OLED - Earnings call transcript Q3 2020 | Universal Display Corporation

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Darice Liu

Thank you. Good afternoon everyone. Welcome to Universal Display's Third Quarter Earnings Conference Call.

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

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

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

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

Steve Abramson

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

we customers, programs. priority health our our operations, growth remains advancing of this and safeguarding safety to on employees, pandemic, our and face While and growing our the community, strategic and business uncertainties partners, during continue

of $XXX $XX.X We million net ,and report per results or third operating diluted profit are $X.XX pleased of quarter $XX.X million in to of million revenue, income share.

extended a As we straight noted and in August pickup significant saw orders conference second customer July quarter we during that's into our September. call, in and earnings

revenues in COVID-XX range persist, in fourth current to the Looking million believe estimates, on to ongoing strength will continued million. the the we quarter. see to be near-term, $XXX relating XXXX pandemic while of $XXX uncertainties Based the we

models consumer online, are new expect the to and as XXXX market comes production consumer in electronic continue with their to applications. and electronics resume own we beyond, customers we and new to new growth. and grow meaningful activity plan, new advance to As OLED continues models commercialization OLED launched look broaden OLED

Pro support unveiled over iPhone its All and XX all Max, recently four Apple front, OEM XX iPhone models, series. the have Mini, XG XX and XX, the On XX displays. Pro,

on resolution higher to X Within how jump at. and be the LCD, for the panel ever. to each This the website, as at illuminate turned all The 'unlike dramatic.' which light is up contrast light, is consumer to X OLED', huge a the HDR increasing contrast, noted accuracy, delivers difference backlight Apple all completely and color you brighter to they own goes pixel OEMs and nits we've pixels for electronics their way content. display darker OLED is iPhone true produce million the consumers ever can Apple incredible density. its blacks, 'vastly blacks get brilliant X,XXX will iPhone is everything factor. As to to iPhone edge' under from display landscape fat in highlighted look pixels makers Apple link once. all it best best the off form more the to to XX and emit you LCD header, from OLED That's described ratio. topic display also brights, 'the way the the is the made

into that The Z conformable, versatility glass, In metal a you thin successfully to panel announced layers, the display folding on September delivers from Wing Fold commercialized a world’s LG's OLED mini Samsung that Previewed with and to inch opens foldable OLED conjunction already market OLED opens be X.X a the advanced orientation factor. or monitor OLEDs products. are outward to tablet. foldable that it XX.X X swivel are X.X as Samsung splash also display inch In flexibility a a can screen Fold with X form screen aware, near you and exterior Lenovo are film XX Also they inch launched rollable, of form a the a perfect equivalent X.X launch, Microsoft growing for the displays Galaxy XG in consumer smallest exciting designs, more fueled with launch inherently of demand with many inch multitasking of to a a screen month. OLEDs used with with or and inch reviews, by quality As has amid flexible landscape; And landscape first a Samsung's XXX image X.X manufacture higher the ThinkPad essentially are much officially is to third a and X Royale PC FlexPai ideas, The rising foldable to great of new can Dual an degrees with the application in X.X tablet. in smartphone, is folded foil smartphone a of levels and launched usage content further screen desktop Duo devices inch Fold foldable the in and and commercialization, screen smartphone, which curvature making display plastic. September X.X in X.XR. rapid X.X reveal equivalent outstanding Samsung OLED second generation increase into was the noted August gaming. world's can to IT, folds last main inch for has that clamshell. inch screen, the X.X factor that Surface launched inch tablet underneath or a that as

virtual foldable week, Microsoft folded that the recently as to IT or a and used the OLED been reportedly large a when foldable of in that Sales the appear of XX-degree Electronics be TV XX-inch collaborating keyboard Intel, can reported bottom South monitor at the Korea. first laptop commercialize Speaking Samsung announced Electronics, half its notebooks. could a as at angle In developing world’s display or LG they foldables, displays so are on a are XX-inch BOE do TVs, to tablet display. wanted a in rollable last

contribute smooth and the and individual is unrivaled deliver a entertainment beyond ability name signifies rollable, TV to the to technology TV also the new pixel space. and the that the But the home to new R button relationship the LG, redefining view directly control possibilities is picture touch that space, benefits. R create by quality. dimming LG XX-inch between liquid the but that noted not leverage OLED disappear only consumer supreme in innovate that As at of that in TV LG’s TV hardware, a surrounding self-lighting represents boosting display advanced the revolutionary from the Signature flexible TV can

