OLED - Earnings call transcript Q1 2024 | Universal Display Corporation

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Operator

Good day, ladies and gentlemen, and welcome to Universal Display Corporation's First Quarter 2024 Earnings Conference Call. My name is Sherry, and I will be your conference moderator for today's call. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the conference over to Darice Liu, Senior Director of Investor Relations. Please proceed.

Darice Liu

afternoon, good and you, everyone. Thank Display's Welcome Earnings Call. Quarter to Universal Conference First

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

remind me Universal is written portion consent the of redistribution, of let begins, call Any prohibited. Steve you today's any a Display. of call rebroadcast or Display expressed in of strictly that retransmission this Universal property is any without Before form

available that made a webcast This the live only webcast and time X, call, live this Universal period as of the Further, is on May be of XXXX. call being call will contains is of for Display's website. this of time-sensitive date information accurate

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

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

Steven V. Abramson

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

million of now to of will that continuing million. revenues start momentum strong $X.XX are Operating $XXX strong Revenue annual $XX was net our OLED and per we first profit and a range results We $XXX diluted With to raising was $XXX in to We or pleased quarter report low year build, was believe the income million be million. our share. for of XXXX. our $XX the million are the guidance range. to end XXXX

and segment significant Since the Razor HP, OLED is to are MSI, new industry, including introductions beginning market. horizon. year, new OLED that IT the products, of we of role poised the IT expected Dell, announced the Acer, [indiscernible] displays. OLEDs a more of continue number As makers Blade shaping significant ASUS, product for and the in the look growth several device future in on there a play to

market are tablets by year-over-year, 'XX. units million XXXX to expected units to According to more OLED million XX.X in than X.X from in Omdia increase growing threefold research,

XX% market that notebook year-over-year from million will PC The units grow 'XX. to units This researcher in units forecast expected X.X from million mobile units translates million units X.X in in PC reach the total market. display also of OLED 'XX is into just mobile to to million units and by XX.X XX% in X.X units growing 'XX XX.X total represents million OLED which XXXX XXXX,

Asan. growth IT Samsung in early and XX,XXX this start strong mass is to The OLED line held the X.X OLED March, per its a of XX OLED begin fab is month construction equipment This Gen XXXX. in this quarter Gen plans line Samsung IT of IT year. for in in equivalent per production is for groundbreaking ceremony estimated plates new production in of month production capacity. begin to the In for first XX,XXX expected million per is the to Also March of laptop BOE's X.X an Chengdu. be to producing of capable and fourth held designed plates greenfield ceremony was panels world's OLED XXXX. Supporting Display reports, installation commencement According year fab

benefits With continue fuel of of this that we investments beginning as reports preparing the OLEDs continued market. penetration CapEx is growth cycle. believe for And well, other new in many to panel multiyear just OLED are the that the a makers smartphone

X% with year-over-year by year-over-year. OLEDs OLED year-over-year increasing XX% DSCC flexible 'XX, Market expects increasing units smartphone increase OLED rigid Research and to in XX%

Congress. makers could and enabling the to see a and display foldable well rollable technology both Research and to XXXX your of and garner versatility the in rollable foldable rollout designs, foldable evident in XX.X IT tablet OLEDs World continue OLEDs a show, OLED XXXX OEMs, panel as million wrap smartphones and the double XX.X reaching with including interest can tablets consumers. slidable and of screen XX% forecasts fans folded popularity at devices, size. smartphone that shipments of At grow and units. was products innovative The will The and be that that extend conformable, into Mobile panels foldable are wrist almost UBI could units by as year-over-year foldable out, displays coupled how convenience from of around from innovative significant million

TV also in are from units XXXX According grow year. more to year. by increase this this TVs shipments expected than OLED units million X.X X.X million OLED to will year-over-year to Omdia, XX%

it of aviation. Egyptair, batch viewing Airways black. image perfect Iceland be been of Panasonic this OLED has Air's available a it its that clearer Airlines Avionics, first adopt similar with quarter segment According forthcoming Airbus is quality Airlines, image installed month, commercial also of that the are delivers experience off also and screens. in Arabia is one United to Another monitors. Qatar the that ever XK better Panasonic beginning to a and to OLED will of it OLED in in-flight aircraft OLED the before that on These Last aircraft. take the Qantas, fourth sharper, Saudi notes planning monitors market entertainment and Panasonic's beginning announced of Avionics Panasonic quality shipped XK the year. the infinite is contrast provides XK new Astrova ratio,

products the in We enabling and OLED are today of the for future. opportunities excited extraordinary the

