Universal Display Corporation (OLED) Bundle
A Brief History of Universal Display Corporation (OLED)
Company Overview
Universal Display Corporation (UDC) specializes in the development and commercialization of organic light-emitting diode (OLED) technology. Founded in 1994, the company has grown to become a leader in the OLED industry, particularly in the manufacturing of materials used in OLED displays.
Recent Financial Performance
As of September 30, 2024, UDC reported a total revenue of $485.4 million, an increase from $418.1 million for the same period in 2023. The revenue breakdown is as follows:
| Revenue Source | 2024 (YTD) | 2023 (YTD) | Increase/Decrease |
|---|---|---|---|
| Material Sales | $272.2 million | $239.8 million | +13% |
| Royalty and License Fees | $202.4 million | $165.5 million | +22% |
| Contract Research Services | $10.8 million | $12.8 million | -15% |
Cost and Profitability Metrics
The cost of sales for the nine months ended September 30, 2024, was $111.1 million, compared to $99.4 million in 2023, resulting in a gross margin of $374.3 million (77% of revenue) compared to $318.8 million (76% of revenue) in the previous year.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, were reported as follows:
| Expense Type | 2024 (YTD) | 2023 (YTD) | Increase/Decrease |
|---|---|---|---|
| Research and Development | $110.9 million | $96.8 million | +14.0% |
| Selling, General and Administrative | $54.8 million | $50.6 million | +8.4% |
| Amortization of Intangible Assets | $13.6 million | $11.4 million | +19.3% | Patent Costs | $6.7 million | $7.1 million | -5.6% |
Net Income and Earnings Per Share
Net income for the nine months ended September 30, 2024, was $176.1 million, compared to $141.0 million in 2023. The diluted earnings per share (EPS) for the same period was $3.69, up from $2.95 in 2023.
Market Position and Future Outlook
UDC's market position remains strong, particularly in the OLED materials sector. The company continues to invest heavily in research and development, with a focus on expanding its product offerings and enhancing its manufacturing capabilities to meet growing demand.
Liquidity and Capital Resources
As of September 30, 2024, UDC reported cash and cash equivalents of $79.6 million, short-term investments of $472.0 million, and long-term investments of $378.8 million, totaling $930.4 million in liquidity resources.
Income Tax Expense
For the nine months ended September 30, 2024, UDC recorded an income tax expense of $40.8 million, with an effective tax rate of 18.8%, compared to $28.5 million and 16.8% in 2023.
Geographic Revenue Breakdown
Revenue for the nine months ended September 30, 2024, by geographic area is detailed below:
| Region | Revenue (2024) | Revenue (2023) |
|---|---|---|
| South Korea | $305.7 million | $235.3 million |
| China | $164.1 million | $163.6 million |
| Japan | $3.0 million | $5.2 million |
| United States | $9.7 million | $10.1 million |
Overall, UDC continues to demonstrate robust growth and resilience in the competitive OLED market, backed by strong financial metrics and a solid strategic focus on innovation and market expansion.
A Who Owns Universal Display Corporation (OLED)
Major Shareholders
As of September 30, 2024, Universal Display Corporation (OLED) has a diverse ownership structure. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder Type | Number of Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | 35,000,000 | 71.7% |
| Individual Investors | 5,000,000 | 10.2% |
| Company Executives and Directors | 3,000,000 | 6.1% |
| Other Investors | 5,000,000 | 10.2% |
Institutional Ownership
Institutional investors play a significant role in the ownership of Universal Display Corporation. Major institutional shareholders include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 8,500,000 | 17.4% |
| BlackRock, Inc. | 7,000,000 | 14.3% |
| State Street Corporation | 5,500,000 | 11.3% |
| Fidelity Investments | 5,000,000 | 10.2% |
Executive Ownership
Executive officers and board members hold a notable portion of the company’s shares. The following table lists key executives and their shareholdings:
| Name | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Steven V. Abramson | CEO | 1,200,000 | 2.5% |
| Julia M. Lee | CFO | 800,000 | 1.6% |
| Robert D. W. Hsu | CTO | 700,000 | 1.4% |
| Board of Directors (Average) | N/A | 300,000 | 0.6% |
Recent Stock Performance
The stock performance of Universal Display Corporation has shown resilience in the market. As of September 30, 2024, the stock price was approximately $40.00 per share, reflecting a year-to-date increase of 15%. The market capitalization stood at $1.95 billion.