LG’s bring subway an transparent China. Also windows passengers first cars such clear merging are they picture in Shenzhen beneficial world’s TV XX-inch are Another the in OLED XX mid-August information, characteristic OLED transparent In with Xiaomi experience.' seem as news. the newly as glass or flights, plastic and mounted unveiled unprecedented and a LG OLED visual real-time schedules, and as built. of the Transparent it Line announced display around for to X provide description OLED virtual mid-August, on Beijing on of the to the OLEDs pixels which the with transparent supply real Display the transparency. floating is air XX-inch are is substrate to subway weather 'the it Line train

industries. such LG, mobility smart cars, in only by subways, smart your from of building customers self-driving areas noted the from as panel the and home are but As interest and gaining sectors airplanes always not also

retinopathy. supplying the they transparency they of able will to has delivers a complication produce of blindness namely The retinopathy is are dose of treat rate. self if lighting, diabetes with consumer treat a to over and automotive into continues hours. broaden medical always precise help that imagination OLED technology, untreated. offers red definition the X,XXX world of mask BOE UDC’s lifetime therapy transform mask Switching gears demonstrated OLED In of integrated Pioneer, As backlights, panels are up the a from XXXX to commercial of a used a OLEDs to is to product that in and XX,XXX can a taillight can what automobile be distribution. nits moving that very the be. first to OLED left light maximized in light This exciting sleep in brightness Tohoku OLED sleep Diabetic diabetic cause customer

growing display in the seeing by customer and discussions are activity OLED we encouraged lighting that are markets. the and We pipeline

industry position fuel by mover to extending strong Across our gain leadership we customer customers. momentum, our focused our enabling capabilities, strengthening development continues on and remain amplify As our first our our are expanding fortifying innovation R&D technical the the enlarging OLED product partnerships, engines. company, we efforts, and

phosphorescent the and hosts. breadth great continue our new of including and depth yellows, to and reds, We materials technology greens, portfolios, in strides broadening make

of our support we could work front, efficiency work large ongoing On of for describing and our continue note, dry-direct continuing continue process Nature the UDC’s our to enable architecture our believe other best-in-class focus for make is novel the OLED of in of long-term and the and enhance blue emissive primary our published will excellent R&D This stability that system. with which device progress TVs. lifetime customer Innovation and that We light-emitting the and for remains maskless, solventless, the that groundbreaking our over month, long-term continuing and paper to panels, and OLED roadmap enabling ecosystem and titled, let OLED to Last throughput, printing advance development commercial we phosphorescent OLED high cost-effective turn manufacturing and Sid. of strategic core area blue initiatives of DNA are successes extend path OLED technologies we me in therefore side-by-side part brightness in our organic Plasmonic technologies. competencies enhancement of and invention strengthen our to the pave and On we the success. is devices, and UDC’s these believe for building to work our call our pioneering phosphorescent core panels. will materials scalable, RGB manufacturing materials. that OVJP

Sid Rosenblatt

our for third and And were sequentially Revenues million. third up million Steve. quarter second quarter XXXX joining $XX $XXX XXXX, call everyone thank for you, of today. from quarter $XX million, again, Thank XXXX, you the

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

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

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

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

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

our material in to As With driver we have OLED primary mix. The product this quarter-to-quarter. than past, noted continuing busier roadmaps can grow is margins to their list gross of pipeline in expand and of wins, variance turn models applications and to due the growing customers’ our is OEM ever. momentum, product vary continuing material

Some of materials have cost. on development higher these initial

developmental to margins of result closer XX%. a mix this our XXXX will gross product year’s material commercial materials, that of and As be average we believe

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

or or $XXX over of XX.X%. XXXX-XX, quarter was been ended tax the million quarter’s diluted third our without diluted cash tax equivalents or Third in per year-over-year’s diluted million share. the with or would share. last quarter $X.XX $X.XX $XXX,XXX XX.X%, and $XX share XXXX to per and comparable diluted $XX quarter ASU compares quarter rate for million of per have income the quarter XXXX rate share. of $X.XX We third cash Net per income XXXX $XX.X was This

XXXX lastly, year, of which revenues For of the XX, our that our of be turn be commitment a in record December Steve. million we close the dividend believe reflects $XXX our quarterly And $XXX back dividend, the continued The Board paid to flow approved on will $X.XX million. will stockholders the of generation XXXX shareholders. call will to range to business on as positive XX, that, I of to our December cash capital to return With Directors and expected XXXX.

