well loading as consumer rates, schedules, customers, discussing, demand of are factors that us. product issues the a they variables Since capacity gains. efficiency device material

Second second quarter of quarter million. compares $XX.X XXXX XXXX were quarter first to million the of This XXXX. $XX.X fees license royalty the and in $XX.X and million in

revenues of Second $XX.X and material and XX.X% XX.X%. a margins Adesis second million of XXXX. quarter compares $X.X translating quarter $XX.X first for This first of of of margins material $X.X to sales gross the to $XX.X of year-over-year’s first XXXX. compares million quarter were $X.X to into gross the XXXX quarter material This in of the XXXX comparable in quarter of were were in million. Cost XXXX in million, sales million of This compares Cost the quarter XXXX the second million million. and XXXX quarter $XX.X second of XX.X%. quarter OLED the in

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

year-over-year’s expense, excluding comparable income second million. income compared to quarter's comparable last was cost $XX.X compared $XX.X Operating million and million the of operating million operating million $XX.X operating sales, quarter quarter quarter’s million. XXXX year-over-year’s quarter’s a loss and of quarter $X.X of $XX.X a last of XXXX $XX.X in Second to was

we per XXXX per million $XX.X per to tax first XXXX, was Net for $X.XX and This In income $XXX,XXX million of second half quarter income a quarter’s XXXX of or $XXX,XXX. the million last had million. operating the to income of share. or of of half second XXXX a operating of benefit first $X.XX diluted year-over-year’s was $XX Our share. compared $XX.X $X.XX compares or $XX.X comparable diluted share quarter diluted quarter

September $X.XX XXXX’s diluted and share first Our with diluted or net per of our of share. quarterly back over And a flow income half’s on will million return XXXX generation call our lastly, $X.XX the which first of XX, $X.XX dividend of positive cash income XX, quarter that, business stockholders will $XXX the $XX.XX our was to to expected of million as paid on shareholders. equivalents to close of half $XX.X to XXXX. cash With and dividend, Steve. cash approved turn capital be reflects XXXX per Board of continued million $XX to or or per commitment September ended The share. net Directors I diluted the compared We record

Steve Abramson

market Thanks pandemic the progress. to the development and We and evolve level Sid. remain of activity Broadly and commercial encouraged despite the excited activity continues pipeline. OLED speaking, in the OLED about in

model an With help operating innovation successfully a and to increasing the headcount meet and UDC strategically world expand OLED in dedication development customers. each of in and our their well investing through and growing our continues debt, OLED the we in balance performing that and team future. energy take the have incredible capitalize our market. customers and on to we're I the the build edge, supporting better and needs We're of high In drive The elevating to to desire, Bottom-line, Universal into are employees best-in-class our this of robust shows heart to of in job delivery term company fortifying continuing around us navigated no we opportunity accomplishments technologies sheet to cutting also the our stronger discovery, opportunities our and do challenging times lean history for of robust positioned. emerged Our foundations and long-term the and enabling opportunities would position advancements. to with for the drive, long of ahead efficient, solutions. Display’s shaping growth thank closing, and like and

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

Operator

be Thank Please of a we'll your from conducting question question. [Operator comes question-and-answer you, today Mr. Deutsche Abramson. Ho At session. Bank. time, proceed The first this with Sidney Instructions]

Sidney Ho

with like discussed advanced level you last My regarding to. have $XX something it's whether do them, and discussed is given first a already dialog used view your the you about constant question purchases you those have and sounds agreed quarter customers are up But million, In at your going customers least kind a inventory keep about we kind the of they uncertainties any portion should that of of be those until trying supply chain other forward? thinking to purchases? elevated at headwinds be Or subside? words, will there

Sid Rosenblatt

depends pre-purchases thought really million was soft. quarter obviously did have that $XX we that on were this demand and we It

the we should picks So, it demand in it really would and believe flush depend up and the it QX, on we that pick up believe whether that out will inventory.

Sidney Ho

some at if is. you and new to revenue display the think and Maybe by for don't for fab on QX won't why customer if strip about ramp guide used get with China the last look U.S. know you all But events. with flagship which know you purchases hopefully question, back $XX one-time range of a being normalized the large China, starting a you up, or level Is up even quarter talked start million year. of close the of I calendar a the quarter the phones OEM your there production I this revenue, even being exceed you in out that panel reason follow-up I or advanced

Sid Rosenblatt

not have are it question we and interruptions The July due Well, that whether is and in to been uncertainties. additional is market occur in real orders has may sustainable there I think pickup any possible whether that shipments. so seen significant or far what a

part We have seen first have the from pickup of QX. QX a significant

Sidney Ho

increase, we actually about last you largest that us that quarter. pretty may. one through from dropping QX, how licensing sharply would walk the one, to expected and if your second but in think a Maybe between dynamic the to have Can I should I that, ratio And bit? it related With revenue up QX? off materials little customers went in in ratio