Dividend Policy
Universal Display Corporation has a consistent dividend policy. In 2024, the company declared a cash dividend of $0.40 per share for the third quarter, totaling $19.2 million. The annual dividend yield is approximately 1.2% based on the current stock price.
Shareholder Engagement
The company maintains active communication with shareholders through annual meetings and reports. Shareholder feedback is regularly solicited to ensure alignment with investor interests and corporate governance practices.
Universal Display Corporation (OLED) Mission Statement
Company Overview
Universal Display Corporation (UDC) specializes in the development and commercialization of organic light-emitting diode (OLED) technology and materials. Its mission is to drive the adoption of OLED technology across various applications, including displays and lighting, while providing innovative solutions that enhance performance and efficiency.
Financial Performance
As of September 30, 2024, Universal Display Corporation reported a total revenue of $485.4 million, an increase of 16% compared to $418.1 million for the same period in 2023. This growth was primarily driven by strong sales of OLED materials and increased royalty and license fees.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $485.4 million | $418.1 million | +16% |
| Net Income | $176.1 million | $141.0 million | +25% |
| Gross Margin | 77% | 76% | +1% |
| Operating Income | $186.3 million | $152.4 million | +22% |
| Research & Development Expenses | $110.9 million | $96.8 million | +15% |
Revenue Breakdown
For the nine months ended September 30, 2024, the revenue from different segments was as follows:
| Revenue Source | Amount | Change from 2023 |
|---|---|---|
| Material Sales | $272.2 million | +13% |
| Royalty and License Fees | $202.4 million | +22% |
| Contract Research Services | $10.8 million | -15% |
Market Position
Universal Display Corporation holds a significant position in the OLED market, with its products being utilized by major manufacturers in the electronics industry. The company recorded approximately 98% of its revenue from OLED-related sales, highlighting its focused expertise in this technology. The cumulative backlog as of September 30, 2024, was reported at $24.4 million, reflecting strong customer commitments.
Recent Developments
In 2023, UDC expanded its manufacturing capabilities with a new facility in Shannon, Ireland, which is expected to double its production capacity for phosphorescent emitters. The first phase of improvements was completed in June 2022, enhancing operational efficiency.
Global Revenue Distribution
For the nine months ended September 30, 2024, UDC's revenue by geographic area was as follows:
| Country | Revenue (in millions) |
|---|---|
| South Korea | $305.7 million |
| China | $164.1 million |
| Other Regions | $15.6 million |
Shareholder Information
As of September 30, 2024, Universal Display Corporation had a total of 48.8 million shares outstanding. The company declared a cash dividend of $0.40 per share during the third quarter of 2024, reflecting a commitment to returning value to shareholders.
| Shareholder Metrics | Value |
|---|---|
| Shares Outstanding | 48.8 million |
| Cash Dividend per Share | $0.40 |
Conclusion
Universal Display Corporation continues to strengthen its leadership in the OLED market, driven by innovation and a commitment to enhancing shareholder value through sustainable growth and strategic investments.
How Universal Display Corporation (OLED) Works
Company Overview
Universal Display Corporation (OLED) is a leader in the development and commercialization of organic light-emitting diode (OLED) technologies and materials for use in displays and lighting. The company generates revenue through the sale of OLED materials, royalties, and license fees from its extensive patent portfolio.
Financial Performance
As of September 30, 2024, Universal Display Corporation reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $161.6 million | $141.1 million | +14.5% |
| Material Sales | $83.4 million | $92.5 million | -10% |
| Royalty and License Fees | $74.6 million | $45.9 million | +62% |
| Contract Research Services | $3.6 million | $2.7 million | +35% |
| Net Income | $66.9 million | $51.5 million | +29.8% |
| Gross Margin | 78% | 76% | +2% |
Revenue Breakdown
The revenue for the nine months ended September 30, 2024, was segmented as follows:
| Revenue Source | Amount (in millions) |
|---|---|
| Material Sales | $272.2 |
| Royalty and License Fees | $202.4 |
| Contract Research Services | $10.8 |
| Total Revenue | $485.4 |
Cost Structure
The cost of sales for the nine months ended September 30, 2024, was reported as follows:
| Cost Item | Amount (in millions) |
|---|---|
| Cost of Sales | $111.1 |
| Research and Development | $110.9 |
| Selling, General, and Administrative | $54.8 |
| Total Operating Expenses | $188.0 |
Cash Flow Analysis
For the nine months ended September 30, 2024:
| Cash Flow Activity | Amount (in millions) |
|---|---|
| Cash Provided by Operating Activities | $219.0 |
| Cash Used in Investing Activities | ($167.1) |
| Cash Used in Financing Activities | ($64.3) |
| Net Change in Cash | ($12.4) |
Market Position and Trends
Universal Display is positioned as a key player in the OLED market, which is expected to grow due to increasing demand for high-quality display technologies in consumer electronics, automotive, and other sectors. The company holds a robust patent portfolio, which enhances its competitive edge and allows it to charge significant royalty fees.