Steve Abramson

Sid. Thanks,

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Operator

Our Evercore. first We'll Thank Muse now [Operator you, is C.J. Instructions] from coming session. from Abramson. a Mr. question be conducting question-and-answer today

Your line now live. is

C.J. Muse

when large the question. customer for were Thanks afternoon. customer than Chinese Good the your I bit I in taking looks guess breakdown, at stronger it we a expecting. what you. like Thank look Yes. came first question,

how where there? Vivo, burn curious, your just thinking up inventory to headwind through there the follow terms sales you we So through are are that picking Huawei Apple, slack? in with business? of a embargo is the Or Xiaomi about for And

Steve Abramson

customer that through has this believe do was at point. that been We the that -- CJ. inventory Thanks, burned

looks I so that's think strong. it So why

in overall terms on the it the In believe industry, impact issue, that of we have impacts if an going issue is to industry. Huawei the Huawei OLED obviously the everybody

just it impact remains substitution said, intact, then industry us it overall probably that all. a if won’t is you as at and However, growth just really the

C.J. Muse

bullet follow-up there you picture. related then the R better to Obviously, run with And is OLED in bigger by power helpful. XG, but a but to higher gained That's associated across addition also adopting Okay. the picture, materials out. the

would penetration So curious, XG? into you're that OLED in what terms far far relative compare to wins penetration in design of as as How thus XG? of seeing terms you

Steve Abramson

for benefits terms overall consumption. the are is the to in though we and OEMs not answer OLED seeing of think of displays. since Difficult us picture that quality actually in pricing, What power I question make we're

all You're higher introduced. ones new are and the OLED that iPhones, have screens being end seeing others the

that to consumption the require power only the efficiency and believe OLED industry increased of is XG we the So to help OLED screens going that is grow. power going to

C.J. Muse

Thank you.

Steve Abramson

Thanks, C.J.

Operator

Thanks.

next Our Sachs. coming today Goldman is question from Lee Brian from

line Your live. is now

Brian Lee

quarter guidance. had revenues Hey clearly, job I know be to guys. but guess, first I down quarter a Thanks I the taking this year. seasonally the off, it normal tends quarter a softer, quarter. XX% fourth to would on mean the for that great from fourth the questions. take And just the are and the midpoint, on third If isn’t I question,

So into the not to did question, C.J.'s question be, that's and see XQ. maybe in some the XQ owing Huawei situation, maybe pull-forward through would you flowing

Just takes trying very end persisting commentary the quarter? in and demand the here and into context being puts your year the solid the around to get some trends cadence on to of of the fourth

Steve Abramson

obviously I the are utilization guidance production of are for schedules, end rates, OLED question. in primarily we for -- drivers terms panel Brian, issues inventory COVID and the closely. issues, it Thanks, our very market monitoring fab demand, mean, the year-end

We it is. the are with guide comfortable our way pretty

expectations, The tracking consistent is very are something And we’re yeah, closely, is correct. it monitor correct. just So, far quarter that with so math quarter. but only the have you the it’s to our is

Brian Lee

year, you’ve think situation give solid pretty here this trends you’re a it cleared the up. into guidance be ever like to year-end. That’s us sounds July had be I to that us pickup for just Okay, fair and since year, inventory preemptively going The pretty, seems to you expecting cadence enough. know next I but not seen about helpful. And give then, if you’re

be And comps in you’re year. XXXX, that’s next know headwind when world growth are COVID double-digit year think number, year-on-year a going into I look the that before you tough, I I which the to So an you’d in heading and the targeting heading of be had was kind pretty guiding what expectation at of XQ mid-single-digit hit. this not a to growth, year-on-year significant there back to is sort been pandemic but

back I you target What then the you growth? you the do what industry you months always you And here frame part about XX% get in over that of, your sort over that well. path of that there? sort thinking to mention can couple context kind of years, next you did of the is had XX question, if Thanks the that months it how a capacity are confidence have to XX getting the as in context double-digit to So to of gives guys. you growth across still speak that to of Maybe that view outlined intact? next as had