Sid Rosenblatt

The our But customer material based has is between historically Because for us global on the of it's uncertainties, history, ratio upon dependent ratio forecast. to we and X.X think oscillated mix. difficult X:X. royalty that to

and So, for it account really upon does the based depend on we license how customers and fees royalties accounting. XXX

Operator

The your next question Krish Cowen Please from Sankar comes Company. & of with question. proceed

Krish Sankar

QX strong, month July from the month of is If looking a you of to today So has revenue two? Sidney. January, on quarter just of of you question month spend the you And based it fair do is versus how the standpoint? there is way with this follow up September QX a first sequentially those pose month can the April on up from June and in versus and assume earlier it just how that, i.e. and the characterize be to

Steve Abramson

quarters, of as don't Well, obviously, guidance. give we in terms we talking said, about

are yes, seeing it, significant the how is However, is it call, and I a pickup now, a we in on was we soft seeing the QX But, are question everything stated is what on upside. first we we that of in And is knew and sustainable today our that stating and soft. difference was we're orders the right month our as stated. last QX

Krish Sankar

QX. translate help and start let's the just us And sales year? then lag understand seeing At be say point material what your you as a to time follow-up, that phone basically going can in up next like as kind how would hypothetically, into the flagship do you just of between, launched pick

Steve Abramson

we supplier. time a in just are Well,

really orders their really we will And since schedules. of from deal that factory. depending actual up the pick upon production seeing we it don't when we see start the is phones, So directly pick sellers the with

we time place XX hours. within we're orders, supplier shift adjusting So when they

additional So there whenever a we customer give to them. it wants materials, to are

Krish Sankar

your And is revenue the then Does I either matter substrate can from for standpoint flexible squeeze. last it you if if one rigid? for material or

Steve Abramson

are No, for the same essentially the whether any recipes it's substrate. plastic us other or glass,

Operator

question. is Research. next Cross from proceed your of Shannon The with Cross question Please

Shannon Cross

company first that? one your we and is, about can relation have you're How I a going up. I together my about on it talk work how guess OVJP. in bit should core you, think to in you Thank thoughts to your follow a and

Steve Abramson

pave OVJP Ewing, in technology. headquarters, place take in The commercialize OVJP will that our continue an for and Jersey, structure will manufacturing performance R&D be believe formed up of will and architecture, And OVJP with the medium future very further equipment new process and levels test TV side small that Valley. OLED OLED to technology potential. scale will similar by side in will alternative was And believe expand OVJP today. to sized which We OVJP market displays Silicon New RGB pixel this OVJP TV’s we

Shannon Cross

wholly a just sub, I through, since know it’s And owned finance modeling? perspective is some everything rolling assume and still you

Steve Abramson

Yes, sub going it's out wholly do will of we actually scenes And out a headquarters. support they're everything there. what them our owned they the behind that's to and in do essentially,

Shannon Cross

just start blue on out a us the and bit I'll because it did then And Steve, nobody's discussed you asked about yet, call.

blue development more we any said thoughts incremental any what there you thoughts, think the should or on call? Just beyond about how on

Sid Rosenblatt

by at on blue, in excellent a he phosphorescent blue SID terms did emitters. was we're mentioned using and that making Steve of Samsung R&D paper there presented Well, regarding progress said

paper excited So that that the was SID. at presented we've about about and excited we're we're made the progress

Shannon Cross

And then last just question.

more that in As of there second ramp, what's with hopefully, or XXXX on be the of breakpoints should launching that’s and terms potential to in based going might aware China. as going phones, be in half we then concerned some large about volumes volatility. about U.S. the we customer think for cause any that and Are OLED the

Sid Rosenblatt

[Multiple price. you accounting, Speakers] say under it's When XXX an average

is price built average under XXX. the the accounting So, into

per taken any when discounts, average up So or per or into all kilogram. with you or and gram price resets, are price come your effect

Operator

Muse question. is C.J. next Evercore. question from The with Please proceed of your

C.J. Muse

progressed quarter, that rates? inventory to And question, considering through on particularly thoughts in, terms quarter. you guide in coming initial in first demand to Korea? your of didn't out guess lower how love improvements relates of thoughts the surprises things as expected coming utilization versus than as the hear your think it into or We'd yield you for that, I any

Sid Rosenblatt

ability was just demand everything in Obviously, difficult because disruption the and manufacturer of to of disruption because a COVID-XX. the in

very yes, and anticipated we call was weak on never when this quarter as honest, to it we, up. picked our be really So, perfectly

C.J. Muse

the I And actually considering go But here I materials to your guess in you growing now off makes March, cease largest moving raccelerated and in started guess June when to December second question, the it I fall truly starts do deferred it customer. question the start in decelerate. quarter sense and have if to that the But direction? to revenues, think is, other