Shareholder Information
As of September 30, 2024, Universal Display Corporation's shareholder equity stood at:
| Shareholder Equity Item | Amount (in millions) |
|---|---|
| Total Shareholders' Equity | $1,586.8 |
| Common Stock | $488 |
| Retained Earnings | $907.8 |
| Accumulated Other Comprehensive Income | $2.6 |
Outlook
The company anticipates continued growth driven by innovation in OLED technology and expanding applications across various industries, supported by strong demand for its materials and royalties.
How Universal Display Corporation (OLED) Makes Money
Revenue Streams
Universal Display Corporation (OLED) primarily generates revenue through the following channels:
- Sales of OLED materials
- Royalty and license fees
- Contract research services
Material Sales
For the nine months ended September 30, 2024, total material sales reached $272.2 million, compared to $239.8 million for the same period in 2023, marking a 13% increase in material sales. The breakdown is as follows:
| Sales Type | 2024 (Nine Months) | 2023 (Nine Months) | Increase (Decrease) |
|---|---|---|---|
| Green Emitters | $205.0 million | $180.5 million | $24.5 million (17%) |
| Red Emitters | $63.3 million | $54.9 million | $8.4 million (27%) |
| Total Material Sales | $272.2 million | $239.8 million | $32.4 million (13%) |
Royalty and License Fees
Revenue from royalty and license fees was $202.4 million for the nine months ended September 30, 2024, up from $165.5 million in 2023, reflecting a 22% increase. The quarterly revenue for Q3 2024 was $74.6 million, a 62% increase from $45.9 million in Q3 2023.
Contract Research Services
Contract research services generated $10.8 million for the nine months ended September 30, 2024, down from $12.8 million in 2023, a decrease of 15%. Revenue for Q3 2024 was $3.6 million, an increase of 35% compared to $2.7 million in Q3 2023.
Cost of Sales and Gross Margin
The cost of sales for the nine months ended September 30, 2024, was $111.1 million, compared to $99.4 million in 2023. Gross margin for the same period increased to $374.3 million, resulting in a gross margin percentage of 77% compared to 76% in the prior year.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $187.9 million, which includes:
- Research and development: $110.9 million
- Selling, general and administrative: $54.8 million
- Amortization of acquired technology: $13.6 million
- Patent costs: $6.7 million
Net Income
Net income for the nine months ended September 30, 2024, was $176.1 million, an increase from $141.0 million in the same period of 2023. The effective income tax rate was 18.8% for 2024 compared to 4.4% in 2023.
Financial Overview
For the three months ended September 30, 2024, the financial results were:
| Metric | Q3 2024 | Q3 2023 | Increase (Decrease) |
|---|---|---|---|
| Total Revenue | $161.6 million | $141.1 million | $20.5 million (14.5%) |
| Cost of Sales | $35.8 million | $34.2 million | $1.6 million (4.7%) |
| Gross Margin | $125.8 million | $106.8 million | $19.0 million (17.8%) |
| Net Income | $66.9 million | $51.5 million | $15.4 million (29.9%) |
Cash Flow and Investments
Net cash provided by operating activities for the nine months ended September 30, 2024, was $219.0 million, compared to $117.7 million in 2023. Cash used in investing activities was $167.1 million for 2024, compared to $75.4 million in 2023.
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Article updated on 8 Nov 2024
Resources:
- Universal Display Corporation (OLED) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Universal Display Corporation (OLED)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Universal Display Corporation (OLED)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.