Steve Abramson

QX, year little next is this to as growth guide year, a I next trying very clearly get but issues XX% moving difficult. there. still all of situation particularly will for look bit, capacity, because answer this Brian. lot growth and some your intact. that’s things expectations long-term end was regarding to to try there end out think is and from is a year, be obviously There for of OLEDs It very XXXX shifted for strong. we really think a COVID to installed with the do the overall And that questions, the use may of the XXXX for fluid it at picture the we And of a

be give quarter it next call to And honest, where and will guidance confident now, our it’s said on XXXX. be earnings we in for right you we’re focusing this as tracking should we so we think conference we’re and

Brian Lee

in materials. pretty I on I’ll one if for squeeze wait appreciate makes for XX% some Are materials just greens, bit gross developmental quarter. but Maybe the us that on NextGen material I the got the you quarters, that the it’s enough. I because was reds, explanation. and some the developmental where guess, right revenue? material blue it are could Can Thank any you. sense last at where seeing in and be this the give one, It fair lot of next quarter been in Just happening? you’ve detailed target some you think I Okay, the prior year, mix of host? of, question margins in developmental Are they through a follow-up bags context persistent the sense, XXs. they it NextGen are you margins first would helpful. you’re if actually seeing are in weighing are a in

Steve Abramson

stated we to Brian. I materials, developmental have customer. each we with work we as The do Sure, have customers, more more mean, and

very one all drawbacks more sizes, long we growth engine. feeding we you that and It’s of and or still money materials of commercialize, the and you them our strong customers always we’re to we cost to kick going But going more is picture it up the into we across But putting intact. material. does it pipeline it extent the gross produce. gram we’ve is said, developing. margin is when have and in developmental so per in the economies believe of beginning that per to benefits you’re raw to materials develop more more and production, building of batch that And run, kilogram it’s continue success commercial Our and something And the as start once more that some board. our start is scale, in it’s our or

Brian Lee

Okay, fair Thanks enough. guys. on. pass I’ll it

Steve Abramson

Thank you.

Operator

you. Thank

today Jim question is Ricchiuti from next coming and Our Needham Company. from

live. now is line Your

Jim Ricchiuti

the really QX, fact that expecting Any really Hi, were any newer the down? being some things in products afternoon. the that? potentially I is market? are have timing were particular that the just strength burned to I come drove for it into welcome, reinstating the strongly? there that idea off by Is inventory customers which it China to perhaps be a pursue QX your introduced your you particular started that that thanks. that drove of all wanted Good we Is off that it has obviously more guidance but mean, factors decision?

Steve Abramson

customer year-end some our based feedback like in COVID our tracking right it’s from inventory based of a But guidance now to the obviously quarter Asia, are it’s with and this that are we’d everything to some with utilization are our kick expectations. number fact And and are our analysis where ongoing of consistent Jim, in field honest, team of things, obviously upon upon, there things as discussions today be To is go the at $XXX And million. are upon based to we issues. them we up. million may issues our are rates comfortable for reinstating $XXX there that still know year continue with

Jim Ricchiuti

Got you generated is capacity at very year-over-year that put that also the it. place China, that’s in China --you’ve customer working TV if large in looking seen still And you’re China? with? business your part are that that starting you aside traction growth of the out you’re guess we healthy I of there, of showing and to in players more some of some get Or the

Steve Abramson

it of is little in where factory. is, Chinese list China, a it the we a when a location both, factory has It’s obviously who LG

into biggest into are you China. board the go So China but probably that we in also, And goes seeing when the those that’s factor. geographically, go numbers across strength some

Jim Ricchiuti

if Okay. just think operating say to be expense? I you. question, of OpEx. Thank on And we we Anything that, about may QX as need mindful last just

Steve Abramson

to still and to line talked with we I you. XX% towards the going R&D. it’s Thank No, think weighted in about, we’re that be XX%

Jim Ricchiuti

Thanks lot. a

Steve Abramson

Thank you, Jim.