Sid Rosenblatt

is business Obviously, a fees material we and from supply. get down this still paid The were material our sales quarter customers.

sales so the material both. you saw So weak, because on the the were deferred portion long-term up and current go revenue

expect the around the start that of to half start second turn we as So, up to pick sales year. material in

C.J. Muse

And well, a three, How OVJP one about implications through of considering think I'll year? everyone's should the the as third OpEx remainder investment. to asking the we the ask

Sid Rosenblatt

in really OpEx. change don't see We any

for excluding go hire up was we're We and expect to XX%, question to We continuing OpEx XX% have at time been actually really amortization still doing by looking the folks. some year timing. quite this the to for

really a future, because on so staying the our term And the we plan we for short that is build blip. know to are just continue this

as impact OpEx our not intended. should it So,

Operator

from next Sachs. The question is of Goldman Lee Brian

Brian Lee

LG, if customer quarter, Just a and this also more Samsung BOE in down aggregate. was China lot revenue the like and I at look looks per than it

on then to the we your quarter. last from through buy BOE pre-buys read customers. multiple Are quarter-over-quarter that, is the there? to So, is quarter had fair on more to I the assume spread it last out they And of based did since most related inventory trends that it was assume, fair Samsung based stock But QX on it said quarter? buffer you this across know the from

Sid Rosenblatt

related not terms way you to not did correct getting are our pre-purchases pre-purchases should or is logistics, Well, customer But A and talk Q. the their And issues and we through as we the to we whether that related of in the up work pre-purchases, picks have so in don't Samsung COVID-XX situation and this that and demand that, shipping. were it. that issues shipping, customs the believe based customer-by-customer who in in they and through would customers, have of receiving upon an been trade economic and when or terms impact we talk

so able though rates that really And shut never particularly very turn they believe this as factories but even use factory to low we their production they've down they're up their their are inventory. picks up and up, utilization should that

Brian Lee

QX orders, QX to in also pick TVs based the the smartphone customer or this, referencing, Are seeing the board. out was more just soft then And is visibility related know I on you up you're pickup the it across early in there?

Sid Rosenblatt

that in if and does mean C, are a customer is out you is which A customer who figure I can manufacture B customer TVs. they you and B, A, it Well, look customer at so

Brian Lee

Yes, but I smartphone that guess related sounds the it. differently pick in you’ve orders. any I QX, reported in pockets QX to specific But versus was like Are your just, of I'll up QX, rephrase business it you seen seeing results in some not TV? maybe

Sid Rosenblatt

across into specifics, it's going board. Without the think I

Operator

SIG. of is Mehdi proceed question next question. Hosseini with your from The Please

Mehdi Hosseini

strategy number papers presentations of the I go At also regarding micro and has deep want were publicly Samsung back their diversifying blue. about as on LED it Display the and talked commentary to Week, a relates TV. to to same there

I different paper something that trying was can reconcile I with and a if doing? to everything missing? they're they're there else I’m follow-up. how technologies, that you, is or So have presented Thank just if better I'm pursuing the understand multiple that

Sid Rosenblatt

obviously, still honest, an things. OLEDs is at future and conference been still but a it. everybody, and Kindles displays always SID, that unanswered of of the continue program micro E-Ink folks But to there's and But have about the lot up, research lots to R&D still be everybody things there's are we And of making of believe we different will technology. across that they're questions LEDs the know grow. pop that a at and Well, lots board and looks look with are things different

So, huge as aware. it's you're industry a well

Mehdi Hosseini

then with significant I'm growth go RGB investment just past, in in us help or understand and on market, And is there's the I'm the with expanding us? end XXXX wondering talked if comments there you share like And for XXXX. there diversification the and tablets in wondering to of you've want capacity additional it you seems China the for can back past, that if And has I talk can to into OLEDs. about notebooks, market versus continued any

Sid Rosenblatt

approximate Well, in the 'XX terms of increase of stated we in we end of capacity XX% the of we the on about the call, that. 'XX last talked capacity, as installed end through and still see

you other fabs Chinese we know building And is TV it has multiple that a that and Guangzhou -- that are new facility. building that. fabs. believe haven't customers its BOE anything change has seen in has China LG We will LG they're

we still see terms about think of change it's growth. not can looks we pandemic, what still And that so, things in it like talking XX% we're very but I are area just confident unless really one the approximately still

Operator

comes question from Andrew DeGasperi Berenberg. your question. next with Our of Instructions] Please [Operator proceed

Andrew DeGasperi

Just had a China. quick on one

Just or since can capacity you the fabs last production February? -- beyond of cause things in improvement for trying in us mean, I six of terms aspects the an on months of to been going pandemic. terms update give any and maybe seen their on you technical there what's have

