Universal Display

Universal Display reports its Q2 2018 financial results

Universal Display reported its financial results for Q2 2018 - with revenues of $56.1 million and a net profit of $10.8 million (without the impact of UDC's new accounting system, the revenues would have been $73.6 million and the net income $25.1 million).

UDC says that the first quarter was the bottom for material shipments for 2018, in Q2 materials sales improved and the company believes that the second half of 2018 will see more growth as it anticipates new OLED smartphones from leading brands - including Apple, Google, Samsung and more. UDC estimates that for 2019, the install base of OLED capacity by meters will increase by around 50% compared to 2017.

Visionox signs a long-term license agreement with Universal Display

China-based OLED producer Visionox signed a long-term licensing and material purchase agreements with Universal Display. UDC will supply its phosphorescent OLED materials to Visionox. UDC did not disclose the details or financial terms of these agreements. This follows the evaluation agreement signed by UDC and Visionox in February 2018.

Visionox is producing PMOLEDs, AMOLEDs and flexible AMOLEDs, and the company demonstrated some very impressive displays at SID Displayweek last month. Last month Visionox announced that it has started to produce flexible OLEDs at its new 6-Gen fab in Hebei.

UDC reports its financial results for Q1 2018

Universal Display reported its financial results for Q1 2018. Revenues were $43.6 million, and net income was $6 million. These results were lower than the company expected, due to a slowdown in the premium smartphone market, the company's new accounting standard and the inventory pre-purchase the company reported in Q4 2017.

UDC PHOLED materials photo (2017)

UDC is revising its 2018 guidance lower, to $280 million to $310 million. UDC expects the OLED market to remain week in the second quarter, but sees a pickup in OLED demand in the second half of 2018. In 2019, UDC expects significant growth to resume.

DSCC lowers its OLED material revenue forecasts, published Samsung's latest OLED stack

DSCC lowered its OLED material revenue forecasts, saying that the market is expected to grow at a 25% CAGR from $773 million in 2017 to $2.35 billion in 2022 (down from its previous estimates of $2.56 billion in 2022). The fastest growing (51% CAGR) OLED application will be OLED lighting, which will grow from $12 million in 2017 to $95 million in 2022.

Samsung Galaxy S9 material stack (DSCC)

DSCC also published the material stack for Samsung's latest OLEDs (used in the Galaxy S9), which you can see above.

UDC reports an excellent Q4 2017, but guidance for 2018 is lower than expected

Universal Display reported its financial results for Q4 2017. Revenues reached a record $115.9 million, up 55% from $74.6 million in Q4 2016. Revenues from material sales were $59.8 million (up 105% from $29.2 million in Q4 2016). Net income was $57.9 million (up from $23.1 million in Q4 2016).

UDC emitter and host materials photo

UDC concluded a very successful 2017. Revenues were $335.6 million (up 68% from $198.9 in 2016) and net income was $103.9 million (up from $48.1 million in 2016). Net income included a onetime charge of $11.5 million from the Tax Cuts and Jobs Act. Net cash generated in 2017 was $133 million.

DSCC: the OLED material market will reach $2.56 billion in 2022

Display Supply Chain Consultants (DSCC) says that OLED material revenues grew 43% to reach $869 million in 2017. DSCC expects the OLED material market to grow at a 24% CAGR until 2022, when the market will reach $2.56 billion.

OLED material revenue by type (2016-2022, DSCC)

The small/medium display market accounts to about 59% of the total OLED material market, and this will continue until 2022. For the TV market, DSCC expects ink-jet printing to enable producers to make lower the material costs of OLED TV production, and OLED TV materials will grow at a rate of 23%, from $344 in 2017 to $963 million in 2022.

UDC and Samsung Display sign new long-term PHOLED materials and technology supply agreements

Universal Display announced that it has signed long-term OLED material supply and license agreements with Samsung Display. UDC will continue to supply its PHOLED phosphorescent OLED materials and technology to Samsung Display for use in its OLED displays. The agreements are scheduled to run through December 31, 2022, and may be extended for an additional two-year period.

UDC PHOLED materials photo (2017)

UDC did not disclose the financial terms of these new agreements, but we do know that Samsung will pay a license fee throughout the agreement period. The previous UDC-SDC agreement ended on December 31st 2017, but for the past month and a half the two companies still conducted business of course as SDC's OLED production was not halted.

Visionox signs an OLED evaluation agreement with UDC

Universal Display announced that Visionox (GVO) signed an OLED evaluation agreement. Under this agreement, UDC will supply GVO with its phosphorescent OLED materials for display applications. UDC did not provide any more details or financial terms.

Visionox booth at the Shenzhen hi-tech fair 2017

Visionox started mass producing AMOLED panels in June 2015, at the company's Gen-5.5 AMOLED line in Kunshan. Visionox is also constructing a $4.5 billion 6-Gen production line in Hebei that will have a monthly capacity of 30,000 substrates, and will be mainly used to produce flexible AMOLEDs. Production should begin in mid-2018.

UDC and Sharp announced an extended and updated PHOLED material evaluation agreement

Universal Display announced today that Sharp has signed an extended and updated evaluation agreement. Under this new agreement, UDC will supply its phosphorescent OLED materials and technology to Sharp Corporation for use in the Company’s OLED displays. Details and financial terms of the agreement have not been disclosed.

UDC PHOLED materials photo (2017)

Sharp recently confirmed that the company aims to start commercial OLED production in Q1 2018 in its Osaka fab and will introduce new smartphones with its own OLED in June or July of 2018. In October 2016 Sharp announced that it will invest $570 million and build OLED pilot lines at its plants in Osaka and in the Mie Prefecture.

UDC did not yet sign a new agreement with SDC, which expired on December 31 2017

In August 2011 Samsung signed a long-term license agreement with Universal Display which allowed Samsung to acquire and use UDC's patented phosphorescent OLED materials. That important agreement (which generated hundreds of millions in revenues for UDC over the years) expired on December 31, 2017.

UDC announced yesterday that it is in on-going discussions regarding a formal long-term extension of these agreements (the patent license agreement and the OLED material purchase agreement). UDC expects SDC to continue buying materials during these discussions. No time frame has been established for the completion of these discussions.

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