As of forward. engine expands been and reach reinforces our the we our our the that has propels company, leadership is to cornerstone us It position, innovation ethos. our look

to Our steadfast. commitment innovation is

reds, meet yellows the Our and customer R&D developing ever-changing teams specifications. to designing, continuously are inventing, commercializing next-generation and hosts and ever-evolving greens,

blue, commercial our development ongoing phosphorescent excellent in blue for to continue make system. we Regarding work emissive progress a

into a meets blue introduce specifications track are on to that XXXX. We believe phosphorescent commercial to continue in market that we the

phosphorescent across a our materials broad of expansion emissive green efficiency of and the OLED that performance red, higher opportunities energy phosphorus includes unlock higher blue range that portfolio of for and will applications. vast array a believe We

Regarding printing OLED please advancements the SID UDC, to The make without printing learn San for at weeks continues on week X TVs technology our more with or our novel display vapor our OVJP OVJP, need team we scaling Jose. jet manufacturing platform. is year's focus solvents. booth organic to masks for away. visit To than continue less This about technology direct

On turn that Brian. call to note, over me the let

Brian Millard

you, Thank you, thank everyone, Steve. for And our today. again, call joining

first million strong was Our Revenue of the first across year-over-year in up million, quarter XXXX. board. the $XXX results XX% were from quarter $XXX

were our quarter first in emitters, material to emitter to of million This million green material compares sales $XX million the of which year's to Our prior include the sales quarter the in Green sales, yellow total were quarter. first the XXXX. compared million million. $XX $XX of compares This $XX quarter The XXXX. in $XX were first in Red sales million. emitter $XX

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

quarter $X.X quarter license million $XX million. the compared fees $XX to were was the of year's quarter in million, and royalty to compared first XXXX. Adesis' $X.X revenue million First prior first period of

gross XX%. sales $XX million, the gross quarter in XXXX. This First margins total of first was translating million of of quarter and of compares margins XX% total to $XX cost into

this margins negatively did reserve We $X.X million As were inventory not impacted by you provision. a may quarter recall, our first gross last inventory quarter. increase year's

royalty operating onetime sales million. costs first was amortization quarter million. XXXX, First was to and the higher The In cost quarter expenses, excluding expenses, it a and increase expense. of $XX employee due $XX of year-over-year were increased license

continue continue into the first invest increase to XX%. operating our to margin margin XXXX translating we our compares global in of year was innovation XX% the in million to of as engine. $XX This people, our We expect XX% operating and year-over-year infrastructure $XX period Operating million and of quarter, to prior income OpEx to XX%.

the in XX% quarter was first rate tax income of XXXX. The

the tax to effective expect approximately be We XX%. our year for rate

quarter First or the increased period or to the million per and quarter share. net cash This XX% in cash, to diluted by investments. with share XXXX XXXX. compares million million $XX per comparable $XXX diluted $X.XX ended more We $X.XX $XX equivalents approximately year-over-year than income in in

the June XXXX, June now $XXX be XX, record $X.XX to believe XXXX. cash a positive Directors to be Regarding dividend, The on on our continued of Board reflects our Steve will expected stockholders capital to XX, dividend of our our and business return in shareholders. approved million close quarterly commitment $XXX the XXXX as lastly, to generation of of which flow of shared, guidance, And paid we range as million. revenues will

With that, back call I'll turn to Steve. the

Steven V. Abramson

Brian. Thanks,

month, immense filled As am achieved what approach in I XXth UDC's we anniversary pride we have next together. with

that has journey by materialization distant marked innovation, dreams. the Our products and been exponential incredible growth were once of relentless

OLED of of OLED and performance where thrives from culture have seen technology industry. developed continuous efficiency, and an invention development challenge at enabling driving fostered of next-generation discovery, and We in and as remain to the delivery and the opportunity enhancing where creativity the We the forefront technologies. a every OLED is materials phosphorus

market, we be the possibilities that collaborative continue await to of trailblazers, exciting us gate horizon growing to will the committed As our excellence. we cast forward partners in OLED to and

desire, of dedication each their and and for I in accomplishments shaping to drive, Universal Display's like closing, would and employees our heart In thank advancements. elevating

and for superior to for our cutting-edge being the shareholders. committed and are achieving materials growth OLED ecosystem, and leader for long-term the in delivering We customers a our technologies industry,

Q&A. And with let's that, the start operator,

Operator

question from Krish Sankar first TD is Our with Instructions] [Operator Cowen.