Sid Rosenblatt

that talk we we support our our Chinese all Well, BOE their we And rates, can't because believe think -- have in that's have and obviously business. of OLED customers, in the there's is capacity it's their will data. they a successful I this production to through curves very successful will go very utilization but we major seen, some that learning they all be that about they their But, proprietary business. all customers And player. be and just

Andrew DeGasperi

in terms models? Samsung say technology could of terms meaningful refresh Would out. the the you film technology And spur and of XXX improvement other rolled hertz refresh, and that's of IT additional adoption OLED in dynamic potentially that product? that then, And the a

Sid Rosenblatt

Well, we of sells screens think because that more efficiency for all so more them and everybody's part they're your is of the And display visual battery screen seeing and using that important drains people. our is using a we're display, you're these your products, using power major what phosphorescent is their larger then which material having more, and more larger larger, because the screens battery. and drains and get

refresh the us. So, great we quality rates industry think for any great is improvements and for the and picture is in

Andrew DeGasperi

then generally OVJP, made terms one this know reach in a did just already I was independent is you was to commercial that of sort Or And planned for this of production? into with someone all and some wondering, on that just next you to was enough one sort initiative. planned just partner the on this bring technology it last comments of just of along you've I the milestone technical step else? that maturing

Sid Rosenblatt

color results a green we're displays. XX our make We've In our progress the that so We that scaling red, blue and a facility, ourselves. made system, full -- technology which substrate think great in lot can lifetime. results, early of up we've on got is we

talked green about we see lifetime. can You

all best this So, and efficient the at let manner. technology intend look in do to the is most to and come the with commercialized get we what Jeff options do up path

Operator

question. your Company. proceed question Needham of next with Please Ricchiuti Jim is The from and

Jim Ricchiuti

effects this has if China, that I'm pickup have and Or pickup tell you Korea? been color seen you able regions, or was pronounced countries, any the give seeing could in feeling least and you're both of be recovery been which early? the the at wondering July whether us us that? Can COVID on to both China more coming from in has might

Sid Rosenblatt

seen across board, it's think both. the I Jim. We’ve from it

Jim Ricchiuti

that regarding like at papers fair when I then assume not conference. And paper papers gave typically that this. just the Samsung in the to say? that is this guys would input and first the you And SID are some have probably these given, Is

Sid Rosenblatt

get to blue projects an we need that deep blue display phosphorescent really Well, don't this acknowledge used R&D blue and at and talking the and presented R&D best they that were the specifically the emitter first anybody is display. emissive in customers. a material. the this it's But most and what fact paper looking anything about talk that is our essentially, efficient this time like our a Samsung you power and literally doing is has about project it with And phosphorescent

Jim Ricchiuti

But it's guess that surprise, was would you I paper a coming? knew not I’d the assume complete

Sid Rosenblatt

Yes.

Jim Ricchiuti

say when coming? you Can it knew you was

Sid Rosenblatt

the third until was I these The believe were becoming it Web keeps And public quiet site. them. days then papers actually SID ago the paper, believe fourth it the the through I that SID that, on was publish or two they papers

that to came you access So have go it's there out. this ago days of purchase the I think And to couple and a content.

Operator

from question. The next with is Oppenheimer. proceed question Martin your of Yang Please

Martin Yang

on talk capacity expected? than your maybe year's that China, that addition the you in months or view -- is this slower about ramp three you tracking Can or capacity think up below compares to ago? and how ahead, Do

Sid Rosenblatt

COVID-XX running getting schedules, would rates I have factory terms also ago. associated all other of of up a because employees we utilization that Well, in that and the anticipated to fact because the think of And of the they and during actual honest, the not than the this everything pandemic. year opening is fabs be and issues production are get with factory could of slower

Yes. down. don't one something obviously all is term is the long a But just think I anticipated do so. This slow think We it's that slower? think there's some to impact? OLED industry going it's So, this that all long-term, no we think and of We and do cause positive.

Martin Yang

I that more addition, have in or forecasts 'XX addition of capacity capacity magnitude additions XXXX. 'XX moved in the year? into the change your for delays past capacity think estimates Would some being over meaning stated in next capacity, you

Sid Rosenblatt

Well, we and that be we don't right been difference. wise? happening. months Yes. year the things there number do that of slippage no increasing of There's really going year, in do us we or But anything built ended Could happening. that any the end think now, glass square of capacity. 'XX meters real is wise 'XX, see are approximately that not six the that not it's be quarter XX% we to Everything makes into not announcements end the see

Operator

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

Sid Rosenblatt

Thank Thank you and And night. you. all for call a joining safe you today. all the good we wish

Operator

conference. today's concludes This

may disconnect. You now

Universal Display (OLED) 6 Aug 202020 Q2 Earnings call transcript