UDC Result 11/08/2015

Universal Display Corporation (UDC) swung to a net loss in the second quarter of the year of $11.7 million, from a net profit a year earlier of $20.4 million. Turnover in Q2 declined 9.4% year on year to $58.1 million from $64.1 million in the second quarter of the previous year. For the first six months, UDC recorded a net loss of $10.4 million on turnover of $89.3 million, which compares with a net profit for the corresponding period of last year of $24.4 million on turnover of $101.9 million. UDC said that its second quarter net loss reflected a $33 million write-down of inventory, primarily of an existing host material and associated work-in-process, resulting from a customer’s faster-than-expected reduction in demand for this material. (UDC said in its comments on its results that this was because of a switch in supplier by Samsung and that the big inventory was because the lead time for the unsold material was around nine months – Man. Ed.)