Hadi Orabi

on is question Eddy ask Congrats blue. Krish. for strong a results. This like on high-level to I'd

content. that past, be the the green as blue content phone much in OLED an mentioned as think can you I inside

from if $XXX So made like year, million green at coming you I look sales revenues last alone.

it forward be revenue can to more blue a should if question first to million? few $XX $XX ramp it, going is, of my we call go kind a generating please. million, may So of where quarter over then ramp XXXX so, the terms Or X green from X overall have the be up, like big stick hockey years? next follow-up, expect would as we like, it see And a gradual how be in can as it opportunity? and I is like And million blue

Brian Millard

is here. Brian This Eddy. Thanks, Yes.

questions. good So

green the couple blue the said, and the terms answer red, as you true yes, our set previously your fact is quantity our yellow there. display, similar question To a is blue. customers. we green number in potential, to any As to of blue green still that in apart as of quantity currently that said pricing of the material of there's a One well a don't the emitters display includes revenue of that with side-by-side disclosed green we is and pull have things we've

adoption know customer the across there's more base how So and we the need curve, that the to in our broadly. significant time. And evolves blue terms in in over market see we of interest

to up on really that think determine line. customers, over plays our will we So there It's out be certainly what that and how though, adoption time to time. exactly

Hadi Orabi

the That's Got pricing, it. be terms you the blue helpful. consumption will using what it's the had terms feedback Can guys And in on of product. the in has you pricing far? about guess, guys shipping with been so far you or like so something . like whether talk blue lowering the been when of I value power based else, customer eventually have

Brian Millard

Yes.

-- So this the also that or the benefits have. material addition of we to in to and phosphorescent apply red blue technology fluorescent green over or

more energy is it efficient. So

We've efficiency of blue adding increase roughly by energy to estimated material a that display it. probably in there's XX% a

we've customers. development of million sales We QX. been in so material sampling had to $X.X And

sales and the we development so we compared And continues direction, had XXXX expect move year. that positive sales be last to blue to a development to in up

this to on So we're the said, progress continue development. need track for Steve we that on like specs make year. as right hitting to continue we commercial the feel And

Hadi Orabi

again. Congrats

Operator

Brian with Our next from Goldman Lee question is Sachs.

Brian Lee

sequentially? XQ when seasonality I take sort probably last starting rest historically full tailwind a for know that strong is off annual Everyone above the the probably QX being growth this the year Obviously, on of here if Can sense off QX give you you year, knows I for the Brian does a first quarter, haven't guidance. big XQ. to you're here. you it half levered already for alluded been note. very to Because cycle fall no But a iPad starting and this you're midpoint of of assume guide. the year. basically a of guess off gave we us in you product your launch

I sense for to QX rest X. here a And So just result then your get what follow-up for trying or implies of a the seasonality? had

Brian Millard

Yes. Thanks, Brian. Yes.

be it as this we've half a going point, first pretty orientation you on more of balanced prior seems and know, this in know at the So typically, year, And second what to between we had, second it's half like to revenues based of year. years. the

on know what our and forecast based we current this at of that's time. So

Brian Lee

Okay.

the this being the some conclusion year, second more growth So your casing Is you're first versus has half base equal the half a right meaningful typically, comments? half. to the that second from of half first

Brian Millard

That's right. Yes.

Brian Lee

for And helpful. just kind then seasonality a here. and higher a of ever is with customer line Again, customer there in of from the us them by second can then give most that, material question also QX is having customer structure maybe of for is you were you? this that much tandem how the your abnormal that any ] sense That's tailwind in us, They if demand revenue on Or in you this, helped this Okay. only them. here. is coming your contribution are biggest we've And a from How yield a seen much driving applies. Korean tier that being new particular? capacity, effect remind that can is [ issues for more

Brian Millard

Yes.

drove of obviously increase customer terms comment that's customer QX, to on revenues. the in that -- any what therefore and and the in production we can't sales that more Obviously, were So there material sense. in

the especially market, are And place. the IT on to products in coming newer tandem side, do some of that have

So we that's can about comment as much on. that

Operator

Our Ricchiuti Company. Jim Instructions] with & from is [Operator Needham question next

Chris Grenga

for stepped and Chris Jim. There a R&D Grenga expense a bit is sequential on on up is This basis year-over-year. a

if that? any on you additional curious could color provide Just

Brian Millard

materials. to Sure. increase. we continuing new Chris, inventing in an in did QX, see We're invest

were There So SG&A I R&D increase. affected to and an higher periods. some costs employee prior has both also in that think compared

it's a outside of higher with some combination expenses well So as really employee-related we that expenses as had development parties.

Operator

Thank you.

I question-and-answer call to turn have like for over or remarks. closing additional We Brian to reached session. the of our end any the would Millard back

Brian Millard

today. and for Thank you We time support. our call joining your appreciate all

Operator

concludes conference our This call today.

disconnect. You now may

Universal Display (OLED) 2 May 242024 Q1 Earnings call transcript