OLED 8-K
Universal Display Corp \Pa\ (OLED)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 5, 2022, the Registrant issued a press release regarding its financial results for the quarter ended March 31, 2022. A copy of the press release is furnished as Exhibit 99.1 to this report.
The information set forth under this “Item 2.02. Results of Operations and Financial Condition” (including the exhibit) shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference in any filing made by the Registrant pursuant to the Securities Act of 1933, as amended, other than to the extent that such filing incorporates by reference any or all of such information by express reference thereto.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
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Description |
99.1 |
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Press Release by the Registrant, dated May 5, 2022, furnished pursuant to Item 2.02 of Form 8-K. |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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Universal Display Corporation |
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Date: May 5, 2022 |
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By: |
/s/ Sidney D. Rosenblatt |
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Sidney D. Rosenblatt |
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Executive Vice President, Chief Financial Officer, Treasurer and Secretary |
Exhibit 99.1
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Press Release |
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Universal Display Contact: |
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Darice Liu |
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+1 609-964-5123 |
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Universal Display Corporation Announces First Quarter 2022 Financial Results
EWING, N.J. – May 5, 2022 – Universal Display Corporation (Nasdaq: OLED), enabling energy-efficient displays and lighting with its UniversalPHOLED® technology and materials, today reported financial results for the first quarter ended March 31, 2022.
“We are pleased to report solid first quarter 2022 results,” said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display Corporation. “As we look out, we believe that consumer electronic OEMs, panel makers and the ecosystem are setting the stage for a significant new wave of OLED capital investments and OLED market proliferation. Amid this growing OLED market momentum, we continue to make excellent progress in our ongoing development work for a commercial phosphorescent blue emissive system. We reaffirm our belief that we are on track to meet preliminary target specs with our phosphorescent blue by year-end, which should enable the introduction of our all-phosphorescent RGB stack into the commercial market in 2024.”
Rosenblatt continued, “We believe that the trajectories of the OLED market and of the Company continue to be very bright. With more than two-and-a-half decades of experience and know-how, we are broadening our core competencies, bolstering our worldwide footprint and expanding our global team to fuel our strategic initiatives and increase our first-mover competitive edge. As a key OLED innovations partner, we believe we are well-positioned to continue to participate in a myriad of exciting opportunities that lie ahead in the near-term, mid-term and long-term.”
Financial Highlights for the First Quarter of 2022
Revenue Comparison
($ in thousands) |
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Three Months Ended March 31, |
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2022 |
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2021 |
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Material sales |
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$ |
86,691 |
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$ |
79,808 |
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Royalty and license fees |
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59,802 |
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50,886 |
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Contract research services |
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3,977 |
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3,306 |
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Total revenue |
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$ |
150,470 |
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$ |
134,000 |
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Cost of Materials Comparison
($ in thousands) |
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Three Months Ended March 31, |
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2022 |
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2021 |
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Material sales |
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$ |
86,691 |
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$ |
79,808 |
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Cost of material sales |
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29,920 |
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20,999 |
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Gross margin on material sales |
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56,771 |
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58,809 |
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Gross margin as a % of material sales |
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65% |
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74% |
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2022 Guidance
The Company continues to believe that its 2022 revenue will be approximately in the range of $625 million to $650 million. The OLED industry remains at a stage where many variables can have a material impact on its growth, and the Company thus caveats its financial guidance accordingly.
Dividend
The Company also announced a second quarter cash dividend of $0.30 per share on the Company’s common stock. The dividend is payable on June 30, 2022 to all shareholders of record on June 16, 2022.
Conference Call Information
In conjunction with this release, Universal Display will host a conference call on May 5, 2022 at 5:00 p.m. Eastern Time. The live webcast of the conference call can be accessed under the events page of the Company's Investor Relations website at ir.oled.com. Those wishing to participate in the live call should dial 1-877-524-8416 (toll-free) or 1-412-902-1028. Please dial in 5-10 minutes prior to the scheduled conference call time. An online archive of the webcast will be available within two hours of the conclusion of the call.
