Universal Display Corporation Announces Fourth Quarter and Full Year 2021 Financial Results

Universal Display Corporation, enabling energy-efficient displays and lighting with its UniversalPHOLED^® technology and materials, reported financial results for the fourth quarter and full year ended December 31, 2021.

“2021 was a year of growth, R&D milestone achievements, new customer agreements, continued market recognition, and diversification and expansion of our global manufacturing footprint with PPG,” said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display Corporation. “During the year, our revenue grew to a record high of $554 million, we extended our long-term agreements with LG Display, Visionox Technology and Tianma Micro-electronics, and jointly announced with PPG the establishment of a new manufacturing site in Shannon, Ireland, for the production of our highly efficient, high-performing UniversalPHOLED materials. In addition, we were recognized by the Financial Times as one of The Americas’ Fastest-Growing Companies, by Newsweek as one of America’s Most Responsible Companies for the second year in a row, awarded a Silver rating for corporate social responsibility from EcoVadis, and recognized once again by The Forum of Executive Women as a Champion of Board Diversity.”

Rosenblatt continued, “Leveraging over 25 years of ‘vision, innovation and reality’, Universal Display’s brilliant team of scientists and engineers continue to discover, develop, and deliver next-generation, state-of-the-art OLED materials and technologies. With respect to blue, given recent advancements, we believe that we are on track to meet preliminary target specifications with our phosphorescent blue by year-end 2022, which should enable the introduction of our all-phosphorescent RGB (red, green and blue) stack into the commercial market in 2024. We believe that the commercial introduction of our full-color emissive stack has the potential to unlock a vast array of opportunities for higher energy-efficiency and higher performance across a broad range of OLED applications.”

Financial Highlights for the Fourth Quarter of 2021

• Total revenue in the fourth quarter of 2021 was $146.2 million as compared to $141.5 million in the fourth quarter of 2020.
• Revenue from material sales was $85.8 million in the fourth quarter of 2021 as compared to $62.5 million in the fourth quarter of 2020.
• Revenue from royalty and license fees was $56.0 million in the fourth quarter of 2021 as compared to $75.0 million in the fourth quarter of 2020.
• Cost of materials was $29.2 million in the fourth quarter of 2021 as compared to $24.6 million in the fourth quarter of 2020.
• Operating income was $56.5 million in the fourth quarter of 2021 as compared to $65.8 million in the fourth quarter of 2020.
• Net income was $45.9 million or $0.96 per diluted share in the fourth quarter of 2021 as compared to $53.9 million or $1.13 per diluted share in the fourth quarter of 2020.

Revenue Comparison

Cost of Materials Comparison

Financial Highlights for the Full Year 2021

• Total revenue for the full year 2021 was $553.5 million as compared to $428.9 million for the full year 2020.
• Revenue from material sales was $318.6 million for the full year 2021 as compared to $229.7 million for the full year 2020.
• Revenue from royalty and license fees was $219.0 million for the full year 2021 as compared to $185.1 million for the full year 2020.
• Cost of materials was $104.4 million for the full year 2021 as compared to $75.9 million for the full year 2020.
• Operating income was $227.6 million for the full year 2021 as compared to $157.5 million for the full year 2020.
• Net income was $184.2 million or $3.87 per diluted share for the full year 2021 as compared to $133.4 million or $2.80 per diluted share for the full year 2020.

Revenue Comparison

Cost of Materials Comparison

2022 Guidance

The Company believes 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 first quarter 2022 cash dividend of $0.30 per share on the Company’s common stock. The dividend is payable on March 31, 2022 to all shareholders of record on March 17, 2022.

Conference Call Information

In conjunction with this release, Universal Display will host a conference call on Thursday, February 23, 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 5,000 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.