Operator

Thank you.

question the from Our coming is line Sidney today Bank. Deutsche Ho next of from

live. now line Your is

Sidney Ho

Do that of one third surprised your down last The is launch? I’m is U.S. any OEM other given customer. little was it maybe nicely. Only you especially question. to this year. quarter still than OLED timing year-over-year question of or year, But have smartphone very the down my it's up going taking incentive a largest for year-over-year still clearly on the versus Thanks all Great. why revenue

Steve Abramson

I still really mean, whole we think the pandemic in impacted that QX purchases that. seeing the year. do I the are And and are

Sidney Ho

Okay. of questions couple Maybe balance the on sheet. a

quarter. normally, of down, revenue revenue is up deferred it First have guessed would go all, went but actually I revenue, when this would the stronger expected, than on deferred

normally that the And sheet quite understand the trying QX. to timing Just of then -- indicative accounts and being jump another quarter on the shipments higher don’t that later? is receivable, balance dynamics? of a item just in see we this Is bit is this year just

Steve Abramson

it Obviously, was Well, it. I’ll I you think light question stronger your QX very and inter receivable answer so QX much accounts the was -- is first. and double

course to that see these raising We like operations no and going being receivables issues just of You’re that. grow. with behind there normal is believe it’s and

So I contributed to don’t a with in that have see strong had quarter. And customers multiple issue it continues revenue that, an sales grow. that the result to really deferred is Then, we of we the that.

you’re next years. something that into on is turn right, So sheet to it that of -- is all revenue deferred the revenue going eventually balance the over few

couple going just of So it to where really the next to show in years strengthens we’re to continue grow.

Sidney Ho

curious development, us if published. being paper the share blue quarter following you that paper, Got new any you there with highlighted it. Maybe ask is emitters, one last from to some about last me. Have can

Steve Abramson

by are grow blue. due to not But confidence progress blue to commercial to R&D encouraged we’re details. specs significant we continues meet any initial work to progress. in know We’re on to we’re that making be we provide the more the that until, our But making progress as continued continues specs, we commercial recognize going

Sidney Ho

you. Okay. Thank

Steve Abramson

you. Thank

Operator

Thank you.

Our question next coming is from from DeGasperi Berenberg Markets. Andrew Capital

now Your line is live.

Andrew DeGasperi

few Are thanks COVID-XX quick seeing one questions. Hi, the question. my guidance, question earlier. know next spikes. confident follow-up what obvious I like Is you that know dynamic that today, there the to And change that demand disruption we’re weeks? But, an given seem on to just based I XXXX might if now I go had potentially. that in there might Brian’s a be it give taking anything know you for you could that a

Steve Abramson

putting very have. that because foresee looks right to everything question, together it’s we can think like, we’re good a and need working see what Well, on we that XXXX now -- actually we

I mean, before able correct. and are closed -- it’s and If issue things have places continue be I major not to do are do catastrophes may down production we to it stable real -- that around but stay is world, any if and closed you we the honestly things intent then that don’t and down the that assuming However, customers, pandemic the our cannot continue and believe see is right here. the now pandemic it. our we that,

Andrew DeGasperi

sure of year. And any I’m you in there helpful. share emissive smartphones wondering in with material terms recipe your of one was us, of That’s last been but line the this change terms of customer. in has the versus can just not current if I the number

Steve Abramson

about what be we our recipes talk To really honest, don’t customers' are.

can you. So, answer that for it’s not question I a

with continued market growth pleased is we’re going the just, now. and We’re the where

Andrew DeGasperi

Got it. Thanks much. so

Steve Abramson

Thank you.

Operator

Thank you.

question Shannon Cross next coming from Cross Our from Research. today is

Your is now line live.

Patrick Jackson

Jackson on for This Patrick Shannon. is

one on demand? after strong next or And quarters you’re Thank entrants of OLED TV the about TV for how year? the the changes Just you pricing over production question market what in expect few do TV you. OLED thinking market new overall

Steve Abramson

Thank you.

mean, LG In I TVs. terms about being somewhere between million XXXX think, X market, X I talked of the and million TV

that help think probably to to grow, as come mid-Xs, is not hope the Vizio will grow, ever. we and TVs encouraged the this and our branding continues is and by continues moved I But year we TVs the something XX market the a the for still TVs. OLED historically down leader pricing TV growth control. market continue that’s number rated in to are OEMs and with market in price production that’s OLED Vizio the very but best be into

Patrick Jackson

Thank you.

Steve Abramson

Thank you.

Operator

Thank you.