About Universal Display Corporation
Universal Display Corporation (Nasdaq: OLED) is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. Founded in 1994 and with subsidiaries and offices around the world, the Company currently owns, exclusively licenses or has the sole right to sublicense more than 5,500 patents issued and pending worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED® phosphorescent OLED technology that can enable the development of energy-efficient and eco-friendly displays and solid-state lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training. To learn more about Universal Display Corporation, please visit https://oled.com/.
Universal Display Corporation and the Universal Display Corporation logo are trademarks or registered trademarks of Universal Display Corporation. All other company, brand or product names may be trademarks or registered trademarks.
# # #
All statements in this document that are not historical, such as those relating to the projected adoption, development and advancement of the Company’s technologies, and the Company’s expected results and future declaration of dividends, as well as the growth of the OLED market and the Company’s opportunities in that market, are forward-looking financial statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this document, as they reflect Universal Display Corporation’s current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties are discussed in greater detail in Universal Display Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including, in particular, the section entitled “Risk Factors” in Universal Display Corporation’s Annual Report on Form 10-K for the year ended December 31, 2021. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document.
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and per share data)
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March 31, 2022 |
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December 31, 2021 |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
357,424 |
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$ |
311,993 |
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Short-term investments |
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325,055 |
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351,194 |
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Accounts receivable |
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104,947 |
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107,639 |
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Inventory |
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143,240 |
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134,160 |
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Other current assets |
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29,120 |
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20,948 |
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Total current assets |
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959,786 |
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925,934 |
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PROPERTY AND EQUIPMENT, net of accumulated depreciation of $97,979 and $92,461 |
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131,879 |
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128,832 |
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ACQUIRED TECHNOLOGY, net of accumulated amortization of $178,782 and $173,635 |
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44,521 |
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49,668 |
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OTHER INTANGIBLE ASSETS, net of accumulated amortization of $7,918 and $7,565 |
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9,370 |
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9,711 |
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GOODWILL |
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15,535 |
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15,535 |
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INVESTMENTS |
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164,130 |
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168,076 |
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DEFERRED INCOME TAXES |
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35,788 |
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33,453 |
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OTHER ASSETS |
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126,222 |
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135,710 |
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TOTAL ASSETS |
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$ |
1,487,231 |
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$ |
1,466,919 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
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$ |
27,064 |
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$ |
14,955 |
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Accrued expenses |
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26,960 |
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45,474 |
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Deferred revenue |
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111,778 |
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120,864 |
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Other current liabilities |
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12,452 |
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6,645 |
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Total current liabilities |
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178,254 |
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187,938 |
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DEFERRED REVENUE |
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31,735 |
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36,217 |
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RETIREMENT PLAN BENEFIT LIABILITY |
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67,481 |
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66,773 |
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OTHER LIABILITIES |
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78,461 |
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76,077 |
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Total liabilities |
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355,931 |
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367,005 |
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SHAREHOLDERS’ EQUITY: |
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Preferred Stock, par value $0.01 per share, 5,000,000 shares authorized, 200,000 |
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2 |
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2 |
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Common Stock, par value $0.01 per share, 200,000,000 shares authorized, 49,099,830 |
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491 |
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491 |
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Additional paid-in capital |
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658,050 |
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658,728 |
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Retained earnings |
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535,936 |
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500,212 |
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Accumulated other comprehensive loss |
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(21,895 |
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(18,235 |
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Treasury stock, at cost (1,365,648 shares at March 31, 2022 and December 31, 2021) |
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(41,284 |
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(41,284 |
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Total shareholders’ equity |
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1,131,300 |
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1,099,914 |
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
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$ |
1,487,231 |
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$ |
1,466,919 |
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in thousands, except share and per share data)
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Three Months Ended March 31, |
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2022 |
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2021 |
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REVENUE: |
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Material sales |
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$ |
86,691 |
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$ |
79,808 |
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Royalty and license fees |
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59,802 |
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50,886 |
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Contract research services |
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3,977 |
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3,306 |
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Total revenue |
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150,470 |
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134,000 |
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COST OF SALES |
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33,163 |
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23,298 |
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Gross margin |
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117,307 |
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110,702 |
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OPERATING EXPENSES: |
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Research and development |
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26,545 |
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23,305 |
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Selling, general and administrative |
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21,062 |
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16,404 |
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Amortization of acquired technology and other intangible assets |
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5,498 |
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5,488 |
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Patent costs |
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1,798 |
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1,835 |
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Royalty and license expense |