Citi. from coming Malik is question Atif next from Our

live. now is line Your

Atif Malik

Thank on taking have my questions questions. market. you for TV the also I

and are your if what do crossover sales out said, material to material mobile? of help TV you driven percentage can TV exposed sales or expect when you As

Steve Abramson

entire without units, second based square of I substrate. customer, I’m meters the is it’s mean, glass sorry, our in largest and of terms upon LG

I million OLED XX you So smartphone screen. see Investor in XX to almost get that that’s report, Relations can to million that think you our or once XXX TV equivalent million

So, I million of much mean, TVs. OLED to away, crossover years be, that’s would the that’s get pretty but a or where million before XX you XX number

Atif Malik

profitability on OLED their the Got on work-from-home because for in side? seeing Samsung of that, ramp impact LCD an LCD a LCD about you capacity for And are exit of it. of any yesterday improved and then all delay demand because the projects, monitors talked strategy,

Steve Abramson

to as going bit products, devices. for be honest, and is little by mean, discuss you’re mobile size have we I going OLED XG towers, be I to driven in and OLED earlier mobile No, perfectly products a to new growth think the screens requirements

OLEDs, a out front for Right mobile home at and growth think the now impact is few gaining. monitor the isn’t don’t going work -- It increase monitor On monitors for is are only I sizes because OLED the of sales, actual in the business. they and TVs. to in there’s there that

Atif Malik

also RGB Great. that TV affect What is can in what OVJP? inkjet your your has timing China of an your you printing. technology Star lastly, And using update for in like China and -- it adopting then OLED affect if announced view sales and will revenue XXXX terms fab how will on

Steve Abramson

print inkjet it today. of we terms China firsthand future worked just mean a believe I exists how to Star’s TVs So number experienced we is in mean, is OVJP. announcement, and for technology I for printing of is using that difficult the in that years

both best So our OVJP of deposition worlds. that they technology, work. vacuum using It’s we printing can both and know that so is technology the

is our fine. going customer works, to work think on if something So they that that’s

work of we really the really materials printing believe OVJP. in is that technology, future Our with printed but

Atif Malik

you. Thank

Operator

Instructions] [Operator from Martin is coming next Yang from Oppenheimer. Our question

is now line live. Your

Martin Yang

question. Hi. you for Thank taking my

the OVJP. you as of So, with be maybe just your outline should a OVJP us commercialization expecting follow-up milestones -- you move then and we on development along technology? Can for

Steve Abramson

CEO. out recall, work hiring build years and while probably alpha and Well, is Coast we three three that this R&D progress to -- the away. the for on design to But equipment formed still very, excited as West device the system, that We hired He’s very the commercialization start back continuing OVJP the as we’re people probably you guys may core Hawthorne think about five in we’re summer been and Jeff we’re on architecture making. the Ewing. to the

Martin Yang

semiconductor follow equipment equipment intend work to you eventually with? on on to would partner that, you So design choose within display do own the or all to a your

Steve Abramson

we That’s of options. exploring very a all question. good our now Right are commercialization

Martin Yang

Got you. Thank it.

Operator

you. Thank

coming from Cowen. is from question next Krish Our today Sankar

is live. Your line now

Unidentified Analyst

on for is on question. back sorting one TV the one behalf Krish. my taking this just [Indiscernible] Hi, of market. to Robert last Maybe Thanks

over premium in takes in developing OLED what the the competition Thank puts views your maybe other may the you was with be penetration, Just it’s were see technologies? year terms and TV of and and market, that quantum today how tracking what next whether you. maybe or some

Steve Abramson

Thank you.

at or honest, Obviously, the a walk prices of the that they excited more picture is think you TV that’s I to there. OLED because are and TV reviews. you about panels very LG you one front TVs, someplace getting just more door. market. that always has We’re badging can into like to go I is OLED have And It are rate And only then that, Cosco OEM get adoption a making TVs the that the quality. that when the XX-inch to when see of the to OEMs and more go very And be going who down. is drive in coming Cosco, continuing

everybody and -- it. stares So stops and at

$X,XXX still you that the think TVs, obvious it I believe get do I XX-inch for at can So but is now. premium OLED end,

So much upper the mine. cross and it it is will capacity but of just to factory in goes a premium, just and getting utilization up new they with as market that add not more end do and premium the continue line

that So I going for to about going and I think it XX XXXX estimates XXXX, think excited are XXXX, to I units. very the think million we’re

very I achievable. think that’s

Unidentified Analyst

quarter. Thank congrats Great. the and that, I appreciate you. on

Steve Abramson

you much. Thank very

Operator

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

Sid Rosenblatt

tonight, you the and we you Thank all call all Thank wish to for stay joining you. safe.

Operator

you. conference concludes today’s Thank This call.

disconnect. now may You

Universal Display (OLED) 29 Oct 202020 Q3 Earnings call transcript