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154 |
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112 |
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Total operating expenses |
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55,057 |
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47,144 |
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OPERATING INCOME |
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62,250 |
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63,558 |
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Interest income, net |
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291 |
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133 |
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Other (loss) income, net |
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(34 |
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59 |
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Interest and other income, net |
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257 |
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192 |
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INCOME BEFORE INCOME TAXES |
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62,507 |
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63,750 |
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INCOME TAX EXPENSE |
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(12,537 |
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(12,063 |
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NET INCOME |
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$ |
49,970 |
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$ |
51,687 |
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NET INCOME PER COMMON SHARE: |
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BASIC |
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$ |
1.05 |
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$ |
1.09 |
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DILUTED |
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$ |
1.05 |
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$ |
1.08 |
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WEIGHTED AVERAGE SHARES USED IN COMPUTING NET |
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BASIC |
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47,369,764 |
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47,267,921 |
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DILUTED |
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47,440,281 |
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47,329,704 |
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CASH DIVIDENDS DECLARED PER COMMON SHARE |
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$ |
0.30 |
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$ |
0.20 |
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
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Three Months Ended March 31, |
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2022 |
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2021 |
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CASH FLOWS FROM OPERATING ACTIVITIES: |
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Net income |
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$ |
49,970 |
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$ |
51,687 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Amortization of deferred revenue and recognition of unbilled receivables, net |
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(64,106 |
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(57,648 |
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Depreciation |
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5,627 |
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4,263 |
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Amortization of intangibles |
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5,498 |
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5,488 |
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Change in excess inventory reserve |
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84 |
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667 |
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Amortization of premium and discount on investments, net |
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(271 |
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(70 |
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Stock-based compensation to employees |
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6,085 |
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5,200 |
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Stock-based compensation to Board of Directors and Scientific Advisory Board |
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430 |
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330 |
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Deferred income tax (benefit) expense |
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(1,380 |
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515 |
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Retirement plan expense |
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1,359 |
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2,228 |
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Decrease (increase) in assets: |
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Accounts receivable |
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2,692 |
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(9,066 |
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Inventory |
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(9,164 |
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(10,498 |
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Other current assets |
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(3,525 |
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5,400 |
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Other assets |
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9,488 |
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(7,133 |
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Increase (decrease) in liabilities: |
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Accounts payable and accrued expenses |
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(4,261 |
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(21,136 |
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Other current liabilities |
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5,807 |
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(666 |
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Deferred revenue |
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45,891 |
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53,000 |
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Other liabilities |
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2,384 |
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6,935 |
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Net cash provided by operating activities |
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52,608 |
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29,496 |
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CASH FLOWS FROM INVESTING ACTIVITIES: |
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Purchases of property and equipment |
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(10,751 |
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(9,938 |
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Purchases of intangibles |
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(12 |
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(298 |
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Purchases of investments |
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(24,915 |
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(4,220 |
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Proceeds from sale and maturity of investments |
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50,240 |
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100,000 |
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Net cash provided by investing activities |
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14,562 |
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85,544 |
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CASH FLOWS FROM FINANCING ACTIVITIES: |
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Proceeds from issuance of common stock |
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403 |
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348 |
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Payment of withholding taxes related to stock-based compensation to employees |
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(7,896 |
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(9,634 |
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Cash dividends paid |
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(14,246 |
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(9,487 |
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Net cash used in financing activities |
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(21,739 |
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(18,773 |
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INCREASE IN CASH AND CASH EQUIVALENTS |
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45,431 |
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96,267 |
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CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
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311,993 |
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630,012 |
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CASH AND CASH EQUIVALENTS, END OF PERIOD |
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$ |
357,424 |
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$ |
726,279 |
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The following non-cash activities occurred: |
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Unrealized loss on available-for-sale securities |
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$ |
(5,031 |
) |
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$ |
(66 |
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Common stock issued to Board of Directors and Scientific Advisory Board that was |
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300 |
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300 |
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Net change in accounts payable and accrued expenses related to purchases of property and equipment |
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2,077 |
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(27 |
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